GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 19 Jul 2018, 12:00

Close

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
Your Progress

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

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

Following several years of declining advertising sales, the

  post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

8 KUDOS received
Retired Moderator
User avatar
Joined: 18 Jul 2008
Posts: 897
Following several years of declining advertising sales, the  [#permalink]

Show Tags

New post 02 Dec 2008, 10:50
8
22
00:00
A
B
C
D
E

Difficulty:

  85% (hard)

Question Stats:

49% (00:56) correct 51% (01:20) wrong based on 1265 sessions

HideShow timer Statistics

Edit: This discussion has retired. Find the new thread HERE


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 EXCEPT?

1) Two years ago, what proportion of the Greenville Time's total revenue was generated by advertising sales

2) Has the circulation of the Greenville Times increased substantially in the last two years

3) Has there been a substantial turnover in personnel in the advertising sales force over the last 2 years

4) Before the reorganization, had sales representatives found it difficult to keep up with relevant developments in all types of businesses to which they are assigned?

5) Has the economy in Greenville and the surrounding regions been growing rapidly over the last two years?

Same passage with different question from OG: LINK
Most Helpful Expert Reply
Expert Post
34 KUDOS received
GMAT Club Legend
GMAT Club Legend
User avatar
P
Joined: 16 Oct 2010
Posts: 8128
Location: Pune, India
Re: Following several years of declining advertising sales, the  [#permalink]

Show Tags

New post 24 Jul 2012, 04:39
34
16
venmic wrote:
Following several years of declining advertising sales, the Greenville Times reorganized its
advertising sales force two years ago. Before the 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, advertising sales
increased. In assessing whether the improvement in advertising sales can properly
be attributed to the reorganization, it would be helpful to find out each of the
following EXCEPT:
A. Two years ago, what proportion of the Greenville Times’ total revenue was generated by
advertising sales?
B. Has the circulation of the Greenville Times increased substantially in the last two years?
C. Has there been a substantial turnover in personnel in the advertising sales force over the last
two years?
D. Before the reorganization, had sales representatives found it difficult to keep up with relevant
developments in all types of businesses to which they are assigned?
E. Has the economy in Greenville and the surrounding regions been growing rapidly over the last
two years?


hovv is A the right ansvver hovv does it help to evaluate
vvhat is the reasoning behind it

Experts pls help


Responding to a pm:

The argument boils down to this:
Advertising sales were declining. The paper reorganized the advertising sales team two yrs back. Advertising sales increased after reorganization. Now you want to figure out whether the increase actually happened due to the reorganization. So you need to evaluate what else could have caused the increase in sales. Say, if the lead of the sales team had changed 2 yrs back, it is possible that he is responsible for the increase in revenue rather than the reorganization. 4 of the 5 options will raise some such questions and the leftover option (which will be our answer) will have nothing to do with the increase in advertising sales.

A. Two years ago, what proportion of the Greenville Times’ total revenue was generated by
advertising sales?
The proportion of advertising sales as a part of total revenue is immaterial to us. We only need to evaluate why the advertising sales increased. It is possible that the revenue from other sources has increased much more than the revenue from advertising sales and hence advertising sales could be smaller proportion of the overall revenue now but it doesn't matter at all. This option has nothing to do with the increase in advertising sales and hence, is the answer.
Let's take a look at all the other options too.


B. Has the circulation of the Greenville Times increased substantially in the last two years?
If the circulation increased substantially, that could have led to increase in advertising sales instead of the reorganization.

C. Has there been a substantial turnover in personnel in the advertising sales force over the last
two years?
If there has been a substantial personnel turnover, better people could have been hired which could have led to higher advertising sales instead of reorganization.

D. Before the reorganization, had sales representatives found it difficult to keep up with relevant
developments in all types of businesses to which they are assigned?
Did reorganization make keeping track of relevant developments easier? It can help us evaluate whether reorganization was responsible for the increase in sales.

E. Has the economy in Greenville and the surrounding regions been growing rapidly over the last
two years?
If the economy has grown rapidly in the past two yrs, it could have been responsible for the higher advertising sales instead of reorganization.

Answer (A)
_________________

Karishma
Private Tutor for GMAT
Contact: bansal.karishma@gmail.com

Most Helpful Community Reply
7 KUDOS received
Manager
Manager
avatar
B
Joined: 02 Nov 2009
Posts: 134
Re: Following several years of declining advertising sales, the  [#permalink]

Show Tags

New post 23 Jul 2012, 19:48
7
29
Following several years of declining advertising sales, the Greenville Times reorganized its advertising sales force two years ago. Before the 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, advertising sales increased.

In assessing whether the improvement in advertising sales can properly be attributed to the reorganization, it would be helpful to find out each of the following EXCEPT:

A. Two years ago, what proportion of the Greenville Times’ total revenue was generated by advertising sales?
B. Has the circulation of the Greenville Times increased substantially in the last two years?
C. Has there been a substantial turnover in personnel in the advertising sales force over the last two years?
D. Before the reorganization, had sales representatives found it difficult to keep up with relevant developments in all types of businesses to which they are assigned?
E. Has the economy in Greenville and the surrounding regions been growing rapidly over the last two years?

hovv is A the right ansvver hovv does it help to evaluate
vvhat is the reasoning behind it


Experts pls help
General Discussion
1 KUDOS received
Intern
Intern
avatar
Joined: 28 Jun 2008
Posts: 45
Re: Following several years of declining advertising sales, the  [#permalink]

Show Tags

New post 14 Jun 2009, 20:41
1
Hi guys was wondering if anyone could offer an explanation for this one:

Following several years of declining advertising sales, the Greenville Time reorganized its advertising sales force two years ago. Before this 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, advertising sales increased.

In assessing whether the improvement in advertising sales can properly be attributed to the reorganization, it would be helpful to find out each of the following EXCEPT:

A. Two years ago, what proportion of the Greenville Time's toal revenue was generated by advertising sales?
B. Has the circulation of the Greenville Times increased substantially in the last two years?
C. Has there been a substantial turnoverin personnel in the advertising force over the last two years?
D. Before the reorganization, had sales representatives found it difficult to keep up with relevant developments in all the types of businesses to which they were assigned?
E. Has the economy in Greenville and the surrounding regions been growing rapidly over the last two years?
Manager
Manager
User avatar
Joined: 07 Jun 2009
Posts: 186
Following several years of declining advertising sales, the  [#permalink]

Show Tags

New post 15 Jun 2009, 22:15
I would go for 'D' because:

Before reorganization: Sales force organized geographically, with some concentrating on city-center and others on different out laying regions.
After reorganization: Sales representatives deal with only one type of industry to have a better understanding of client's business.
After reorganization, sales increased.

A. Two years ago, what proportion of the Greenville Time's toal revenue was generated by advertising sales? Would show if the demand has increased or not.
B. Has the circulation of the Greenville Times increased substantially in the last two years? again would indicate the demand.
C. Has there been a substantial turn over in personnel in the advertising force over the last two years? Which indicates that the business is expanding
D. Before the reorganization, had sales representatives found it difficult to keep up with relevant developments in all the types of businesses to which they were assigned? Does not provide any useful information.
E. Has the economy in Greenville and the surrounding regions been growing rapidly over the last two years? Would show that the economy is growing, so which sector to focus for further growth.
_________________

"Always....Read between the lines"

Director
Director
avatar
Joined: 23 May 2008
Posts: 740
Re: Following several years of declining advertising sales, the  [#permalink]

Show Tags

New post 16 Jun 2009, 00:46
B

circulation doesnt affect whether sales team boosted advertising $$$'s
13 KUDOS received
Director
Director
User avatar
Joined: 03 Jun 2009
Posts: 757
Location: New Delhi
WE 1: 5.5 yrs in IT
Re: Following several years of declining advertising sales, the  [#permalink]

Show Tags

New post 16 Jun 2009, 01:55
13
4
I'll go with A

A. Two years ago, what proportion of the Greenville Time's toal revenue was generated by advertising sales? - Argument already saying that advertising sales has increased. We need not bother about the proportion of sales 2 yrs back.
B. Has the circulation of the Greenville Times increased substantially in the last two years? -Can answer if the increase in sale is due to circulation increase or reorganization.
C. Has there been a substantial turnover in personnel in the advertising force over the last two years? - Provides answer to the question, if the efficiency of personnel has improved after reorganization
D. Before the reorganization, had sales representatives found it difficult to keep up with relevant developments in all the types of businesses to which they were assigned? - almost same as C
E. Has the economy in Greenville and the surrounding regions been growing rapidly over the last two years? - -Can answer if the increase in sale is due to growing economy or reorganization.
_________________

ISB 2011-12 thread | Ask ISB Alumni @ ThinkISB
All information related to Indian candidates and B-schools | Indian B-schools accepting GMAT scores
Self evaluation for Why MBA?

Current Student
avatar
Joined: 13 Jan 2009
Posts: 341
Location: India
Re: Following several years of declining advertising sales, the  [#permalink]

Show Tags

New post 18 Jun 2009, 13:41
A.
D was also good but it will give the reason why ad revenue increased after reorg.
Intern
Intern
avatar
Joined: 04 Mar 2008
Posts: 41
Re: Following several years of declining advertising sales, the  [#permalink]

Show Tags

New post 23 Jun 2009, 15:30
bigtreezl wrote:
B

circulation doesnt affect whether sales team boosted advertising $$$'s


Thats correct. I would go with B.
1 KUDOS received
Intern
Intern
avatar
Joined: 05 Oct 2011
Posts: 44
Re: Following several years of declining advertising sales, the  [#permalink]

Show Tags

New post 17 Nov 2011, 21:33
1
bigoyal wrote:
I'll go with A

A. Two years ago, what proportion of the Greenville Time's toal revenue was generated by advertising sales? - Argument already saying that advertising sales has increased. We need not bother about the proportion of sales 2 yrs back.
B. Has the circulation of the Greenville Times increased substantially in the last two years? -Can answer if the increase in sale is due to circulation increase or reorganization.
C. Has there been a substantial turnover in personnel in the advertising force over the last two years? - Provides answer to the question, if the efficiency of personnel has improved after reorganization
D. Before the reorganization, had sales representatives found it difficult to keep up with relevant developments in all the types of businesses to which they were assigned? - almost same as C
E. Has the economy in Greenville and the surrounding regions been growing rapidly over the last two years? - -Can answer if the increase in sale is due to growing economy or reorganization.



can u please explain more on B and E...and its expect question so the probability of these 2 seems to be more correct
BSchool Forum Moderator
avatar
Status: Flying over the cloud!
Joined: 17 Aug 2011
Posts: 763
Location: Viet Nam
Concentration: International Business, Marketing
GMAT Date: 06-06-2014
GPA: 3.07
GMAT ToolKit User Premium Member Reviews Badge
Re: Following several years of declining advertising sales, the  [#permalink]

Show Tags

New post 18 Nov 2011, 02:46
A the argument doesn't talk anything about revenue. Reorganizing is only target at increasing the advertising sales. This answer is the most irrelevant one
_________________

Rules for posting in verbal gmat forum, read it before posting anything in verbal forum
Giving me + 1 kudos if my post is valuable with you :)

The more you like my post, the more you share to other's need

CR: Focus of the Week: Must be True Question

Manager
Manager
User avatar
Joined: 28 Jul 2011
Posts: 208
Re: Following several years of declining advertising sales, the  [#permalink]

Show Tags

New post 18 Nov 2011, 14:03
I vote for E

I didnot understand why others have voted for A, B and D as they are valid assumtions for the conclusion.

assump- except

Inc in adv sales -> att to reorg

=================================

- Prev dev ion Adv sales
- 2 yrs ago - GT reorg the adv sales
- before - sales - adv sales -> org Geog.
- sales rep focus - >citycent bus and outlying reasons.
-
- Reorg -> inc the adv sales
- each sales rep - deal with one indust or retailing

A - 2 yrs ago, what portion of rev was thr' ADV Sales - valid assum
B - circ inc in two yes - valid assumtion
C - valid assumption
D - Diff to keep up with the depart for business, so by reorg can they keep track of the business dept?
E - eco growing = cast a doubt on conclucion
Director
Director
avatar
Status: Prep started for the n-th time
Joined: 29 Aug 2010
Posts: 570
Re: Following several years of declining advertising sales, the  [#permalink]

Show Tags

New post 18 Nov 2011, 20:53
I will go with A here.

The relationship between sales revenue and total revenue is not relevant at all and not discussed in the argument.

Crick
Manager
Manager
avatar
Joined: 25 Nov 2011
Posts: 229
Location: India
Concentration: Technology, General Management
GPA: 3.95
WE: Information Technology (Computer Software)
Re: Following several years of declining advertising sales, the  [#permalink]

Show Tags

New post 20 Jan 2012, 23:05
bigfernhead wrote:
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 EXCEPT?

1) Two years ago, what proportion of the Greenville Time's total revenue was generated by advertising sales

2) Has the circulation of the Greenville Times increased substantially in the last two years

3) Has there been a substantial turnover in personnel in the advertising sales force over the last 2 years

4) Before the reorganization, had sales representatives found it difficult to keep up with relevant developments in all types of businesses to which they are assigned?

5) Has the economy in Greenville and the surrounding regions been growing rapidly over the last two years?


I go with E because, if E is true, then internal reorganization impact on increased sales would be zero or minimal.
_________________

-------------------------
-Aravind Chembeti

Manager
Manager
avatar
Joined: 10 Jan 2010
Posts: 161
Location: Germany
Concentration: Strategy, General Management
Schools: IE '15 (M)
GPA: 3
WE: Consulting (Telecommunications)
Re: Following several years of declining advertising sales, the  [#permalink]

Show Tags

New post 25 Jan 2012, 06:54
I would go with "A" --> OA?

It does not make any difference whether i know the proportion or not. However it does make a difference to know whether the economy has been grown or not.
Intern
Intern
avatar
Joined: 04 Nov 2011
Posts: 7
Re: Following several years of declining advertising sales, the  [#permalink]

Show Tags

New post 25 Jan 2012, 07:50
I go with B!! In A if we know the proportion of Advertisment to total revenue increased ,it shows the reorganization has been successful

Posted from my mobile device
Retired Moderator
avatar
Status: Enjoying the GMAT journey....
Joined: 26 Aug 2011
Posts: 652
Location: India
GMAT 1: 620 Q49 V24
GMAT ToolKit User Premium Member
Re: Following several years of declining advertising sales, the  [#permalink]

Show Tags

New post 25 Jan 2012, 09:09
Chembeti wrote:
bigfernhead wrote:
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 EXCEPT?

1) Two years ago, what proportion of the Greenville Time's total revenue was generated by advertising sales

2) Has the circulation of the Greenville Times increased substantially in the last two years

3) Has there been a substantial turnover in personnel in the advertising sales force over the last 2 years

4) Before the reorganization, had sales representatives found it difficult to keep up with relevant developments in all types of businesses to which they are assigned?

5) Has the economy in Greenville and the surrounding regions been growing rapidly over the last two years?


I go with E because, if E is true, then internal reorganization impact on increased sales would be zero or minimal.

So isn't it that E is worth knowing because the information of E makes us aware that the increased sales is because of Economy growth or because of internal reorg impact.....If E being true or false had no impact on the assessment then i would have agreed with E.
IMO B because this information has no impact on the assessment ....
correct me if i am wrong.
_________________

Fire the final bullet only when you are constantly hitting the Bull's eye, till then KEEP PRACTICING.

A WAY TO INCREASE FROM QUANT 35-40 TO 47 : http://gmatclub.com/forum/a-way-to-increase-from-q35-40-to-q-138750.html

Q 47/48 To Q 50 + http://gmatclub.com/forum/the-final-climb-quest-for-q-50-from-q47-129441.html#p1064367

Three good RC strategies http://gmatclub.com/forum/three-different-strategies-for-attacking-rc-127287.html

Intern
Intern
avatar
Joined: 04 Nov 2011
Posts: 7
Re: Following several years of declining advertising sales, the  [#permalink]

Show Tags

New post 25 Jan 2012, 13:31
OMG,I just want to correct my post!! I said B,but I overlooked the common mistake that by having the information about the proportion alone, we can't evaluate anything because it is not clear wether the increase caused by decrease of total revenue or by increase of advertisment!!so I guess A is the answer!!but still not sure about B!A is more compelling but why not B?

Posted from my mobile device
Manager
Manager
User avatar
Joined: 19 Apr 2011
Posts: 233
Schools: Booth,NUS,St.Gallon
Re: Following several years of declining advertising sales, the  [#permalink]

Show Tags

New post 25 Jan 2012, 22:25
i am confused between B and E. In E why cant the increase in economy be due to the increase in sales ?? If so E cannot be the answer .
_________________

+1 if you like my explanation .Thanks :)

Intern
Intern
avatar
Joined: 12 Jan 2012
Posts: 2
Re: Following several years of declining advertising sales, the  [#permalink]

Show Tags

New post 26 Jan 2012, 08:44
Hi, I would go with A as the correct option.

As is clearly stated, " following years of declining advertising sales ", it is good to assume that revenue was declining year by year ( and not revenue / total revenue, i.e. percentage ).

Hence, if revenue increased, it is an improvement for sure, as an increased revenue over the past years revenue which was lesser compared to the year before that, knowing the %age change is irrelevant.

regarding E, this is important to know, as if people have more power to purchase, that might be an important factor in the increased revenue and changes in organisation might not have played that important a role.

hope the above helps.
Re: Following several years of declining advertising sales, the &nbs [#permalink] 26 Jan 2012, 08:44

Go to page    1   2   3    Next  [ 43 posts ] 

Display posts from previous: Sort by

Following several years of declining advertising sales, the

  post reply Question banks Downloads My Bookmarks Reviews Important topics  

Events & Promotions

PREV
NEXT


GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.