GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 11 Dec 2019, 22:57

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

Whenever a company loses a major product-liability lawsuit,

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Find Similar Topics 
Senior Manager
Senior Manager
avatar
Joined: 30 Aug 2003
Posts: 314
Location: BACARDIVILLE
Whenever a company loses a major product-liability lawsuit,  [#permalink]

Show Tags

New post 07 Dec 2003, 17:02
1
1
00:00
A
B
C
D
E

Difficulty:

  45% (medium)

Question Stats:

73% (02:15) correct 27% (02:09) wrong based on 46 sessions

HideShow timer Statistics

Whenever a company loses a major product-liability lawsuit, the value of the company's stocks falls significantly within hours after the announcement. Cotoy has long been involved in a major product-liability lawsuit, and its stocks fell significantly in value today. Therefore, we can be sure that an unfavorable judgment against Cotoy in that lawsuit was announced earlier today.

Which one of the following contains flawed reasoning that most closely parallels that in the argument above?

(A) Whenever a business treats its customers discourteously, its customers begin to shop elsewhere. Shopwell wants to keep all of its customers; therefore, its employees will never treat customers discourteously.

(B) Whenever the large airlines decrease fares, the financial stability of smaller competing airlines is adversely affected. Therefore, the smaller competing airlines' financial stability must be seriously threatened when the large airlines announce a large price decrease.

(C) Whenever a country shows a lack of leadership on international issues, respect for the countryтАЩs policies begins to decline. Therefore, to gain respect for its policies, a country should show leadership on international issues.

(D) Whenever an entering student at Cashman College wins the Performance Fellowship, he or she receives $10,000. Therefore, Eula, a student who has enrolled at Cashman, must have won the Performance Fellowship, because she just received $10,000 from the college.

(E) Whenever a company advertises its products effectively, the company's sales increase. Oroco's sales have not increased; therefore, it is likely that the company did not advertise its products effectively.

****Any :idea: ?
CEO
CEO
avatar
Joined: 15 Aug 2003
Posts: 3142
Re: Whenever a company loses a major product-liability lawsuit,  [#permalink]

Show Tags

New post 07 Dec 2003, 19:51
sunniboy007 wrote:
Whenever a company loses a major product-liability lawsuit, the value of the companyтАЩs stocks falls significantly within hours after the announcement. Cotoy has long been involved in a major product-liability lawsuit, and its stocks fell significantly in value today.
Therefore, we can be sure that an unfavorable judgment against Cotoy in that lawsuit was announced earlier today.

Which one of the following contains flawed reasoning
that most closely parallels that in the argument above?

(A) Whenever a business treats its customers
discourteously, its customers begin to shop
elsewhere. Shopwell wants to keep all of its
customers; therefore, its employees will never
treat customers discourteously.
(B) Whenever the large airlines decrease fares, the
financial stability of smaller competing airlines
is adversely affected. Therefore, the smaller
competing airlinesтАЩ financial stability must be
seriously threatened when the large airlines
announce a large price decrease.
(C) Whenever a country shows a lack of leadership
on international issues, respect for the countryтАЩs
policies begins to decline. Therefore, to gain
respect for its policies, a country should show
leadership on international issues.
(D) Whenever an entering student at Cashman
College wins the Performance Fellowship, he or
she receives $10,000. Therefore, Eula, a student
who has enrolled at Cashman, must have won
the Performance Fellowship, because she just
received $10,000 from the college.
(E) Whenever a company advertises its products
effectively, the companyтАЩs sales increase.
OrocoтАЩs sales have not increased; therefore, it is
likely that the company did not advertise its
products effectively.

****Any :idea: ?


I think B is best.

good questions

please keep posting
thanks
praetorian
Senior Manager
Senior Manager
avatar
Joined: 30 Aug 2003
Posts: 314
Location: BACARDIVILLE
Re: Whenever a company loses a major product-liability lawsuit,  [#permalink]

Show Tags

New post 07 Dec 2003, 20:12
Praet...
B) isn't correct....
Look closer at the stimulus...
Intern
Intern
User avatar
Joined: 22 Nov 2003
Posts: 35
Location: Serbia
Re: Whenever a company loses a major product-liability lawsuit,  [#permalink]

Show Tags

New post 07 Dec 2003, 20:25
In my opinion, D is the right answer.
Intern
Intern
User avatar
Joined: 22 Nov 2003
Posts: 35
Location: Serbia
Re: Whenever a company loses a major product-liability lawsuit,  [#permalink]

Show Tags

New post 07 Dec 2003, 20:29
Oh, I was offline when you posted official answer.
Well,not the fastest... but at least I was right.... :-D
VP
VP
avatar
Joined: 03 Feb 2003
Posts: 1341
Re: Whenever a company loses a major product-liability lawsuit,  [#permalink]

Show Tags

New post 09 Dec 2003, 04:51
of course it is D.

The wrong pattern in the initial stem:
If A, then B
If B, then A

D 100% matches it.
Intern
Intern
avatar
Joined: 13 Apr 2014
Posts: 4
Re: Whenever a company loses a major product-liability lawsuit,  [#permalink]

Show Tags

New post 08 Apr 2016, 05:41
I think D is the most right answer.
CR & LSAT Forum Moderator
User avatar
V
Status: He came. He saw. He conquered. -- Studying for the LSAT -- Corruptus in Extremis
Joined: 31 Jul 2017
Posts: 868
Location: United States (IL)
Concentration: Finance, Economics
Reviews Badge
Re: Whenever a company loses a major product-liability lawsuit,  [#permalink]

Show Tags

New post 26 Nov 2019, 07:21
Question edited, OA added, and bumping for further discussion
_________________
D-Day: November 18th, 2017

My CR Guide: Here
My RC Guide: Here
Need an expert to grade your AWA? Go: Here
Want to know your Business School chances? Go: Here
Want to be a moderator? We may want you to be one! See how: Here
VP
VP
User avatar
D
Status: Learning
Joined: 20 Dec 2015
Posts: 1053
Location: India
Concentration: Operations, Marketing
GMAT 1: 670 Q48 V36
GRE 1: Q157 V157
GPA: 3.4
WE: Engineering (Manufacturing)
Reviews Badge
Re: Whenever a company loses a major product-liability lawsuit,  [#permalink]

Show Tags

New post 29 Nov 2019, 05:17
sunniboy007 wrote:
Whenever a company loses a major product-liability lawsuit, the value of the company's stocks falls significantly within hours after the announcement. Cotoy has long been involved in a major product-liability lawsuit, and its stocks fell significantly in value today. Therefore, we can be sure that an unfavorable judgment against Cotoy in that lawsuit was announced earlier today.

Which one of the following contains flawed reasoning that most closely parallels that in the argument above?

(A) Whenever a business treats its customers discourteously, its customers begin to shop elsewhere. Shopwell wants to keep all of its customers; therefore, its employees will never treat customers discourteously.

(B) Whenever the large airlines decrease fares, the financial stability of smaller competing airlines is adversely affected. Therefore, the smaller competing airlines' financial stability must be seriously threatened when the large airlines announce a large price decrease.

(C) Whenever a country shows a lack of leadership on international issues, respect for the countryтАЩs policies begins to decline. Therefore, to gain respect for its policies, a country should show leadership on international issues.

(D) Whenever an entering student at Cashman College wins the Performance Fellowship, he or she receives $10,000. Therefore, Eula, a student who has enrolled at Cashman, must have won the Performance Fellowship, because she just received $10,000 from the college.

(E) Whenever a company advertises its products effectively, the company's sales increase. Oroco's sales have not increased; therefore, it is likely that the company did not advertise its products effectively.

****Any :idea: ?


The logic is that A leads to B
Given that B happened A was the cause.

Thinking on these line we can easily remove A, B, C.
Between D and E
D has the proper structure so it is our answer.
A note on E

A leads to B in choice E but B has not happened and A Not happening is the cause is not the structure we want.
GMAT Club Bot
Re: Whenever a company loses a major product-liability lawsuit,   [#permalink] 29 Nov 2019, 05:17
Display posts from previous: Sort by

Whenever a company loses a major product-liability lawsuit,

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  





Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne