A prominent investor who holds a large stake in the Burton Tool Company has recently claimed that the company is mismanaged, citing as evidence the company's failure to slow down production in response to a recent rise in its inventory of finished products. It is doubtful whether an investor's sniping at management can ever be anything other than counterproductive, but in this case, it is clearly not justified. It is true that an increased inventory of finished products often indicates that production is outstripping demand, but in Burton's case it indicates no such thing. Rather, the increase in inventory is entirely attributable to products that have already been assigned to orders received from customers.
In the argument given, the two boldfaced portions play which of the following roles?
(A) The first states a generalization that underlies the position that the argument as a whole opposes; the second provides evidence to show that the generalization does not apply in the case at issue.
Correct. Words like generalization are sneakily deceptive. I digress. This is the correct choice. The position that the passage opposes is this claim by the investor who thinks Burton is mismanaged. BF1 is the basis of that investor's argument. BF2 tells us that the rise in inventory should not be perceived as the management's inability to recognize the balance in supply and demand, but that it can be attributed to the fact that these are orders which customers have already placed.
(B) The first states a generalization that underlies the position that the argument as a whole opposes; the second
clarifies the meaning of a specific phrase as it is used in that generalization.
(C) The first provides evidence to
support the conclusion of the argument as a whole; the second is evidence that has been used to support the position that the argument as a whole opposes.
BF1 is not supporting the conclusion of the argument...it's the basis of the position being opposed by the argument.
(D) The first provides evidence to
support the conclusion of the argument as a whole; the
second states that conclusion.
(E) The
first and the second each provide evidence against the position that the argument as a whole opposes.