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31 Jan 2020, 01:12
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Difficulty:
15%
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Question Stats:
82% (01:48) correct
18%
(02:11)
wrong
based on 170
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Goodbody, Inc., is in the process of finding tenants for its newly completed Parrot Quay commercial development, which will make available hundreds of thousands of square feet of new office space on what was formerly derelict property outside the financial center of the city. Surprisingly enough, the coming recession, though it will hurt most of the city’s businesses, should help Goodbody to find tenants.
Which one of the following, if true, does most to help resolve the apparent paradox?
(A) Businesses forced to economize by the recession will want to take advantage of the lower rents available outside the financial center.
(B) Public transportation links the financial center with the area around Parrot Quay.
(C) The area in which the Parrot Quay development is located became derelict after the heavy industry that used to be there closed down in a previous recession.
(D) Many of Goodbody’s other properties are in financial center and will become vacant if the recession is severe enough to force Goodbody’s tenants out of business.
(E) The recession is likely to have the most severe effect not on service industries, which require a lot of office space, but on manufacturers.
31 Jan 2020, 01:33
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(A): This is the correct answer choice. It follows one of the pre-formed answers discussed above. Cheaper rents may be available outside the financial center and the recession will force businesses to try and cut costs. This helps Goodbody Inc and it resolves our paradox. Answer
(B): This is a “so what?” answer. So what if there is public transportation linking the financial center? How does it help Goodbody Inc obtain tenants in a recession? It could help with the first premise, but not with the second. Since it does not help with both premises, it must be eliminated.
(C): The fact that the property is located in an area that became derelict because of a previous recession does not explain how the coming recession will help Goodbody Inc obtain tenants.
(D): This Answer Choice concerns the other Goodbody properties in the financial district not the new one, and therefore, it does not indicate how the new property at Parrot Quay will get tenants because of the coming recession.
(E): This answer is attractive initially because it does give a reason why the coming recession may not affect Parrot Quay’s ability to get tenants. But it does not address how the coming recession will actually help the Parrot Quay project get tenants, and because it does not address this, it must be eliminated.
(B): This is a “so what?” answer. So what if there is public transportation linking the financial center? How does it help Goodbody Inc obtain tenants in a recession? It could help with the first premise, but not with the second. Since it does not help with both premises, it must be eliminated.
(C): The fact that the property is located in an area that became derelict because of a previous recession does not explain how the coming recession will help Goodbody Inc obtain tenants.
(D): This Answer Choice concerns the other Goodbody properties in the financial district not the new one, and therefore, it does not indicate how the new property at Parrot Quay will get tenants because of the coming recession.
(E): This answer is attractive initially because it does give a reason why the coming recession may not affect Parrot Quay’s ability to get tenants. But it does not address how the coming recession will actually help the Parrot Quay project get tenants, and because it does not address this, it must be eliminated.
31 Jan 2020, 07:40
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A is the right answer.
Premise: Goodbody, Inc., is in the process of finding tenants for its newly completed Parrot Quay commercial development, which will make available hundreds of thousands of square feet of new office space on what was formerly derelict property outside the financial center of the city.
Premise 2 / Discrepancy: Surprisingly enough, the coming recession, though it will hurt most of the city’s businesses, should help Goodbody to find tenants.
From the first premise we know that a number if office spaces for businesses have been put up outside the business center and the owner of these offices has put them up for rent.
Premise 2 however states that the economy is in recession. Of course one will expect that a recessive economy will slow down business activities and hence the owners of the newly built office spaces will have a daunting task in their bid to get tenants for the offices. Alas, premise 2 disagrees by stating that the recession will rather facilitate the rental of the offices.
To resolve this discrepancy, we need an answer choice that presents an opportunity in the period of recession for the real estate company.
(A) Businesses forced to economize by the recession will want to take advantage of the lower rents available outside the financial center. This is the correct answer. This option implies that the need for businesses to cut costs means that they will want to pay lower rents for offices outside the business center where naturally rent costs are higher. This is exactly in line with what is expected above.
(B) Public transportation links the financial center with the area around Parrot Quay.
This option does not resolve the discrepancy in the information provided in the two premises above.
(C) The area in which the Parrot Quay development is located became derelict after the heavy industry that used to be there closed down in a previous recession.
Irrelevant as far as the resolution of the discrepancy is concerned.
(D) Many of Goodbody’s other properties are in financial center and will become vacant if the recession is severe enough to force Goodbody’s tenants out of business.
So tenants in properties of the developer in the financial center are forced to vacate their offices as a result of the recession, does this mean automatically these businesses will come to take up the new offices? No. It is possible that these businesses may become bankrupt and hence fold up.
(E) The recession is likely to have the most severe effect not on service industries, which require a lot of office space, but on manufacturers.
The fact that the recession is not severe on the service industry does not mean that these service businesses would want to relocate from their current locations to the new office spaces recently constructed. So E does not resolve the discrepancy.
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Premise: Goodbody, Inc., is in the process of finding tenants for its newly completed Parrot Quay commercial development, which will make available hundreds of thousands of square feet of new office space on what was formerly derelict property outside the financial center of the city.
Premise 2 / Discrepancy: Surprisingly enough, the coming recession, though it will hurt most of the city’s businesses, should help Goodbody to find tenants.
From the first premise we know that a number if office spaces for businesses have been put up outside the business center and the owner of these offices has put them up for rent.
Premise 2 however states that the economy is in recession. Of course one will expect that a recessive economy will slow down business activities and hence the owners of the newly built office spaces will have a daunting task in their bid to get tenants for the offices. Alas, premise 2 disagrees by stating that the recession will rather facilitate the rental of the offices.
To resolve this discrepancy, we need an answer choice that presents an opportunity in the period of recession for the real estate company.
(A) Businesses forced to economize by the recession will want to take advantage of the lower rents available outside the financial center. This is the correct answer. This option implies that the need for businesses to cut costs means that they will want to pay lower rents for offices outside the business center where naturally rent costs are higher. This is exactly in line with what is expected above.
(B) Public transportation links the financial center with the area around Parrot Quay.
This option does not resolve the discrepancy in the information provided in the two premises above.
(C) The area in which the Parrot Quay development is located became derelict after the heavy industry that used to be there closed down in a previous recession.
Irrelevant as far as the resolution of the discrepancy is concerned.
(D) Many of Goodbody’s other properties are in financial center and will become vacant if the recession is severe enough to force Goodbody’s tenants out of business.
So tenants in properties of the developer in the financial center are forced to vacate their offices as a result of the recession, does this mean automatically these businesses will come to take up the new offices? No. It is possible that these businesses may become bankrupt and hence fold up.
(E) The recession is likely to have the most severe effect not on service industries, which require a lot of office space, but on manufacturers.
The fact that the recession is not severe on the service industry does not mean that these service businesses would want to relocate from their current locations to the new office spaces recently constructed. So E does not resolve the discrepancy.
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