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Bayarsaikhan
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Faced with declining profits at its iconic downtown store, the departm 01 Dec 2020, 06:49
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60% (01:48) correct 40% (01:50) wrong based on 866 sessions

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Faced with declining profits at its iconic downtown store, the department store chain has asked a consultancy to investigate the root cause. The consultants have determined that as the number of the store’s customers and the money spent per customer have held steady, the loss of profitability must be due to increased rent on the store’s downtown location. In response, the consultants have suggested that the chain close its downtown store in order to concentrate on its other stores in the pursuit of the company’s mission of increased profitability.

The answer to which of the following questions would be most useful in evaluating whether the consultants’ recommendation to close the downtown store is warranted?
  • (A) How long has it been since the downtown store was last renovated?
  • (B) Can the rent for the downtown store be reduced by negotiating with the building owners?
  • (C) What is the current profitability of the chain’s other stores?
  • (D) Are stores in suburban mall locations increasingly profitable?
  • (E) Is the chain’s management in agreement with the consultants?
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B
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globaldesi
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Faced with declining profits at its iconic downtown store, the departm 01 Dec 2020, 20:50
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Bayarsaikhan
Faced with declining profits at its iconic downtown store, the department store chain has asked a consultancy to investigate the root cause. The consultants have determined that as the number of the store’s customers and the money spent per customer have held steady, the loss of profitability must be due to increased rent on the store’s downtown location. In response, the consultants have suggested that the chain close its downtown store in order to concentrate on its other stores in the pursuit of the company’s mission of increased profitability.

The answer to which of the following questions would be most useful in evaluating whether the consultants’ recommendation to close the downtown store is warranted?
  • (A) How long has it been since the downtown store was last renovated?
  • (B) Can the rent for the downtown store be reduced by negotiating with the building owners?
  • (C) What is the current profitability of the chain’s other stores?
  • (D) Are stores in suburban mall locations increasingly profitable?
  • (E) Is the chain’s management in agreement with the consultants?
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Only B has direct relationship with the current store under discussion.

A also discuss the current store but renovation is not the main cause of store cdecreased profitability.
IMO B
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Faced with declining profits at its iconic downtown store, the departm 02 Dec 2020, 11:12
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Faced with declining profits at its iconic downtown store, the department store chain has asked a consultancy to investigate the root cause. The consultants have determined that as the number of the store’s customers and the money spent per customer have held steady, the loss of profitability must be due to increased rent on the store’s downtown location. In response, the consultants have suggested that the chain close its downtown store in order to concentrate on its other stores in the pursuit of the company’s mission of increased profitability.

The answer to which of the following questions would be most useful in evaluating whether the consultants’ recommendation to close the downtown store is warranted?
  • (A) How long has it been since the downtown store was last renovated?
    Out of context.
  • (B) Can the rent for the downtown store be reduced by negotiating with the building owners?
    Since according to consultants, the loss of profitability must be due to increased rent on the store’s downtown location. This question may be useful in evaluating whether the consultants’ recommendation to close the downtown store is warranted.
  • (C) What is the current profitability of the chain’s other stores?
    The argument is related to downtown store. Out of context
  • (D) Are stores in suburban mall locations increasingly profitable?
    The argument is related to downtown store. Out of context
  • (E) Is the chain’s management in agreement with the consultants?
The question does not help evaluate the consultants’ recommendation to close the downtown store

IMO B
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Faced with declining profits at its iconic downtown store, the departm 12 May 2021, 18:54
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Kinshook
Faced with declining profits at its iconic downtown store, the department store chain has asked a consultancy to investigate the root cause. The consultants have determined that as the number of the store’s customers and the money spent per customer have held steady, the loss of profitability must be due to increased rent on the store’s downtown location. In response, the consultants have suggested that the chain close its downtown store in order to concentrate on its other stores in the pursuit of the company’s mission of increased profitability.

The answer to which of the following questions would be most useful in evaluating whether the consultants’ recommendation to close the downtown store is warranted?
  • (A) How long has it been since the downtown store was last renovated?
    Out of context.
  • (B) Can the rent for the downtown store be reduced by negotiating with the building owners?
    Since according to consultants, the loss of profitability must be due to increased rent on the store’s downtown location. This question may be useful in evaluating whether the consultants’ recommendation to close the downtown store is warranted.
  • (C) What is the current profitability of the chain’s other stores?
    The argument is related to downtown store. Out of context
  • (D) Are stores in suburban mall locations increasingly profitable?
    The argument is related to downtown store. Out of context
  • (E) Is the chain’s management in agreement with the consultants?
The question does not help evaluate the consultants’ recommendation to close the downtown store

IMO B
Show more

A Bit late,
But the conclusion of the paragraph is that the chain wants to pursue profitability. If the other stores are EVEN less profitable than the down town store, we should not close the downtown store.

So Option C can be correct.

Can someone please tell me why this thinking is wrong?

Thank you.
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Faced with declining profits at its iconic downtown store, the departm 13 May 2021, 06:35
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KPM007
Kinshook
Faced with declining profits at its iconic downtown store, the department store chain has asked a consultancy to investigate the root cause. The consultants have determined that as the number of the store’s customers and the money spent per customer have held steady, the loss of profitability must be due to increased rent on the store’s downtown location. In response, the consultants have suggested that the chain close its downtown store in order to concentrate on its other stores in the pursuit of the company’s mission of increased profitability.

The answer to which of the following questions would be most useful in evaluating whether the consultants’ recommendation to close the downtown store is warranted?
  • (A) How long has it been since the downtown store was last renovated?
    Out of context.
  • (B) Can the rent for the downtown store be reduced by negotiating with the building owners?
    Since according to consultants, the loss of profitability must be due to increased rent on the store’s downtown location. This question may be useful in evaluating whether the consultants’ recommendation to close the downtown store is warranted.
  • (C) What is the current profitability of the chain’s other stores?
    The argument is related to downtown store. Out of context
  • (D) Are stores in suburban mall locations increasingly profitable?
    The argument is related to downtown store. Out of context
  • (E) Is the chain’s management in agreement with the consultants?
The question does not help evaluate the consultants’ recommendation to close the downtown store

IMO B

A Bit late,
But the conclusion of the paragraph is that the chain wants to pursue profitability. If the other stores are EVEN less profitable than the down town store, we should not close the downtown store.

So Option C can be correct.

Can someone please tell me why this thinking is wrong?

Thank you.
Show more

I chose C too. But in my understanding why B is right over C is because, if they can negotiate to bring the rent down, then the whole idea of the loss due to rent goes away. That’s the source of the problem. And once it’s fixed all other steps need not be taken

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MohidSayed
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Faced with declining profits at its iconic downtown store, the departm 13 May 2021, 10:39
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Kinshook
Faced with declining profits at its iconic downtown store, the department store chain has asked a consultancy to investigate the root cause. The consultants have determined that as the number of the store’s customers and the money spent per customer have held steady, the loss of profitability must be due to increased rent on the store’s downtown location. In response, the consultants have suggested that the chain close its downtown store in order to concentrate on its other stores in the pursuit of the company’s mission of increased profitability.

The answer to which of the following questions would be most useful in evaluating whether the consultants’ recommendation to close the downtown store is warranted?
  • (A) How long has it been since the downtown store was last renovated?
    Out of context.
  • (B) Can the rent for the downtown store be reduced by negotiating with the building owners?
    Since according to consultants, the loss of profitability must be due to increased rent on the store’s downtown location. This question may be useful in evaluating whether the consultants’ recommendation to close the downtown store is warranted.
  • (C) What is the current profitability of the chain’s other stores?
    The argument is related to downtown store. Out of context
  • (D) Are stores in suburban mall locations increasingly profitable?
    The argument is related to downtown store. Out of context
  • (E) Is the chain’s management in agreement with the consultants?
The question does not help evaluate the consultants’ recommendation to close the downtown store

IMO B

A Bit late,
But the conclusion of the paragraph is that the chain wants to pursue profitability. If the other stores are EVEN less profitable than the down town store, we should not close the downtown store.

So Option C can be correct.

Can someone please tell me why this thinking is wrong?

Thank you.

I chose C too. But in my understanding why B is right over C is because, if they can negotiate to bring the rent down, then the whole idea of the loss due to rent goes away. That’s the source of the problem. And once it’s fixed all other steps need not be taken

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Faced with declining profits at its iconic downtown store, the departm 13 May 2021, 11:01
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B doesnt seems correct to me because we dont know even after negotiating the rent , the price will be reduced to a amount which will be equal to previous level of rent or will decrese loss .
Eg :- if rent is 100 dollars ,even after negotiation rent sets to 99 dollar and this will cause loss.
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Faced with declining profits at its iconic downtown store, the departm 05 Aug 2023, 11:03
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Shikhar22
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Kinshook
Faced with declining profits at its iconic downtown store, the department store chain has asked a consultancy to investigate the root cause. The consultants have determined that as the number of the store’s customers and the money spent per customer have held steady, the loss of profitability must be due to increased rent on the store’s downtown location. In response, the consultants have suggested that the chain close its downtown store in order to concentrate on its other stores in the pursuit of the company’s mission of increased profitability.

The answer to which of the following questions would be most useful in evaluating whether the consultants’ recommendation to close the downtown store is warranted?
  • (A) How long has it been since the downtown store was last renovated?
    Out of context.
  • (B) Can the rent for the downtown store be reduced by negotiating with the building owners?
    Since according to consultants, the loss of profitability must be due to increased rent on the store’s downtown location. This question may be useful in evaluating whether the consultants’ recommendation to close the downtown store is warranted.
  • (C) What is the current profitability of the chain’s other stores?
    The argument is related to downtown store. Out of context
  • (D) Are stores in suburban mall locations increasingly profitable?
    The argument is related to downtown store. Out of context
  • (E) Is the chain’s management in agreement with the consultants?
The question does not help evaluate the consultants’ recommendation to close the downtown store

IMO B

A Bit late,
But the conclusion of the paragraph is that the chain wants to pursue profitability. If the other stores are EVEN less profitable than the down town store, we should not close the downtown store.

So Option C can be correct.

Can someone please tell me why this thinking is wrong?

Thank you.

I chose C too. But in my understanding why B is right over C is because, if they can negotiate to bring the rent down, then the whole idea of the loss due to rent goes away. That’s the source of the problem. And once it’s fixed all other steps need not be taken

Posted from my mobile device
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The question asks which would be most useful for evaluating consultant's recommendations, now the information of reduced rent is not available, if the profitability of other stores are similar or lesser than this then a clear evaluation is warranted, the negotiation of rent is an extra step taken to amend the situation, not useful for evaluation.
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Faced with declining profits at its iconic downtown store, the departm 02 Sep 2023, 05:41
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The negotiations can very well bring the rent down by 10%, but would a 10% reduction be enough? I don't know.

Not convinced. Would like an expert to comment :)

C still looks somewhat correct.
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Faced with declining profits at its iconic downtown store, the departm 22 Sep 2023, 19:10
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the consultants have suggested that the chain close its downtown store in order to concentrate on its other stores in the pursuit of the company’s mission of increased profitability.

If the company's mission is profitability, a negotiation in rent may/ may not have an effect.
It states that the downtown store has a decline in profit, not that it is running at a loss. If the other stores are not making a profit, and the only profit-making store is the downtown store, how will the company pursue it's mission of increase profitability?
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Faced with declining profits at its iconic downtown store, the departm 11 Sep 2024, 11:10
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KPM007

Kinshook
Faced with declining profits at its iconic downtown store, the department store chain has asked a consultancy to investigate the root cause. The consultants have determined that as the number of the store’s customers and the money spent per customer have held steady, the loss of profitability must be due to increased rent on the store’s downtown location. In response, the consultants have suggested that the chain close its downtown store in order to concentrate on its other stores in the pursuit of the company’s mission of increased profitability.

The answer to which of the following questions would be most useful in evaluating whether the consultants’ recommendation to close the downtown store is warranted?

  • (A) How long has it been since the downtown store was last renovated?
    Out of context.
  • (B) Can the rent for the downtown store be reduced by negotiating with the building owners?
    Since according to consultants, the loss of profitability must be due to increased rent on the store’s downtown location. This question may be useful in evaluating whether the consultants’ recommendation to close the downtown store is warranted.
  • (C) What is the current profitability of the chain’s other stores?
    The argument is related to downtown store. Out of context
  • (D) Are stores in suburban mall locations increasingly profitable?
    The argument is related to downtown store. Out of context
  • (E) Is the chain’s management in agreement with the consultants?
The question does not help evaluate the consultants’ recommendation to close the downtown store

IMO B
A Bit late,
But the conclusion of the paragraph is that the chain wants to pursue profitability. If the other stores are EVEN less profitable than the down town store, we should not close the downtown store.

So Option C can be correct.

Can someone please tell me why this thinking is wrong?

Thank you.
Show more
­I also chose option C but then I realised where I made a mistake.
GOAL : Profitability
RECOMMENDATION : close downtown store and focus on other stores (usage of focus on other stores prompted me to select C but I think B makes more sense once you read Q stem clearly)
here Q stem is asking us to evaluate whether the recommended plan is warranted or not . that means should we accept the recommendation or not . if we consider that then option B makes more sense since answer to option B gives us the idea whether to implement that recommendation or not ?
option C is also very attractive choice but it comes after implementation of recommendation not before. if Q stem would have asked us to evaluate whether the company's GOAL of profitability will be achieved or not then option C makes sense because answering to option C gives us the idea about the proftis after the implemention of recommendation.
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Faced with declining profits at its iconic downtown store, the departm 10 Jan 2026, 08:55
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