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V05-17

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Manager
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Joined: 13 May 2017
Posts: 113
Location: Finland
Concentration: Accounting, Entrepreneurship
GMAT 1: 530 Q42 V22
GMAT 2: 570 Q36 V31
GPA: 3.14
WE: Account Management (Entertainment and Sports)
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Re V05-17  [#permalink]

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New post 01 Nov 2018, 12:57
I think this is a poor-quality question and I don't agree with the explanation. CEOs suggest breaking up BIG4 into smaller operations, it doesn't say each B4 will have one accounting and one non-accounting devision, but more operations. The reasoning is very forced. You built in extra information in the reasoning, saying each BIG Four breaks into 2 divisions and therefore the number of choices won't increase. This is not stated in the passage and therefore confusing
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Re V05-17  [#permalink]

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New post 20 Dec 2018, 09:08
I think this is a poor-quality question and I don't agree with the explanation. This explanation makes no sense given the correct answer. There is either a mistake in the answer or in the question.

I've noticed your verbal questions across the board are incredibly convoluted. Pls fix.
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Re: V05-17  [#permalink]

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New post 08 Jan 2019, 07:05
sayantanc2k wrote:
frangiearth wrote:
I think this is a poor-quality question and the explanation isn't clear enough, please elaborate. If each of the four firms breaks in two
then 4 firms means 8 firms. Anyway breaking the firm will help in getting more options


A corporation needs to take up 2 types of services:

A. audit services.
B. non-audit services.

Suppose, before breaking up, the four players (accounting firms) were P1, P2, P3 and P4.

Hence the corporation had 4 choices for carrying out each of A (audit services) and B (non-audit services) : P1, P2, P3 and P4.

Now, suppose the players break up into audit and non-audit sections. P1 breaks into P1a and P1b (the ending letter a denotes an audit firm and b denotes a non-audit firm).

Now the 8 players are P1a, P1b, P2a, P2b, P3a, P3b, P4a and P4b .

Now suppose the corporation wants to carry out audit service. It still has 4 options : P1a, P2a, P3a and P4a.

The same is true for non-audit services as well - the corporation still has 4 options: P1b, P2b, P3b and P4b.

Thus the number of choices does not increase by breaking up the players into audit and non-audit sections.


Hi,

Please check and confirm once again. I dont think the outcomes are 4 after the split. Also , i understand that you considered the P1 split as P1a (audit) & P1b (non audit). What if you split P1 into P1a & P1b (audit) and P1c & P1d (Non audit). Even if i consider your logic to be true here, still the outcomes are more than 4!

Not satisfied with the answer explanation. E cannot be the correct choice!

Regards,
Siddhartha
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Re: V05-17  [#permalink]

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New post 28 Jun 2019, 21:16
Hi, I had the same reasoning when doing the excercise. But when doing the math, the options for a company will (slightly) increase:

- Currently: Company X has 4 options for one cathegory and 3 for the other.
- With all four firms splited in audit and non-audit services: Company X 4 options for one cathegory and 4 for the other.

Is this reason very exaggerated? Thanks!

sayantanc2k wrote:
frangiearth wrote:
I think this is a poor-quality question and the explanation isn't clear enough, please elaborate. If each of the four firms breaks in two
then 4 firms means 8 firms. Anyway breaking the firm will help in getting more options


A corporation needs to take up 2 types of services:

A. audit services.
B. non-audit services.

Suppose, before breaking up, the four players (accounting firms) were P1, P2, P3 and P4.

Hence the corporation had 4 choices for carrying out each of A (audit services) and B (non-audit services) : P1, P2, P3 and P4.

Now, suppose the players break up into audit and non-audit sections. P1 breaks into P1a and P1b (the ending letter a denotes an audit firm and b denotes a non-audit firm).

Now the 8 players are P1a, P1b, P2a, P2b, P3a, P3b, P4a and P4b .

Now suppose the corporation wants to carry out audit service. It still has 4 options : P1a, P2a, P3a and P4a.

The same is true for non-audit services as well - the corporation still has 4 options: P1b, P2b, P3b and P4b.

Thus the number of choices does not increase by breaking up the players into audit and non-audit sections.
GMAT Club Bot
Re: V05-17   [#permalink] 28 Jun 2019, 21:16

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