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31 Dec 2024, 01:30
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B
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
35%
(medium)
Question Stats:
75% (01:52) correct
25%
(02:19)
wrong
based on 154
sessions
History
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Time
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Not Attempted Yet
To prevent its tenants from relocating their offices, a building management company has hired a customer service employee who monitors tenant satisfaction. When the new employee determines that a tenant may be considering relocation, the management company offers the tenant benefits, such as reduced rent, to induce the tenant to stay. Since hiring the new employee, the management company has cut in half the number of its tenants who have relocated. The new employee, therefore, is increasing the management company's profits by reducing tenant turnover.
Which of the following is an assumption on which the argument depends?
(A) The presence of the new employee increases the satisfaction of all tenants, not just those who may be considering relocation.
(B) The costs of the new employee and the benefits offered to induce tenants to stay do not outweigh the financial benefit of reducing tenant turnover.
(C) The new employee was hired on the recommendation of a consultant who has consistently increased the profits of other building management companies.
(D) The new employee was hired before the summer months, when most companies choose to relocate their offices.
(E) The cost of refurbishing an empty office before seeking a new tenant outweighs the cost of providing benefits that induce a current tenant to stay.
Which of the following is an assumption on which the argument depends?
(A) The presence of the new employee increases the satisfaction of all tenants, not just those who may be considering relocation.
(B) The costs of the new employee and the benefits offered to induce tenants to stay do not outweigh the financial benefit of reducing tenant turnover.
(C) The new employee was hired on the recommendation of a consultant who has consistently increased the profits of other building management companies.
(D) The new employee was hired before the summer months, when most companies choose to relocate their offices.
(E) The cost of refurbishing an empty office before seeking a new tenant outweighs the cost of providing benefits that induce a current tenant to stay.
31 Dec 2024, 07:26
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Bunuel
Background - Hired a new employee, who monitors tenant and allows management to provide extra benefits to tenants for extending their stay
Premise - No. of tenants who have relocated have reduced by half
Conclusion - New employee is increasing management profits by reducing tenants turnover
Assumption? => Employee fee + Tenants benefits doesn't outweigh the financial cost incurred when tenants relocate to increase profits
Which of the following is an assumption on which the argument depends?
(A) The presence of the new employee increases the satisfaction of all tenants, not just those who may be considering relocation. Don't care about the overall satisfaction quotient of all the tenants but the actual cost optimized
(B) The costs of the new employee and the benefits offered to induce tenants to stay do not outweigh the financial benefit of reducing tenant turnover. This seems inline with the initial assumption, and should break the argument on negation
(C) The new employee was hired on the recommendation of a consultant who has consistently increased the profits of other building management companies. Because other consultant has increased profits doesn't guarantee how this new employee will perform in a whole different equation
(D) The new employee was hired before the summer months, when most companies choose to relocate their offices. This may be true to answer why profits have increased temporarily but doesn't address the concern on why the no. of tenants relocating have reduced by half
(E) The cost of refurbishing an empty office before seeking a new tenant outweighs the cost of providing benefits that induce a current tenant to stay. But what if the cost of refurbishing is less than the total cost of benefits provided to the current tenant + the employee compensation and also we don't know anything about other associated costs apart from refurbishing, so this seems to be a limited assumption and compared to B, B seems to tie all loose ends.
IMO: B
05 Jan 2025, 23:45
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Bunuel
OFFICIAL EXPLANATION
B
Any argument concluding that profits are increased or decreased hinges on two things: a change (or lack thereof) in revenues and a change (or lack thereof)in costs. This argument provides evidence that more tenants stay, suggesting that revenues are higher for the management company thanks to the new employee. However, there is a shift from the evidence to the conclusion - just because the revenues are up doesn't mean profits are up as well.
Choice (A) may ultimately contribute to higher revenue, but we don't know the connection between tenant satisfaction and revenue. (B) addresses both costs and revenues, by telling us that the increased costs of the new strategy are not as high as the financial benefits that the strategy brings about. Choice (C) is irrelevant, as it doesn't matter why the employee was hired.
(D) suggests that the new employee may have made a difference, but it doesn't address the cost of the employee or other aspects of the strategy. (E) addresses costs and revenue, but not as thoroughly as does (B). (E) doesn't mention the cost of the new employee, or other costs of finding new tenants. Choice (B) is correct.
