Suncorp, a new corporation with limited funds, has been clearing large sections of the tropical Amazon forest for cattle ranching. This practice continues even though greater profits can be made from rubber tapping, which does not destroy the forest, than from cattle ranching, which does destroy the forest. Which of the following, if true, most helps to explain why Suncorp has been pursuing the less profitable of the two economic activities mentioned above? (A) The soil of the Amazon forest is very rich in nutrients that are important in the development of grazing lands. (B) Cattle-ranching operations that are located in tropical climates are more profitable than cattle-ranching operations that are located in cold-weather climates. (C) In certain districts, profits made from cattle ranching are more heavily taxed than profits made from any other industry. (D) Some of the cattle that are raised on land cleared in the Amazon are killed by wildcats. (E) The amount of money required to begin a rubber-tapping operation is twice as high as the amount needed to begin a cattle ranch. ID - CR05452

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Suncorp, a new corporation with limited funds, has been

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Question Stem:
Which statement explains why Suncorp has been pursuing cattle ranching instead of rubber tapping even though rubber tapping is more profitable?
[hr]
Simplified Paragraph:

Suncorp, a new organization with limited funds, has been doing cattle ranching in the Amazon.
Greater profits can be made using rubber tapping, which does not destroy the forest and is more profitable.

[hr]
Summary Statement:
Why is it that Suncorp continues cattle ranching instead of rubber tapping even though it is more profitable?
[hr]
Answer Choices:

Soil is very good for grazing - (Rejected: Nothing about rubber tapping).
Not important - (Rejected: Comparing different weathers).
Heavier tax on cattle ranching - (Rejected: More reason to avoid).
Cattle is killed by wildlife - (Rejected: More reason to avoid).
Rubber tapping more expensive to start - Correct Answer (E).

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