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Ross: The profitability of Company X, restored to private ownership fi

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Ross: The profitability of Company X, restored to private ownership fi  [#permalink]

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New post 31 Mar 2010, 06:51
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Ross: The profitability of Company X, restored to private ownership five years ago, is clear evidence that businesses will always fare better under private than under public ownership.

Julia: Wrong. A close look at the records shows that X has been profitable since the appointment of a first-class manager, which happened while X was still in the pubic sector.

Which of the following best describes the weak point in Ross’s claim on which Julia’s response focuses?


(A) The evidence Ross cites comes from only a single observed case, that of Company X.

(B) The profitability of Company X might be only temporary.

(C) Ross’s statement leaves open the possibility that the cause he cites came after the effect he attributes to it.

(D) No mention is made of companies that are partly government owned and partly privately owned.

(E) No exact figures are given for the current profits of Company X
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Re: Ross: The profitability of Company X, restored to private ownership fi  [#permalink]

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New post 31 Mar 2010, 10:48
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seekmba wrote:
Please provide explanations

Ross: The profitability of Company X, restored to private ownership five years ago, is clear evidence that businesses will always fare better under private than under public ownership.
Julia: Wrong. A close look at the records shows that X has been profitable since the appointment of a first-class manager, which happened while X was still in the pubic sector.

Which of the following best describes the weak point in Ross’s claim on which Julia’s response focuses?

(A) The evidence Ross cites comes from only a single observed case, that of Company X. Julia's response does not address any issue related to other companies.
(B) The profitability of Company X might be only temporary. Ross does not talk of how long profitability lasts. He only attributes it to private ownership.
(C) Ross’s statement leaves open the possibility that the cause he cites came after the effect he attributes to it.
(D) No mention is made of companies that are partly government owned and partly privately owned. No mention is made of partly owned companies.
(E) No exact figures are given for the current profits of Company X. We do not require exact figures as Julia's response does not use any figures to focus on Ross's weakpoint.


I think the answer is C.
According to Ross's Argument:

Time ------->>------------------>>------------------>>
PublicOwnership -> PrivateOwnerShip -> Profitability

However the following case is also possible.

Time ------->>------------------>>------------------>>
Public Ownership -> Profitability -> Private OwnerShip -> Still Profitable

In the first case Ross attributes Profitability (effect) to Private Ownership (Cause).
However it could also be that Public Ownership(actualCause) leads to Profitability (effect) followed later in time by PrivateOwnership (Ross's theoretical cause) as shown in the second case.

In this case Ross's cause comes after the effect that he attributes to the cause.
This is the weak point which Julia's response focuses on, that Company X became profitable while still under Public ownership.
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Re: Ross: The profitability of Company X, restored to private ownership fi  [#permalink]

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New post 07 Nov 2018, 08:28
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Re: Ross: The profitability of Company X, restored to private ownership fi  [#permalink]

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New post 07 Nov 2018, 09:46
Ross: The profitability of Company X, restored to private ownership five years ago, is clear evidence that businesses will always fare better under private than under public ownership.

Julia: Wrong. A close look at the records shows that X has been profitable since the appointment of a first-class manager, which happened while X was still in the pubic sector.

Which of the following best describes the weak point in Ross’s claim on which Julia’s response focuses?


(A) The evidence Ross cites comes from only a single observed case, that of Company X.

(B) The profitability of Company X might be only temporary.

(C) Ross’s statement leaves open the possibility that the cause he cites came after the effect he attributes to it.

(D) No mention is made of companies that are partly government owned and partly privately owned.

(E) No exact figures are given for the current profits of Company X

+ 1 for option C.....almost all other options are considerably irrelevant wrt to ross' claim
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Re: Ross: The profitability of Company X, restored to private ownership fi  [#permalink]

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New post 07 Nov 2018, 09:58
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seekmba wrote:
Ross: The profitability of Company X, restored to private ownership five years ago, is clear evidence that businesses will always fare better under private than under public ownership.

Julia: Wrong. A close look at the records shows that X has been profitable since the appointment of a first-class manager, which happened while X was still in the pubic sector.

Which of the following best describes the weak point in Ross’s claim on which Julia’s response focuses?


(A) The evidence Ross cites comes from only a single observed case, that of Company X.

(B) The profitability of Company X might be only temporary.

(C) Ross’s statement leaves open the possibility that the cause he cites came after the effect he attributes to it.

(D) No mention is made of companies that are partly government owned and partly privately owned.

(E) No exact figures are given for the current profits of Company X


Ross : PRofitability of X = Change from Public ---------> Pvt Ownership ( 5 Years Ago), Thus , Pvt Ownership = Better.
Julia : Wrong , since the Firm since the appointment of a first-class manager resulted in Profitability & the manager was appointed during Public Ownership.

(A) single observed case ... of Company X : Irrelevant
(B) Only Temporary : Not our concern, out of scope.
(D) partly government owned and partly privately owned companies : Out of scope & Irrelevant.
(E) figures about the current profits of Company X : Out of context and Irrelevant.

Correct Answer choice (C) states that change in Ownership came after the appointment of first Class Manager.
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Re: Ross: The profitability of Company X, restored to private ownership fi  [#permalink]

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New post 09 Nov 2018, 03:44
gmat1393 generis aragonn VeritasKarishma nightblade354 Abhishek009

I am stuck between A and C.

Quote:
Ross: The profitability of Company X, restored to private ownership five years ago, is clear evidence that businesses will always fare better under private than under public ownership.

Ross's claim: businesses will always fare better under private than under public ownership.
Ross's evidence: 5 years ago, ownership changed from public to private. Hence cause (private ownership) -> effect (higher profits)

Quote:
Julia: Wrong. A close look at the records shows that X has been profitable since the appointment of a first-class manager, which happened while X was still in the pubic sector.

Julia disputes Ross's claim. Her evidence: A closer look suggests that not ownership, but how manager managed the show contributed to profits.

Quote:
Which of the following best describes the weak point in Ross’s claim on which Julia’s response focuses?

What is weakener in Ross's claim?

Quote:
(A) The evidence Ross cites comes from only a single observed case, that of Company X.

Yes, see jump from a particular company X to all general businesses.

Quote:
(B) The profitability of Company X might be only temporary.

Irrelavant. Time duration of company is not our agenda, the cause leading to profits is the one where are concerned with.

Quote:
(C) Ross’s statement leaves open the possibility that the cause he cites came after the effect he attributes to it.

I found too complex to comprehend what this option is saying. There is no sequence of cause that Julia pointed out as flaw.
In fact, she pointed out alternate cause (better management) than ownership.

Quote:
(D) No mention is made of companies that are partly government owned and partly privately owned.

Irrelavant to scope of argument.

Quote:
(E) No exact figures are given for the current profits of Company X

We are not concerned with exact profit numbers, we are concerned with the cause that led to higher profits.
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Re: Ross: The profitability of Company X, restored to private ownership fi  [#permalink]

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New post 09 Nov 2018, 05:10
adkikani wrote:
gmat1393 generis aragonn VeritasKarishma nightblade354 Abhishek009

I am stuck between A and C.

Quote:
Ross: The profitability of Company X, restored to private ownership five years ago, is clear evidence that businesses will always fare better under private than under public ownership.

Ross's claim: businesses will always fare better under private than under public ownership.
Ross's evidence: 5 years ago, ownership changed from public to private. Hence cause (private ownership) -> effect (higher profits)

Quote:
Julia: Wrong. A close look at the records shows that X has been profitable since the appointment of a first-class manager, which happened while X was still in the pubic sector.

Julia disputes Ross's claim. Her evidence: A closer look suggests that not ownership, but how manager managed the show contributed to profits.

Quote:
Which of the following best describes the weak point in Ross’s claim on which Julia’s response focuses?

What is weakener in Ross's claim?

Quote:
(A) The evidence Ross cites comes from only a single observed case, that of Company X.

Yes, see jump from a particular company X to all general businesses.

Quote:
(B) The profitability of Company X might be only temporary.

Irrelavant. Time duration of company is not our agenda, the cause leading to profits is the one where are concerned with.

Quote:
(C) Ross’s statement leaves open the possibility that the cause he cites came after the effect he attributes to it.

I found too complex to comprehend what this option is saying. There is no sequence of cause that Julia pointed out as flaw.
In fact, she pointed out alternate cause (better management) than ownership.

Quote:
(D) No mention is made of companies that are partly government owned and partly privately owned.

Irrelavant to scope of argument.

Quote:
(E) No exact figures are given for the current profits of Company X

We are not concerned with exact profit numbers, we are concerned with the cause that led to higher profits.



@
seekmba wrote:
Ross: The profitability of Company X, restored to private ownership five years ago, is clear evidence that businesses will always fare better under private than under public ownership.

Julia: Wrong. A close look at the records shows that X has been profitable since the appointment of a first-class manager, which happened while X was still in the pubic sector.

Which of the following best describes the weak point in Ross’s claim on which Julia’s response focuses?


(A) The evidence Ross cites comes from only a single observed case, that of Company X.

(B) The profitability of Company X might be only temporary.

(C) Ross’s statement leaves open the possibility that the cause he cites came after the effect he attributes to it.

(D) No mention is made of companies that are partly government owned and partly privately owned.

(E) No exact figures are given for the current profits of Company X




@adkikani


To make it short:

Ross says that company run under private ownership brought MORE profits than under PUBLIC OWNERSHIP (public ownership means that some govermental entity was managing the company, let it be Ministry of transportation that runs Railway company)

Julia says claims that the company became profitable since the times when the Railway company was managed by government and at that time the FIRST CLASS MANAGER was appointed (public ownership) in other words the railway was managed at first by government and than it was acquired by some businessman.

All you have to do is to strengthen Julia`s claim

C clearly states Ross’s statement leaves open the possibility that the cause he cites came after the effect he attributes to it.


C says that the Roos`s claim misses the possibility that Railway company became more profitable DUE to the fact that it was run INITIALLY under public ownership

:)
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Re: Ross: The profitability of Company X, restored to private ownership fi  [#permalink]

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New post 09 Nov 2018, 08:35
adkikani - For understanding this situation you should think from jim's POV. Think what Jim has missed. Where he can go wrong. While you have to assume that julia is right all the way. let see the sequence.

So company was
1. public but in loss, 2. public but in profit cause of first class manager, 3. private and profitable uptill now.

I think you can see now that hoe C can be fit in. Jim thought ignored the fact that company was profitable evan before going private.

Hope you can visualize, that is the key in GMAT CR. Let me know if you need further help.
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Re: Ross: The profitability of Company X, restored to private ownership fi  [#permalink]

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New post 09 Nov 2018, 08:43
dave13 - Respectfully, I disagree with the fact "All you have to do is to strengthen Julia`s claim."

I think there is a fine line between "the weak point in Ross’s claim on which Julia’s response focuses?" and "All you have to do is to strengthen Julia`s claim.". Definitely these two overlaps but not the same things. Consider this situation.

The first class manager on his joining day announced that he will take the company X private by end of the quarter. Now same choice is giving a different meaning. All I am saying is that with this pre-thinking you can fall in a trap.
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Re: Ross: The profitability of Company X, restored to private ownership fi &nbs [#permalink] 09 Nov 2018, 08:43
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