It is currently 19 Oct 2017, 18:50

### 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

# Following several years of declining advertising sales, the

Author Message
TAGS:

### Hide Tags

Manager
Joined: 17 Aug 2005
Posts: 165

Kudos [?]: 282 [4], given: 0

### Show Tags

05 Oct 2005, 07:51
4
KUDOS
22
This post was
BOOKMARKED
00:00

Difficulty:

75% (hard)

Question Stats:

51% (01:33) correct 49% (02:03) wrong based on 1157 sessions

### HideShow timer Statistics

Following several years of declining advertising sales, the Greenvile Times reorganized its advertising sales force. Before reorganization, the sales force was organized geographically, with some sales representatives concentrating on city-center businesses and others concentrating on different outlying regions. The reorganization attempted to increase the sales representatives' knowledge of clients' business by having each sales representative deal with only one type of industry or of retailing. After the reorganization, revenue from advertising sales increased.

In assessing whether the improvement in advertising sales can properly be attributed to the reorganization, it would be most helpful to find out which of the following?

(A) What proportion of the total revenue of the Greenvile Times is generated by advertising sales?

(B) Has the circulation of the Greenvile Times increased substantially in the last two years?

(C) Among all types of industry and retailing that use the Greenvile Times as an advertising vehicle, which type accounts for the largest proportion of the newspaper's advertising sales?

(D) Do any clients of the sales representatives of the Greenvile Times have a standing order with the Times for a fixed amount of advertising per month?

(E) Among the advertisers in the Greenvile Times are there more types of retail business or more types of industrial business?

OG2017 Diagnostic V70, P34

Same passage with different question from GmatPrep: LINK
[Reveal] Spoiler: OA

Kudos [?]: 282 [4], given: 0

Manager
Joined: 18 Dec 2005
Posts: 78

Kudos [?]: 20 [1], given: 0

### Show Tags

15 Jan 2006, 20:57
1
KUDOS
16
This post was
BOOKMARKED
Following several years of declining advertising sales, the Greenville Times reorganized its advertising sales force. Before reorganization, the sales force was organized geographically, with some sales representatives concentrating on city-center businesses and others concentrating on different outlying regions. The reorganization attempted to increase the sales representatives' knowledge of clients' businesses by having each sales representative deal with only one type of industry or of retailing. After the reorganization, revenue from advertising sales increased.

In assessing whether the improvement in advertising sales can properly be attributed to the reorganization, it would be most helpful to find out which of the following?

(A) What proportion of the total revenue of the Greenville Times is generated by advertising sales?
(B) Has the circulation of the Greenville Times increased substantially in the last two years?
(C) Among all the types of industry and retailing that use the Greenville Times as an advertising vehicle, which type accounts for the largest proportion of the newspaper’s advertising sales?
(D) Do any clients of the sales representatives of the Greenville Times have a standing order with the Times for a fixed amount of advertising per month?
(E) Among the advertisers in the Greenville Times, are there more types of retail business or more types of industrial business?

Official Guide 12 Question

 Question: 22 Page: 34 Difficulty: 600

Find All Official Guide Questions

Video Explanations:

Kudos [?]: 20 [1], given: 0

Director
Joined: 04 Oct 2005
Posts: 582

Kudos [?]: 7 [0], given: 0

Location: Chicago

### Show Tags

15 Jan 2006, 21:54
A sounds ok to me...
Even if the advertising revenue has increased, we need to find out the ratio of the advertising revenue to that of total revenue....
Wht if the advertising revenue has not kept pace with the toal revenue, in that case the reorganisation has no effect..

Kudos [?]: 7 [0], given: 0

Director
Joined: 10 Oct 2005
Posts: 713

Kudos [?]: 25 [0], given: 0

### Show Tags

15 Jan 2006, 23:25
D for me
_________________

IE IMBA 2010

Kudos [?]: 25 [0], given: 0

Senior Manager
Joined: 03 Nov 2005
Posts: 380

Kudos [?]: 68 [0], given: 17

Location: Chicago, IL

### Show Tags

16 Jan 2006, 00:44
Not an easy one! I'll go with A.
_________________

Hard work is the main determinant of success

Kudos [?]: 68 [0], given: 17

Director
Joined: 10 Oct 2005
Posts: 524

Kudos [?]: 69 [0], given: 0

Location: US

### Show Tags

16 Jan 2006, 07:31
A) What proportion of the total revenue of Greenville Times is generated by advertising sales?

(B) Has the circulation of the Greenville Times increased substantially in the last two years?
---- two years is unreleated

(C) Among all the types of industry and retailing that use the Greenville Times as an advertising vehicle, which type accounts for the largest proportion of the newspaper's advertising sales?
---- type of accounts unreleated

(D) Do any clients of the sales representatives of the Greenville Times have a standing order with the Times for a fixed amount of advertising per month?
--- unreleated

(E) Among the advertisers in the Greenville Times, are there more types of retail business or more types of industrial business?
---- type of business not important

Kudos [?]: 69 [0], given: 0

Manager
Joined: 18 Dec 2005
Posts: 78

Kudos [?]: 20 [0], given: 0

### Show Tags

17 Jan 2006, 17:56
OA is B.

Kudos [?]: 20 [0], given: 0

Director
Joined: 04 Jan 2006
Posts: 922

Kudos [?]: 37 [0], given: 0

### Show Tags

17 Jan 2006, 19:43
Is there some explaination for that? I can't believe it.. This was a tough one.. I would like to know how did they come to the conclusion of the last 2 years? When was this change of advertising taken place?

Kudos [?]: 37 [0], given: 0

Manager
Joined: 18 Dec 2005
Posts: 78

Kudos [?]: 20 [0], given: 0

### Show Tags

17 Jan 2006, 21:06
1
This post was
BOOKMARKED
The OE:

The reasoning: What additional evidence would help determine the source of the increased revenue? In order to attribute to the reorganization of the sales force, other possible causes must be eliminated. (I was headed this direction though). Newspapers advertising rates are linked to circulation; when circulation increases, higher rates can be charged and revenues will increase. (I though prior knowledge is NOT required in GMAT???) An alternative explanation might be a significant rise in circulation, so it would be particularly helpful to know if circulation had increased.

B: Correct. This statement provides another possible explanation for increased revenue of advertising sales, and so the answer to this question would help to clarifiy the reason for the increased revenue.

Kudos [?]: 20 [0], given: 0

VP
Joined: 20 Sep 2005
Posts: 1016

Kudos [?]: 38 [0], given: 0

### Show Tags

17 Jan 2006, 22:50
Got B.
The line of reasoning I follow for such questions, is whether there was some other reason ? I eliminated the rest , said a prayer and picked B.

Kudos [?]: 38 [0], given: 0

Manager
Joined: 26 Mar 2008
Posts: 98

Kudos [?]: 251 [0], given: 0

Schools: Tuck, Duke

### Show Tags

18 Aug 2008, 19:10
IMO B. If correct then will give the reasoning

Kudos [?]: 251 [0], given: 0

Manager
Joined: 15 Jul 2008
Posts: 53

Kudos [?]: 55 [0], given: 2

### Show Tags

18 Aug 2008, 19:29
clear B

Kudos [?]: 55 [0], given: 2

Manager
Joined: 27 Mar 2008
Posts: 64

Kudos [?]: 10 [0], given: 0

### Show Tags

18 Aug 2008, 19:52
IMO D (very tough choice as no clear answers).

Reasoning as follows: The intention of reorganization was to have SR focus on only one clients. Earlier, due to a geographical focus, a comprehensive relationship with a single client might not have developed. However, after the reorganization a better relationship with the client might have developed probably leading to greater standing orders per month.

As I said, this is not a very clear-cut choice, but in my very humble opinion the "best" answer choice.

If you guys could explain why you chose B it would be great.

Also, the OA/OE would be awesome !

Kudos [?]: 10 [0], given: 0

Manager
Joined: 27 Mar 2008
Posts: 64

Kudos [?]: 10 [0], given: 0

### Show Tags

18 Aug 2008, 19:54
One thing I missed out on is that the argument talks about increase in advertising sales. and the effect (or the lack of it ) that the reorg had on the advertising sales.

Kudos [?]: 10 [0], given: 0

Director
Joined: 14 Aug 2007
Posts: 726

Kudos [?]: 212 [0], given: 0

### Show Tags

18 Aug 2008, 21:32
D sounds best among given choices.

Kudos [?]: 212 [0], given: 0

Manager
Joined: 18 Aug 2006
Posts: 61

Kudos [?]: 9 [0], given: 2

Location: Houston TX

### Show Tags

18 Aug 2008, 22:42
D for me too
_________________

haveaniceday

Kudos [?]: 9 [0], given: 2

Senior Manager
Joined: 26 Mar 2008
Posts: 317

Kudos [?]: 91 [0], given: 4

Location: Washington DC

### Show Tags

18 Aug 2008, 23:19
Good CR question, straigth D.
B cant be answer, reason argument says that revenue from sales ad has been increased, but dont say anything about the circulation.

Kudos [?]: 91 [0], given: 4

SVP
Joined: 17 Jun 2008
Posts: 1534

Kudos [?]: 279 [0], given: 0

### Show Tags

19 Aug 2008, 03:29
Clearly D.

In order to properly attribute improvement in advertising sales to reorg, it is important to know the position of standing orders. Else, even standing orders can be attributed to reorg.

B is not right. Even if circulation increases, it does not guarantee that advertising sales improve. Advertising sales can still be blank.

Kudos [?]: 279 [0], given: 0

Manager
Joined: 25 May 2008
Posts: 187

Kudos [?]: 9 [0], given: 0

### Show Tags

19 Aug 2008, 12:33
I think is B. If the circulation increased, it is not sure that the financial performance was a result of the reorganization. I think that D is irrelevant since we don't know nothing about the relation between standing orders and reorganization.

Kudos [?]: 9 [0], given: 0

Intern
Joined: 18 Aug 2008
Posts: 3

Kudos [?]: [0], given: 0

### Show Tags

19 Aug 2008, 13:58
I like B. Circulation will increase advertising sales, without reflecting on the reorg. To take an extreme view, if readership jumped 1000%, advertisers will pay more for space. More eyeballs mean more money.

Kudos [?]: [0], given: 0

Re: Following several years of declining advertising sales, the   [#permalink] 19 Aug 2008, 13:58

Go to page    1   2   3    Next  [ 45 posts ]

Display posts from previous: Sort by