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Professor A: We must make a strong moral statement against

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VP
Joined: 26 Apr 2004
Posts: 1205

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Location: Taiwan
Professor A: We must make a strong moral statement against [#permalink]

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19 Dec 2004, 07:43
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Professor A: We must make a strong moral statement against Country X's policies. Only total divestment---the sale of all stock in companies that have factories or business offices in X--- can do this. Therefore, the university should divest totally.

Professor B: Our aim should be to encourage X to change its policies. Partial divestment is the best way to achieve this aim. Therefore, the university should sell its stock only in companies that either sell goods to X's government, or do the majority of their business in X, or treat their workers in X unfairly.

Which of the following, if true, would be evidence that the university would not be harmed economically if it followed Professor A's recommendation?

(A) Very few of the companies in which the university owns stocks sell goods to X's government.
(B)Most companies that have factories or business offices in X and in which the university owns stock actually do little of their business in X.

(C)Some companies that have factories or business offices in X and in which the university owns stock have instituted fair treatment policies for their workers in X at very little additional cost to the companies.

(D)The expected financial return to the university from stocks that the university could own under a policy of totla diverstment is approximately the same as the expected financial return from the university's current stocks.

(E)If the university sold large blocks of stock under a policy of total divestment, the prices of the stocks of the companies whose stocks were sold would probably decrease somewhat.

Excuse me, please reason it and be not just give me the answer. Thank you.

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VP
Joined: 25 Nov 2004
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19 Dec 2004, 08:25
OA is D.

The question is about under what circumstances the university is not harmed economically? if university is getting the same return after the divestment, then university is not harmed economically.

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Director
Joined: 29 Oct 2004
Posts: 847

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19 Dec 2004, 10:22
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I kinda picked (D) b/c it sounds better than others. However, I still don't understand what is the issue here. I tried to paraphrase like this

"The university holds some stock and wanna sell b/c of moral issues in some company in X. Either sell all or some"

But I don't understand why there is any harm economically here? Is my thought correct?

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Manager
Joined: 25 Oct 2004
Posts: 95

Kudos [?]: 3 [0], given: 0

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19 Dec 2004, 10:57
I pick D.

Qhoc0010

The key is "prof A's recommendation and not economic harm".

A,B easily out. E is out of scope. C no way related to profeesor A's recommendation.

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VP
Joined: 18 Nov 2004
Posts: 1430

Kudos [?]: 49 [0], given: 0

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19 Dec 2004, 11:44
"D" for me too. Took some time in this one, but "D" is a better ans than others. Others u can eliminate by POE.

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Director
Joined: 03 Nov 2004
Posts: 848

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19 Dec 2004, 20:01
Will go for 'D' -same reasoning as MA

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Non-Human User
Joined: 01 Oct 2013
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Re: Professor A: We must make a strong moral statement against [#permalink]

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10 Oct 2013, 07:41
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

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Re: Professor A: We must make a strong moral statement against   [#permalink] 10 Oct 2013, 07:41
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