Last visit was: 19 Nov 2025, 22:04 It is currently 19 Nov 2025, 22:04
Close
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.
Close
Request Expert Reply
Confirm Cancel
User avatar
Bunuel
User avatar
Math Expert
Joined: 02 Sep 2009
Last visit: 19 Nov 2025
Posts: 105,390
Own Kudos:
778,392
 [4]
Given Kudos: 99,977
Products:
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 105,390
Kudos: 778,392
 [4]
Kudos
Add Kudos
4
Bookmarks
Bookmark this Post
User avatar
ROHITH121
Joined: 18 Oct 2022
Last visit: 20 Aug 2025
Posts: 3
Own Kudos:
2
 [1]
Given Kudos: 9
Posts: 3
Kudos: 2
 [1]
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
User avatar
monarchme
Joined: 13 Feb 2021
Last visit: 14 Oct 2025
Posts: 19
Own Kudos:
28
 [1]
Given Kudos: 14
Posts: 19
Kudos: 28
 [1]
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
User avatar
Bunuel
User avatar
Math Expert
Joined: 02 Sep 2009
Last visit: 19 Nov 2025
Posts: 105,390
Own Kudos:
Given Kudos: 99,977
Products:
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 105,390
Kudos: 778,392
Kudos
Add Kudos
Bookmarks
Bookmark this Post

OFFICIAL EXPLANATION



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

Incorrect.

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 is more like an additional premise than a conclusion. The issue of tax is not discussed in the argument so a statement revolving around tax cannot be a logical conclusion.



(B) invest in films that can be easily marketed to international audiences without making serious changes to the actual content

Incorrect.

This answer choice cannot be inferred from the premises as it fails to consider the last premise. If movies are being sold illegally using cheap methods, then investing in them does not make much sense, especially if distributing them worldwide requires no special adaptation.



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

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.


(D) form comparisons between the commercial successes of certain movie genres before deciding what kind of movie to invest in

Incorrect.

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 cannot be inferred from the premises as it fails to consider the last premise. If movies are being sold illegally using cheap methods, then investing in them does not make much sense, irrelative to the question of which genres are the most successful.



(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 answer choice contradicts premise A and cannot, therefore, be a conclusion to the argument. If many people are buying home cinema equipment, then it seems quite logical to invest in retail outlets or developers that are dealing with that kind of product.
Moderators:
GMAT Club Verbal Expert
7443 posts
GMAT Club Verbal Expert
231 posts
189 posts