GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 21 Jan 2019, 16:16

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
Events & Promotions in January
PrevNext
SuMoTuWeThFrSa
303112345
6789101112
13141516171819
20212223242526
272829303112
Open Detailed Calendar
  • GMAT Club Tests are Free & Open for Martin Luther King Jr.'s Birthday!

     January 21, 2019

     January 21, 2019

     10:00 PM PST

     11:00 PM PST

    Mark your calendars - All GMAT Club Tests are free and open January 21st for celebrate Martin Luther King Jr.'s Birthday.
  • The winners of the GMAT game show

     January 22, 2019

     January 22, 2019

     10:00 PM PST

     11:00 PM PST

    In case you didn’t notice, we recently held the 1st ever GMAT game show and it was awesome! See who won a full GMAT course, and register to the next one.

The main purpose of business is to maximize shareholder value over the

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

 
Board of Directors
User avatar
P
Joined: 01 Sep 2010
Posts: 3279
The main purpose of business is to maximize shareholder value over the  [#permalink]

Show Tags

New post Updated on: 05 Nov 2018, 04:38
1
Top Contributor
3
00:00
A
B
C
D
E

Difficulty:

  55% (hard)

Question Stats:

60% (01:18) correct 40% (01:27) wrong based on 237 sessions

HideShow timer Statistics

The main purpose of business is to maximize shareholder value over the long term by selling goods or services. Thus, employees who use funds for anything other than to increase their sales are simply cheating the shareholders.

Which of the following is an assumption made in drawing the conclusion above?


(A) Most business owners would agree with the above definition of the purpose of a business.

(B) Increasing sales is not the only way to maximize shareholder value.

(C) Spending money on making the workplace more comfortable for employees will not lead to increased worker productivity and in turn increased business profits.

(D) The only function of a business is to maximize returns for its shareholders.

(E) According to this definition, many employees could be accused of cheating.



_________________

COLLECTION OF QUESTIONS AND RESOURCES
Quant: 1. ALL GMATPrep questions Quant/Verbal 2. Bunuel Signature Collection - The Next Generation 3. Bunuel Signature Collection ALL-IN-ONE WITH SOLUTIONS 4. Veritas Prep Blog PDF Version 5. MGMAT Study Hall Thursdays with Ron Quant Videos
Verbal:1. Verbal question bank and directories by Carcass 2. MGMAT Study Hall Thursdays with Ron Verbal Videos 3. Critical Reasoning_Oldy but goldy question banks 4. Sentence Correction_Oldy but goldy question banks 5. Reading-comprehension_Oldy but goldy question banks


Originally posted by carcass on 08 Jan 2018, 15:36.
Last edited by Bunuel on 05 Nov 2018, 04:38, edited 1 time in total.
Renamed the topic and edited the question.
Manager
Manager
User avatar
G
Joined: 22 May 2015
Posts: 108
Re: The main purpose of business is to maximize shareholder value over the  [#permalink]

Show Tags

New post 08 Jan 2018, 17:16
1
I think B is the best fit.
A,c,e are out of scope.
D seems extreme.
Sent from my Moto G (5) Plus using GMAT Club Forum mobile app
_________________

Consistency is the Key

Manager
Manager
User avatar
S
Joined: 20 Feb 2017
Posts: 88
Location: United States
Premium Member
Re: The main purpose of business is to maximize shareholder value over the  [#permalink]

Show Tags

New post Updated on: 08 Jan 2018, 17:44
2
carcass wrote:



The main purpose of business is to maximize shareholder value over the long term by selling goods or services. Thus, employees who use funds for anything other than to increase their sales are simply cheating the shareholders.

Which of the following is an assumption made in drawing the conclusion above?

(A) Most business owners would agree with the above definition of the purpose of a business.
(B) Increasing sales is not the only way to maximize shareholder value.
(C) Spending money on making the workplace more comfortable for employees will not lead to increased worker productivity and in turn increased business profits.
(D) The only function of a business is to maximize returns for its shareholders.
(E) According to this definition, many employees could be accused of cheating.

Kudo for the right solution and explanation


IMO - C

Stem - Main purpose of business - Maximize shareholder value by selling goods and services
Employees must spend funds on increasing sales only else they are cheating shareholders.

Option A - Stem talks about shareholders not mention of the business owners.
Option B - Stem assumption is opposite.
Option C - I will hold it as stem assumes only way to maximize returns for shareholders is to increase sales
Option D - Stem talks about the purpose of a business function. Two very different things.
Option E - Irrelevant.

Will wait for OA.
_________________

*****************************************************************
Kudos are always welcome.


Originally posted by lostin on 08 Jan 2018, 17:22.
Last edited by lostin on 08 Jan 2018, 17:44, edited 1 time in total.
Manager
Manager
avatar
G
Joined: 01 Feb 2017
Posts: 176
Re: The main purpose of business is to maximize shareholder value over the  [#permalink]

Show Tags

New post 08 Jan 2018, 17:37
1
IMO C

(A) Most business owners would agree with the above definition of the purpose of a business. :
CANNOT CHALLENGE THE FACTS STATED IN PREMISE

(B) Increasing sales is not the only way to maximize shareholder value.:
OUT OF SCOPE TO DISCUSSION

(C) Spending money on making the workplace more comfortable for employees will not lead to increased worker productivity and in turn increased business profits.:
CORRECT. THIS CHOICE DEFENDS AGAINST A WEAKENER.

(D) The only function of a business is to maximize returns for its shareholders.:
SAME AS B

(E) According to this definition, many employees could be accused of cheating.:
IRRELEVANT TO CONCLUSION

Posted from my mobile device
Director
Director
User avatar
P
Joined: 09 Mar 2017
Posts: 522
Location: India
Concentration: Marketing, Organizational Behavior
WE: Information Technology (Computer Software)
CAT Tests
Re: The main purpose of business is to maximize shareholder value over the  [#permalink]

Show Tags

New post Updated on: 08 Jan 2018, 21:18
1
The main purpose of business is to maximize shareholder value over the long term by selling goods or services. Thus, employees who use funds for anything other than to increase their sales are simply cheating the shareholders.

Which of the following is an assumption made in drawing the conclusion above?

(A) Most business owners would agree with the above definition of the purpose of a business. Out of scope for an assumption
(B)Increasing sales is not the only way to maximize shareholder value
weakening the conclusion
(C) Spending money on making the workplace more comfortable for employees will not lead to increased worker productivity and in turn increased business profits.
-spending money in this case is helping the business,not the shareholders. So, such employees are cheating the stakeholders. CORRECT
(D) The only function of a business is to maximize returns for its shareholders. And Irrelevant to the conclusion
(E) According to this definition, many employees could be accused of cheating. Out of Scope
_________________

------------------------------
"Trust the timing of your life"
Hit Kudus if this has helped you get closer to your goal, and also to assist others save time. Tq :)


Originally posted by TaN1213 on 08 Jan 2018, 18:39.
Last edited by TaN1213 on 08 Jan 2018, 21:18, edited 2 times in total.
Intern
Intern
avatar
B
Joined: 28 Dec 2017
Posts: 1
Re: The main purpose of business is to maximize shareholder value over the  [#permalink]

Show Tags

New post 08 Jan 2018, 21:10
1
Its C.
Assumption: increasing sales is the only way to increase shareholder values.
B is the complete opposite to this assumption.
C says this in other way that other methods of increasing sales will not work. Also, negating this choice makes the argument to fall apart.
Intern
Intern
avatar
B
Joined: 30 May 2017
Posts: 38
GMAT 1: 730 Q49 V41
Re: The main purpose of business is to maximize shareholder value over the  [#permalink]

Show Tags

New post 12 Jan 2018, 01:50
The main purpose of business is to maximize shareholder value over the long term by selling goods or services. Thus, employees who use funds for anything other than to increase their sales are simply cheating the shareholders.

Which of the following is an assumption made in drawing the conclusion above?

(A) Most business owners would agree with the above definition of the purpose of a business.
(B) Increasing sales is not the only way to maximize shareholder value.
(C) Spending money on making the workplace more comfortable for employees will not lead to increased worker productivity and in turn increased business profits.
(D) The only function of a business is to maximize returns for its shareholders.
(E) According to this definition, many employees could be accused of cheating.

Hi,
Let's start with the conclusion
"Thus, employees who use funds for anything other than to increase their sales are simply cheating the shareholders. "
Premise:-
"The main purpose of business is to maximize shareholder value over the long term by selling goods or services"

Let's do some pre thinking before starting with the POE.
Acc. to the argument employees using funds for anything other than increasing sales will not indirectly help in increasing the sales.

D is exactly in line with this and hence the answer.
GMAT Club Bot
Re: The main purpose of business is to maximize shareholder value over the &nbs [#permalink] 12 Jan 2018, 01:50
Display posts from previous: Sort by

The main purpose of business is to maximize shareholder value over the

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


Copyright

GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| GMAT Club Rules| Contact| Sitemap

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

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.