Bunuel
Many startups present aggressive user growth projections to attract funding, but such forecasts often lead to unsustainable burn rates and eventual failure. One firm recently projected a tenfold increase in users within twelve months, despite having a small engineering team and minimal marketing spend.
Skepticism about these projections arose, given that similar firms with greater resources had grown more slowly. Nonetheless, funding was approved based on the founder’s proven execution history and a pre-launch distribution partnership with a major platform.In the argument above, the two boldfaced portions play which of the following roles?
A. The first is a challenge to the plausibility of a strategic forecast; the second accepts that challenge and concludes the forecast should be abandoned.
B. The first identifies a structural weakness in a proposed plan; the second presents an unrelated consideration that supports the plan nonetheless.
C. The first offers evidence against the feasibility of a projection; the second qualifies that evidence by introducing a broader market dynamic.
D. The first introduces an objection based on historical precedent; the second provides a contrasting factor that outweighed the objection in determining a course of action.
E. The first raises a reason to reject a proposed action; the second is a conclusion that contradicts that rejection by relying on a more compelling assumption.
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Many startups use aggressive user growth projections to attract funding. The caution word BUT mentions aggressive user growth projections have their cons - unsustainable burn rates and eventually failure.
The next line provides an example of a small firm , with small engineering team and minimal marketing spend, which projected a 10x user number increase in 12 months.
BF1: raises doubts ( skepticism) on these projections, the supporting reason is : similar firms with greater resources have grown slowly. This firm being a smaller one with such 10x user increase is raising eyebrows.
BF2: Provides a contrasting view, funding is not based on user increase as discussed earlier. But, other factors like founders proven history, pre launch distribution partnership with a major platform were the reasons for funding.
A) BF1 is not a challenge but it is a doubt raised. BF2 is not a challenge accepted and conclusion, actually its is a contrasting view which opposed the BF1, and mentions why a particular action was taken. Hence, Wrong.
B) BF1 is not a structural weakness identifier. But, it’s a statement which raises doubts based on past data. BF2 is not an unrelated consideration, but a consideration taken to explain a course of action. Hence, wrong.
C) BF 1 can be taken as an evidence, it’s actually a doubt quoting past data for support, BF2 is a contradiction made to explain why a particular action course is taken. Hence, Wrong.
D) BF1 raises a doubt, means an objection quoting past data. The BF2 is providing a contrast to BF1, to justify why a particular course of action was taken. Hence, correct.
E) No action is rejection. The actions are evaluated in the light of past data outcomes. BF1 is a doubt raising statement, which gives examples to support the doubt. BF2 is not a conclusion, but an explanation supporting a course of action. Hence, Wrong.
Option D