Which of the following is most like the CEOs plan in logical structur

Question

Which of the following is most like the CEOs’ plan in logical structure?

Federal regulations require that corporations use separate accounting firms for audit and non-audit services. This presents difficulties for many multi-national companies because there are only four large international accounting firms based in the United States. An outspoken group of CEOs has suggested breaking up the "Big Four" firms into smaller operations, so that corporations will have more options for their accounting needs.

A. The owners of a prosperous, family-run bakery with several food preparation facilities decide to sell various buildings to local restaurants and coffee shops so that they can retire.

B. A federal court rules that a communications conglomerate is in violation of anti-trust laws and must break into smaller companies to enable competition from local businesses.

C. A school district superintendent writes a letter to the publisher or his district’s textbooks complaining about lack of variety and suggesting that the publisher add new divisions with different emphases to their corporate structure.

D. A subsidiary of a large textile manufacturer is bought out in a hostile takeover, and its operations are changed.

E. The board of a hospital decides to retain only a small number of staff physicians and to rent out remaining space to specialists in private practice.

ronr34 · Answer

I have a problem with the OA, because it says that the book company needs to "add".
In our original stem, there is no addition to anything.
Just taking apart something into divisions....
Can someone help reconcile this?

itzmyzone911 · Answer

Hi ron34,

Premise 1: Federal regulations require that corporations use separate accounting firms for audit and non-audit 
 services, resulting in certain shortcomings faced by the corporations

Shortcomings: There are   only four   (implying lack of variety) large international accounting firms based in the United 
 States

Premise 2: The CEO group makes a suggestion.

Suggestion: Break up the   EXISTING firms   into smaller units

Purpose served by suggestion: Corporations will have more options for their accounting needs,  (albeit without acquiring any new firms)  resulting in variety.

Now, let us analyze C:

Shortcomings: School district superintendent writes a letter to the publisher or his district’s textbooks complaining 
 about lack of variety (resulting perhaps due to monotony of textual content, as indicated by purpose 
 of suggestion made further)

Suggestion: Break the   EXISTING content i  in textbooks under new headers.

Purpose served: To address the shortcomings (lack of variety), resulting in renewed focus towards desired content in accordance with level of emphasis w.r.t. their corporate structure,  (albeit without addition of anything new to the original text content).

In conclusion, the CEO’s want to break up the EXISTING four firms into smaller units, which will inevitably lead to a greater number of TOTAL accounting firms, a line of reasoning quite similar to the one echoed in option C.

aditya8062 · Answer

this question is faulty 
the plan of the CEO is :   breaking up the "Big Four" firms into smaller operations, so that corporations will have more options for their accounting needs .-----> mind it that this is the plan and we are not talking about the END RESULT of this PLAN

as per option C, the PLAN is :  ADD new divisions with different emphases to their corporate structure

NOW  " BREAKING  up some firms"  is not similar to  " ADDING  some thing to the existing system"  . while the   END RESULT  is same in both, the  PLAN  is not similar in both schemes!! . the question is asking about a  "SIMILAR PLAN"  and  NOT   "SIMILAR RESULT"  
HAD the question asked which option would have the   SIMILAR RESULT   then C would have been the option

ronr34 · Answer

I agree, and that's where my problem was too.
This is taken out of GMATCLUB TESTS so it's kind of confusing to me.
How can we get one of the moderators to look this over?
Is there some kind of HASHTAG system here?

Deeksha93 · Answer

Option C talks about adding new divisions

sm1510 · Answer

Definitely disagree with the OA

sharmachakshu · Answer

someone please put some light on this question. not able to understand.

Auro411 · Answer

CEO's plan in a logical structure is: Breaking down Big Four into smaller corporations, which leads to more options, and more options mean more competitiveness which leads to a decrease in pricing and becomes more cost-effective for firms.

Let's face options:

(A) It's a completely different solution; it is suggesting selling various buildings instead of breaking down into smaller components. Eliminate
I
(B) Its structure is the same as a stimulus, breaking down into smaller companies to enable competition from local businesses. But it has been done in violation of law, rather than at the suggestion of a third party. Eliminate

(C) It's more about adding a new division and breaking down into smaller components wwhich provides them with more options intheir corporate structure and which makes the structure same as in the stimulus. Keep it as a  contender.

(D) It's more about a hostile takeover than breaking down into smaller components.

(E) It's never about retention or allocation to specialists in the stimulus, as it is always about breaking down into smaller components.

Hence the answer is option C.

EliteReef · Answer

My two cents: I believe there’s a problem arising first, and the CEO is providing a solution by implementing a corporate restructure. In option C, we see the same analogy—a problem is presented first, followed by its solution.

Which of the following is most like the CEOs plan in logical structur

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Which of the following is most like the CEOs plan in logical structur

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