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Krate Motors, one of the leading automakers in the country, sells all

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Krate Motors, one of the leading automakers in the country, sells all  [#permalink]

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New post 17 Feb 2018, 21:43
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Question Stats:

39% (01:22) correct 61% (01:41) wrong based on 159 sessions

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Krate Motors, one of the leading automakers in the country, sells all its cars through two dealerships: Trump and Prax. In the last few years, Trump has consistently sold many more cars than Prax even though both the dealerships have the same geographical acreage allotted to them. However, since both the dealerships are assigned exclusive geographical regions, neither can sell cars in the region allotted to the other. Krate’s marketing division has recommended that in order to boost the company’s overall sales, Trump be given an exclusive contract for the entire country.

The validity of the above recommendation depends on which of the following assumptions?

A.Krate motors cannot increase its overall sales by increasing the sales of its cars in the geographical area allotted to Trump.

B.Comparison with Prax is not one of the main motivating factors for Trump to perform better on sales.

C.Prax has not performed better than the dealerships of other companies in the geographical area allotted to it.

D.Trump will employ the same sales strategies in the newly allotted area as it does in the area originally allotted to it.

E.Trade surveys have shown that there is a large market for the kind of cars Krate Motors makes in the geographical area currently under Prax motors.

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Re: Krate Motors, one of the leading automakers in the country, sells all  [#permalink]

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New post 17 Feb 2018, 22:21
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Answer should be B
If comparison with Prax is one of the motivating factor for trump to perform, then when competition is removed Trump will be likely to show some leniency as motivation has been removed.
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Re: Krate Motors, one of the leading automakers in the country, sells all  [#permalink]

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New post 19 Feb 2018, 07:17
arun6765 wrote:
Answer should be B
If comparison with Prax is one of the motivating factor for trump to perform, then when competition is removed Trump will be likely to show some leniency as motivation has been removed.


Whats wrong with A?
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Re: Krate Motors, one of the leading automakers in the country, sells all  [#permalink]

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New post 19 Feb 2018, 07:35
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Conclusion: in order to boost the company’s overall sales, Trump be given an exclusive contract for the entire country.
Here author particularly wants to increase trade in Prax division.
Also, if you negate A: Krate motors can increase its overall sales by increasing the sales of its cars in the geographical area allotted to Trump.
does the negated assumption destroy or even challenge it? On the contrary, it somehow supports it.
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Re: Krate Motors, one of the leading automakers in the country, sells all  [#permalink]

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New post 20 Feb 2018, 03:28
SandhyAvinash wrote:
Krate Motors, one of the leading automakers in the country, sells all its cars through two dealerships: Trump and Prax. In the last few years, Trump has consistently sold many more cars than Prax even though both the dealerships have the same geographical acreage allotted to them. However, since both the dealerships are assigned exclusive geographical regions, neither can sell cars in the region allotted to the other. Krate’s marketing division has recommended that in order to boost the company’s overall sales, Trump be given an exclusive contract for the entire country.

The validity of the above recommendation depends on which of the following assumptions?

A.Krate motors cannot increase its overall sales by increasing the sales of its cars in the geographical area allotted to Trump.

B.Comparison with Prax is not one of the main motivating factors for Trump to perform better on sales.

C.Prax has not performed better than the dealerships of other companies in the geographical area allotted to it.

D.Trump will employ the same sales strategies in the newly allotted area as it does in the area originally allotted to it.

E.Trade surveys have shown that there is a large market for the kind of cars Krate Motors makes in the geographical area currently under Prax motors.


Imo B

If we negate b then the argument falls apart .
If the Trump gets dealership of whole country then there would be nobody to compete with and it will not perform good .
A this does not give us any specific information whether to give area under prax to trump .
C This might be true but it does not in anyway tell us anything about the plan to give prax area to trump.
D The strategy may or may not work .
E The overall volume of sales will increase .It does not matter whether dealer is Prax of Trump

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This discussion does not meet community quality standards. It has been retired.


If you would like to discuss this question please re-post it in the respective forum. Thank you!

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Re: Krate Motors, one of the leading automakers in the country, sells all &nbs [#permalink] 20 Feb 2018, 03:28
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Krate Motors, one of the leading automakers in the country, sells all

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