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# Events & Promotions

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# Independent concert promoters, in order to maintain their

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Current Student
Joined: 28 Dec 2004
Posts: 3357
Location: New York City
Schools: Wharton'11 HBS'12
Independent concert promoters, in order to maintain their [#permalink]

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01 Mar 2009, 08:13
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Question Stats:

73% (02:11) correct 27% (02:03) wrong based on 33 sessions

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Independent concert promoters, in order to maintain their credibility and compete with larger, publicly traded promoters, must represent the concert tours of well-known artists. To attract such business, these private companies have had to increase their guaranteed payments to famous clients. To offset these increases, smaller promoters have raised their ticket prices, resulting in low attendance at a number of recent shows.

Which of the following assertions is best drawn from the information above?

Independent concert promoters often lose money by representing well-known artists.

The largest independent concert promoter has fewer employees than the smallest publicly traded promoter.

Ticket price is the most important determining factor for concert attendance.

Future ticket prices for well-known artists will continue to increase.

The contracts between concert promoters and artists are not always based solely on revenue generated by ticket sales.
Senior Manager
Joined: 06 Mar 2006
Posts: 494

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01 Mar 2009, 08:34
1
KUDOS
FN wrote:
Independent concert promoters, in order to maintain their credibility and compete with larger, publicly traded promoters, must represent the concert tours of well-known artists. To attract such business, these private companies have had to increase their guaranteed payments to famous clients. To offset these increases, smaller promoters have raised their ticket prices, resulting in low attendance at a number of recent shows.

Which of the following assertions is best drawn from the information above?

Independent concert promoters often lose money by representing well-known artists.

The largest independent concert promoter has fewer employees than the smallest publicly traded promoter.

Ticket price is the most important determining factor for concert attendance.

Future ticket prices for well-known artists will continue to increase.

The contracts between concert promoters and artists are not always based solely on revenue generated by ticket sales.

This is more like inference question. So the correct answer must be true.
Choice A is wrong, the statement did not say they are going to lose money.
Choice B is wrong, there is so such comparison
Choice C is wrong, ticket price might be the factor, but the most important factor is too extreme
Choice D is wrong, we don't know if the future price will increase.
E is correct. Because the statement mentioned "these private companies have had to increase their guaranteed payments to famous clients". So no matter if it is revenue generating or not, they have the guaranteed payment.
Director
Joined: 25 Oct 2006
Posts: 635

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01 Mar 2009, 08:58
IMO E.
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If You're Not Living On The Edge, You're Taking Up Too Much Space

Director
Joined: 29 Aug 2005
Posts: 859

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01 Mar 2009, 09:41
Only E comes anywhere near.
Senior Manager
Joined: 06 Jul 2007
Posts: 274

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01 Mar 2009, 11:29
eileen1017 wrote:
FN wrote:
Independent concert promoters, in order to maintain their credibility and compete with larger, publicly traded promoters, must represent the concert tours of well-known artists. To attract such business, these private companies have had to increase their guaranteed payments to famous clients. To offset these increases, smaller promoters have raised their ticket prices, resulting in low attendance at a number of recent shows.

Which of the following assertions is best drawn from the information above?

Independent concert promoters often lose money by representing well-known artists.

The largest independent concert promoter has fewer employees than the smallest publicly traded promoter.

Ticket price is the most important determining factor for concert attendance.

Future ticket prices for well-known artists will continue to increase.

The contracts between concert promoters and artists are not always based solely on revenue generated by ticket sales.

This is more like inference question. So the correct answer must be true.
Choice A is wrong, the statement did not say they are going to lose money.
Choice B is wrong, there is so such comparison
Choice C is wrong, ticket price might be the factor, but the most important factor is too extreme
Choice D is wrong, we don't know if the future price will increase.
E is correct. Because the statement mentioned "these private companies have had to increase their guaranteed payments to famous clients". So no matter if it is revenue generating or not, they have the guaranteed payment.

I agree with Eileen's reasoning.
Senior Manager
Joined: 08 Nov 2008
Posts: 298

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01 Mar 2009, 11:50
between A and E ..
finally settled down to E ..
OA pls !!
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Senior Manager
Joined: 23 May 2008
Posts: 415

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02 Mar 2009, 21:29
Only E seems good, Rest all choices are either out of scope or too extreme.
VP
Joined: 05 Jul 2008
Posts: 1408

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02 Mar 2009, 22:10
1
KUDOS
Got E as well.

B & D are clearly out.

A has the word often which makes it wrong

C has the word most which makes it wrong

E is the best.
VP
Joined: 18 May 2008
Posts: 1260

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03 Mar 2009, 09:41
Trng trng......OA pls.................
Manager
Joined: 11 Aug 2008
Posts: 154

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26 Oct 2009, 19:13
OA must be E
Manager
Joined: 11 Aug 2009
Posts: 122

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27 Oct 2009, 14:47
I think it's clear E.
GMAT Club Legend
Joined: 01 Oct 2013
Posts: 10156
Re: Independent concert promoters, in order to maintain their [#permalink]

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11 Aug 2014, 20:32
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

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Current Student
Joined: 13 Feb 2011
Posts: 104
Re: Independent concert promoters, in order to maintain their [#permalink]

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11 Aug 2014, 20:33
OA is E. Its a question from the MGMAT CR question bank.
GMAT Club Legend
Joined: 01 Oct 2013
Posts: 10156
Re: Independent concert promoters, in order to maintain their [#permalink]

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01 Dec 2016, 09:04
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
Re: Independent concert promoters, in order to maintain their   [#permalink] 01 Dec 2016, 09:04
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