Can a profit be negative?

Question

Question is related to: Manhattan Advanced GMAT Quant, Chapter 5., p. 93.

And my question is, if it is not a logical error? Could a profit be negative? I think of a negative profit as of a loss, and thus it should be called so every time it occurs. Negative profit is oxymoron.

What do you think? How does it look like on the GMAT?

commdiver · Answer

Which version of  Advanced GMAT Quant  are you using? Mine was published in 2012 and does not have that information on page 95. I would assume you would need to read the entire chapter to understand what they mean (there is probably some theory they are trying to explain).

jumsumtak · Answer

you won' t have such a problem on the GMAT. 
There would be no such thing as negative profit. They will call it a loss.

HumptyDumpty · Answer

I am using Manhattan Advanced GMAT Quant, PDF version without the publisher’s imprint.

Anyway, it is on the 8th page of the 5th Chapter. I’ve read the whole chapter, but this is only an example of a GMAT-like trap, rather out of context.

I’ve done all the Manhattan Math Guides and I am used to and comfortable with the fact that Manhattan Guys make errors very, very, VERY occasionally. Therefore I wanted to confront this example with your opinion.

I am not GMAT expert, but I would like to agree with  jumsumtak , that “a negative profit” should be called “a loss”. I uphold my mind that “a negative profit” is oxymoron, thus illegal.

bb · Answer

On all of the tax/accounting forms it usually says Profit/Loss.
I think profit is positive by definition but 2 things:
1. Kudos to you for catching it - you should feel much more confident about your CR skills now.
2. Don't waste time on this as GMAC is much more careful about avoiding such logical discrepancies or debatable aspects.

HumptyDumpty · Answer

Thanks for the Kudo  bb . I would have started reporting those slips straight from the beginning if I knew. There isn't too many of them, even though the Manhattan Advanced Quant have plenty as compared to the Guides.

So far I haven't started with my verbal prep yet, but I've passed TOEFL (with 28 in reading) and its German counterpart TestDaF, so hopefully the verbal part will be the easier one for me.

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Can a profit be negative?

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