ANGC, an oil company in Angistan, is evidently a poor shape. During th

Question

ANGC, an oil company in Angistan, is evidently a poor shape. During the past year, the company made 20 percent lower profits than its comparable peers.

Which of the following, if true, most undermines the argument above?

A. Two years ago, ANGC made more money than most of its competitors. 
B. Before becoming an oil explorer, ANGC was a mere oil trader.
C. During past year, ANGC’s staff went on strike and there was no production for one full fortnight 
D. The Government of Angistan singled out ANGC last year for meeting the subsidy burden for distributing its products. 
E. ANGC is reckoned to be a white elephant by all industry observers

Diagnostic Verbal Test Q# 6 CR

OA: D 
OE:
A: Studying the performance for a limited period such as one year cannot lead to a generalization 
B: Irrelevant
C: It is possible to make up for the shortfalls by judicious pre –planning and a fortnight’s shortfall in production, which is just 4 percent, is no excuse for ANGC’s bad performance; This is a strengthener
D: This is the unique feature by which the company ended up at the wrong end. Even if ANGC were a good company, no company would be able to sustain such heavy burdens. This undermines the generalization that ANGC is bad 
E: Irrelevant. Even if true, ANGC could not have been a white elephant last year alone.

mba1382 · Answer

To be honest, the question did not seem like 600-700 level but seems 600 level. The reason, only D seemed to attack evidence of the conclusion and no close option or a contender undermining the  conclusion :  ANGC, an oil company in Angistan, is evidently in a poor shape  based on the  evidence :  During the past year, the company made 20 percent lower profits than its comparable peers

daagh · Answer

mba182 since edited; Thanks for cautioning

vishalrastogi · Answer

Just out of curiosity, why is C not correct ?

Thanks.

daagh · Answer

Vishal

In good governance, a fortnight's loss of production amounting to roughly 4 percent may not cause a 20 percent overall loss. Good managements have enough contingency plans to meet such common occurrences. So C doesn't cut ice

hagadre · Answer

The point is to prove that it’s not necessarily in bad shape because it earned 20% lower profit.

D achieves this as the drop in profit could have been because of the subsidy it was being subjected to by the government.

Posted from my mobile device

VerbalBot · Answer

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ANGC, an oil company in Angistan, is evidently a poor shape. During th

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ANGC, an oil company in Angistan, is evidently a poor shape. During th

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