Last visit was: 23 Apr 2024, 15:15 It is currently 23 Apr 2024, 15:15

Close
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Close
Request Expert Reply
Confirm Cancel
SORT BY:
Date
Tags:
Show Tags
Hide Tags
Retired Moderator
Joined: 23 Sep 2015
Posts: 1267
Own Kudos [?]: 5650 [0]
Given Kudos: 416
Send PM
Director
Director
Joined: 20 Sep 2016
Posts: 560
Own Kudos [?]: 931 [6]
Given Kudos: 632
Location: India
Concentration: Strategy, Operations
GPA: 3.6
WE:Operations (Consumer Products)
Send PM
Intern
Intern
Joined: 26 Jul 2018
Posts: 6
Own Kudos [?]: 7 [1]
Given Kudos: 141
Schools: YLP '20
GMAT 1: 650 Q47 V34
Send PM
VP
VP
Joined: 14 Feb 2017
Posts: 1115
Own Kudos [?]: 2162 [0]
Given Kudos: 368
Location: Australia
Concentration: Technology, Strategy
GMAT 1: 560 Q41 V26
GMAT 2: 550 Q43 V23
GMAT 3: 650 Q47 V33
GMAT 4: 650 Q44 V36
GMAT 5: 600 Q38 V35
GMAT 6: 710 Q47 V41
WE:Management Consulting (Consulting)
Send PM
Re: The excessive number of safety regulations that the federal government [#permalink]
The argument is premised on the assumption that the regulations are the same but they don't land onto the businesses that are affected the same way.

A is correct - although big businesses find it burdening to adhere to regulations, small businesses may never adhere to them if they can't afford to change.
Senior Manager
Senior Manager
Joined: 31 Jan 2019
Posts: 368
Own Kudos [?]: 43 [0]
Given Kudos: 530
Send PM
Re: The excessive number of safety regulations that the federal government [#permalink]
Isn't (D) also showing that big companies won't be struggling, unlike smaller companies?
GMAT Club Legend
GMAT Club Legend
Joined: 03 Oct 2013
Affiliations: CrackVerbal
Posts: 4946
Own Kudos [?]: 7624 [1]
Given Kudos: 215
Location: India
Send PM
Re: The excessive number of safety regulations that the federal government [#permalink]
1
Bookmarks
lakshya14 wrote:
Isn't (D) also showing that big companies won't be struggling, unlike smaller companies?


Hi Lakshya

(D) can be interpreted in multiple ways. It states: large companies typically have more of their profits invested in other businesses than do small companies.

This can be interpreted to mean that large companies have a greater proportion of their profits stashed away compared to smaller companies, allowing them a greater pool to dip into. This interpretation, like you suggest, shows that big companies would find it easier to comply with government regulations.

On the other hand, it can also be interpreted to mean that large companies have a greater proportion of their profits invested in other business, thereby making these profits unavailable for use in a discretionary way (since they have been dedicated to other businesses). In this scenario, this would be a strengthener for the argument - big companies would have a smaller pool to dip from, making it more difficult for them to comply with government regulations.

Overall, it cannot be said with certainty that (D) will weaken the argument, and hence cannot be the correct answer.

Hope this helps.
Intern
Intern
Joined: 10 Mar 2020
Posts: 31
Own Kudos [?]: 12 [1]
Given Kudos: 37
Send PM
The excessive number of safety regulations that the federal government [#permalink]
1
Kudos
Honestly, I find option E to be a very good answer. Since large companies diversify, regulation on industry will not have as big an impact on large firms as on small firms, since production is diversified. So in fact smaller firms will fare worse when they face industry regulation because they are solely focusing on a single industry. If this doesn't weaken the argument I don't know what does. In addition, option A says small firms have a hard time reserving capital. Sure, large firms can reserve more, but they also need to spend more capital, so that doesn't necessarily make the situation any better.
Manager
Manager
Joined: 02 Dec 2018
Posts: 249
Own Kudos [?]: 34 [0]
Given Kudos: 70
Send PM
Re: The excessive number of safety regulations that the federal government [#permalink]
eybrj2 wrote:
The excessive number of safety regulations 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 improvement.

B. the operation of small companies frequently rely on the same technologies as the operations of large companies.

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 their markets and products



What's wrong with c?
I thought that since safety regulation codes are uinform, the size of companies doesn't matter, which weaken the argument above. (By the way, what are safety codes? :? )


Hi GMATNinja AndrewN @e-gmat

I realised that i undertook the wrong conclusion to weaken. I took "large companies must alter more complex operations and spend more money...." as the main conclusion. However, per the answers, it seems the 1st sentence is the main conclusion. The first however appears as a general information or a given premise.
How to avoid such mistakes?
GMAT Club Legend
GMAT Club Legend
Joined: 03 Oct 2013
Affiliations: CrackVerbal
Posts: 4946
Own Kudos [?]: 7624 [0]
Given Kudos: 215
Location: India
Send PM
Re: The excessive number of safety regulations that the federal government [#permalink]
Top Contributor
shanks2020 wrote:
eybrj2 wrote:
The excessive number of safety regulations 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 improvement.

B. the operation of small companies frequently rely on the same technologies as the operations of large companies.

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 their markets and products



What's wrong with c?
I thought that since safety regulation codes are uinform, the size of companies doesn't matter, which weaken the argument above. (By the way, what are safety codes? :? )


Hi GMATNinja AndrewN @e-gmat

I realised that i undertook the wrong conclusion to weaken. I took "large companies must alter more complex operations and spend more money...." as the main conclusion. However, per the answers, it seems the 1st sentence is the main conclusion. The first however appears as a general information or a given premise.
How to avoid such mistakes?


Hi

The conclusion is that statement which acts as a final decision arrived at based on a set of standalone statements of fact, or, premises.

In the above question, there is one fundamental fact that we begin with - "large companies do everything on a more massive scale". Let's call this A. This is not based on any other fact but acts as a standalone claim.

From A, we derive the next statement, the one that you have taken to be the final conclusion - "they must alter more complex operations and spend much more money to meet governmental requirements". Let's call this B.

It is true that B is a form of conclusion - we could call it an intermediate conclusion - because it is based on another standalone point. However, it is not the final conclusion because this is not the point that the passage is making. Also, another statement is based on B, which is the first line - "The excessive number of safety regulations that the federal government has placed on industry poses more serious hardships for big businesses than for small ones". Since this is based on both A and B, and also the ultimate point that the stimulus is driving at, this has to be the final conclusion.

Hope this helps.
Manager
Manager
Joined: 02 Dec 2018
Posts: 249
Own Kudos [?]: 34 [0]
Given Kudos: 70
Send PM
Re: The excessive number of safety regulations that the federal government [#permalink]
CrackVerbalGMAT wrote:
shanks2020 wrote:
eybrj2 wrote:
The excessive number of safety regulations 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 improvement.

B. the operation of small companies frequently rely on the same technologies as the operations of large companies.

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 their markets and products



What's wrong with c?
I thought that since safety regulation codes are uinform, the size of companies doesn't matter, which weaken the argument above. (By the way, what are safety codes? :? )


Hi GMATNinja AndrewN @e-gmat

I realised that i undertook the wrong conclusion to weaken. I took "large companies must alter more complex operations and spend more money...." as the main conclusion. However, per the answers, it seems the 1st sentence is the main conclusion. The first however appears as a general information or a given premise.
How to avoid such mistakes?


Hi

The conclusion is that statement which acts as a final decision arrived at based on a set of standalone statements of fact, or, premises.

In the above question, there is one fundamental fact that we begin with - "large companies do everything on a more massive scale". Let's call this A. This is not based on any other fact but acts as a standalone claim.

From A, we derive the next statement, the one that you have taken to be the final conclusion - "they must alter more complex operations and spend much more money to meet governmental requirements". Let's call this B.

It is true that B is a form of conclusion - we could call it an intermediate conclusion - because it is based on another standalone point. However, it is not the final conclusion because this is not the point that the passage is making. Also, another statement is based on B, which is the first line - "The excessive number of safety regulations that the federal government has placed on industry poses more serious hardships for big businesses than for small ones". Since this is based on both A and B, and also the ultimate point that the stimulus is driving at, this has to be the final conclusion.

Hope this helps.


Hi CrackVerbalGMAT

Thanks for the reply. The above explanation seems totally once one has seen the explanation. But the unquie thing i am trying to learn from this question is the fact that the 1st sentence - large companies face more hardships - looks like a fact. To your point - there is one fundamental fact that we begin with - "large companies do everything on a more massive scale", this appeared to me as the 2nd fact.
Hence, what i am trying to learn is "How to be sure or spot early that a given statement is the "Author"s conclusion" and not a fact.
For example here, there seems no indication that it is the viewpoint of the author, until you read closely enough or lucky to consider it to be based on the following statements as you mentioned in your reply. Because even if we take it as a premise or fact, the argument seems totally fine, though with some asusmptions/weakness which is anywas what GMAT CR is all about.
Volunteer Expert
Joined: 16 May 2019
Posts: 3512
Own Kudos [?]: 6856 [2]
Given Kudos: 500
Re: The excessive number of safety regulations that the federal government [#permalink]
2
Kudos
Expert Reply
shanks2020 wrote:
eybrj2 wrote:
The excessive number of safety regulations 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 improvement.

B. the operation of small companies frequently rely on the same technologies as the operations of large companies.

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 their markets and products



What's wrong with c?
I thought that since safety regulation codes are uinform, the size of companies doesn't matter, which weaken the argument above. (By the way, what are safety codes? :? )


Hi GMATNinja AndrewN @e-gmat

I realised that i undertook the wrong conclusion to weaken. I took "large companies must alter more complex operations and spend more money...." as the main conclusion. However, per the answers, it seems the 1st sentence is the main conclusion. The first however appears as a general information or a given premise.
How to avoid such mistakes?

To add to the earlier dialogue, I often teach my students to look for emotional or judgmental language in both CR and RC passages. Such language offers insights into the authorial presence. The first line here is too slanted to be taken simply as background information:

The excessive number of safety regulations that the federal government has placed on industry poses more serious hardships for big businesses than for small ones.

Who thinks the number of regulations is excessive? Who thinks big businesses suffer a heavier burden as a result? We have two indications in the same sentence that someone is stating an opinion or making a claim, rather than the passage laying out, on neutral ground, information from which we can later draw to assess an argument that may appear.

I always like to put myself to the test and answer questions on my own before I offer my thoughts. This one was pretty easy to narrow down to (A) and (B). I went with (A) in the end because I felt it was the harder to argue against, falling more in line with the weaken task of the question stem.

Thank you, shanks2020, for drawing my attention to the question. It was not one I had seen before. I hope my response helps in your studies.

- Andrew
Manager
Manager
Joined: 02 Dec 2018
Posts: 249
Own Kudos [?]: 34 [0]
Given Kudos: 70
Send PM
Re: The excessive number of safety regulations that the federal government [#permalink]
AndrewN wrote:
shanks2020 wrote:
eybrj2 wrote:
The excessive number of safety regulations 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 improvement.

B. the operation of small companies frequently rely on the same technologies as the operations of large companies.

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 their markets and products



What's wrong with c?
I thought that since safety regulation codes are uinform, the size of companies doesn't matter, which weaken the argument above. (By the way, what are safety codes? :? )


Hi GMATNinja AndrewN @e-gmat

I realised that i undertook the wrong conclusion to weaken. I took "large companies must alter more complex operations and spend more money...." as the main conclusion. However, per the answers, it seems the 1st sentence is the main conclusion. The first however appears as a general information or a given premise.
How to avoid such mistakes?

To add to the earlier dialogue, I often teach my students to look for emotional or judgmental language in both CR and RC passages. Such language offers insights into the authorial presence. The first line here is too slanted to be taken simply as background information:

The excessive number of safety regulations that the federal government has placed on industry poses more serious hardships for big businesses than for small ones.

Who thinks the number of regulations is excessive? Who thinks big businesses suffer a heavier burden as a result? We have two indications in the same sentence that someone is stating an opinion or making a claim, rather than the passage laying out, on neutral ground, information from which we can later draw to assess an argument that may appear.

I always like to put myself to the test and answer questions on my own before I offer my thoughts. This one was pretty easy to narrow down to (A) and (B). I went with (A) in the end because I felt it was the harder to argue against, falling more in line with the weaken task of the question stem.

Thank you, shanks2020, for drawing my attention to the question. It was not one I had seen before. I hope my response helps in your studies.

- Andrew


Thanks AndrewN for this great reply. I usually love your detailed explanations. Yes, this question was unique to me, in that I mistook the conclusion, which is usually not that tricky part of GMAT CR.
Would be great if you can provide me links of some official questions where the conclusion is "masked"like this one.
Volunteer Expert
Joined: 16 May 2019
Posts: 3512
Own Kudos [?]: 6856 [0]
Given Kudos: 500
Re: The excessive number of safety regulations that the federal government [#permalink]
Expert Reply
shanks2020 wrote:
Thanks AndrewN for this great reply. I usually love your detailed explanations. Yes, this question was unique to me, in that I mistook the conclusion, which is usually not that tricky part of GMAT CR.
Would be great if you can provide me links of some official questions where the conclusion is "masked"like this one.

Well, shanks2020, I am glad to help out. Although this has been a busy week for me and I have a lot of work to do yet, I wanted to circle back and let you know that in general, the best place to find nit-picky questions about intermediate conclusions, main conclusions, claims, premises and so forth is boldface questions. If you really want to run through the gauntlet, take a crack at those tagged as LSAT questions. You will feel like you have stepped into a courtroom in no time.

Happy searching.

- Andrew
Manager
Manager
Joined: 10 Dec 2020
Posts: 76
Own Kudos [?]: 14 [0]
Given Kudos: 279
Concentration: Technology, Statistics
WE:Analyst (Computer Software)
Send PM
Re: The excessive number of safety regulations that the federal government [#permalink]
Can someone tell me what "Capital Reserves for improvement"actually means?
Intern
Intern
Joined: 16 Sep 2020
Posts: 2
Own Kudos [?]: 0 [0]
Given Kudos: 20
Send PM
Re: The excessive number of safety regulations that the federal government [#permalink]
Hey,

I would appreciate an expert clarification on my confusion below:

The excessive number of safety regulations 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 improvement.
b) the operation of small companies frequently rely on the same technologies as the operations of large companies.
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 their markets and products

Just because the smaller company is less likely to have capital reserves for IMPROVMENTS does not necessarily mean they will also lack capital reserves for a different purpose (i.e. changing regulation). Hence, A should not be the answer.

Why is this reasoning wrong?

Thanks in advance for any help.
Manager
Manager
Joined: 14 Nov 2013
Posts: 141
Own Kudos [?]: 28 [0]
Given Kudos: 156
Location: India
Concentration: Finance, Sustainability
GRE 1: Q158 V155

GRE 2: Q163 V159

GRE 3: Q163 V159
WE:Corporate Finance (Non-Profit and Government)
Send PM
Re: The excessive number of safety regulations that the federal government [#permalink]
is this really 85% Hard ?
I mean is this how a 700 level question on GMAT is ?
Senior Manager
Senior Manager
Joined: 16 Oct 2020
Posts: 265
Own Kudos [?]: 161 [0]
Given Kudos: 2384
GMAT 1: 460 Q28 V26
GMAT 2: 550 Q39 V27
GMAT 3: 610 Q39 V35
GMAT 4: 650 Q42 V38
GMAT 5: 720 Q48 V41
Send PM
Re: The excessive number of safety regulations that the federal government [#permalink]
frankqxq wrote:
Honestly, I find option E to be a very good answer. Since large companies diversify, regulation on industry will not have as big an impact on large firms as on small firms, since production is diversified. So in fact smaller firms will fare worse when they face industry regulation because they are solely focusing on a single industry. If this doesn't weaken the argument I don't know what does. In addition, option A says small firms have a hard time reserving capital. Sure, large firms can reserve more, but they also need to spend more capital, so that doesn't necessarily make the situation any better.


AndrewN GMATNinja KarishmaB

This was my exact line of reasoning. How is option A superior to E? The passage specifically mentions federal government's safety regulations and industry, and option E attacks both in one fell swoop for the reasons stated by frankqxq.
Volunteer Expert
Joined: 16 May 2019
Posts: 3512
Own Kudos [?]: 6856 [0]
Given Kudos: 500
Re: The excessive number of safety regulations that the federal government [#permalink]
Expert Reply
achloes wrote:
frankqxq wrote:
Honestly, I find option E to be a very good answer. Since large companies diversify, regulation on industry will not have as big an impact on large firms as on small firms, since production is diversified. So in fact smaller firms will fare worse when they face industry regulation because they are solely focusing on a single industry. If this doesn't weaken the argument I don't know what does. In addition, option A says small firms have a hard time reserving capital. Sure, large firms can reserve more, but they also need to spend more capital, so that doesn't necessarily make the situation any better.


AndrewN GMATNinja KarishmaB

This was my exact line of reasoning. How is option A superior to E? The passage specifically mentions federal government's safety regulations and industry, and option E attacks both in one fell swoop for the reasons stated by frankqxq.

Hello, achloes. To me, answer choice (E) looks more like a strengthener, supporting the argument that large companies do everything on a more massive scale [than small companies] and must alter more complex operations and spend much more money to meet governmental requirements. It takes a major assumption to reason that diversification means less regulation. The regulations could just as easily apply to each arm of the diversified company. We are looking for a hurdle for small companies to meet governmental requirements. Answer choice (A) does just that: if small companies have less capital to devote to meeting governmental safety requirements, then they face an obstacle that larger companies may not face to meet those requirements. This is straight-arrow GMAT logic at its best. Sure, there are real-world concerns that complicate the picture, but (A) directly touches on the argument, whereas (E) rests on the assumption that diversifying allows larger companies to avoid the same safety regulations that would be applied to what, exactly, its parent company exclusively? There is no reason to believe that each subsidiary would not also be subject to the same requirements.

Answer choice (E) fits into what I call a one-step-removed option. If it takes an extra step to link an answer choice to the argument—the exact argument presented in the passage—then that answer choice is almost assuredly incorrect.

Thank you for asking for my input on the question, and good luck with your studies.

- Andrew
Director
Director
Joined: 17 Aug 2009
Posts: 623
Own Kudos [?]: 31 [0]
Given Kudos: 21
Send PM
Re: The excessive number of safety regulations that the federal government [#permalink]
Between choice A and B -

A. small companies are less likely than large companies to have the capital reserves for improvement. - If small companies are less likely to have capital reserves, the author's conclusion that the regulations pose more serious hardships for big businesses than for small ones is weakened. Clearly, the smaller companies have hardships, too. May be less or more but we can't conclude with 100% certainty that the hardships for bigger businesses are more than smaller ones.

B. the operation of small companies frequently rely on the same technologies as the operations of large companies. - It is at best a strengthener - if the technologies are the same, of course, the scale is still massive for large companies. Makes us believe more in the conclusion.
Intern
Intern
Joined: 02 Aug 2018
Posts: 12
Own Kudos [?]: 2 [0]
Given Kudos: 9
Send PM
Re: The excessive number of safety regulations that the federal government [#permalink]
A uses the term 'improvement' which is not equal to meeting governmental requirements. This renders the choice ambiguous and not clear-cut. It might be the better option than the rest but it is fundamentally incorrect.

Should not be a valid GMAT Q, I'd be surprised if it is. Does anyone else feel the same way or fell into the same trap?
GMAT Club Bot
Re: The excessive number of safety regulations that the federal government [#permalink]
   1   2   3   
Moderators:
GMAT Club Verbal Expert
6917 posts
GMAT Club Verbal Expert
238 posts
CR Forum Moderator
832 posts

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne