Last visit was: 19 Nov 2025, 17:44 It is currently 19 Nov 2025, 17:44
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
User avatar
karlfurt
Joined: 02 Mar 2006
Last visit: 16 May 2008
Posts: 346
Own Kudos:
Location: France
Posts: 346
Kudos: 579
Kudos
Add Kudos
Bookmarks
Bookmark this Post
User avatar
gmatornot
Joined: 14 Jul 2005
Last visit: 15 Apr 2007
Posts: 237
Own Kudos:
Posts: 237
Kudos: 361
Kudos
Add Kudos
Bookmarks
Bookmark this Post
User avatar
Futuristic
Joined: 28 Dec 2005
Last visit: 07 May 2009
Posts: 415
Own Kudos:
Posts: 415
Kudos: 52
Kudos
Add Kudos
Bookmarks
Bookmark this Post
User avatar
sperinko
Joined: 26 Jun 2006
Last visit: 22 Oct 2011
Posts: 358
Own Kudos:
Posts: 358
Kudos: 502
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Is it (E).
User avatar
GMATT73
Joined: 29 Jan 2005
Last visit: 28 Dec 2011
Posts: 2,877
Own Kudos:
Posts: 2,877
Kudos: 1,256
Kudos
Add Kudos
Bookmarks
Bookmark this Post
karlfurt
The financial health of non-profit institutions such
as public television depends on large government
grants. Such grants allow funds to be concentrated
so that real benefit can be obtained. Otherwise
money will be diffused and such institutions will
cease to exist.
Which of the following, if true, most seriously
weakens the argument made above that government
grants are necessary for the survival of non-profit
institutions?
(A) Government grants for non-profit institutions
have declined in recent years. --> out of scope, so what?
(B) Donations by individuals, added together, are a
major source of investment funds. ---> investment funds for what?
(C) Money spent on non-profit institutions is
ultimately returned to the public. ---> "180" actually supports the premise. It`s the people who benefit from the free services made available by such NPOs.
(D) Fund raising efforts are an important source of
revenue for non-profit institutions. ---> "important" is very vague. Are we talking about 1% or 75%?
(E) The absence of government regulation
encourages individuals to donate money. ---> Correct! This implies that the private donations are sufficient enough to sustain public broadcasting TV, etc.


My chips are on (E)

1:31
User avatar
sangarelli
Joined: 14 Jul 2006
Last visit: 24 Mar 2018
Posts: 202
Own Kudos:
Posts: 202
Kudos: 23
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Me too for (E).
:beer
User avatar
jaynayak
Joined: 30 Mar 2006
Last visit: 07 Jul 2008
Posts: 894
Own Kudos:
Posts: 894
Kudos: 639
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Will go with E.

C looks good as it directly counters what is asked in the question. But IMO C is not addressing the issue.

Take a look at this line.

Such grants allow funds to be concentrated so that real benefit can be obtained. Otherwise money will be diffused and such institutions will
cease to exist.


The job of non-profit institutions is to help the general public. The author claims that grants to non-profit organizations by the goverment helps to concentrate the funds and utilise it better.
But if individuals donate money when nothing is available from goverment, non-profit institutions can still function.
User avatar
u2lover
Joined: 14 May 2006
Last visit: 08 Oct 2007
Posts: 706
Own Kudos:
Posts: 706
Kudos: 933
Kudos
Add Kudos
Bookmarks
Bookmark this Post
wow... E for me

MATT shines with his explanations!!!
User avatar
karlfurt
Joined: 02 Mar 2006
Last visit: 16 May 2008
Posts: 346
Own Kudos:
Location: France
Posts: 346
Kudos: 579
Kudos
Add Kudos
Bookmarks
Bookmark this Post
I'm sorry for the late OA. I was absent and forgot this thread.
It might disapoint you as it did for me, but OA is B.
I don't have the OE here but I wasn 't not satisfied with it.
B speaks about investement funds. Funds for what?????
I chose E too.
User avatar
ps_dahiya
Joined: 20 Nov 2005
Last visit: 15 Oct 2019
Posts: 1,486
Own Kudos:
Concentration: Strategy, Entrepreneurship
Schools:Completed at SAID BUSINESS SCHOOL, OXFORD - Class of 2008
Posts: 1,486
Kudos: 1,215
Kudos
Add Kudos
Bookmarks
Bookmark this Post
karlfurt
I'm sorry for the late OA. I was absent and forgot this thread.
It might disapoint you as it did for me, but OA is B.
I don't have the OE here but I wasn 't not satisfied with it.
B speaks about investement funds. Funds for what?????
I chose E too.

I can't believe this. What is the source????
User avatar
karlfurt
Joined: 02 Mar 2006
Last visit: 16 May 2008
Posts: 346
Own Kudos:
Location: France
Posts: 346
Kudos: 579
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Source : Lsat intensive review 2001

OE:
(B) Choice (B) directly contradicts the author’s conclusion. Notice the word
“necessaryâ€
User avatar
govinam
Joined: 20 May 2006
Last visit: 27 Sep 2008
Posts: 65
Own Kudos:
Posts: 65
Kudos: 138
Kudos
Add Kudos
Bookmarks
Bookmark this Post
The evidence is that "Such grants allow funds to be concentrated
so that real benefit can be obtained. Otherwise
money will be diffused
and such institutions will
cease to exist."

B goes to the heart of the passage. "Donations by individuals, added together, are a major source of investment funds."

that was my reasoning anyway
User avatar
karlfurt
Joined: 02 Mar 2006
Last visit: 16 May 2008
Posts: 346
Own Kudos:
Location: France
Posts: 346
Kudos: 579
Kudos
Add Kudos
Bookmarks
Bookmark this Post
govinam
The evidence is that "Such grants allow funds to be concentrated
so that real benefit can be obtained. Otherwise
money will be diffused
and such institutions will
cease to exist."

B goes to the heart of the passage. "Donations by individuals, added together, are a major source of investment funds."

that was my reasoning anyway


nice explanation!
though it doesn't refer to the destination of the funds.
User avatar
sumitsarkar82
Joined: 15 Aug 2004
Last visit: 15 Sep 2006
Posts: 151
Own Kudos:
Posts: 151
Kudos: 14
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Well I did choose B...

Although when i read all the explanations... I thought I might be wrong but it seems a confusing one... :roll: :roll: :roll:

E cannot be it bcos we duno how much they donate.... might be a paultry amount or might be huge....



Archived Topic
Hi there,
This topic has been closed and archived due to inactivity or violation of community quality standards. No more replies are possible here.
Where to now? Join ongoing discussions on thousands of quality questions in our Critical Reasoning (CR) Forum
Still interested in this question? Check out the "Best Topics" block above for a better discussion on this exact question, as well as several more related questions.
Thank you for understanding, and happy exploring!
Moderators:
GMAT Club Verbal Expert
7443 posts
GMAT Club Verbal Expert
231 posts
189 posts