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# Government: The real estate developer will have to transfer 70 per cen

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Senior Manager
Joined: 17 Oct 2016
Posts: 318
Location: India
Concentration: Operations, Strategy
GPA: 3.73
WE: Design (Real Estate)
Government: The real estate developer will have to transfer 70 per cen  [#permalink]

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28 Nov 2017, 02:39
00:00

Difficulty:

85% (hard)

Question Stats:

42% (01:51) correct 58% (01:52) wrong based on 158 sessions

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Government: The real estate developer will have to transfer 70 per cent money received from home buyers to an escrow account. This money will be withdrawn as per the stages of construction, approved by engineers and chartered accountants of builders. This will prevent developers from using the money raised for one project for any other project.

The conclusion of the government "This will prevent developers from using the money raised for one project for any other project." is based on which of the following assumption?

A. The homebuyer will make 100% payment to the Real estate developer.
B. The Real estate developer will not be able to find ways not to deposit the 70% money.
C. 30% of the money received from the Homebuyer is for the profit and operational costs of the developer
D. The builder and his chartered accountants will not be appointed by the Real estate developer and hence will not work in his favour.
E. The real estate developer will have more than one projects simultaneously.

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Magoosh GMAT Instructor
Joined: 28 Dec 2011
Posts: 4486
Re: Government: The real estate developer will have to transfer 70 per cen  [#permalink]

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29 Nov 2017, 16:46
Sasindran wrote:
Government: The real estate developer will have to transfer 70 per cent money received from home buyers to an escrow account. This money will be withdrawn as per the stages of construction, approved by engineers and chartered accountants of builders. This will prevent developers from using the money raised for one project for any other project.

The conclusion of the government "This will prevent developers from using the money raised for one project for any other project." is based on which of the following assumption?

A. The homebuyer will make 100% payment to the Real estate developer.
B. The Real estate developer will not be able to find ways not to deposit the 70% money.
C. 30% of the money received from the Homebuyer is for the profit and operational costs of the developer
D. The builder and his chartered accountants will not be appointed by the Real estate developer and hence will not work in his favour.
E. The real estate developer will have more than one projects simultaneously.

Dear Sasindran,

I'm happy to respond.

I'm sorry to tell you, my friend, that this is not a high quality question. It fails the standards of the GMAT in a number of ways.
1) The speaker is simply the impersonal body "government." The GMAT always has a specific job title speaking: for example, "head of a government agency," or "court-appointed lawyer." In practice, collective bodies don't speak: only an individual human speaks.

2) The quality of the writing in the prompt is fair, but it's very clear that it was written by someone who doesn't have full command of English. It has the awkwardness of someone who is in the advanced stages of learning English but not yet at fluency. You have to understand: the language on the GMAT CR is absolutely impeccable. All the writing on the GMAT is exceptionally well-written.

3) The "this" that begins the final sentence is grammatically suspect: in general, a pronoun cannot refer to an action, even an action in another sentence.

4) In the prompt question, the GMAT never re-quotes the conclusion. It is always the job of the student to infer the conclusion.

5) Something is very fishy about the logic of the question. A cleaner conclusion would be, quite simply, "Therefore, these developers will not be able to use the money raised for one project for any other project." (B) & (D) would be stronger answer if this were the conclusion. By using the relatively colloquial conclusion, "This will prevent developers from using the money raised for one project for any other project," it's unclear whether the primary conclusion is about the preventing itself, or about whether these measures in particular would bring about the preventing. It's as if the author wants to take a very common colloquial construction and extract from it a non-colloquial meaning. Again, this is precisely the kind of confusion that a non-native speaker who has not yet attained fluency might make.

My friend, I don't know whether you wrote this question or whether you found it somewhere. As a general rule, it's very very hard to write high quality GMAT Verbal practice questions. This forum, GMAT Club, has a large number of excellent GMAT math practice questions, because it's comparative easy to write GMAT Quant practice questions, but I would say that over 50% of the verbal questions are of astonishingly low quality. There are some companies that charge money for preparing students, but the verbal content produced by these companies are well below the standards of the GMAT. Many of those were created by native speakers. The challenges are even more significant for non-native speakers. For people who are not verbal experts, the practice of creating practice questions from scratch is generally counterproductive.

Does all this make sense, my friend?
Mike
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Mike McGarry
Magoosh Test Prep

Education is not the filling of a pail, but the lighting of a fire. — William Butler Yeats (1865 – 1939)

Intern
Joined: 05 Dec 2016
Posts: 6
Re: Government: The real estate developer will have to transfer 70 per cen  [#permalink]

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29 Nov 2017, 18:33
I tried to negate the E statement but wasn't able to justify the underlying assumption.

I chose D

Re: Government: The real estate developer will have to transfer 70 per cen   [#permalink] 29 Nov 2017, 18:33
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