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Re: Many GMAT test takers consider Bold Face (BF) questions to [#permalink]
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Exercise Question 2

Products that are high performance and full of features generally provide higher profit margins than simpler products. Because stock market rewards higher returns on research and development and a company’s decisions are driven by stock prices, incumbents in any industry invest their research and development efforts on making products more complex, leaving the products that provide the lowest profit margins to competitors. However, such a strategy often backfires since it allows competitors to build competence and slowly come after those high margin products. Therefore, the best strategy for an incumbent is to invest to maintain leading positions in both low margin and high margin products.

A. The first is an assumption that forms the basis for a course of action that the argument criticizes; the second presents the course of action endorsed by the argument.
-- First is the consideration not assumption. Second bold face which presents the course of action is NOT endorsed by the argument. The main argument in fact opposes that position.
B. The first is a consideration raised to explain the appeal of a certain strategy; the second presents that strategy
-- The role of the first bold face is not to explain but to form the basis of certain strategy. Second bold face is that strategy.
C. The first is an assumption that has been used to justify a certain strategy; the second is a consideration that is used to cast doubt on that assumption.
-- First is the consideration not assumption. Second bold face doesn’t cast doubt on first bold face, rather it presents certain strategy.
D. The first is a consideration raised in support of a strategy the argument endorses; the second presents grounds in support of that consideration.
-- The first is a consideration raised in support of strategy that argument rather opposes. The second presents that strategy opposed by the argument.
E. The first is a consideration that has been used to justify pursuing a goal that the argument rejects; the second presents a course of action that has been adopted in pursuit of a goal.
-- Correct. First is the consideration used to justify pursuing a goal (higher profit margins & higher stock prices) and second presents the course of action/strategy - investing in R&D on making complex products, leaving lowest profit margin products to competitors - that argument rejects as author says this strategy often backfires – adopted in pursuit of that goal.

Choice (E) for me.
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amitgup77 wrote:
Exercise Question 1


The stock market has shorted HP stock in response to HP CEO Leo Apotheker’s decision to divest the tablet business to invest to achieve good positions in great industries. Such myopic behavior indicates that the stock market is focused at short term results even when they come at the expense of long term benefits. While HP could have made some money in the tablet market in the short term, it has no strategic advantage in the tablet space and refocusing and investing the management focus on industries where HP does have a strategic advantage will provide enduring profits in the long term.

In the argument given, the two boldfaced portions play which of the following roles?
A. The first is a position that the argument as a whole seeks to defend whereas the second is a position that is contested in the argument.
B. The first states the conclusion of the argument as a whole; the second states an intermediate conclusion that is drawn in order to support the main conclusion.
C. The first is the position that the argument as a whole opposes; the second provides evidence against the position being opposed.
D. The first states an intermediate conclusion that is drawn in order to support the conclusion of the argument as a whole; the 2nd states the conclusion of the argument as a whole
E. The first and second both state intermediate conclusions that are drawn in order to support jointly the conclusions of the argument as a whole


Can somebody explain, How Ans Choice B supports the main conclusion ?


Hi Amit,

I think you mean to ask how BF2 supports the main conclusion.

Let's list down the main conclusion:
The main conclusion is BF1:
the stock market is focused at short term results even when they come at the expense of long term benefits

Now, why does the author makes the above conclusion. He concludes the above statement because the stock market has reacted negatively to HP's decision to divest tablet business. So, basically, HP said that they would not continue to market tablets and the stock market reacted negatively i.e. the stock of HP came down.

Now, on this basis, the author says that stock market is focused on short term results. But how does it mean that the stock market is short term focused? It would mean so if the action taken by HP may have short term disadvantage but a long term advantage. Isn't it? In such case, we can say that the market is only looking at short term and missing the big picture.

This meaning is what is conveyed by BF2. It says that HP does not have any long term benefit in the tablet space. By saying so, it supports the conclusion that stock market is only looking at short term loss but not at the fact that HP does not have any reason to continue tablet business in the long run.

Does this help?

Thanks,
Chiranjeev
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Re: Many GMAT test takers consider Bold Face (BF) questions to [#permalink]
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PraPon wrote:
Exercise Question 2

Products that are high performance and full of features generally provide higher profit margins than simpler products. Because stock market rewards higher returns on research and development and a company’s decisions are driven by stock prices, incumbents in any industry invest their research and development efforts on making products more complex, leaving the products that provide the lowest profit margins to competitors. However, such a strategy often backfires since it allows competitors to build competence and slowly come after those high margin products. Therefore, the best strategy for an incumbent is to invest to maintain leading positions in both low margin and high margin products.

A. The first is an assumption that forms the basis for a course of action that the argument criticizes; the second presents the course of action endorsed by the argument.
-- First is the consideration not assumption. Second bold face which presents the course of action is NOT endorsed by the argument. The main argument in fact opposes that position.
B. The first is a consideration raised to explain the appeal of a certain strategy; the second presents that strategy
-- The role of the first bold face is not to explain but to form the basis of certain strategy. Second bold face is that strategy.
C. The first is an assumption that has been used to justify a certain strategy; the second is a consideration that is used to cast doubt on that assumption.
-- First is the consideration not assumption. Second bold face doesn’t cast doubt on first bold face, rather it presents certain strategy.
D. The first is a consideration raised in support of a strategy the argument endorses; the second presents grounds in support of that consideration.
-- The first is a consideration raised in support of strategy that argument rather opposes. The second presents that strategy opposed by the argument.
E. The first is a consideration that has been used to justify pursuing a goal that the argument rejects; the second presents a course of action that has been adopted in pursuit of a goal.
-- Correct. First is the consideration used to justify pursuing a goal (higher profit margins & higher stock prices) and second presents the course of action/strategy - investing in R&D on making complex products, leaving lowest profit margin products to competitors - that argument rejects as author says this strategy often backfires – adopted in pursuit of that goal.

Choice (E) for me.


Hi,

In option E, "...pursuing a goal that the argument rejects..." - the term "that the argument rejects" is modifying the goal. It means that the first BF statement justifies pursuing a goal, a goal which is rejected in the argument. This is not the case. The argument only targets the strategy, not the goal itself.

Hope this helps :)

Let me know in case of further queries.

-Chiranjeev
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Re: Many GMAT test takers consider Bold Face (BF) questions to [#permalink]
Exercise Question 1

The stock market has shorted HP stock in response to HP CEO Leo Apotheker’s decision to divest the tablet business to invest to achieve good positions in great industries. Such myopic behavior indicates that the stock market is focused at short term results even when they come at the expense of long term benefits. While HP could have made some money in the tablet market in the short term, it has no strategic advantage in the tablet space and refocusing and investing the management focus on industries where HP does have a strategic advantage will provide enduring profits in the long term.

A. The first is a position that the argument as a whole seeks to defend whereas the second is a position that is contested in the argument.
-- Second position is not contested in the argument, its the intermediate conclusion that supports the main conclusion of the argument.
B. The first states the conclusion of the argument as a whole; the second states an intermediate conclusion that is drawn in order to support the main conclusion.
-- Correct. First bold face is the main conclusion of the argument and second bold face acts as intermediate conclusion that supports the main conclusion of the argument.
C. The first is the position that the argument as a whole opposes; the second provides evidence against the position being opposed.
-- Argument doesnt oppose the first bold face, rather its the main conclusion of the argument.
D. The first states an intermediate conclusion that is drawn in order to support the conclusion of the argument as a whole; the 2nd states the conclusion of the argument as a whole
-- The roles are reversed. First is main conclusion and second is the intermediate conclusion.
E. The first and second both state intermediate conclusions that are drawn in order to support jointly the conclusions of the argument as a whole
-- First is main conclusion and second is the intermediate conclusion.

Choice(B) for me.
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Re: Many GMAT test takers consider Bold Face (BF) questions to [#permalink]
Exercise Question 1


The stock market has shorted HP stock in response to HP CEO Leo Apotheker’s decision to divest the tablet business to invest to achieve good positions in great industries. Such myopic behavior indicates that the stock market is focused at short term results even when they come at the expense of long term benefits. While HP could have made some money in the tablet market in the short term, it has no strategic advantage in the tablet space and refocusing and investing the management focus on industries where HP does have a strategic advantage will provide enduring profits in the long term.

In the argument given, the two boldfaced portions play which of the following roles?
A. The first is a position that the argument as a whole seeks to defend whereas the second is a position that is contested in the argument.
B. The first states the conclusion of the argument as a whole; the second states an intermediate conclusion that is drawn in order to support the main conclusion.
C. The first is the position that the argument as a whole opposes; the second provides evidence against the position being opposed.
D. The first states an intermediate conclusion that is drawn in order to support the conclusion of the argument as a whole; the 2nd states the conclusion of the argument as a whole
E. The first and second both state intermediate conclusions that are drawn in order to support jointly the conclusions of the argument as a whole


Can somebody explain, How Ans Choice B supports the main conclusion ?
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Re: Many GMAT test takers consider Bold Face (BF) questions to [#permalink]
Hi Could someone post the answers to the Bold Face file questions?
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Re: Many GMAT test takers consider Bold Face (BF) questions to [#permalink]
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Hello Everyone,

At e-GMAT, we are celebrating the end of another very successful year. We achieved a number of milestones during the year, including:

1. Highest number of reviews by non-natives on GMAT Club (5x more than any other test prep company)
2. Highest number of success stories on “Share GMAT Experience”
3. Over 1400 Kudos for the year, the most by any test prep company on GMAT Verbal forum

As part of the celebrations, we are offering our otherwise paid session “Bold Face Session” for free for the first time. In this session, we’ll cover the following:

1. Learn a structured and well tested approach to ace Bold Face questions
2. Understand the common terminology used in Bold Face questions and how it is used
3. Become aware of the common pitfalls designed by the question makers

To know more about what we cover in the bold face session, please click here.



As a warm-up to the session, let’s get our hands dirty on the following official bold face question:

Consumer advocate: it is generally true, at least in this state, that lawyers who advertise a specific service charge less for that service than lawyers who do not advertise. It is also true that each time restrictions on the advertising of legal services have been eliminated, the number of lawyers advertising their services has increased and legal costs to consumers have declined in consequence. However, eliminating the state requirement that legal advertisements must specify fees for specific services would almost certainly increase rather than further reduce consumer’s legal costs. Lawyers would no longer have an incentive to lower their fees when they begin advertising and if no longer required to specify fee arrangements, many lawyers who now advertise would increase their fees.

In the consumer advocate’s argument, the two portions in boldface play which of the following roles?

(A) The first is a generalization that the consumer advocate accepts as true; the second is presented as a consequence that follows from the truth of that generalization.
(B) The first is a pattern of cause and effect that the consumer advocate argues will be repeated in the case at issue; the second acknowledges a circumstance in which that pattern would not hold.
(C) The first is pattern of cause and effect that the consumer advocate predicts will not hold in the case at issue; the second offers a consideration in support of that prediction.
(D) The first is evidence that the consumer advocate offers in support of a certain prediction; the second is that prediction.
(E) The first acknowledges a consideration that weighs against the main position that the consumer advocate defends; the second is that position.

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Re: Many GMAT test takers consider Bold Face (BF) questions to [#permalink]
please add official explanation to Second question of exercise egmat Bunuel
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Re: Many GMAT test takers consider Bold Face (BF) questions to [#permalink]
A clarification:


Argument: Scientists says XYZ .they concluded ABC. But people believe UVW and have practical results. Hence , UVW should be true.

In such an example:
1. position means ABC ( scientist conclusion ) or author conclusion(UVW). ( i think UVW is position of the argument)
2. Main Conclusion : ABC or UVW? ( i think UVW? please confirm)
3. Position means conclusion always ? If the last statement is not mention ( Hence , UVW should be true.) then position still have been opposite of ABC, right?
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Re: Many GMAT test takers consider Bold Face (BF) questions to [#permalink]
I encountered 4 BF questions in my GMAT Exam. I took the online test, & do not know the score yet. But, is it fair to assume that i was faring well in verbal given the # of BF questions that i got?
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Re: Many GMAT test takers consider Bold Face (BF) questions to [#permalink]
gaurav02khattar wrote:
I encountered 4 BF questions in my GMAT Exam. I took the online test, & do not know the score yet. But, is it fair to assume that i was faring well in verbal given the # of BF questions that i got?

Hey, same situation here! I got 4-6 BF questions in my online test. How much did u score during mocks?

Posted from my mobile device
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Re: Many GMAT test takers consider Bold Face (BF) questions to [#permalink]
Thanks @e-Gmat for sharing this. The document is very descriptive and focusing more on the approach. :-)
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Many GMAT test takers consider Bold Face (BF) questions to [#permalink]
Hi Experts,

In my opinion the main conclusion of this argument should be refocusing will provide enduring profits in the long term.

The first bold "the stock market is focused at short term results even when they come at the expense of long term benefits" seems almost a claim

Can you please elucidate on why it is the conclusion?

Thanks,

Michele

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Re: Many GMAT test takers consider Bold Face (BF) questions to [#permalink]
Expert Reply
MPRS22 wrote:
Hi Experts,

In my opinion the main conclusion of this argument should be refocusing will provide enduring profits in the long term.

The first bold "the stock market is focused at short term results even when they come at the expense of long term benefits" seems almost a claim

Can you please elucidate on why it is the conclusion?

Thanks,

Michele

AndrewN VeritasKarishma

Hello, Michele. Have you taken a look at the community dialogue to the question in this dedicated thread? If you have further questions after perusing it, feel free to call on me there. (I did go with (B), and it took about a minute and a half. In boldface questions especially, my approach is not so much to seek what I think is correct for either of the two boldfaced lines, but to eliminate what I know is wrong for either one and then work with what may be left.)

Happy reading.

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Re: Many GMAT test takers consider Bold Face (BF) questions to [#permalink]
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MPRS22 wrote:
Hi Experts,

In my opinion the main conclusion of this argument should be refocusing will provide enduring profits in the long term.

The first bold "the stock market is focused at short term results even when they come at the expense of long term benefits" seems almost a claim

Can you please elucidate on why it is the conclusion?

Thanks,

Michele

AndrewN VeritasKarishma



Michele,

A few points about conclusion:

- The conclusion is not necessarily the last sentence of the argument. Don't keep any bias toward the last sentence. Often, it will be in the beginning or somewhere in the middle.

- The conclusion is the reason the author writes the argument. If I were to condense the argument into one sentence, what will it be? Rest everything, the author writes to convince me that the conclusion is true.

Now read the argument:

The stock market has shorted HP stock because HP is divesting the tablet business to invest to achieve good positions in great industries.
While HP could have made some money in the tablet market in the short term, it has no strategic advantage in the tablet space and refocusing and investing the management focus on industries where HP does have a strategic advantage will provide enduring profits in the long term.
This indicates that the stock market is focused at short term results even when they come at the expense of long term benefits.

Note that the first two sentences given above provide support to the hypothesis - the stock market is focused at short term results even when they come at the expense of long term benefits.

Hence the conclusion is "the stock market is focused at short term results even when they come at the expense of long term benefits". It is a hypothesis kind of conclusion - derived based on observations.
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