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09 Jun 2010, 06:24
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B
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
95%
(hard)
Question Stats:
23% (02:06) correct
77%
(02:15)
wrong
based on 69
sessions
History
Date
Time
Result
Not Attempted Yet
BioMed Pharmaceuticals has experienced consistent sales declines over the past five years even though five years ago the CFO reallocated a portion of the budget so as to increase funding for research and development by 20%, resulting in the creation of three new FDA-approved products. He was able to make these budgetary changes without increasing the total budget. Moreover, the CFO was able make these fiscal changes without cutting advertising, which has been provided by the same ad agency for the past two decades.
Which of the following is a plausible conclusion to draw?
A. The new products that BioMed Pharmaceuticals created in the past five years did not do any better on the market than the companies' other products that have been selling for considerably longer.
B. The entire pharmaceutical industry may be suffering, since alternative medicine is a burgeoning field.
C. When a pharmaceutical company makes fiscal changes oriented toward growing its research and development department, it is sure to see an initial drop in sales.
D. Advertising cannot significantly impact a company's fiscal state if the corporation has been consistently experiencing declining profits.
E. Employees at BioMed Pharmaceuticals will need to submit self-evaluations and can expect ensuing lay-offs.
Which of the following is a plausible conclusion to draw?
A. The new products that BioMed Pharmaceuticals created in the past five years did not do any better on the market than the companies' other products that have been selling for considerably longer.
B. The entire pharmaceutical industry may be suffering, since alternative medicine is a burgeoning field.
C. When a pharmaceutical company makes fiscal changes oriented toward growing its research and development department, it is sure to see an initial drop in sales.
D. Advertising cannot significantly impact a company's fiscal state if the corporation has been consistently experiencing declining profits.
E. Employees at BioMed Pharmaceuticals will need to submit self-evaluations and can expect ensuing lay-offs.
10 Jun 2010, 21:28
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BioMed Pharmaceuticals has experienced consistent sales declines over the past five years even though five years ago the CFO reallocated a portion of the budget so as to increase funding for research and development by 20%, resulting in the creation of three new FDA-approved products. He was able to make these budgetary changes without increasing the total budget. Moreover, the CFO was able make these fiscal changes without cutting advertising, which has been provided by the same ad agency for the past two decades.
Which of the following is a plausible conclusion to draw?
A. The new products that BioMed Pharmaceuticals created in the past five years did not do any better on the market than the companies' other products that have been selling for considerably longer.
A. This is outside of the scope, as there is no discussion of how individual products measure up to one another on the market.
B. The entire pharmaceutical industry may be suffering, since alternative medicine is a burgeoning field.
B. Correct: If costs have not increased and advertising has not changed, then it is logical to conclude that the market may have changed and that the sales declines are not the result of any actions on the part of BioMed Pharmaceuticals.
C. When a pharmaceutical company makes fiscal changes oriented toward growing its research and development department, it is sure to see an initial drop in sales.
C. This answer is outside of the scope, since it includes all pharmaceutical companies and all situations, whereas only a specific company is the subject of discussion in the argument.
D. Advertising cannot significantly impact a company's fiscal state if the corporation has been consistently experiencing declining profits.
D. This is outside of the scope, since it talks about what the limits of advertising always are, whereas only a specific company is the subject of discussion in the argument.
E. Employees at BioMed Pharmaceuticals will need to submit self-evaluations and can expect ensuing lay-offs.
E. Nothing in the premises indicates that the steps management will take to increase profitability will necessarily be to lay off its employees.
Which of the following is a plausible conclusion to draw?
A. The new products that BioMed Pharmaceuticals created in the past five years did not do any better on the market than the companies' other products that have been selling for considerably longer.
A. This is outside of the scope, as there is no discussion of how individual products measure up to one another on the market.
B. The entire pharmaceutical industry may be suffering, since alternative medicine is a burgeoning field.
B. Correct: If costs have not increased and advertising has not changed, then it is logical to conclude that the market may have changed and that the sales declines are not the result of any actions on the part of BioMed Pharmaceuticals.
C. When a pharmaceutical company makes fiscal changes oriented toward growing its research and development department, it is sure to see an initial drop in sales.
C. This answer is outside of the scope, since it includes all pharmaceutical companies and all situations, whereas only a specific company is the subject of discussion in the argument.
D. Advertising cannot significantly impact a company's fiscal state if the corporation has been consistently experiencing declining profits.
D. This is outside of the scope, since it talks about what the limits of advertising always are, whereas only a specific company is the subject of discussion in the argument.
E. Employees at BioMed Pharmaceuticals will need to submit self-evaluations and can expect ensuing lay-offs.
E. Nothing in the premises indicates that the steps management will take to increase profitability will necessarily be to lay off its employees.
nusmavrik
Joined: 26 Nov 2009
Last visit: 03 Apr 2022
Posts: 467
Own Kudos:
Given Kudos: 36
Status:Impossible is not a fact. It's an opinion. It's a dare. Impossible is nothing.
Affiliations: University of Chicago Booth School of Business
Location: Singapore
Concentration: General Management, Finance
Schools: Chicago Booth - Class of 2015
10 Jun 2010, 21:50
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Sarai
Can you please provide more tips on dealing with these kind of questions? I fell for the trap i.e. D
Appreciate the help.
Thanks
Can you please provide more tips on dealing with these kind of questions? I fell for the trap i.e. D
Appreciate the help.
Thanks
SaraiGMAXonline
