It is currently 26 Jun 2017, 14:02

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# Downtown Villieu was once a flourishing business district

Author Message
TAGS:

### Hide Tags

Director
Joined: 29 Nov 2012
Posts: 878

### Show Tags

07 Jul 2013, 01:49
1
KUDOS
3
This post was
BOOKMARKED
00:00

Difficulty:

15% (low)

Question Stats:

81% (01:54) correct 19% (01:06) wrong based on 398 sessions

### HideShow timer Statistics

Downtown Villieu was once a flourishing business district, but most Villieu-area businesses are now located only in the suburbs. The office buildings downtown lack the modern amenities most business operators demand today. To lure more businesses downtown, Villieu officials plan to have several modern office buildings constructed and to offer reduced local tax rates to any business that leases space in a new downtown building.

Which of the following, if true, most threatens the plan's likelihood of success?

(A) Most of the businesses currently located in downtown Villieu have long-term leases on the space they occupy there.
(B) The existing office buildings in downtown Villieu have, on average, a much higher vacancy rate than do office buildings in Villieu's suburbs.
(C) The local tax rates in Villieu's suburbs are significantly lower than downtown Villieu's proposed rate for businesses that lease space in the new office buildings.
(D) Most of the businesses that currently lease office space in downtown Villieu also lease office space in Villieu's suburbs.
(E) With the new office buildings, downtown Villieu would have a greater amount of modern office space than any other downtown business district in the region.
[Reveal] Spoiler: OA

_________________

Click +1 Kudos if my post helped...

Amazing Free video explanation for all Quant questions from OG 13 and much more http://www.gmatquantum.com/og13th/

GMAT Prep software What if scenarios http://gmatclub.com/forum/gmat-prep-software-analysis-and-what-if-scenarios-146146.html

Last edited by Zarrolou on 07 Jul 2013, 01:53, edited 2 times in total.
Renamed the topic, edited OA.
VP
Status: Far, far away!
Joined: 02 Sep 2012
Posts: 1122
Location: Italy
Concentration: Finance, Entrepreneurship
GPA: 3.8

### Show Tags

07 Jul 2013, 01:58
2
KUDOS
Downtown Villieu was once a flourishing business district, but most Villieu-area businesses are now located only in the suburbs. The office buildings downtown lack the modern amenities most business operators demand today. To lure more businesses downtown, Villieu officials plan to have several modern office buildings constructed and to offer reduced local tax rates to any business that leases space in a new downtown building.

Which of the following, if true, most threatens the plan's likelihood of success?

(A) Most of the businesses currently located in downtown Villieu have long-term leases on the space they occupy there.
The plan could still attract NEW businesses.
(B) The existing office buildings in downtown Villieu have, on average, a much higher vacancy rate than do office buildings in Villieu's suburbs.
This is something that does not threatens the plan, because it does not provide any info necessary to evaluate it.
(C) The local tax rates in Villieu's suburbs are significantly lower than downtown Villieu's proposed rate for businesses that lease space in the new office buildings.
CORRECT: the plan wants to attract new business with low taxes, but if those are still higher than the ones of Villieu's suburbs, the plan's success is threatened.
(D) Most of the businesses that currently lease office space in downtown Villieu also lease office space in Villieu's suburbs.
This is not relevant to the plan.
(E) With the new office buildings, downtown Villieu would have a greater amount of modern office space than any other downtown business district in the region.
Again, it does not give us any info to evaluate the plan.
_________________

It is beyond a doubt that all our knowledge that begins with experience.

Kant , Critique of Pure Reason

Tips and tricks: Inequalities , Mixture | Review: MGMAT workshop
Strategy: SmartGMAT v1.0 | Questions: Verbal challenge SC I-II- CR New SC set out !! , My Quant

Rules for Posting in the Verbal Forum - Rules for Posting in the Quant Forum[/size][/color][/b]

Director
Joined: 24 Aug 2009
Posts: 503
Schools: Harvard, Columbia, Stern, Booth, LSB,

### Show Tags

07 Jul 2013, 02:32
Downtown Villieu was once a flourishing business district, but most Villieu-area businesses are now located only in the suburbs. The office buildings downtown lack the modern amenities most business operators demand today. To lure more businesses downtown, Villieu officials plan to have several modern office buildings constructed and to offer reduced local tax rates to any business that leases space in a new downtown building.

Which of the following, if true, most threatens the plan's likelihood of success?
(A) Most of the businesses currently located in downtown Villieu have long-term leases on the space they occupy there. - We are concerned about the business located in suburbs & not in Downtown. Incorrect.
(B) The existing office buildings in downtown Villieu have, on average, a much higher vacancy rate than do office buildings in Villieu's suburbs. - Vacancy rate is higher NOW but we dont have any idea about the vacancy rate for new buildings. Incorrect.
(C) The local tax rates in Villieu's suburbs are significantly lower than downtown Villieu's proposed rate for businesses that lease space in the new office buildings.
- CORRECT. Officials plans to attract new business by offering lower tax rates but the tax rates in suburbs are already lower than the proposed tax rates. Because businesses have no incentive, so they wont come to downtown. CORRECT
(D) Most of the businesses that currently lease office space in downtown Villieu also lease office space in Villieu's suburbs. - OFS. Incorrect
(E) With the new office buildings, downtown Villieu would have a greater amount of modern office space than any other downtown business district in the region. - Will the bew buildings fulfill the requirement of businesses we dont know. Thus incorrect.
_________________

If you like my Question/Explanation or the contribution, Kindly appreciate by pressing KUDOS.
Kudos always maximizes GMATCLUB worth
-Game Theory

If you have any question regarding my post, kindly pm me or else I won't be able to reply

GMAT Club Legend
Joined: 01 Oct 2013
Posts: 10158

### Show Tags

05 Sep 2014, 10:07
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
Senior Manager
Status: On a mountain of skulls, in the castle of pain, I sit on a throne of blood.
Joined: 30 Jul 2013
Posts: 361

### Show Tags

05 Sep 2014, 17:21
Downtown Villieu was once a flourishing business district, but most Villieu-area businesses are now located only in the suburbs. The office buildings downtown lack the modern amenities most business operators demand today. To lure more businesses downtown, Villieu officials plan to have several modern office buildings constructed and to offer reduced local tax rates to any business that leases space in a new downtown building.

Which of the following, if true, most threatens the plan's likelihood of success?
Possible weakeners: V officials are not doing anything to modernise amenities in downtown - the primary reason why offices relocated to the suburbs. Maybe the reduced taxes in the downtown are not enough to compensate the businesses for relocating to downtown and possibly pay for these modern amenities themselves.

(A) Most of the businesses currently located in downtown Villieu have long-term leases on the space they occupy there. This could be a weakener. "Long term leases" could mean that the officials may not be able to clear out space for new buildings, which they propose to make to lure offices from suburbs. Lets keep this aside for the moment.
(B) The existing office buildings in downtown Villieu have, on average, a much higher vacancy rate than do office buildings in Villieu's suburbs. Irrelevant
(C) The local tax rates in Villieu's suburbs are significantly lower than downtown Villieu's proposed rate for businesses that lease space in the new office buildings. Yes! Somewhat along the lines of what we were thinking of before starting the POE. One of the 2 proposals was reduction in local taxes in downtown. But if these taxes are still higher than taxes in the suburbs then coupled with the lack of modern amenities (since the argument never proposed providing modern amenities), businesses would choose not to relocate to downtown and stay in the suburbs.
(D) Most of the businesses that currently lease office space in downtown Villieu also lease office space in Villieu's suburbs. The plan is to lure "more businesses". This option tells us that "some" existing businesses located in suburbs and new businesses may choose to locate downtown. Strengthens the case and hence goes in the wrong direction
(E) With the new office buildings, downtown Villieu would have a greater amount of modern office space than any other downtown business district in the region Irrelevant
Re: Downtown Villieu was once a flourishing business district   [#permalink] 05 Sep 2014, 17:21
Similar topics Replies Last post
Similar
Topics:
3 A successful clothing department store, in a central downtown location 5 10 Aug 2015, 07:58
1 Downtown Villieu was once a flourishing business district, but most 5 02 Feb 2016, 01:40
6 If central business districts were restricted to commercial 13 04 Jun 2017, 07:43
13 Political Commentator: In order for a democracy to flourish, 8 09 Nov 2015, 03:32
1 City official: In order to revitalize our city s downtown 3 08 Nov 2013, 06:30
Display posts from previous: Sort by