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27 Aug 2017, 20:47
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D
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
15%
(low)
Question Stats:
85% (01:31) correct
15%
(01:49)
wrong
based on 205
sessions
History
Date
Time
Result
Not Attempted Yet
Environmental groups have sued GreenClean, the largest recycling company in the world, and accused the firm of negligent handling of chemical waste. The fines and legal fees that the company has incurred as a result of the legal attacks against it have cost the company a significant amount of money. Astonishingly, as successful lawsuits against GreenClean have increased in number, the company has only grown stronger and more profitable.
Which one of the following, if true, does the most to resolve the apparent paradox?
A. Although recycling firms merely handle but do not generate toxic waste, these firms have been held legally responsible for environmental damage caused by this waste.
B. GreenClean has made significant contributions to environmental causes, as have other large recycling companies.
C. Some of the judgments against GreenClean have legally barred it from entering more profitable areas of the waste management business other than recycling.
D. GreenClean's legal hassles have encouraged most of its competitors to exit this field and this deterred potential rivals from entering it.
E. In cases in which GreenClean has been acquitted of charges of negligence, the company has paid more in legal fees than it would have been likely to pay in fines.
Which one of the following, if true, does the most to resolve the apparent paradox?
A. Although recycling firms merely handle but do not generate toxic waste, these firms have been held legally responsible for environmental damage caused by this waste.
B. GreenClean has made significant contributions to environmental causes, as have other large recycling companies.
C. Some of the judgments against GreenClean have legally barred it from entering more profitable areas of the waste management business other than recycling.
D. GreenClean's legal hassles have encouraged most of its competitors to exit this field and this deterred potential rivals from entering it.
E. In cases in which GreenClean has been acquitted of charges of negligence, the company has paid more in legal fees than it would have been likely to pay in fines.
27 Aug 2017, 21:10
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I bet on D
We have to infer that the company ultimately becomes profitable despite the fines incurred facing lawsuit.
In option D the decrease in the number of competitors gives opportunity for company to boost its profit
Sent from my XT1706 using GMAT Club Forum mobile app
We have to infer that the company ultimately becomes profitable despite the fines incurred facing lawsuit.
In option D the decrease in the number of competitors gives opportunity for company to boost its profit
Sent from my XT1706 using GMAT Club Forum mobile app
sobby
Current Student
Joined: 14 Nov 2014
Last visit: 24 Jan 2022
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GMAT 1: 700 Q50 V34
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27 Aug 2017, 21:36
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D is the best answer..
It says that:
No competition , So more profit..
Posted from my mobile device
It says that:
No competition , So more profit..
Posted from my mobile device
