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Re: Given that, recently, the founders of startup company Zeddifreddo have [#permalink]
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IMO A

The argument discusses the reasoning and assumptions behind the interest of potential acquirers in the startup company Zeddifreddo following another company's advanced acquisition discussions. To analyze the roles of the boldfaced portions, let's break down the argument and the specific roles each boldfaced statement plays:

The first boldfaced statement ("other potential acquirers of the company, who had suspected that Zeddifreddo's business performance was mostly hype and not a product of sound financials, have taken interest in making their own acquisition offers") describes the actions and thoughts of other potential acquirers based on their observation of the ongoing acquisition talks. This serves as a situational backdrop or evidence that triggers the subsequent analysis and conclusions in the argument.

The second boldfaced statement ("potential acquirers of a startup have been known to overlook that company's financial soundness and favor the acquisition on other grounds, however ill-advised such a position may be") provides a reason to question the assumption or conclusion that other potential acquirers might be making based on the advanced stage of the acquisition talks. It suggests that just because the talks are in an advanced stage, it doesn't necessarily confirm the financial soundness of Zeddifreddo, as acquirers might have other motivations.

Given these roles:

The first statement serves as evidence that has led other potential acquirers to draw a conclusion (that the ongoing talks suggest financial soundness).
The second statement challenges the validity of this conclusion by suggesting that acquirers sometimes prioritize other factors over financial soundness.
Therefore, the correct choice is: A. The first describes evidence that has been taken as supporting a conclusion; the second gives a reason for questioning that support.
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Re: Given that, recently, the founders of startup company Zeddifreddo have [#permalink]
The intermediate conclusion is not the arguments' conclusion, it the conclusion from the other investors. Could that be taken as intermediate conclusion?
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Re: Given that, recently, the founders of startup company Zeddifreddo have [#permalink]
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Bunuel wrote:
Given that, recently, the founders of startup company Zeddifreddo have confirmed that they are in the late stages of discussion of an acquisition offer from another company, other potential acquirers of the company, who had suspected that Zeddifreddo's business performance was mostly hype and not a product of sound financials, have taken interest in making their own acquisition offers. They figure that, if Zeddifreddo's current potential acquirer has reached late stages of an acquisition discussion without having withdrawn its bid, that the acquirer must have had a chance to audit Zeddifreddo's financial position and has found it to be sound. Such reasoning might be hasty, however, since potential acquirers of a startup have been known to overlook that company's financial soundness and favor the acquisition on other grounds, however ill-advised such a position may be.

In the argument given, the two boldfaced portions play which of the following roles?

A. The first describes evidence that has been taken as supporting a conclusion; the second gives a reason for questioning that support.

B. The first describes evidence that has been taken as supporting a conclusion; the second states a contrary conclusion that is the main conclusion of the argument.

C. The first provides evidence in support of the main conclusion of the argument; the second states that conclusion.

D. The first describes the circumstance that the argument as a whole seeks to explain; the second gives the explanation that the argument seeks to establish.

E. The first describes the circumstance that the argument as a whole seeks to explain; the second provides evidence in support of the explanation that the argument seeks to establish.
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­

Official Explanation



Reading the question: we're in boldfaced territory, so we confirm from the question that our task here is to identify the logical roles played by the various sentences in the prompt.

Sentence

Starts With.../Includes...

Function

1st

"Given that the founders...have confirmed"

Supports view of other potential acquirers

1st

"who had suspected that..."

View of other potential acquirers

2nd

"they figure that..."

Supports view of other potential acquirers

3rd

"Such reasoning might be hasty, however,"

Contrary view

3rd

"since potential acquirers...have been known"

Supports contrary view

Creating a filter: opinion-charged words help parse the prompt into two views. Boldfaced portion #1 supports opinion #1, and boldfaced #2 supports opinion #2, which is a contrary opinion.

Applying the filter: (B) and (C) call sentence #2 a conclusion, so they are out. Choice (D) is out; the argument as a whole is not seeking to explain the fact that Zeddifreddo is in the late states of the acquisition, but rather what the late stage says about its financials. (E) is out for the same reason. We go back to confirm (A). The first sentence has indeed been taken as support that the company has sound financials, and the second sentence gives a reason to question it.

The correct answer is (A).
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Re: Given that, recently, the founders of startup company Zeddifreddo have [#permalink]
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