With billions of dollars in cash, Cloudsoft is moving forward with amb

Question

With billions of dollars in cash, Cloudsoft is moving forward with ambitious technology projects to enhance mobile e-commerce despite low adoption for its existing smartphone application. The smartphone application, though available for download, unfortunately does not meet the user experience needs of consumers, who prefer making e-commerce purchases on another non-compatible platform that supports larger screen devices with faster connection speeds. Cloudsoft, therefore, is not guilty of any fiscal wastefulness.

Which of the following is an assumption on which the argument above depends?

(A) Converting the smartphone app to work on the other platform that supports larger and faster devices that meet consumer requirements, if possible, would not be a more cost-effective alternative to creating a new application for the other platform from scratch.

(B) Cloudsoft prefers offering free unlimited downloads to selling limited quantities in cases where the two alternatives are equally cost-effective.

(C) If a smartphone app available for download comes very close to meeting consumer requirements, the consumer can relax his own requirements slightly and consider that app in compliance.

(D) Cloudsoft's technology projects would not on being completed, add to the number of smartphone apps available for download.

(E) Before embarking on any major technology project, the Cloudsoft is required by law to establish beyond any reasonable doubt that there are no alternatives that are more cost-effective.

pretzel · Answer

Does it mean that, "Converting the smartphone app to work on the other platform that supports larger and faster devices that meet consumer requirements, if possible,   would be   a more cost-effective alternative to creating a new application for the other platform from scratch" and therefore Cloudsoft in continuation of its smartphone app is guilty of fiscal wastefulness?

bb61 · Answer

P1:With billions of dollars in cash, Cloudsoft is moving forward with ambitious technology projects to enhance mobile e-commerce despite low adoption for its existing smartphone application.
P2:The smartphone application, though available for download, unfortunately does not meet the user experience needs of consumers, who prefer making e-commerce purchases on another non-compatible platform that supports larger screen devices with faster connection speeds. 
conclusion: Cloudsoft is not guilty of any fiscal wastefulness.
 
Cloudsoft is adopting technology project A which is very expensive. although Cloudsoft knows that the user adoption is low but it pursues the project. 
pursuing the project is not fiscal wasteful because the low adoption is not due to Reason 1 that the Cloudsoft considered but it is due to Reason 2. 
because the reason of low adoption is different from the reason previously considered, so Cloudsoft is not guilty of any fiscal wastefulness.

(A)Converting the smartphone app to work on the other platform that supports larger and faster devices that meet consumer requirements, if possible, would not be a more cost-effective alternative to creating a new application for the other platform from scratch.

if the Cloudsoft address the second reason in its technology project cannot reduce its costs instead of continuing to address the first reason.
if it can (negate the answer choice) it will be guilty of fiscal watchfulness and it breaks the conclusion. so this must be the assumption.

todarmal · Answer

Understood A but, Why is C wrong ?

hiranmay · Answer

With billions of dollars in cash, Cloudsoft is moving forward with ambitious technology projects to enhance mobile e-commerce despite low adoption for its existing smartphone application. The smartphone application, though available for download, unfortunately does not meet the user experience needs of consumers, who prefer making e-commerce purchases on another non-compatible platform that supports larger screen devices with faster connection speeds. Cloudsoft, therefore, is not guilty of any fiscal wastefulness.

Which of the following is an assumption on which the argument above depends?

Analysis: 
Premise: Cloudsoft is improving X(mobile platform app), w/o starting Y(large screen platform app), although Y is better/preferred by customer.
Conclusion: Cloudsoft is not wasting money.
What is the assumption?

(A) Converting the smartphone app to work on the other platform that supports larger and faster devices that meet consumer requirements, if possible, would not be a more cost-effective alternative to creating a new application for the other platform from scratch. -->  correct : improving X(mobile platform app) is the cost effective way

(B) Cloudsoft prefers offering free unlimited downloads to selling limited quantities in cases where the two alternatives are equally cost-effective. --> no impact

(C) If a smartphone app available for download comes very close to meeting consumer requirements, the consumer can relax his own requirements slightly and consider that app in compliance. --> no impact

(D) Cloudsoft's technology projects would not on being completed, add to the number of smartphone apps available for download. --> no impact

(E) Before embarking on any major technology project, the Cloudsoft is required by law to establish beyond any reasonable doubt that there are no alternatives that are more cost-effective. --> no impact

SafSin28 · Answer

GMATNinja  could you explain this argument?

bestreturn · Answer

Im really confused with this question

They’re trying to ‘enhance mobile e-commerce’ while their existing app doesn’t meet customer’s needs. They are not guilty of fiscal wastefulness, so ‘enhance mobile e-commerce’ must be cost effective for them.

A) say that adapting existing app to meet customer’s needs is not more cost effective than making new app from scratch

Which means that making app from scratch is more cost effective and a better choice. However, cloudsoft chose to ‘enhance mobile e-commerce’ which sounds to me like adapting existing app to meet customer’s needs rather than creating a new app, therefore it should be guilty of fiscal wastefulness which is the opposite of the conclusion.

However choice E states that before they embark on this ‘enhance mobile e-commerce’ move, they have to do due diligence that there are no other cost effective way. The fact that they decided to do this means there are no other cost effective way known to them, which makes sense with the conclusion that they’re not guilty of fiscal wastefulness.

Can someone help me understand ?

VerbalBot · Answer

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With billions of dollars in cash, Cloudsoft is moving forward with amb

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