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16 Sep 2014, 02:28
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Developers interested in attracting new business to an area should invest initial capital in construction of buildings appropriate to each site. Although purchase prices will be slightly higher, the sites will be more attractive because potential buyers will not have to spend money out of pocket to build.
Which of the following, if true, would most undermine the soundness of the suggestion that developers construct new buildings before inviting potential buyers?
A. Construction costs in the area most attractive to new business are higher than in other parts of the city.
B. Developers are aware of the types of business wishing to move into the area and concentrate on designing appropriate buildings.
C. If developers do not sell every lot with a building on it, they will still be able to rent the space and regain some of their investment.
D. Zoning regulations in some areas require that specific building materials be used, which could result in unforeseen costs for developers.
E. Potential buyers will likely want to design their own buildings, making it unlikely that they will purchase a site on which there is an existing structure.
Which of the following, if true, would most undermine the soundness of the suggestion that developers construct new buildings before inviting potential buyers?
A. Construction costs in the area most attractive to new business are higher than in other parts of the city.
B. Developers are aware of the types of business wishing to move into the area and concentrate on designing appropriate buildings.
C. If developers do not sell every lot with a building on it, they will still be able to rent the space and regain some of their investment.
D. Zoning regulations in some areas require that specific building materials be used, which could result in unforeseen costs for developers.
E. Potential buyers will likely want to design their own buildings, making it unlikely that they will purchase a site on which there is an existing structure.
16 Sep 2014, 02:28
Kudos
Bookmarks
Official Solution:
Developers interested in attracting new business to an area should invest initial capital in construction of buildings appropriate to each site. Although purchase prices will be slightly higher, the sites will be more attractive because potential buyers will not have to spend money out of pocket to build.
Which of the following, if true, would most undermine the soundness of the suggestion that developers construct new buildings before inviting potential buyers?
A. Construction costs in the area most attractive to new business are higher than in other parts of the city.
B. Developers are aware of the types of business wishing to move into the area and concentrate on designing appropriate buildings.
C. If developers do not sell every lot with a building on it, they will still be able to rent the space and regain some of their investment.
D. Zoning regulations in some areas require that specific building materials be used, which could result in unforeseen costs for developers.
E. Potential buyers will likely want to design their own buildings, making it unlikely that they will purchase a site on which there is an existing structure.
General Approach:
The general approach to tackle this GMAT Critical Reasoning question is to focus on the assumption made in the argument, and then seek out an answer choice that undermines it. The argument here suggests that developers should construct buildings on the sites that they want to sell because this will make the sites more attractive to potential buyers. The assumption here is that potential buyers would prefer a site with a pre-constructed building rather than having to design and build their own. Therefore, any answer choice that contradicts this assumption would undermine the argument.
Correct Answer:
E is the correct answer. This undermines the argument by contradicting the assumption that potential buyers would prefer a site with a pre-constructed building. If in fact buyers prefer to design their own buildings, then constructing buildings ahead of time would actually make the sites less attractive, not more so.
Incorrect Answers:
A) This choice misses the point. Even if construction costs are higher in some areas, this does not undermine the argument. The argument assumes that potential buyers will be willing to pay more for a site with a pre-constructed building, so higher construction costs could be passed on to the buyers.
B) This choice actually strengthens the argument, rather than undermining it. If the developers are aware of what types of businesses are interested in moving into the area, they can construct buildings that cater to these businesses' needs, making the sites more attractive.
C) This choice is also off the mark. The argument assumes that selling the sites is the goal, not renting. While renting could be a backup plan if the sites do not sell, it does not undermine the original argument.
D) This choice, like A, does not challenge the main assumption of the argument. Even if there are unforeseen costs due to zoning regulations, these could be passed on to the buyers. The argument assumes that buyers will be willing to pay more for a site with a pre-constructed building.
Answer: E
Developers interested in attracting new business to an area should invest initial capital in construction of buildings appropriate to each site. Although purchase prices will be slightly higher, the sites will be more attractive because potential buyers will not have to spend money out of pocket to build.
Which of the following, if true, would most undermine the soundness of the suggestion that developers construct new buildings before inviting potential buyers?
A. Construction costs in the area most attractive to new business are higher than in other parts of the city.
B. Developers are aware of the types of business wishing to move into the area and concentrate on designing appropriate buildings.
C. If developers do not sell every lot with a building on it, they will still be able to rent the space and regain some of their investment.
D. Zoning regulations in some areas require that specific building materials be used, which could result in unforeseen costs for developers.
E. Potential buyers will likely want to design their own buildings, making it unlikely that they will purchase a site on which there is an existing structure.
General Approach:
The general approach to tackle this GMAT Critical Reasoning question is to focus on the assumption made in the argument, and then seek out an answer choice that undermines it. The argument here suggests that developers should construct buildings on the sites that they want to sell because this will make the sites more attractive to potential buyers. The assumption here is that potential buyers would prefer a site with a pre-constructed building rather than having to design and build their own. Therefore, any answer choice that contradicts this assumption would undermine the argument.
Correct Answer:
E is the correct answer. This undermines the argument by contradicting the assumption that potential buyers would prefer a site with a pre-constructed building. If in fact buyers prefer to design their own buildings, then constructing buildings ahead of time would actually make the sites less attractive, not more so.
Incorrect Answers:
A) This choice misses the point. Even if construction costs are higher in some areas, this does not undermine the argument. The argument assumes that potential buyers will be willing to pay more for a site with a pre-constructed building, so higher construction costs could be passed on to the buyers.
B) This choice actually strengthens the argument, rather than undermining it. If the developers are aware of what types of businesses are interested in moving into the area, they can construct buildings that cater to these businesses' needs, making the sites more attractive.
C) This choice is also off the mark. The argument assumes that selling the sites is the goal, not renting. While renting could be a backup plan if the sites do not sell, it does not undermine the original argument.
D) This choice, like A, does not challenge the main assumption of the argument. Even if there are unforeseen costs due to zoning regulations, these could be passed on to the buyers. The argument assumes that buyers will be willing to pay more for a site with a pre-constructed building.
Answer: E
