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akela
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prachi18oct
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I'm not good at doing bold face question, so the experts could you please help me in understanding how First 4 are not the answers, it would be very helpful
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it is the conclusion of the earlier set premise and the premise to forthcoming conclusion.
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The summary of the passage is as follows:

Once a band signs with a record label, the label absorbs considerable financial risk: the label pays for promotions, management,etc. Hence, bands have less risk when they sign for labels.

therefore, a label deserve a larger share of profits from the record sales of any band signed with it.

As we can see here, the boldfaced statement provides the reason why labels deserve a higher share of profits. In other words, the boldfaced statement helps establish a conclusion and is itself supported by the preceding premises.

Only (E) captures this thought perfectly.

(E) Premises are used to support it, and it is used to support the main conclusion.

Hence, (E) is the right answer choice.
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Hello from the GMAT Club VerbalBot!

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