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.