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Should be D
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Statement 1 says:
People who don't plan their finances end up in debt.
-> So if they DID budget, they could avoid debt.
-> YES, budgeting helps.

Statement 2 says:
Budgeting helps people avoid taking loans.
-> Loans are a type of debt.
-> So budgeting helps avoid at least one type of debt.
-> YES, budgeting helps.
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Oh yeah, that's a really good point! I didn't think of it that way. You're right, I was wrong on statement 1. Thanks for pointing that out!
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But the question says can not will
Can signifies a possibility
Correct me if I am wrong as I have just started with the preparation :)
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In which order do you suggest to complete sections?
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WA@tej3253

Answer is D. But It should be B only.
In statement l - lack of financial planning is resulting into excessive spending, which further results into mounting debt. But it does not answers sufficiently how financial budgeting helps! How statement I is sufficient?

That question is discussed here: https://gmatclub.com/forum/can-financia ... 30182.html Hope it helps.
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Critical Reasoning Butler: August 2026
August 31CR 1CR 2

___________________________
CR 1

Many corporations are resistant to environmental regulations because they feel that implementing the technology necessary to follow the regulations will result in increased costs and decreased profits. However, many of the new technologies developed to protect the environment result in increased efficiency and a substantial saving on energy costs that will outweigh any initial costs associated with installing the new technologies.

The argument as a whole is structured to lead to which of the following conclusions?

A. There is little economic justification for a corporation to resist implementing the technology necessary to uphold environmental regulations.

B. The economic costs of following environmental regulations are minor because the regulations are rarely enforced.

C. New technologies are more environmentally friendly than the older technologies used by most corporations.

D. Corporations that fail to follow environmental regulations will face fines and other sanctions.

E. There is no disadvantage to installing new technology in order to follow environmental regulations.

___________________________
CR 2

­Most people believe that gold and platinum are the most valuable commodities. To the true entrepreneur, however, gold and platinum are less valuable than the knowledge of opportunities is. Thus, in the world of high finance, information is the most valuable commodity.

The author of the passage above makes which of the following assumptions?

A. Gold and platinum are not the most valuable commodities.

B. Entrepreneurs are not like most people.

C. The value of information is incalculably high.

D. Information about business opportunities is accurate and leads to increased wealth.

E. Only entrepreneurs feel that information is the most valuable commodity.
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