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Diamond Enterprises is a store in Apisville that sells specialty luxury items. For several years, Diamond reaped substantial profits and was considering building branch stores in nearby counties. Stibium Industries, for several years the single largest employer in Apisville and the surrounding region, abruptly closed its plant last year, causing widespread unemployment. Only a fraction of the former Stibium workers have found new jobs, and many of these at much lower wages. Early this year, Diamond Enterprises has filed for Chapter 11 bankruptcy, citing the closure of Stibium as one of the primary causes.
Which of the following inferences is best supported by the passage?
a.)Diamond Enterprises would have avoided bankruptcy if it had followed through with the plan to build branch stores during its more prosperous years.
b.)Stibium’s management team had a corporate account with Diamond Enterprises, and ordered several luxury items used in business meetings and to entertain prospective clients.
c.)Diamond’s direct competitors, in Apisville and in the surrounding region, are much larger than Diamond, and therefore benefitted substantially from the conditions that arose after Stibium closed.
d.)The closure of Stibium resulted in a loss of revenue for Diamond Enterprises.
e.)After Stibium Industry closed, Diamond Enterprises was the single largest employer in Apisville
DE has filed bankruptcy and cited S as the cause. We know that S closed its plant last year. If we combine both these statements, we get an idea that S used to buy stuff from DE , and now because S is not in business anymore, DE is facing some business loss.
a.)Diamond Enterprises would have avoided bankruptcy if it had followed through with the plan to build branch stores during its more prosperous years.
We don't know about this.b.)Stibium’s management team had a corporate account with Diamond Enterprises, and ordered several luxury items used in business meetings and to entertain prospective clients.
But way closure of S was the reason for DE bankruptcy filing. Also, having a corporate account has nothing to do with Bakruptcy filing. c.)Diamond’s direct competitors, in Apisville and in the surrounding region, are much larger than Diamond, and therefore benefitted substantially from the conditions that arose after Stibium closed.
We want to know if there was some negative effect on DE. d.)The closure of Stibium resulted in a loss of revenue for Diamond Enterprises.
Correct answer. That is what we concluded before looking at answer choices.
e.)After Stibium Industry closed, Diamond Enterprises was the single largest employer in Apisville.
Reason for bankruptcy?