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Re: Journalist: Workers at Facsum Inc. have threatened to strike if manage [#permalink]
Why is the supporting fact not 6?

Is it because it is not a fact as it states 'likely'?
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Re: Journalist: Workers at Facsum Inc. have threatened to strike if manage [#permalink]
How can I tell if an IRnquestion is MSR/GI/TPA/TA? Would this be table analysis?
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Re: Journalist: Workers at Facsum Inc. have threatened to strike if manage [#permalink]
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Mkerolos wrote:
How can I tell if an IRnquestion is MSR/GI/TPA/TA? Would this be table analysis?


Practice a bunch of IR questions and you will find the difference between the questions until then you can see the tags given with each question. This is a two part analysis question.

See the screen shot.
Attachment:
123.jpg
123.jpg [ 421.57 KiB | Viewed 6740 times ]


Thank you
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Re: Journalist: Workers at Facsum Inc. have threatened to strike if manage [#permalink]
Assumption is Statement 6: Facsum likely does not have sufficient cash flow or cash reserves to support increased expenses, if this is negated then the argument falls apart.

Supporting statement for this Assumption is=: The majority of the losses were due to a significant decline in profit margins. This is the only option that can be considered as a supporting statement became the reason for the decline in profit margins is the increase in expenses as stated by our the assumption.
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Re: Journalist: Workers at Facsum Inc. have threatened to strike if manage [#permalink]
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mimishyu
Why can't the assumption be:
Fascum is unwilling to negotiate with the workers.

and the supporting fact be:
Facsum likely does not have sufficient cash flow or cash reserves to support increased expenses.
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Re: Journalist: Workers at Facsum Inc. have threatened to strike if manage [#permalink]
VeritasKarishma
Dear Karishma,
could you shed some light, why the following combination is not valid?

Conclusion : We believe a strike is inevitable.
Why ?
Assumption: Fascum is unwilling to negotiate with the workers.
Why?
Supporting fact: Facsum likely does not have sufficient cash flow or cash reserves to support increased expenses.

Thank you in advance.
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Re: Journalist: Workers at Facsum Inc. have threatened to strike if manage [#permalink]
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BLTN wrote:
VeritasKarishma
Dear Karishma,
could you shed some light, why the following combination is not valid?

Conclusion : We believe a strike is inevitable.
Why ?
Assumption: Fascum is unwilling to negotiate with the workers.
Why?
Supporting fact: Facsum likely does not have sufficient cash flow or cash reserves to support increased expenses.

Thank you in advance.


Focus on the assumption only first.

Workers at Facsum Inc. have threatened to strike if management does not meet their demands for a raise.
Further, workers are insisting that the company rehire 12 employees who were laid off.
It is well-known that Facsum reported that negative profits in 3 of its previous 4 quarterly earnings reports.

Conclusion:We believe a strike is inevitable.

On what basis is the author concluding that a strike is inevitable? The premise states that Facsum reported negative profits. He is assuming that there are no resources from which raise can be paid. There is no mention of unwillingness of the management. The premise mentions the financial condition. The argument talks about the ability of Facsum to give raises. Not about their willingness.

So, "Fascum is unwilling to negotiate with the workers." is not an assumption the author is making. It is not necessary that Facsum is unwilling to negotiate. It may be willing or may not be willing but the point is that it doesn't have the capacity to give a raise.

That is why the correct set is:
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.

If profit margins have declined, it becomes likely that Facsum does not have sufficient cash flow or cash reserves.
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Re: Journalist: Workers at Facsum Inc. have threatened to strike if manage [#permalink]
GMATist1 wrote:
Why can't the assumption be:
Fascum is unwilling to negotiate with the workers.

I also have the same question, because if we negate this assumption (Fascum is willing to negotiate with the workers), then the conclusion (that a strike is inevitable) is no longer valid.

isn't this how assumptions are supposed to be tackled?

GMATGuruNY GMATNinja please help.
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Re: Journalist: Workers at Facsum Inc. have threatened to strike if manage [#permalink]
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mpobisetty wrote:
GMATist1 wrote:
Why can't the assumption be:
Fascum is unwilling to negotiate with the workers.

I also have the same question, because if we negate this assumption (Fascum is willing to negotiate with the workers), then the conclusion (that a strike is inevitable) is no longer valid.

isn't this how assumptions are supposed to be tackled?


As you have correctly noted, the negation of the correct answer must invalidate the conclusion.

PREMISE:
If management does not meet their demands, workers have threatened to strike.
CONCLUSION:
A strike is inevitable.

The premise indicates the following:
To avoid a strike, Facsum must meet the workers' demands.

C, negated:
Facsum is willing to negotiate with the workers.
Here, the usage of negotiate suggests that Facsum might meet some but not all of the workers' demands, potentially STRENGTHENING the conclusion that a strike is inevitable.
Since the negation of the correct answer must clearly WEAKEN the conclusion, eliminate C.

F, negated:
Facsum likely has sufficient cash flow to support increased expenses.
This negation suggests that Facsum can afford to meet the workers' demands, WEAKENING the conclusion that a strike is inevitable.
Since the negation of F weakens the conclusion, F is a valid assumption.
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Re: Journalist: Workers at Facsum Inc. have threatened to strike if manage [#permalink]
KarishmaB , I also have similar questions. Can you please help ? chetan2u

Why can't the assumption be:
Fascum is unwilling to negotiate with the workers.

and the supporting fact be:
Facsum likely does not have sufficient cash flow or cash reserves to support increased expenses.
GMATist1 wrote:
mimishyu
Why can't the assumption be:
Fascum is unwilling to negotiate with the workers.

and the supporting fact be:
Facsum likely does not have sufficient cash flow or cash reserves to support increased expenses.

­
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Re: Journalist: Workers at Facsum Inc. have threatened to strike if manage [#permalink]
can someone please shed light on why supporting fact is "decline in profit margin", why couldn't it be "unwillingness"?
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Re: Journalist: Workers at Facsum Inc. have threatened to strike if manage [#permalink]
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