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# The excessive number of safety regulation that the federal

Author Message
Senior Manager
Joined: 19 Feb 2004
Posts: 413
Location: Lungi
The excessive number of safety regulation that the federal  [#permalink]

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01 Apr 2004, 07:10
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Question Stats:

100% (01:47) correct 0% (00:00) wrong based on 1 sessions

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The excessive number of safety regulation that the federal
government has placed on industry poses more serious hardships for
big businesses than for small ones. Since large companies do
everything on a more massive scale, they must alter more complex
operations and spend much more money to meet governmental
requirements.
Which of the following , if true, would most weaken the argument
above?
(A) Small companies are less likely than large companies to have the
capital reserves for improvements.
(B) The operation codes are uniform, established without reference to
size of company.
(C) Safety regulation codes are uniform, established without
reference to size of company.
(D) Large companies typically have more of their profits invested in
other businesses than do small companies.
(E) Large companies are in general more likely than small companies
to diversify the markets and products.
Manager
Joined: 27 Feb 2004
Posts: 185
Location: illinois

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01 Apr 2004, 14:08
A for me.....Small companies have less reserves and so No improvement...
Senior Manager
Joined: 23 Sep 2003
Posts: 293
Location: US

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01 Apr 2004, 14:20
E here.

E is the only answer that sort of nullifies the idea that large companies "must alter more complex operations and spend much more money". If they diversify their markets and products, then they wouldn't necessarily have to alter more complex operations or spend much money.
GMAT Club Legend
Joined: 15 Dec 2003
Posts: 4288

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01 Apr 2004, 14:30
ndidi204 wrote:
E here.

E is the only answer that sort of nullifies the idea that large companies "must alter more complex operations and spend much more money". If they diversify their markets and products, then they wouldn't necessarily have to alter more complex operations or spend much money.

Hmm, I'm skeptical about this claim. If you operate in the energy/financial/utilities sectors and you have to readjust every of those different operational branches to comply with the new regulation, would it not cost you more than if you operate a small computer store? This also supports the claim that those companies operate on a massive scale. A is best
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Best Regards,

Paul

GMAT Club Legend
Joined: 15 Dec 2003
Posts: 4288

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01 Apr 2004, 14:34
aspire wrote:
Any vote for C?

More safety regulation means more costly adjustments to accomodate for a larger staff base. Therefore, it will be more hardship on large companies
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Best Regards,

Paul

Senior Manager
Joined: 19 Feb 2004
Posts: 413
Location: Lungi

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03 Apr 2004, 23:04
OA is A.
03 Apr 2004, 23:04
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