E-business is gradually taking over from ordinary : GMAT Critical Reasoning (CR)
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Intern
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21 Jul 2004, 23:06
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companies listed on the NASDAQ, the stock exchange index for the new technological
companies, rose on average more than twice as fast as the fastest-rising stocks listed
Dow Jones index.
The argument above contains which of the following assumptions?
a/The share price of e-businesses will continue to rise.
b/The Dow Jones index only lists companies which perform badly.
c/The NASDAQ never lists companies which are performing badly.
d/The Dow Jones index will continue to rise less quickly than the NASDAQ.
e/The companies listed on the NASDAQ are not also listed on the Dow
Jones.
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21 Jul 2004, 23:11
I am stumped.

Definitely, B and C are out. A also seems to be incorrect. D and E are now left. And I'm equally divided between the two. But since I have to select an answer, its D.

Took abt 90 sec for this one.
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21 Jul 2004, 23:26
I chose E , The OA is C .. But how??
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22 Jul 2004, 03:01
When this question was posted by Paul I think, I also answered (E) but the answer correctly is (C). I don't have the link, but will try to explain it here.
(E) says, companies listed on NASDAQ are not listed on DOW Jones. Now this might not be the case, some companies listed on NASDAQ, might be listed on DOW Jones, but overall DOW Jones other major shares (On which the index value really depends) are doing bad then this won't help.

On the Other cosider (C).

If NASDAQ lists companies that are performing badly then the index value itself will decline and then the statement "E-Business ....takeover...." will fall apart.

Let me know if this is of any help!! Else will try to come up with something else.
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22 Jul 2004, 03:14
I don't know the true source of this question but you can find it here http://richardbowles.tripod.com/gmat/cr ... itreas.htm

There are quite a few of such sites on the Internet but after visiting some of them I would not rely on the quality of questions there. ETS has a very distinctive logic and other authors of CRs often do not follow it (even Kaplan and Princeton). Trying to explain the OAs of these questions may actually harm your thinking

So whenever you post a question, can you name the source please
I try to post ETS questions or questions that I think are consistent with ETS logic
22 Jul 2004, 03:14
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