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14 Feb 2023, 00:45
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Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
95%
(hard)
Question Stats:
36% (02:02) correct
64%
(02:11)
wrong
based on 384
sessions
History
Date
Time
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Not Attempted Yet
Krate Motors, one of the leading automakers in the country, sells all its cars through two dealerships: Trump and Prax. In the last few years, Trump has consistently sold many more cars than Prax even though both the dealerships have the same geographical acreage allotted to them. However, since both the dealerships are assigned exclusive geographical regions, neither can sell cars in the region allotted to the other. Krate’s marketing division has recommended that in order to boost the company’s overall sales, Trump be given an exclusive contract for the entire country.
The validity of the above recommendation depends on which of the following assumptions?
A. Krate motors cannot increase its overall sales by increasing the sales of its cars in the geographical area allotted to Trump.
B. Comparison with Prax is not one of the main motivating factors for Trump to perform better on sales.
C. Prax has not performed better than the dealerships of other companies in the geographical area allotted to it.
D. Trump will employ the same sales strategies in the newly allotted area as it does in the area originally allotted to it.
E. Trade surveys have shown that there is a large market for the kind of cars Krate Motors makes in the geographical area currently under Prax motors.
The validity of the above recommendation depends on which of the following assumptions?
A. Krate motors cannot increase its overall sales by increasing the sales of its cars in the geographical area allotted to Trump.
B. Comparison with Prax is not one of the main motivating factors for Trump to perform better on sales.
C. Prax has not performed better than the dealerships of other companies in the geographical area allotted to it.
D. Trump will employ the same sales strategies in the newly allotted area as it does in the area originally allotted to it.
E. Trade surveys have shown that there is a large market for the kind of cars Krate Motors makes in the geographical area currently under Prax motors.
Sushil117
Joined: 04 Mar 2020
Last visit: 21 Apr 2026
Posts: 248
Given Kudos: 100
Location: India
Schools: Smith Ivey Alberta '23 HEC Montreal Rotman '23
GPA: 3.3
15 Feb 2023, 08:03
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A. Krate motors cannot increase its overall sales by increasing the sales of its cars in the geographical area allotted to Trump.
what about other area under pranx? if pranx can sell more then overall sales will increase.
not a strong argument .
B. Comparison with Prax is not one of the main motivating factors for Trump to perform better on sales.
if the assumption is wrong, then the decision is sure to backfire.
correct
C. Prax has not performed better than the dealerships of other companies in the geographical area allotted to it.
Trump has performed better than Pranx, but no info is given whether Trump has performed better than other companies in its allocated area. incorrect
D. Trump will employ the same sales strategies in the newly allotted area as it does in the area originally allotted to it.
you can't use the same strategy to sell cars in a city like Tokyo and in a city like Delhi. different places may need different approach. incorrect
E. Trade surveys have shown that there is a large market for the kind of cars Krate Motors makes in the geographical area currently under Prax motors.
a large market doesn't necessarily mean more sales for every company. many other factors affect the sales. incorrect
what about other area under pranx? if pranx can sell more then overall sales will increase.
not a strong argument .
B. Comparison with Prax is not one of the main motivating factors for Trump to perform better on sales.
if the assumption is wrong, then the decision is sure to backfire.
correct
C. Prax has not performed better than the dealerships of other companies in the geographical area allotted to it.
Trump has performed better than Pranx, but no info is given whether Trump has performed better than other companies in its allocated area. incorrect
D. Trump will employ the same sales strategies in the newly allotted area as it does in the area originally allotted to it.
you can't use the same strategy to sell cars in a city like Tokyo and in a city like Delhi. different places may need different approach. incorrect
E. Trade surveys have shown that there is a large market for the kind of cars Krate Motors makes in the geographical area currently under Prax motors.
a large market doesn't necessarily mean more sales for every company. many other factors affect the sales. incorrect
20 Oct 2024, 00:39
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A. Krate Motors cannot increase its overall sales by increasing the sales of its cars in the geographical area allotted to Trump.
Negation: Krate Motors can increase its overall sales by increasing sales in the area allotted to Trump.
Effect on the argument: If Krate can boost overall sales in Trump’s area, then it may not be necessary to give Trump the exclusive contract for the entire country. Thus, this assumption is essential for the recommendation to hold true.
This is the assumption.
B. Comparison with Prax is not one of the main motivating factors for Trump to perform better on sales.
Negation: Comparison with Prax is a main motivating factor for Trump to perform better on sales.
Effect on the argument: The performance of Trump relative to Prax does not directly impact whether giving Trump an exclusive contract will increase overall sales. This assumption is not necessary for the argument.
Not the assumption.
C. Prax has not performed better than the dealerships of other companies in the geographical area allotted to it.
Negation: Prax has performed better than the dealerships of other companies in its area.
Effect on the argument: This assumption does not directly relate to whether giving Trump an exclusive contract will increase overall sales. The performance of Prax in comparison to others does not support or undermine the recommendation.
Not the assumption.
D. Trump will employ the same sales strategies in the newly allotted area as it does in the area originally allotted to it.
Negation: Trump will not employ the same sales strategies in the new area as it does in its original area.
Effect on the argument: While it might be beneficial for Trump to use the same strategies, this does not directly affect the assumption about whether overall sales will increase. The recommendation does not rely on the strategies being the same.
Not the assumption.
E. Trade surveys have shown that there is a large market for the kind of cars Krate Motors makes in the geographical area currently under Prax Motors.
Negation: Trade surveys have shown that there is not a large market for Krate Motors' cars in Prax’s area.
Effect on the argument: If there is not a large market in Prax's area, then giving Trump an exclusive contract might not boost overall sales, which would undermine the recommendation. Therefore, this is a crucial assumption because it addresses the demand in the area currently under Prax.
This is also an assumption.
Krate Motors cannot increase its overall sales by increasing the sales of its cars in the geographical area allotted to Trump.
This assumption is necessary because if Krate can increase sales in Trump’s area, there might be no need to give Trump an exclusive contract for the entire country.
However, E also plays a significant role in that it establishes the demand in Prax's area. But A is more directly tied to the recommendation about boosting overall sales by changing contracts.
Therefore, the best answer that aligns directly with the recommendation is A.
Negation: Krate Motors can increase its overall sales by increasing sales in the area allotted to Trump.
Effect on the argument: If Krate can boost overall sales in Trump’s area, then it may not be necessary to give Trump the exclusive contract for the entire country. Thus, this assumption is essential for the recommendation to hold true.
This is the assumption.
B. Comparison with Prax is not one of the main motivating factors for Trump to perform better on sales.
Negation: Comparison with Prax is a main motivating factor for Trump to perform better on sales.
Effect on the argument: The performance of Trump relative to Prax does not directly impact whether giving Trump an exclusive contract will increase overall sales. This assumption is not necessary for the argument.
Not the assumption.
C. Prax has not performed better than the dealerships of other companies in the geographical area allotted to it.
Negation: Prax has performed better than the dealerships of other companies in its area.
Effect on the argument: This assumption does not directly relate to whether giving Trump an exclusive contract will increase overall sales. The performance of Prax in comparison to others does not support or undermine the recommendation.
Not the assumption.
D. Trump will employ the same sales strategies in the newly allotted area as it does in the area originally allotted to it.
Negation: Trump will not employ the same sales strategies in the new area as it does in its original area.
Effect on the argument: While it might be beneficial for Trump to use the same strategies, this does not directly affect the assumption about whether overall sales will increase. The recommendation does not rely on the strategies being the same.
Not the assumption.
E. Trade surveys have shown that there is a large market for the kind of cars Krate Motors makes in the geographical area currently under Prax Motors.
Negation: Trade surveys have shown that there is not a large market for Krate Motors' cars in Prax’s area.
Effect on the argument: If there is not a large market in Prax's area, then giving Trump an exclusive contract might not boost overall sales, which would undermine the recommendation. Therefore, this is a crucial assumption because it addresses the demand in the area currently under Prax.
This is also an assumption.
Krate Motors cannot increase its overall sales by increasing the sales of its cars in the geographical area allotted to Trump.
This assumption is necessary because if Krate can increase sales in Trump’s area, there might be no need to give Trump an exclusive contract for the entire country.
However, E also plays a significant role in that it establishes the demand in Prax's area. But A is more directly tied to the recommendation about boosting overall sales by changing contracts.
Therefore, the best answer that aligns directly with the recommendation is A.
