The first step is always to identify the conclusion, i.e. the sentence (or part of a sentence) that answers the question, "What is the author trying to convince us?" Here, the conclusion is:
"Therefore, Kitchen can collect its licensing fees without endangering its other revenues."
Now let's ask, Why does the author believe this?
The reasoning is
- Licensing a magazine's name is normally risky because if the product is poor, the magazine's reputation suffers, leading to lower circulation and less advertising revenue.
- But experts have determined that this cookware is superior, so the author believes consumers won't be disappointed.
- Therefore, the author concludes that the magazine's existing revenue streams (circulation and advertising) are safe.
Notice what the author has NOT considered.
The argument only addresses one possible threat, that consumers might dislike the cookware.
But there is another obvious way the magazine's advertising revenue could decline: What if cookware manufacturers stop advertising in the magazine because it now appears to be promoting a competing cookware brand?
That possibility has nothing to do with the cookware's quality. Even if the licensed cookware is outstanding, rival cookware companies might decide, "Why should we advertise in a magazine that's effectively endorsing one of our competitors?"
If that happened, the magazine's advertising revenue, one of its "other revenues", would indeed be endangered.
That is exactly what answer (C) rules out.
(C) Makers of cookware will not find Kitchen a less attractive advertising vehicle because the magazine's name is associated with a competing product.
This is a necessary assumption. Without it, the conclusion falls apart.
The Negation Test makes this crystal clear. Negate (C):
Makers of cookware will find Kitchen a less attractive advertising vehicle because the magazine's name is associated with a competing product.
Now advertising revenue declines, even though consumers love the cookware. The conclusion that Kitchen can collect licensing fees without endangering its other revenues is no longer valid.
So (C) must be true for the argument to work. That makes (C) the correct answer.
Here is why the other choices are wrong
(A) No other line of cookware is superior...
We already know the cookware is superior to the other cookware advertised in the magazine. Even if some cookware elsewhere is better, that doesn't affect the conclusion about Kitchen's other revenues.
(B) Kitchen will not license its name for any other products.
Whether the magazine licenses its name to additional products is irrelevant to whether this particular licensing deal threatens its circulation or advertising revenue.
(D) Consumers who are not regular readers will be attracted to the cookware.
The argument is about protecting the magazine's existing revenue, not increasing cookware sales.
(E) Kitchen is one of the most prestigious cooking magazines.
The magazine doesn't need to be among the most prestigious for the argument to work. Its absolute prestige is irrelevant. The issue is whether licensing this cookware will hurt its existing revenue streams.