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Community activist: If Venicelpark wants to keep its central shopping

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Community activist: If Venicelpark wants to keep its central shopping  [#permalink]

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New post Updated on: 09 Oct 2018, 23:14
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Community activist: If Venicelpark wants to keep its central shopping district healthy, it should prevent the opening of a huge SaveAll discount department store on the outskirts of Venicelpark. Records from other small towns show that whenever SaveAll has opened a store outside the central shopping district of a small town, within five years the town has
experienced the bankruptcies of more than a quarter of the stores in the shopping district.

The answer to which of the following, if true, would most strengthen the community activist’s argument.

A. The community activists in other towns successfully have affirmed the opening of a SaveAll store on the outskirts of their towns.

B. A large percentage of the residents of Venicelpark currently do almost all of their shopping at stores in Venicelpark.

C. In towns with healthy central shopping districts, some of the stores in those districts suffer bankruptcy during a typical five-year period.

D. Most of the employees at the SaveAll store on the outskirts of Venicelpark will be drawn from Venicelpark.

E. Most of the newly opened SaveAll stores never make losses during their first five years of operation.


Similar OG Question: https://gmatclub.com/forum/community-ac ... 81304.html

Originally posted by nailin16 on 22 Jun 2017, 00:17.
Last edited by bb on 09 Oct 2018, 23:14, edited 3 times in total.
Reformatted question
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Re: Community activist: If Venicelpark wants to keep its central shopping  [#permalink]

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New post 23 Jun 2017, 09:58
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Imo E
Took a lot time to arrive at the solution .
So let's decipher what the argument is trying to say , the general trend is that whenever a SaveAll store opens up on the outskirts of a small town , the more than quarter of the shops of town's central shopping district have gone bankrupt .This means they have some advantage over other shops we have to look for that advantage in the answer choices.
Let's examine all choice one by one

A. The community activists in other towns successfully have affirmed the opening of a SaveAll store on the outskirts of their towns.
This does not affect our argument.

B. A large percentage of the residents of Venicelpark currently do almost all of their shopping at stores in Venicelpark.
This comes close but fails , even if they do not do all their shopping from central shopping then also the spos in central district are profitable.

C. In towns with healthy central shopping districts, some of the stores in those districts suffer bankruptcy during a typical five-year period.
This is actually a different line of reasoning and nothing to do with SaveAll.

D. Most of the employees at the SaveAll store on the outskirts of Venicelpark will be drawn from Venicelpark.
Does not impact as new employees can be hired.

E. Most of the newly opened SaveAll stores never make losses during their first five years of operation.
This offers an advantage for the SaveAll maybe they have huge cash reserves for 5 years hence will be able to compete. Bingo this our answer
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Re: Community activist: If Venicelpark wants to keep its central shopping  [#permalink]

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New post 24 Jun 2017, 14:55
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The answer should be 'B'.

'E' says "Most of the newly opened SaveAll stores never make losses during their first five years of operation."

Suppose the stores make losses for first two years but rest of the three years they make huge profits which cause the bankruptcy.
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Re: Community activist: If Venicelpark wants to keep its central shopping  [#permalink]

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New post 24 Jun 2017, 22:28
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C )In towns with healthy central shopping districts, some of the stores in those districts suffer bankruptcy during a typical five-year period.

Records from other small towns show that whenever SaveAll has opened a store outside the central shopping district of a small town, within five years the town has
experienced the bankruptcies of more than a quarter of the stores in the shopping district.

In the absence of SaveAll only some store gets bankrupt while after opening of SaveAll more than quarter of stores in shopping district gets bankrupt . Hence SaveAll is the reason for those bankruptcies.

But the answer is E.
could someone help how to eliminate C
Thanks
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Re: Community activist: If Venicelpark wants to keep its central shopping  [#permalink]

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New post 24 Jun 2017, 23:01
Please explain how is it E and not B. I can not really understand how is it E. Even if SaveAll stores are not making any losses does not mean that stores in central park will suffer.
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Re: Community activist: If Venicelpark wants to keep its central shopping  [#permalink]

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New post 25 Jun 2017, 06:26
Guys I have fallen for B also.Then I have noticed the word whenever in the argument."Records from ... show that whenever SaveAll has opened...within five years the town has experienced bankruptcies."

Whenever is a very strong word and it means that the save all store's winning rate is 100%.So even if all the residence shop from central shopping district,the bankruptcy cannot be prevented.That makes answer choice B wrong.
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Re: Community activist: If Venicelpark wants to keep its central shopping  [#permalink]

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New post 25 Jun 2017, 23:40
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I suppose B is opposite answer.
If they do most of their shopping in the shopping district. Why would they go outskirts to shop.
Does not strengthen in any manner.
E says that Most of them will earn profits.
Implies that - people will go shop over there and the profits of the city are shared with them thereby decreasing the profits of the shopping district inside city.

Hence, E is answer.
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Re: Community activist: If Venicelpark wants to keep its central shopping  [#permalink]

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New post 27 Jun 2017, 12:24
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Hello,I got "C" and on further googling i found that the the OA posted here is wrong.

The OA is indeed "C".

Kindly update the OA.
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Re: Community activist: If Venicelpark wants to keep its central shopping  [#permalink]

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New post 27 Jun 2017, 14:09
key words here are "bankruptcies", "5-year operation" => E because of "losses"
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Re: Community activist: If Venicelpark wants to keep its central shopping  [#permalink]

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New post 27 Jun 2017, 20:59
gmatexam439 wrote:
Hello,I got "C" and on further googling i found that the the OA posted here is wrong.

The OA is indeed "C".

Kindly update the OA.


OA is definitely not C.It's E ,which is correct.
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Re: Community activist: If Venicelpark wants to keep its central shopping  [#permalink]

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New post 17 Aug 2017, 23:51
kannu44 wrote:
C )In towns with healthy central shopping districts, some of the stores in those districts suffer bankruptcy during a typical five-year period.

Records from other small towns show that whenever SaveAll has opened a store outside the central shopping district of a small town, within five years the town has
experienced the bankruptcies of more than a quarter of the stores in the shopping district.

In the absence of SaveAll only some store gets bankrupt while after opening of SaveAll more than quarter of stores in shopping district gets bankrupt . Hence SaveAll is the reason for those bankruptcies.

But the answer is E.
could someone help how to eliminate C
Thanks




Hi,
i eliminated C so let me take a crack at explaining my line of reasoning. First off let us look at what option C suggests - In a typical 5-year period some of the stores in central shopping districts suffer bankruptcy. *This is irrespective of a SaveAll. Whether or not there is a existing SaveAll. I think you are assuming the quantitative magnitude of *some of the stores* vs *quarter of the stores*. There is no indication in the question which one is greater in magnitude.
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Re: Community activist: If Venicelpark wants to keep its central shopping  [#permalink]

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New post 24 Aug 2017, 10:31
kannu44 wrote:
C )In towns with healthy central shopping districts, some of the stores in those districts suffer bankruptcy during a typical five-year period.

Records from other small towns show that whenever SaveAll has opened a store outside the central shopping district of a small town, within five years the town has
experienced the bankruptcies of more than a quarter of the stores in the shopping district.

In the absence of SaveAll only some store gets bankrupt while after opening of SaveAll more than quarter of stores in shopping district gets bankrupt . Hence SaveAll is the reason for those bankruptcies.

But the answer is E.
could someone help how to eliminate C
Thanks

C is a weakner... it basically says that some stores go bankrupt regardless of the existence of SaveAll. Hence you can eliminate this option.
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Re: Community activist: If Venicelpark wants to keep its central shopping  [#permalink]

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New post 24 Aug 2017, 10:37
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Answer is E. Since SaveAll never goes under a loss in the first 5 years and other stores go bankrupt in the same 5 years.. the profits that Save all makes can come from the share of these stores which have gone bankrupt. So Save all can be a reason for their bankruptcy and hence supports the claim of the activitst.

B is the second best answer. However just because most people go to the town to shop , they arent inclined to go to Saveall at all. There must be more information in the argument to substantiate their need to go to SaveAll. such as the discounts at Saveall are better than those at other stores.. the argument just says discount at save all and nothing about the other stores.
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Re: Community activist: If Venicelpark wants to keep its central shopping  [#permalink]

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New post 22 Sep 2017, 16:52
B and D weakens, A is OFS
C repeats the passage and the word "some" shows a weak link, hence C is out.
E is a common pattern b/c E strengthens the record.
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Re: Community activist: If Venicelpark wants to keep its central shopping  [#permalink]

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New post 23 Jan 2018, 22:32
nailin16 wrote:
Community activist: I Venicelpark wants to keep its central shopping district healthy, it should prevent the opening of a huge SaveAll discount department store on the outskirts of Venicelpark. Records from other small towns show that whenever SaveAll has opened a store outside the central shopping district of a small town, within five years the town has
experienced the bankruptcies of more than a quarter of the stores in the shopping district.

The answer to which of the following, if true, would most strengthen the community activist’s argument.

A. The community activists in other towns successfully have affirmed the opening of a SaveAll store on the outskirts of their towns.

B. A large percentage of the residents of Venicelpark currently do almost all of their shopping at stores in Venicelpark.

C. In towns with healthy central shopping districts, some of the stores in those districts suffer bankruptcy during a typical five-year period.

D. Most of the employees at the SaveAll store on the outskirts of Venicelpark will be drawn from Venicelpark.

E. Most of the newly opened SaveAll stores never make losses during their first five years of operation.


E & My LOR:

A) Not relevant, how does that affirmation help in concluding that opening of SA in the outskirts should be prevented...

B) Venicelpark population has to shop somewhere- Inside or outside.....But if large %age of residents shop at stores in Venicelpark, less %age shop outside venicelpark, hence opening of SA outside Venicelpark should not at all be an issue....

C) Instead of strengthening, it some what weakens the position of the activist..Indirectly hints that even in Healthy Central shopping districts Bankruptcy happens....

D) Employees being drawn from inside Venicelpark is not the issue activist is arguing about....

E) Most of the SA stores never made any loss in 1st 5 years of Ops....Premise says " Records from other small towns show that whenever SaveAll has opened a store outside the central shopping district of a small town, within five years the town has experienced the bankruptcies of more than a quarter of the stores in the shopping district".

Meaning we don't know if SA is directly the cause but there is a co-relation with the time period overlap.....Reason could be SA or other economic reasons....If it is due to other economic reasons, then the factors should also affect SA stores and hamper their profitability too.......But if (E) is assumed to be True, then the assumption of "other economic reasons" is ruled out.....So it clearly means More SA stores-->>More Bankruptcy hence supporting the activist's argument directly.
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Re: Community activist: If Venicelpark wants to keep its central shopping  [#permalink]

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New post 05 Apr 2018, 08:53
A, C and D can be quickly eliminated.

The answer boils down to option B or E.

Option B) A large percentage of the residents of Venicelpark currently do almost all of their shopping at stores in Venicelpark.

This means that any new store that is opened anywhere else, will lead some of these shoppers to the other stores. This would lead to a reduction in business.

But, this is not specific to a new SaveAll store, nor is it necessary that the shoppers would migrate. Nor is it necessary that the migration would be so high that the central shopping stores would go bankrupt. The shoppers may have higher loyalty, or may be in a sense of routine or be more comfortable with the current shopping at central stores trend.

So, the opening of any new store may or may not lead these stores to bankruptcy.

Option E) Most of the newly opened SaveAll stores never make losses during their first five years of operation.

This shows that the large discount store continuously makes profit, that means it continuously attracts more customers, continuously attracts more business. Slowly and steadily, over a span of 05 years, sucks the life out of the central shopping area.
This option adds the missing part in option B. This shows that the shoppers actually migrate. This shows that the shopping is reduced in the central area, whereas it has increased in SaveAll.

Option E it is.

nailin16 wrote:
Community activist: I Venicelpark wants to keep its central shopping district healthy, it should prevent the opening of a huge SaveAll discount department store on the outskirts of Venicelpark. Records from other small towns show that whenever SaveAll has opened a store outside the central shopping district of a small town, within five years the town has
experienced the bankruptcies of more than a quarter of the stores in the shopping district.

The answer to which of the following, if true, would most strengthen the community activist’s argument.

A. The community activists in other towns successfully have affirmed the opening of a SaveAll store on the outskirts of their towns.

B. A large percentage of the residents of Venicelpark currently do almost all of their shopping at stores in Venicelpark.

C. In towns with healthy central shopping districts, some of the stores in those districts suffer bankruptcy during a typical five-year period.

D. Most of the employees at the SaveAll store on the outskirts of Venicelpark will be drawn from Venicelpark.

E. Most of the newly opened SaveAll stores never make losses during their first five years of operation.
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Re: Community activist: If Venicelpark wants to keep its central shopping  [#permalink]

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New post 26 Apr 2018, 03:52
i just feel there's too much drama in those explanations about answer choice E
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Re: Community activist: If Venicelpark wants to keep its central shopping  [#permalink]

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New post 22 Mar 2019, 11:55
Can a expert elaborate on the correct answer choice E, and why it is preferred over B? Or if this is a relevant question at all (Link: https://gmatclub.com/forum/community-ac ... 81304.html -> Question is almost identical to this OG question but has a different correct solution)
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Re: Community activist: If Venicelpark wants to keep its central shopping  [#permalink]

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New post 02 Jul 2019, 19:31
can please tell me the reason why option C is wrong!!
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Re: Community activist: If Venicelpark wants to keep its central shopping  [#permalink]

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New post 05 Jul 2019, 00:26
dine5207 wrote:

can please tell me the reason why option C is wrong!!

Community activist: If Venicelpark wants to keep its central shopping district healthy, it should prevent the opening of a huge SaveAll discount department store on the outskirts of Venicelpark. Records from other small towns show that whenever SaveAll has opened a store outside the central shopping district of a small town, within five years the town has
experienced the bankruptcies of more than a quarter of the stores in the shopping district.

C. In towns with healthy central shopping districts, some of the stores in those districts suffer bankruptcy during a typical five-year period.

Let me explain in this way.
Let suppose in your area you have a district centre( a big shopping hub) where people regularly visit and they use to do a lot of shopping from some shops such as Nike, Adidas, and Puma, but they don't shop from local brands. So, now what will happen to them? obviously, they will go bankrupt and they will close their shops, and now suddenly BIG BAZAAR(famous in India) opens at the outskirt to your area. Does the opening of BIG BAZAAR have any impact on the closing of those shops? NO. In the five year period, those small shops would be closed due to other big brands in the local Shopping district.


Hope this helps!!!



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Re: Community activist: If Venicelpark wants to keep its central shopping   [#permalink] 05 Jul 2019, 00:26

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