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# Prices for home cinema equipment are decreasing dramatically, allowing

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Prices for home cinema equipment are decreasing dramatically, allowing  [#permalink]

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27 Aug 2015, 04:02
1
2
00:00

Difficulty:

75% (hard)

Question Stats:

52% (01:47) correct 48% (02:07) wrong based on 367 sessions

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Prices for home cinema equipment are decreasing dramatically, allowing many people to install such cinemas in their own homes. This factor coupled with the accesibility of films through online rentals, downloads, and purchases has led to a boom in the number of films being watched internationally. However, because of the availability of a variety of cheap methods for the illicit distribution of entertainment materials, investors are to __________.

Which of the following best completes the passage below?

A) keep accurate documentation of any profits earned from the sales or royalties of a particular movie for tax purposes
B) invest in films that can be easily marketed to international audiences without making serious changes to the actual content
C) avoid financial ventures or acquisitions related to the industry associated with movie rights and royalties
D) form comparisons between the commercial successes of certain movie genres before deciding what kind of movie to invest in
E) refrain from investing in retail outlets or developers in the field of audio and visual equipment intended for use in small private cinemas

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Re: Prices for home cinema equipment are decreasing dramatically, allowing  [#permalink]

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27 Aug 2015, 06:00
Harley1980 wrote:
Prices for home cinema equipment are decreasing dramatically, allowing many people to install such cinemas in their own homes. This factor coupled with the accesibility of films through online rentals, downloads, and purchases has led to a boom in the number of films being watched internationally. However, because of the availability of a variety of cheap methods for the illicit distribution of entertainment materials, investors are to __________.

Which of the following best completes the passage below?

A) keep accurate documentation of any profits earned from the sales or royalties of a particular movie for tax purposes
B) invest in films that can be easily marketed to international audiences without making serious changes to the actual content
C) avoid financial ventures or acquisitions related to the industry associated with movie rights and royalties
D) form comparisons between the commercial successes of certain movie genres before deciding what kind of movie to invest in
E) refrain from investing in retail outlets or developers in the field of audio and visual equipment intended for use in small private cinemas

Hi Harley,

Can you please explain this? I chose A
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Re: Prices for home cinema equipment are decreasing dramatically, allowing  [#permalink]

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27 Aug 2015, 07:09
1
KS15 wrote:
Harley1980 wrote:
Prices for home cinema equipment are decreasing dramatically, allowing many people to install such cinemas in their own homes. This factor coupled with the accesibility of films through online rentals, downloads, and purchases has led to a boom in the number of films being watched internationally. However, because of the availability of a variety of cheap methods for the illicit distribution of entertainment materials, investors are to __________.

Which of the following best completes the passage below?

A) keep accurate documentation of any profits earned from the sales or royalties of a particular movie for tax purposes
B) invest in films that can be easily marketed to international audiences without making serious changes to the actual content
C) avoid financial ventures or acquisitions related to the industry associated with movie rights and royalties
D) form comparisons between the commercial successes of certain movie genres before deciding what kind of movie to invest in
E) refrain from investing in retail outlets or developers in the field of audio and visual equipment intended for use in small private cinemas

Hi Harley,

Can you please explain this? I chose A

Hello KS15

The argument says about boom of home cinema and then says "Hower because of illicit copying of movies investors [do something]"
So we should find something that finish the idea of link between boom of home cinema and illicit copying.
According to this link we can presuppose that this is quite risky business.

A) keep accurate documentation of any profits earned from the sales or royalties of a particular movie for tax purposes
Incorrect. This variant is not connected to illicit copying. Investors always keep [should keeping] accurate documentation

B) invest in films that can be easily marketed to international audiences without making serious changes to the actual content
Incorrect. This variant is not connected to illicit copying.

C) avoid financial ventures or acquisitions related to the industry associated with movie rights and royalties
Correct. This variant is says that investors does not take part in the movie production [becuase of illicit copying] despite of the boom in the home cinema.

D) form comparisons between the commercial successes of certain movie genres before deciding what kind of movie to invest in
Incorrect. This variant is not connected to illicit copying.

E) refrain from investing in retail outlets or developers in the field of audio and visual equipment intended for use in small private cinemas
Incorrect. This variant is closed but here we have also audio and private cinemas - so this is out of scope too.
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Re: Prices for home cinema equipment are decreasing dramatically, allowing  [#permalink]

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30 Jul 2016, 04:33
The argument ends with a cautionary tone --> Eliminate A, B and D

C) avoid financial ventures or acquisitions related to the industry associated with movie rights and royalties - Correct

E) refrain from investing in retail outlets or developers in the field of audio and visual equipment intended for use in small private cinemas - Incorrect. Argument states that the distribution of entertainment materials is not foolproof, however this option speaks about investment in retail outlets or developers of audio and visual equipment.

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Re: Prices for home cinema equipment are decreasing dramatically, allowing  [#permalink]

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30 Jul 2016, 07:45

IMHO Why C cann't be right? c)avoid financial ventures or acquisitions related to the industry associated with movie rights and royalties

Argument has two parts - 1) Availability of cheap home theater systems 2) Availability of cheap and sometimes illicit movie downloads

The option (c) only addresses about second part of the argument. What about the first part ?

D) form comparisons between the commercial successes of certain movie genres before deciding what kind of movie to invest in - Both of the argument parts are encapsulated in the "commercial success" of a movie very nicely.

What am I missing here ? and How C can be the correct answer?

-South City
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Re: Prices for home cinema equipment are decreasing dramatically, allowing  [#permalink]

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30 Jul 2016, 08:00
SouthCity wrote:

IMHO Why C cann't be right? c)avoid financial ventures or acquisitions related to the industry associated with movie rights and royalties

Argument has two parts - 1) Availability of cheap home theater systems 2) Availability of cheap and sometimes illicit movie downloads

The option (c) only addresses about second part of the argument. What about the first part ?

D) form comparisons between the commercial successes of certain movie genres before deciding what kind of movie to invest in - Both of the argument parts are encapsulated in the "commercial success" of a movie very nicely.

What am I missing here ? and How C can be the correct answer?

-South City

Factor 1: Cinema equipment prices are decreasing.
Factor 2: Movies are easily accessible
Factor 1 + Factor 2 --> Increase in the number of movies watches

But distribution of entertainment materials is not foolproof (take piracy as example) --> This suggests that investors have to be cautious of this fact.

Note that cheap availability of home theater system and online availability of movies (paid versions) do not pose a problem. But the piracy of movies is a problem that the investors have to counter.

D speaks about commercial success of movie genres which is unrelated to the argument.

Hence answer is C and not D.
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Re: Prices for home cinema equipment are decreasing dramatically, allowing  [#permalink]

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30 Jul 2016, 09:11
Agreed commercial angles are uncalled for. But the first part of the argument is just sitting there and doing nothing. I will say if you completely remove the home cinema equipment part, still there won't be any change to the correct answer. Weird isn't it ? I am not a big fan of this question.
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Re: Prices for home cinema equipment are decreasing dramatically, allowing  [#permalink]

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30 Jul 2016, 09:39
Top Contributor
SouthCity wrote:
Agreed commercial angles are uncalled for. But the first part of the argument is just sitting there and doing nothing. I will say if you completely remove the home cinema equipment part, still there won't be any change to the correct answer. Weird isn't it ? I am not a big fan of this question.

Hello SouthCity

The first part is needed to create the paradox: equipment are available, movies are available so investors can make a lot of money but do not want to invest in this domain. Why?

How do you see this paradox without the first part about equipment?
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Re: Prices for home cinema equipment are decreasing dramatically, allowing  [#permalink]

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19 Aug 2017, 22:51
This is a "Complete the Argument" format question. The missing argument part is a recommendation (are to means they should), indicating it's the conclusion and that this is an Inference question:
Premise A: home cinema equipment is cheaper than it was before so many people are buying it
+
Premise B: the low prices and various methods for getting films has lead to an increase in the number of movies being watched
+
Counter Premise C (However, because...): illegal distribution of entertainment media is available
=
Conclusion:  ?
This answer choice provides a logical conclusion to the argument. The last premise tells us that people are viewing movies without paying. Therefore, it seems quite logical to conclude that investments whose returns are based on paid views are unwise

Hence C is the Right Answer
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Re: Prices for home cinema equipment are decreasing dramatically, allowing  [#permalink]

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27 Sep 2017, 10:00
C it is.
Though stuck between C and E. Negated E for its narrow scope.
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Re: Prices for home cinema equipment are decreasing dramatically, allowing  [#permalink]

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22 Oct 2017, 23:01
Harley1980 wrote:
KS15 wrote:
Harley1980 wrote:
Prices for home cinema equipment are decreasing dramatically, allowing many people to install such cinemas in their own homes. This factor coupled with the accesibility of films through online rentals, downloads, and purchases has led to a boom in the number of films being watched internationally. However, because of the availability of a variety of cheap methods for the illicit distribution of entertainment materials, investors are to __________.

Which of the following best completes the passage below?

A) keep accurate documentation of any profits earned from the sales or royalties of a particular movie for tax purposes
B) invest in films that can be easily marketed to international audiences without making serious changes to the actual content
C) avoid financial ventures or acquisitions related to the industry associated with movie rights and royalties
D) form comparisons between the commercial successes of certain movie genres before deciding what kind of movie to invest in
E) refrain from investing in retail outlets or developers in the field of audio and visual equipment intended for use in small private cinemas

Hi Harley,

Can you please explain this? I chose A

Hello KS15

The argument says about boom of home cinema and then says "Hower because of illicit copying of movies investors [do something]"
So we should find something that finish the idea of link between boom of home cinema and illicit copying.
According to this link we can presuppose that this is quite risky business.

A) keep accurate documentation of any profits earned from the sales or royalties of a particular movie for tax purposes
Incorrect. This variant is not connected to illicit copying. Investors always keep [should keeping] accurate documentation

B) invest in films that can be easily marketed to international audiences without making serious changes to the actual content
Incorrect. This variant is not connected to illicit copying.

C) avoid financial ventures or acquisitions related to the industry associated with movie rights and royalties
Correct. This variant is says that investors does not take part in the movie production [becuase of illicit copying] despite of the boom in the home cinema.

D) form comparisons between the commercial successes of certain movie genres before deciding what kind of movie to invest in
Incorrect. This variant is not connected to illicit copying.

E) refrain from investing in retail outlets or developers in the field of audio and visual equipment intended for use in small private cinemas
Incorrect. This variant is closed but here we have also audio and private cinemas - so this is out of scope too.

How we can say (A) is not connected to illicit copying.
We need to be more accurate when those problems exist in the market.
Re: Prices for home cinema equipment are decreasing dramatically, allowing &nbs [#permalink] 22 Oct 2017, 23:01
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