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In order to maintain the competitive edge our company has gained through extensive research, decades of experience, and development of innovative methods, we must ensure that information security remains a top priority. The information stored on our networks, such as research data, training materials, and company memos, could potentially be very valuable to competitors and foreign governments alike. In order to safeguard this information, we require that all employees adhere to strict password and data encryption policies and complete a training course detailing steps to avoid theft or loss of company-issued physical assets, such as laptops and mobile phones. Employees who fail to comply with those policies and follow the steps described in the training course are compromising the security of the company's intellectual property and will face stern consequences.

If the statements above are all true, which of the following can properly be inferred on the basis of them?

(A) Competitors and foreign governments might be able to use the company's laptops to access information stored on its networks. - not sure as they are password protected, hence can not be properly inferred.

(B) Employees who repeatedly fail to comply with the password and data encryption policies will most likely face termination. - not necessary as stern consequences could mean anything - termination is not explicitly mentioned.

(C) The company c[color=#ff0000]ompetes, either directly or indirectly, with at least one foreign government.[/color] - this is tricky, however stem says that it is at risk with competitors and foreign govt. alike - can't say that foreign govt. is also a competitor

(D) Employees who have not yet completed the training course detailing steps to avoid theft or loss of company issued physical assets are likely to have their their laptops or mobile phones stolen. - while this can be true, it is not necessary all the time. and other's can also lose.

(E) Employees use company issued physical assets, such as laptops and mobile phones, to store research data, training materials, and company memos. - this can be properly inferred as it is known that the research data, etc. are confidential and valuable information and employees need to protect the physical assets from being stolen to protect the info- hence the data is stored on the company issued physical assets - can be properly inferred.

IMO E is the right answer.
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Argument states that
"The information stored on our networks, such as research data, training materials, and company memos...." & "Employees who fail to comply with those policies and follow the steps described in the training course are compromising the security of the company's intellectual property and will face stern consequences."
data, materials and memos are stored on company's network not physical assets such as laptops or mobiles. So in my opinion E is out based on this fact. We cannot deny the given fact as stated in E " data stored on laptops, cell etc"

Choice A - Competitors and foreign governments might be able to use the company's laptops to access information stored on its networks also supports the conclusion of the argument that Employees who fail to comply with those policies and follow the steps described in the training course are compromising the security of the company's intellectual property - How? because Competitors might use laptops to access company data and thus employees compromise the security of IP.
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can someone please explain why Option E is incorrect.
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can someone please explain why Option E is incorrect.

The text: The information stored on our networks, such as research data, training materials, and company memos (...)

Option E: Employees use company issued physical assets, such as laptops and mobile phones, to store research data, training materials, and company memos.

The information is stored on the company networks, not on the physical assets, as is incorrectly implied by option E.

Option A is right because competitors and foreign governments might be able to access the networks via the physical assets, hence the password & data encryption policies and the training provided to the employees to safeguard the information.
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We have been asked to find out which of the following answer options can be inferred from the passage.

Option B can be eliminated because the company does not talk about termination of employees.
It only talks about facing stern consequences.

Option C
is not something that can be inferred
(as the argument talks about information being necessary for the foreign government, which may
not necessarily be a competitor)

Option D can also be eliminated because there is no such mention in the argument.

The reason why Option A is a better choice is because
Option E talks about the employees using the company's devices
to store the information(which could be be potentially dangerous if leaked to the outside world)
But, the argument clearly states that the information is stored on their networks.
Laptops and mobile phones which are issued to the employees, are merely devices used to
access the data available in the company's network.
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Is there a typo? Shouldn't it be 'did not follow'?

Quote:
Employees who fail to comply with those policies and follow the steps described in the training courseare compromising the security of the company's intellectual property and will face stern consequences.

Hi, I think that the original sentence is fine, because it applies parallelism: "fail to comply with.... and (fail to) follow...."

Btw, regarding your reasoning on option (A)

warriorguy
Quote:
(A) Competitors and foreign governments might be able to use the company's laptops to access information stored on its networks. -
Close contender. I feel this is a trap option. What if the laptop data is already encrypted by a diligent employee. In that case, the inference doesn't stand true since competitors won't be able to use the data stored on the laptop.

To be honest, I'm quite impressed by the case you mentioned above. I didn't even think about it before :P However, just take a closer look at this option, you can see the chance of competitors' accessing information stored on the company's laptops is not impossible. The soft language "might be able to" might be the key here. When you said "what if...", you may leave room for other situations when that "what if" does not come true.

Quote:
(E) Employees use company issued physical assets, such as laptops and mobile phones, to store research data, training materials, and company memos. -

Also, as per my observation, compared to strong expression in choice (E), "weak statement" using "might" in choice (A) has higher chance of being a correct answer for Inference question type.

Just wanna share some of my thoughts. If you have any comment, I'm glad to hear. :)
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warriorguy
Is there a typo? Shouldn't it be 'did not follow'?

Quote:
Employees who fail to comply with those policies and follow the steps described in the training courseare compromising the security of the company's intellectual property and will face stern consequences.

Hi, I think that the original sentence is fine, because it applies parallelism: "fail to comply with.... and (fail to) follow...."

Btw, regarding your reasoning on option (A)

warriorguy
Quote:
(A) Competitors and foreign governments might be able to use the company's laptops to access information stored on its networks. -
Close contender. I feel this is a trap option. What if the laptop data is already encrypted by a diligent employee. In that case, the inference doesn't stand true since competitors won't be able to use the data stored on the laptop.

To be honest, I'm quite impressed by the case you mentioned above. I didn't even think about it before :P However, just take a closer look at this option, you can see the chance of competitors' accessing information stored on the company's laptops is not impossible. The soft language "might be able to" might be the key here. When you said "what if...", you may leave room for other situations when that "what if" does not come true.

Quote:
(E) Employees use company issued physical assets, such as laptops and mobile phones, to store research data, training materials, and company memos. -

Also, as per my observation, compared to strong expression in choice (E), "weak statement" using "might" in choice (A) has higher chance of being a correct answer for Inference question type.

Just wanna share some of my thoughts. If you have any comment, I'm glad to hear. :)


Hi Lucy Phuong, Thanks for the clarification. SC goes out of the window whenever I read CR. Need to be more diligent :P

I re-read the argument after I saw the OA. Option (A) sounds like a conclusion to me -

"Since Employees who fail to comply with those policies and follow the steps described in the training course are compromising the security of the company's intellectual property and will face stern consequences.. " Hence, we can conclude that " Competitors and foreign governments might be able to use the company's laptops to access information stored on its networks".

As you mentioned the test case could be an odd case or two, if everyone followed that policy then they wouldn't urge the employees to follow secure practices. Also, there is an element of uncertainty (possible scenario - as you pointed out) that makes this option more apt.

As for Option (E), it sounds more like an assumption (premise) rather than a conclusion.

Because employees store data in physical assets and since there is a risk of attack, we can conclude "option A".
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I still don't get why option C is the wrong answer.

(C) The company competes, either directly or indirectly, with at least one foreign government.

The argument says competitors AND foreign government. So wouldn't that mean that competitors and foreign government is a threat to the companies information and that it deals with competitors and foreign government. If the argument says competitors OR foreign government, I would understand why C is wrong. But I don't see how option C cannot be inferred from the passage.

I also think option A is very narrow and specific to be inferred from the passage.

thoughts?
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I still don't get why option C is the wrong answer.

(C) The company competes, either directly or indirectly, with at least one foreign government.

The argument says competitors AND foreign government. So wouldn't that mean that competitors and foreign government is a threat to the companies information and that it deals with competitors and foreign government. If the argument says competitors OR foreign government, I would understand why C is wrong. But I don't see how option C cannot be inferred from the passage.

I also think option A is very narrow and specific to be inferred from the passage.

thoughts?

the author did not mean that in C.
"information COULD be valuable to foreign competitors and government ALIKE"
See? the author never means the company competes against at least 1 foreign government -> C is not always true
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The premise clearly states that the information is stored on the networks, but still the company wants its physical assets to be secure?

Do you see a language shift here?

If the company really wanted to safeguard the data, it should have enhanced the security of the networks. But instead it wants its physical assets used by employees to be secure.

You would ask why?

Because employees use the physical assets to access the data on the networks. Now, read the options and you will find that only Option A can be inferred.
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The premise clearly states that the information is stored on the networks, but still the company wants its physical assets to be secure?

Do you see a language shift here?

If the company really wanted to safeguard the data, it should have enhanced the security of the networks. But instead it wants its physical assets used by employees to be secure.

You would ask why?

Because employees use the physical assets to access the data on the networks. Now, read the options and you will find that only Option A can be inferred.


Hi pikolo2510 : I think network means a connection (an intangible concept) between physical assets like laptops and mobile devices. Hence, data stored on network should mean that the data is stored in the physical assets of the network... I cannot visualize the network as something in which data can actually be stored (are we talking about wires?)
Hence, Option E seems more plausible to me: "Employees store x, y, z into their laptops issued by the company"...

Would love to hear your opinion (as well as others)....
GMATNinja would love to hear your opinion on my reasoning.
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deeeuce
pikolo2510
The premise clearly states that the information is stored on the networks, but still the company wants its physical assets to be secure?

Do you see a language shift here?

If the company really wanted to safeguard the data, it should have enhanced the security of the networks. But instead it wants its physical assets used by employees to be secure.

You would ask why?

Because employees use the physical assets to access the data on the networks. Now, read the options and you will find that only Option A can be inferred.


Hi pikolo2510 : I think network means a connection (an intangible concept) between physical assets like laptops and mobile devices. Hence, data stored on network should mean that the data is stored in the physical assets of the network... I cannot visualize the network as something in which data can actually be stored (are we talking about wires?)
Hence, Option E seems more plausible to me: "Employees store x, y, z into their laptops issued by the company"...

Would love to hear your opinion (as well as others)....
GMATNinja would love to hear your opinion on my reasoning.
Interesting point!

But I think "networks" in this sense can refer to things like servers where data is stored, not just to the connections. Employees can ACCESS data on a server, for example, using a laptop or mobile phone, even though no data is stored on those devices.

I hope that helps!
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Employees who fail to comply with the company's strict password and data encryption policies or who fail to follow the steps described in the training course are compromising the security of the company's intellectual property and will face stern consequences. Why?

  • The information stored on the company's networks, such as research data, training materials, and company memos, could potentially be very valuable to competitors and foreign governments alike. Okay, but why not let competitors and foreign governments access that valuable information?
  • "In order to maintain the competitive edge our company has gained through extensive research, decades of experience, and development of innovative methods" - ah, okay... the company has done a lot of work to acquire this information and develop a competitive edge. If that information is compromised, the company will lose its competitive edge.
  • So it makes sense that this company needs to "ensure that information security remains a top priority," but how?--by requiring "that all employees adhere to strict password and data encryption policies and complete a training course detailing steps to avoid theft or loss of company-issued physical assets, such as laptops and mobile phones."
  • So we've established WHAT information the company wants to protect, WHY the company wants to protect that information, and HOW it goes about protecting that information (i.e. policies and training). Employees who fail to comply with the policies and training will face stern consequences.

Now, if the statements in the passage are all true, which of the answer choices can properly be inferred on the basis of them?

(A) Employees must complete a training course detailing steps to avoid theft or loss of company-issued physical assets (such as laptops) in order to safeguard the information stored on the company's networks (such as research data, training materials, and company memos). If there was no way for competitors and foreign governments to use the company's laptops to access information stored on the company's networks, then theft or loss of those laptops would not compromise that information. In that case, requiring that employees complete the training course would NOT help the company safeguard the information stored on the its networks. Thus, it follows that "competitors and foreign governments might be able to use the company's laptops to access information stored on its networks. (A) looks good.

(B) We only know that the employees will face stern consequences if they fail to comply with the password and data encryption policies or fail to follow the steps described in the training course. We do NOT know what those consequences would be (i.e. reduction in pay or bonuses, loss of vacation time, demotion, etc.). (B) can be eliminated.

(C) We know that the company's information would be valuable to foreign governments, but we don't know WHY. If at least one foreign government would use that information to somehow compete with the company, then (C) would be true. However, perhaps the governments will simply benefit from that information without competing with the company. For example, it is possible that a foreign government purchases products or services from the company and would NOT need to do so if the government had free access to the company's information. (C) can be eliminated.

(D) We can't say whether employees who have not yet completed the training are likely to have their assets stolen. Perhaps it is very unlikely that employees will have their assets stolen, even before completing the training. The training might simply decrease the already low probability of loss or theft. (D) can be eliminated.

(E) If employees do in fact store such information on company-issued laptops and mobile phones, then the company would certainly want to avoid loss or theft of those assets. However, even if employees do not store ANY such information on those devices and simply use those devices to access sensitive information on the company's networks, the company would still want to protect those assets from loss or theft. We cannot infer choice (E) based on the information in the passage alone, so (E) must be eliminated.

This leaves choice (A) as the best option.

I think E can be clearly inferred from the question. If the employees store company data on the physical hardware, it becomes even more important to safeguard these devices to maintain their competitive edge. I think A and E are correct, but the challenge becomes which has a stronger impact.
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Employees who fail to comply with the company's strict password and data encryption policies or who fail to follow the steps described in the training course are compromising the security of the company's intellectual property and will face stern consequences. Why?

  • The information stored on the company's networks, such as research data, training materials, and company memos, could potentially be very valuable to competitors and foreign governments alike. Okay, but why not let competitors and foreign governments access that valuable information?
  • "In order to maintain the competitive edge our company has gained through extensive research, decades of experience, and development of innovative methods" - ah, okay... the company has done a lot of work to acquire this information and develop a competitive edge. If that information is compromised, the company will lose its competitive edge.
  • So it makes sense that this company needs to "ensure that information security remains a top priority," but how?--by requiring "that all employees adhere to strict password and data encryption policies and complete a training course detailing steps to avoid theft or loss of company-issued physical assets, such as laptops and mobile phones."
  • So we've established WHAT information the company wants to protect, WHY the company wants to protect that information, and HOW it goes about protecting that information (i.e. policies and training). Employees who fail to comply with the policies and training will face stern consequences.

Now, if the statements in the passage are all true, which of the answer choices can properly be inferred on the basis of them?

(A) Employees must complete a training course detailing steps to avoid theft or loss of company-issued physical assets (such as laptops) in order to safeguard the information stored on the company's networks (such as research data, training materials, and company memos). If there was no way for competitors and foreign governments to use the company's laptops to access information stored on the company's networks, then theft or loss of those laptops would not compromise that information. In that case, requiring that employees complete the training course would NOT help the company safeguard the information stored on the its networks. Thus, it follows that "competitors and foreign governments might be able to use the company's laptops to access information stored on its networks. (A) looks good.

(B) We only know that the employees will face stern consequences if they fail to comply with the password and data encryption policies or fail to follow the steps described in the training course. We do NOT know what those consequences would be (i.e. reduction in pay or bonuses, loss of vacation time, demotion, etc.). (B) can be eliminated.

(C) We know that the company's information would be valuable to foreign governments, but we don't know WHY. If at least one foreign government would use that information to somehow compete with the company, then (C) would be true. However, perhaps the governments will simply benefit from that information without competing with the company. For example, it is possible that a foreign government purchases products or services from the company and would NOT need to do so if the government had free access to the company's information. (C) can be eliminated.

(D) We can't say whether employees who have not yet completed the training are likely to have their assets stolen. Perhaps it is very unlikely that employees will have their assets stolen, even before completing the training. The training might simply decrease the already low probability of loss or theft. (D) can be eliminated.

(E) If employees do in fact store such information on company-issued laptops and mobile phones, then the company would certainly want to avoid loss or theft of those assets. However, even if employees do not store ANY such information on those devices and simply use those devices to access sensitive information on the company's networks, the company would still want to protect those assets from loss or theft. We cannot infer choice (E) based on the information in the passage alone, so (E) must be eliminated.

This leaves choice (A) as the best option.

I think E can be clearly inferred from the question. If the employees store company data on the physical hardware, it becomes even more important to safeguard these devices to maintain their competitive edge. I think A and E are correct, but the challenge becomes which has a stronger impact.


E can not be inferred.

Re-read the statement: The information stored on our networks, such as research data, training materials, and company memos, could potentially be very valuable to competitors and foreign governments alike.

(E) Employees use company issued physical assets, such as laptops and mobile phones, to store research data, training materials, and company memos.
E says: store on laptop.

if E were: Employees may use company laptop then definitely can be inferred.

But they use to store information --> no , its not given.
So clearly reject .
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darefadeji
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I think E can be clearly inferred from the question. If the employees store company data on the physical hardware, it becomes even more important to safeguard these devices to maintain their competitive edge. I think A and E are correct, but the challenge becomes which has a stronger impact.


E can not be inferred.

Re-read the statement: The information stored on our networks, such as research data, training materials, and company memos, could potentially be very valuable to competitors and foreign governments alike.

(E) Employees use company issued physical assets, such as laptops and mobile phones, to store research data, training materials, and company memos.
E says: store on laptop.

if E were: Employees may use company laptop then definitely can be inferred.

But they use to store information --> no , its not given.
So clearly reject .

I guess I'm taking the inference too far, considering in most corporate setups, information stored on the corporate network can be assessed & stored on phones and laptops by employees. What are the boundaries for inference for the purpose of GMAT?[/quote]

you need to limit the scope mentioned in the argument. Take it as literal what is mentioned. As you stepped out of the scope, you may end up in choosing wrong option or wasting precious time. Gmat exam is not a general discussion exam but point to specific details.
In the argument, they literally mentioned stored in the network and loss of physical devices.
For your satisfaction, you can consider corporate organizations that have provided access to VMs( virtual machine) to their employees to work on a project together with different teams but working from various locations. These tech companies have provided laptops to access securely to Virtual network and do offline /non-confidential activities in laptop.

The key point is: you need to stick to what is given .
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If you look closely to the Question, it talks about company's network not the physical data.
So, why do company wants to protect it's assets ? It might be possible for competitors or govt to use the assets to break into company's network.

That's why A is correct not E.
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