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05 Sep 2025, 00:49
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Difficulty:
35%
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Question Stats:
70% (01:45) correct
30%
(01:47)
wrong
based on 269
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The city of Northtown collects an average of $2.2 million in business taxes per year. Neighboring Southtown collects an average of $1.8 million in business taxes per year. Both cities assess business taxes on net profits. In an attempt to attract new businesses to Southtown, the spokesperson for the chamber of commerce of that city uses these statistics to claim that Southtown’s lower business tax rate offers amore favorable environment for business than can be found in Northtown.
Which of the following, if true, would most seriously undermine the spokesperson’s argument?
(A) Most tax revenue collected in Northtown comes from business taxes.
(B) Most tax revenue collected in Southtown comes from business taxes.
(C) The net profits generated by Northtown businesses are currently twice those of Southtown businesses.
(D) Northtown has twice the population of Southtown.
(E) Southtown businesses generate twice as much sales revenue as do Northtown businesses.
Which of the following, if true, would most seriously undermine the spokesperson’s argument?
(A) Most tax revenue collected in Northtown comes from business taxes.
(B) Most tax revenue collected in Southtown comes from business taxes.
(C) The net profits generated by Northtown businesses are currently twice those of Southtown businesses.
(D) Northtown has twice the population of Southtown.
(E) Southtown businesses generate twice as much sales revenue as do Northtown businesses.
05 Sep 2025, 13:21
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Spokesperson is claiming that since tax revenue in SouthTown (ST) is less than Northtown(NT), ST is having a lower business tax rate. We need to undermine the point that lower tax revenue is equivalent to low tax rate, in other words, we have to cast doubt on this assumption
Which of the following, if true, would most seriously undermine the spokesperson’s argument?
(A) Most tax revenue collected in Northtown comes from business taxes.
Irrelevant: Doesnt cast doubt on STs claim since this statement is reconfirming a premise that tax revenue is equal to business taxes
(B) Most tax revenue collected in Southtown comes from business taxes.
Irrelevant: Same as above
(C) The net profits generated by Northtown businesses are currently twice those of Southtown businesses.
Correct: Since net profit is high in NT, the tax which they have, $2.2, is not because they have higher tax %, its simply because they have more profit. Now, if netprofit is twice but still tax difference is not twice or more, it implies that tax rate in NT is infact lower than that of ST
(D) Northtown has twice the population of Southtown.
Irrelevant
(E) Southtown businesses generate twice as much sales revenue as do Northtown businesses.
Irrelevant: We are concerned about profit, not on revenue. Revenue being higher doesn't assure higher profits iykyk
Which of the following, if true, would most seriously undermine the spokesperson’s argument?
(A) Most tax revenue collected in Northtown comes from business taxes.
Irrelevant: Doesnt cast doubt on STs claim since this statement is reconfirming a premise that tax revenue is equal to business taxes
(B) Most tax revenue collected in Southtown comes from business taxes.
Irrelevant: Same as above
(C) The net profits generated by Northtown businesses are currently twice those of Southtown businesses.
Correct: Since net profit is high in NT, the tax which they have, $2.2, is not because they have higher tax %, its simply because they have more profit. Now, if netprofit is twice but still tax difference is not twice or more, it implies that tax rate in NT is infact lower than that of ST
(D) Northtown has twice the population of Southtown.
Irrelevant
(E) Southtown businesses generate twice as much sales revenue as do Northtown businesses.
Irrelevant: We are concerned about profit, not on revenue. Revenue being higher doesn't assure higher profits iykyk
05 Sep 2025, 18:05
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Comparison b/w Business taxes/year
NT>ST i.e 2.2million>1.8million
NT and ST assess business taxes as net profit
Spokesperson of ST claims based on given stats that ST's lower tax rates is more favourable for business than NT
Question asks us to weaken
Any think which says that NT offers better or ST is not favourable as they claim is our answer
Lets analyse
A. Tax revenue collected from BT- it doesnt tells who is better for business
B. Same as A
C. Net profit of NT is 2x that ST
Remember in the argument they mentioned something about assessment of business tax as net profit. If this is true about NT then we have our answer that NT is more favourable. keep
D. Population more but what about business
E. Again same as A & B not talking about who is better
NT>ST i.e 2.2million>1.8million
NT and ST assess business taxes as net profit
Spokesperson of ST claims based on given stats that ST's lower tax rates is more favourable for business than NT
Question asks us to weaken
Any think which says that NT offers better or ST is not favourable as they claim is our answer
Lets analyse
A. Tax revenue collected from BT- it doesnt tells who is better for business
B. Same as A
C. Net profit of NT is 2x that ST
Remember in the argument they mentioned something about assessment of business tax as net profit. If this is true about NT then we have our answer that NT is more favourable. keep
D. Population more but what about business
E. Again same as A & B not talking about who is better
Bunuel
