macjas
Project IR Butler 2019-20 - Get one IR Question EverydayQuestion # 08, Date : 08-Oct-2019
This post is a part of Project IR Butler 2019-20.
Click here for Details Journalist: Workers at Facsum Inc. have threatened to strike if management does not meet their demands for an immediate 5% pay raise and a paid lunch break. Further, workers are insisting that the company rehire 12 employees who were laid off for complaining about substandard wages and working conditions. It is well-known that Facsum reported that negative profits in 3 of its previous 4 quarterly earnings reports. We believe a strike is inevitable.
Identify an assumption required by the journalist’s argument and a fact that, if true, would most strongly support the required assumption. Make only two selections, one in each column.Attachment:
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Assumption: Facsum likely does not have sufficient cash flow or cash reserves to support increased expenses.
Supporting Fact: The majority of the losses were due to a significant decline in profit margins.
see the structure of the question stem:
workers threaten to strike if the demand for pay wage raise and paid lunch break cannot reach
……but Fascum’s report negative profit…..thus strike inevitable
some additional informations to know:
(1)In an argument, an assumption is a premise that is not explicitly(directly)stated. These unstated premises are very important since “the validity of an argument is determined by the validity of its assumptions”. Assumptions are the missing links of arguments.
(2)an assumption is an unexamined belief: what we think without realizing we think it. Our inferences(also called conclusions)are often based on assumptions that we haven’t thought about critically. A critical thinker, however, is attentive to these assumptions because they are sometimes incorrect or misguided.
the argument of Journalist:
the strike, which appeal for pay-rise and paid lunch break, to the management of Fascum must be inevitable since the tricky problem of negative profit earnings remain
the strike, which appeal for pay-rise and paid lunch break, must be inevitable-->>this is the conclusion( to the argument)
must be->>this is the key point to which the argument be valid or not
the tricky problem of negative profit earnings remain->>this is a phenomenon used for explain the assumption, its
focus revolves around the issue to profit-money, and if this assumption valid, then the conclusion as well as the whole argument could be valid too
and we browse through sentence (1)-(6), only (4)&(6) talks about money, here we want to find assumption, in (4)—were due to—cannot be the wording show up in assumption, thus only (6) somewhat more corresponsive to “the tricky problem of negative profit earnings remain”
or we could find assumption, which the argument based upon, by using “elimination method”
sentence (1): this statement oppose to Journalist’s argument, the worker won’t compromise
sentence(2):there’s nowhere in the passage that we saw the word “leader” ever show up
sentence(3):the statement in question stem doesn’t mention “negotiate” very specifically, it just says “rehire 12 employees….” which we can infer from the Journalist’s tone that he/she is somehow willing to negotiate
sentence(5):here we’re not concerned about the reason why 12 employees layoff, the question stem only says that the company rehire 12 employees who were laid off…
sentence (6):workers at Fascum threaten to strike if management cannot meet their demand--but why cannot meet their demand?-here we had to pick a choice which could best explain this doubt, and though (4) mention about profit losses, its wording “were due to”(it can only be a fact) cannot appear in the assumption kind of sentence, thus only (6) fits best