The financial health of non-profit institutions such as : GMAT Critical Reasoning (CR)
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# The financial health of non-profit institutions such as

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Director
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The financial health of non-profit institutions such as [#permalink]

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17 Aug 2006, 13:27
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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.
(B) Donations by individuals, added together, are a
major source of investment funds.
(C) Money spent on non-profit institutions is
ultimately returned to the public.
(D) Fund raising efforts are an important source of
revenue for non-profit institutions.
(E) The absence of government regulation
encourages individuals to donate money.
If you have any questions
New!
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17 Aug 2006, 14:38
Will go with D here....
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17 Aug 2006, 15:04
Going with C. Argument tries to prove that government
grants are necessary for the survival of non-profit
institutions
.

C shows that this money is eventually returned to the public, which implies that the institutions are self-sufficient.
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17 Aug 2006, 21:04
Is it (E).
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17 Aug 2006, 21:13
karlfurt wrote:
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
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17 Aug 2006, 21:54
Me too for (E).
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17 Aug 2006, 22:42
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.
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17 Aug 2006, 23:02
wow... E for me

MATT shines with his explanations!!!
Director
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22 Aug 2006, 03:38
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.
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22 Aug 2006, 06:10
karlfurt wrote:
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????
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22 Aug 2006, 10:20
Source : Lsat intensive review 2001

OE:
(B) Choice (B) directly contradicts the authorâ€™s conclusion. Notice the word
â€œnecessaryâ€
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22 Aug 2006, 10:44
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
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Re: I think its B. [#permalink]

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22 Aug 2006, 11:22
govinam wrote:
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.
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Re: I think its B. [#permalink]

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23 Aug 2006, 01:45
Well I did choose B...

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

E cannot be it bcos we duno how much they donate.... might be a paultry amount or might be huge....
Re: I think its B.   [#permalink] 23 Aug 2006, 01:45
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