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04 Mar 2022, 02:30
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Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
25%
(medium)
Question Stats:
81% (02:08) correct
19%
(02:16)
wrong
based on 224
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One activist group claims that American tobacco companies will continue to thrive even after they pay the substantial fines imposed by the recent settlement as long as they continue to generate significant tax revenues for state and federal governments, that tobacco products produce an addicted customer base that will always be a source of substantial revenue, and that, due to "sin taxes" and standard income taxes, companies which sell tobacco products will remain some of the most heavily taxed businesses.
If the claims above are accurate, which of the following statements can validly be derived from them?
(A) There will be no further lawsuits filed against American tobacco companies.
(B) The activist group making the claim is anti-business.
(C) lf “sin taxes" are lifted, American tobacco companies will be unable to generate profits.
(D) lf American tobacco companies can afford to pay the fines imposed as part of the settlement, they will continue to thrive indefinitely.
(E) lf tobacco leaf blight affects the supply of tobacco to the major manufacturers, American tobacco companies will not be negatively affected.
If the claims above are accurate, which of the following statements can validly be derived from them?
(A) There will be no further lawsuits filed against American tobacco companies.
(B) The activist group making the claim is anti-business.
(C) lf “sin taxes" are lifted, American tobacco companies will be unable to generate profits.
(D) lf American tobacco companies can afford to pay the fines imposed as part of the settlement, they will continue to thrive indefinitely.
(E) lf tobacco leaf blight affects the supply of tobacco to the major manufacturers, American tobacco companies will not be negatively affected.
kungfury42
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04 Mar 2022, 04:27
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I'm torn between B and D, but I think it should be B. Here's why:
(A) Nothing in the stem indicates about the chances of future law suits. This statement cannot at all be derived from the stem. Eliminate A.
(C) It should rather be the opposite of it. Sin taxes and standard income taxes make tobacco companies one of the most heavily taxed businesses. If the sin taxes are lifted, the company would rather be able to generate more profits than what it is generating right now. Eliminate C.
(E) We have no information in the stem to determine the effects of disruption of tobacco supply to the manufacturing companies. Eliminate E.
Red flag 1: The usage of the conditional phrase "if they can afford to" alters the meaning of the stem. The stem says that even if they pay the substantial fines they'll thrive. The usage of "if they can afford to then they can thrive" conveys that in order to thrive they must be able to afford to pay the taxes.
Thriving has got nothing to do with the affordability of the taxes.
Red flag 2: The last word "indefinitely" seems like too much of a stretch. It is a strong word that doesn't contain scope/accommodation for future unforeseen events.
Both of these points literally make D say that if these companies pay the fines, then there's honestly nothing that's stopping them from becoming perpetual overlords.
This makes me really doubt D as the correct answer choice.
On the other-hand even if we may not have a lot to conclude choice B upfront, the tone and the vibe of the stem is very anti-supporrtive of the business. The usage of the term "sin taxes" also makes the activist group sound totally against the consumption of tobacco.
I'd go for B, but I would really like to learn others' answers and reasonings as well
Posted from my mobile device
(A) Nothing in the stem indicates about the chances of future law suits. This statement cannot at all be derived from the stem. Eliminate A.
(C) It should rather be the opposite of it. Sin taxes and standard income taxes make tobacco companies one of the most heavily taxed businesses. If the sin taxes are lifted, the company would rather be able to generate more profits than what it is generating right now. Eliminate C.
(E) We have no information in the stem to determine the effects of disruption of tobacco supply to the manufacturing companies. Eliminate E.
Quote:
(B) The activist group making the claim is anti-business.
Quote:
(D) lf American tobacco companies can afford to pay the fines imposed as part of the settlement, they will continue to thrive indefinitely.
At the outset, B might not seem like the ideal answer but it is less worse than D. I see two major red flags in D.Red flag 1: The usage of the conditional phrase "if they can afford to" alters the meaning of the stem. The stem says that even if they pay the substantial fines they'll thrive. The usage of "if they can afford to then they can thrive" conveys that in order to thrive they must be able to afford to pay the taxes.
Thriving has got nothing to do with the affordability of the taxes.
Red flag 2: The last word "indefinitely" seems like too much of a stretch. It is a strong word that doesn't contain scope/accommodation for future unforeseen events.
Both of these points literally make D say that if these companies pay the fines, then there's honestly nothing that's stopping them from becoming perpetual overlords.
This makes me really doubt D as the correct answer choice.
On the other-hand even if we may not have a lot to conclude choice B upfront, the tone and the vibe of the stem is very anti-supporrtive of the business. The usage of the term "sin taxes" also makes the activist group sound totally against the consumption of tobacco.
I'd go for B, but I would really like to learn others' answers and reasonings as well
Posted from my mobile device
04 Mar 2022, 07:27
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One activist group claims that American tobacco companies will continue to thrive even after they pay the substantial fines imposed by the recent settlement as long as they continue to generate significant tax revenues for state and federal governments, that tobacco products produce an addicted customer base that will always be a source of substantial revenue, and that, due to "sin taxes" and standard income taxes, companies which sell tobacco products will remain some of the most heavily taxed businesses.
If the claims above are accurate, which of the following statements can validly be derived from them?
Question Type: Inference
(A) There will be no further lawsuits filed against American tobacco companies.
We cannot infer that.
(B) The activist group making the claim is anti-business.
activist group claims that American tobacco companies will continue to thrive even after they pay the substantial fines imposed by the recent settlement as long as they continue to generate significant tax revenues for state and federal governments,
The activist group seems to be stating a possibility or stating that tobacco industry can still survive given they fulfill certain criteria. - This is definitely not a -ve mood.
(C) lf “sin taxes" are lifted, American tobacco companies will be unable to generate profits.
On the contrary, they will be able to generate more profits as the tax burden will be lifted.
(D) lf American tobacco companies can afford to pay the fines imposed as part of the settlement, they will continue to thrive indefinitely.
Correct.
If they are not able to pay the fines then they are out of the business but if they manage to do so then they have got customers who will be always there hence it will thrive indefinitely.
(E) lf tobacco leaf blight affects the supply of tobacco to the major manufacturers, American tobacco companies will not be negatively affected.
It's vague no connection and certainly can't be infered.
kungfury42
If the claims above are accurate, which of the following statements can validly be derived from them?
Question Type: Inference
(A) There will be no further lawsuits filed against American tobacco companies.
We cannot infer that.
(B) The activist group making the claim is anti-business.
activist group claims that American tobacco companies will continue to thrive even after they pay the substantial fines imposed by the recent settlement as long as they continue to generate significant tax revenues for state and federal governments,
The activist group seems to be stating a possibility or stating that tobacco industry can still survive given they fulfill certain criteria. - This is definitely not a -ve mood.
(C) lf “sin taxes" are lifted, American tobacco companies will be unable to generate profits.
On the contrary, they will be able to generate more profits as the tax burden will be lifted.
(D) lf American tobacco companies can afford to pay the fines imposed as part of the settlement, they will continue to thrive indefinitely.
Correct.
If they are not able to pay the fines then they are out of the business but if they manage to do so then they have got customers who will be always there hence it will thrive indefinitely.
(E) lf tobacco leaf blight affects the supply of tobacco to the major manufacturers, American tobacco companies will not be negatively affected.
It's vague no connection and certainly can't be infered.
kungfury42
