Quote:
The Mayor of Hortwitz, an economy mostly supported by large scale businesses, planned to create Special Economic Zones(SEZ) which would attract small and medium sized businesses to set up their establishments but would not have much to offer largescale business. The idea was to attract more investors to SEZs by making the SEZs a more financially viable place to set up businesses in.
Which of the following would, if true, most strongly indicate that the plan was successful in achieving its goal?
A. Tax benefits, special rates of interest and other financial subsidies have in the past helped many economies similar to Hortwitz grow.
B. In Greenwitz, Hortwitz’s twin city, post the creation of SEZs, the economy grew by an unprecedented 6% when measures were taken to encourage investments in businesses.
C. In Hortwitz, although the few existing small and medium scale industries did not register growth, the creation of SEZs led to a significant increase in the contribution made to the economy by small and medium scale businesses
D. Most of the SEZs were planned in remote areas where the costs of transportation and labour were very high.
E. Many investors are reluctant to invest in small and medium scale businesses as the return on investments are often low and risks comparatively high.
Strength Question.
Premise:1. The Mayor of Hortwitz, an economy mostly supported by large scale businesses, planned to create Special Economic Zones(SEZ)
2. SEZ would attract small and medium sized businesses to set up their establishments but would not have much to offer largescale business.
3. The idea was to attract more investors to SEZs by making the SEZs a more financially viable place to set up businesses in.
Conclusion:the plan was successful in achieving its goal.
Pre-thinking:1. SEZ supports small and medium sized businesses to increase the opportunity of successful business.
Analysis of the choices.Quote:
A. Tax benefits, special rates of interest and other financial subsidies have in the past helped many economies similar to Hortwitz grow.
The other beneficial finance factors do not help to strengthen the conclusion.
Out.Quote:
B. In Greenwitz, Hortwitz’s twin city, post the creation of SEZs, the economy grew by an unprecedented 6% when measures were taken to encourage investments in businesses.
The situation in Greenwitz is unlikely to happen in Hortwitz's even though there is twin city. I think it's non-sense.
Out.Quote:
C. In Hortwitz, although the few existing small and medium scale industries did not register growth, the creation of SEZs led to a significant increase in the contribution made to the economy by small and medium scale businesses
The creation of SEZ supports the economy of small and medium businesses. That is my pre-thinking.
Keep it.Quote:
D. Most of the SEZs were planned in remote areas where the costs of transportation and labour were very high.
This absolutely is out of scope.
Out.Quote:
E. Many investors are reluctant to invest in small and medium scale businesses as the return on investments are often low and risks comparatively high.
This weakens the conclusion.
Out. So I choose C.
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