Last visit was: 26 Apr 2024, 03:49 It is currently 26 Apr 2024, 03:49

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
avatar
Manager
Manager
Joined: 21 May 2015
Posts: 197
Own Kudos [?]: 346 [16]
Given Kudos: 57
Concentration: Operations, Strategy
GMAT 1: 750 Q50 V41
Send PM
SVP
SVP
Joined: 06 Nov 2014
Posts: 1798
Own Kudos [?]: 1368 [0]
Given Kudos: 23
Send PM
Intern
Intern
Joined: 27 Aug 2014
Posts: 47
Own Kudos [?]: 22 [1]
Given Kudos: 3
Send PM
Intern
Intern
Joined: 30 Jun 2014
Posts: 28
Own Kudos [?]: 20 [0]
Given Kudos: 76
GPA: 3.6
WE:Operations (Energy and Utilities)
Send PM
Re: The owners of a book store and a nearby coffee shop have decided to co [#permalink]
by merger of the business shop owners think that the customers of one store will make the purchase in the other one too. thereby increasing the revenue. so, to weaken their conclusion we should select an option which says that they already share the customers.

Option D says so...
Senior Manager
Senior Manager
Joined: 29 Jun 2017
Posts: 312
Own Kudos [?]: 798 [2]
Given Kudos: 76
GPA: 4
WE:Engineering (Transportation)
Send PM
Re: The owners of a book store and a nearby coffee shop have decided to co [#permalink]
1
Kudos
Clearly Ans is D

A large majority of the book store's current customer base already frequents the coffee shop.
It means there is no reason for the merger and they may not be able to increase the customers... hence weakens.
Intern
Intern
Joined: 23 Oct 2013
Posts: 17
Own Kudos [?]: 1 [0]
Given Kudos: 43
WE:Operations (Internet and New Media)
Send PM
Re: The owners of a book store and a nearby coffee shop have decided to co [#permalink]
D is the answer. It weakens the conclusion.

Sent from my Lenovo A7020a48 using GMAT Club Forum mobile app
Intern
Intern
Joined: 18 Jan 2017
Posts: 22
Own Kudos [?]: 18 [2]
Given Kudos: 171
Send PM
Re: The owners of a book store and a nearby coffee shop have decided to co [#permalink]
2
Kudos
apoorv601 wrote:
The owners of a book store and a nearby coffee shop have decided to combine their businesses. Both owners believe that this merger will increase the number of customers and therefore the gross revenue, because customers who come for one reason may also decide to purchase something else.

Which of the following, if true, most weakens the owners' conclusion that a merger will increase revenue?

(A) Books and drinks can both be considered impulse purchases; often, they are purchased by customers without forethought.
(B) Profit margins at a coffee shop are generally significantly higher than profit margins at a book store.
(C) People who are able to read the first chapter of a book before buying are more likely to decide to buy the book.
(D) A large majority of the book store's current customer base already frequents the coffee shop.
(E) A combination book store and coffee shop that opened in a neighboring city last year has already earned higher than expected profits.


Summary: bookstore and coffee shop are going to combine their businesses with the belief that this merger will increase the number of customers and therefore increase revenue since customers who come for one reason might purchase something else.
We are looking for an answer that would mean revenue will not increase.


(A) Books and drinks can both be considered impulse purchases; often, they are purchased by customers without forethought.
eliminate- this isn't relevant to why revenue will or will not increase
(B) Profit margins at a coffee shop are generally significantly higher than profit margins at a book store.
eliminate- the statement is comparing the bookstore to coffeeshop profit margins
(C) People who are able to read the first chapter of a book before buying are more likely to decide to buy the book.
eliminate- out of scope
(D) A large majority of the book store's current customer base already frequents the coffee shop.
Keep- this gives a reason why revenue will not increase with the merger of these two businesses.
(E) A combination book store and coffee shop that opened in a neighboring city last year has already earned higher than expected profits
eliminate-this strengthens the argument rather than weakens it.
Intern
Intern
Joined: 06 Dec 2021
Posts: 2
Own Kudos [?]: 2 [1]
Given Kudos: 3
Send PM
Re: The owners of a book store and a nearby coffee shop have decided to co [#permalink]
1
Kudos
Acc to this question we need that option which weakens the owners conclusion
So in option (e) it wil strength the argument
(b) not given data
(c) extreme point (d) will weakens the owners argument

Posted from my mobile device
User avatar
Non-Human User
Joined: 01 Oct 2013
Posts: 17227
Own Kudos [?]: 848 [0]
Given Kudos: 0
Send PM
Re: The owners of a book store and a nearby coffee shop have decided to co [#permalink]
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
GMAT Club Bot
Re: The owners of a book store and a nearby coffee shop have decided to co [#permalink]
Moderators:
GMAT Club Verbal Expert
6921 posts
GMAT Club Verbal Expert
238 posts
CR Forum Moderator
832 posts

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