Last visit was: 20 May 2026, 22:06

It is currently 20 May 2026, 22:06

Toolkit

Practice Tests

Verbal Archive [Locked]

CR Archive

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Go to My Error Log Learn more

Request Expert Reply

Confirm Cancel

May 21
GMAT 535 to 695 with Solid Jump in Quant & DI! Pragati’s Inspiring Comeback
01:00 AM EDT
-
02:00 AM EDT
Looking for your GMAT motivation to break through the score plateau? Pragati improved her score by massive 160 points with strategic guidance and hard-work! Find out how personalized mentorship and a strong mindset can turn GMAT struggles into success.
May 20
GMAT 615 to 715 in Just 15 Days! Riya’s 100-pt Improvement Strategy
12:30 AM EDT
-
01:30 AM EDT
Struggling to find the right strategies to score a 99 %ile on GMAT Focus? Riya (GMAT 715) boosted her score by 100-points in just 15 days! Discover how the right mentorship, tailored strategies, and an unwavering mindset can transform your GMAT prep.
May 20
Live Profile Evaluation Chat Session with ARINGO MBA admission consultants
08:00 AM PDT
-
08:30 AM PDT
What’s in it for you- Live Profile Evaluation Chat Session with Jenifer Turtschanow, CEO, ARINGO. Come with your details prepared and ARINGO will share insights! Pre-MBA Role/Industry, YOE, Exam Score, C/GPA, ECs Post-MBA Role/ Industry & School List.
May 23
Free full-length test!
10:00 AM PDT
-
11:00 AM PDT
Video explanations + diagnosis of 10 weakest areas + 150+ short videos + study plan!
Jun 10
MBA Spotlight Fair
06:00 AM PDT
-
06:15 PM PDT
Register for the GMAT Club Virtual MBA Spotlight Fair – the world’s premier event for serious MBA candidates. This is your chance to hear directly from Admissions Directors at nearly every Top 30 MBA program..

Back to Forum

Create Topic

CR: takeover

Vithal

Joined: 01 Feb 2003

Last visit: 02 Jan 2020

Posts: 406

Own Kudos:

769

Location: Hyderabad

Posts: 406

Kudos: 769

14 Jun 2005, 22:08

Kudos

Bookmarks

00:00

Start Timer

Pause Timer

Resume Timer

Show Answer

Hide

Show

History

Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct

0% (00:00) wrong

based on 0 sessions

History

Date

Time

Result

Not Attempted Yet

Archived Topic

Hi there,

This topic has been closed and archived due to inactivity or violation of community quality standards. No more replies are possible here.

Where to now? Join ongoing discussions on thousands of quality questions in our Critical Reasoning (CR) Forum

Still interested in this question? Check out the "Best Topics" block below for a better discussion on this exact question, as well as several more related questions.

Thank you for understanding, and happy exploring!

wild_desperado

Joined: 09 Jun 2005

Last visit: 30 Dec 2005

Posts: 76

Own Kudos:

299

Posts: 76

Kudos: 299

14 Jun 2005, 22:14

Kudos

Bookmarks

E.........

sparky

Joined: 18 Apr 2005

Last visit: 30 Jul 2005

Posts: 321

Own Kudos:

106

Location: Canuckland

Posts: 321

Kudos: 106

14 Jun 2005, 22:25

Kudos

Bookmarks

sparky

Joined: 18 Apr 2005

Last visit: 30 Jul 2005

Posts: 321

Own Kudos:

106

Location: Canuckland

Posts: 321

Kudos: 106

14 Jun 2005, 22:26

Kudos

Bookmarks

sonaketu

Joined: 10 Nov 2004

Last visit: 22 Sep 2005

Posts: 102

Own Kudos:

155

Posts: 102

Kudos: 155

14 Jun 2005, 22:49

Kudos

Bookmarks

One more for E.

cloudz9

Joined: 17 May 2005

Last visit: 12 Jun 2007

Posts: 130

Own Kudos:

Location: Auckland, New Zealand

Posts: 130

Kudos: 55

15 Jun 2005, 00:36

Kudos

Bookmarks

E from me too...

none of the others fit it

Vithal

Joined: 01 Feb 2003

Last visit: 02 Jan 2020

Posts: 406

Own Kudos:

769

Location: Hyderabad

Posts: 406

Kudos: 769

15 Jun 2005, 05:43

Kudos

Bookmarks

I was with E too..but the OA is D!!

Arsene_Wenger

Joined: 05 Jan 2005

Last visit: 27 Nov 2006

Posts: 286

Own Kudos:

Posts: 286

Kudos: 56

15 Jun 2005, 05:48

Kudos

Bookmarks

(E) too.

rthothad

Joined: 03 Nov 2004

Last visit: 14 Feb 2009

Posts: 315

Own Kudos:

111

Posts: 315

Kudos: 111

15 Jun 2005, 06:05

Kudos

Bookmarks

One more for E
vithal, what is the source.

Vithal

Joined: 01 Feb 2003

Last visit: 02 Jan 2020

Posts: 406

Own Kudos:

769

Location: Hyderabad

Posts: 406

Kudos: 769

15 Jun 2005, 06:13

Kudos

Bookmarks

rthothad

Joined: 03 Nov 2004

Last visit: 14 Feb 2009

Posts: 315

Own Kudos:

111

Posts: 315

Kudos: 111

15 Jun 2005, 06:17

Kudos

Bookmarks

Vithal

Any OE

riteshgupta1

Joined: 11 Mar 2005

Last visit: 20 Jul 2006

Posts: 252

Own Kudos:

201

Posts: 252

Kudos: 201

15 Jun 2005, 06:40

Kudos

Bookmarks

I agree with D, I dont think E weekens it.

All E says, smallar companies will increase their productivity but the argument says that 2/3 of the market is owned by Downey and increasing the price will impact the economy for companies who depend on it. So, analysts are wrong, they will not increase the price of ball bearing as profit margins are very low because of a reason (they sell in mass volume) but might increase for other products downey makes where profit margins are better.

This answer,D, makes the argument less plausible instead of weeking it to death.

ywilfred

Joined: 07 Jul 2004

Last visit: 06 Mar 2012

Posts: 1,987

Own Kudos:

2,053

Location: Singapore

Posts: 1,987

Kudos: 2,053

15 Jun 2005, 08:31

Kudos

Bookmarks

Conclusion:
D triples price of ball bearing -> lead to crisis for industries that depend on ball bearing -> contrbute to weakening of economy

In D, it says that the profit margin is greater in D's secondary product. So F will most likely increase the price for those products to capitalize on the higher proftis and use it to pay off their enormous debt.

In E, we're told that smaller companies will expand to satisfy the market for cheaper ball bearings. But we do not know if their will fill the void created by D sufficiently, or whether their pricing will remain competitive with respect to D's pricing prior to the takeover.

Both D and E requires a fair bit of assumption. We're assuming that D's secondary product sells well, and so increasing their price will generate the income F needs.

In E, we're assuming that the small companies do not have the capability to provide the industry with low priced ball bearings.

I would say it's quite balanced between those two choices. I really can't convince myself fully to pick either D or E

Archived Topic

Hi there,

This topic has been closed and archived due to inactivity or violation of community quality standards. No more replies are possible here.

Where to now? Join ongoing discussions on thousands of quality questions in our Critical Reasoning (CR) Forum

Still interested in this question? Check out the "Best Topics" block above for a better discussion on this exact question, as well as several more related questions.

Thank you for understanding, and happy exploring!