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# With seventeen casinos, Moneyland operates the most casinos

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Study Buddy Forum Moderator
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With seventeen casinos, Moneyland operates the most casinos [#permalink]

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06 Aug 2017, 03:02
Hi sonikavadhera

I used similar approach to yours but can you validate my below reasoning
on the lines of RaghavSingla in above post:
M A E
17 25 x before acquisition
22 20 x-5 after acquisition

Let's leave E since we know it is acquired by A and as such had less casinos than A and M

Now my goal of weakening the argument should be to weaken the prediction that
A does not have maximum no of casinos

This is possible if option (A) is true then as per your remarks M has more casinos than A but
only if there are no other casino organizations in country.
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Re: With seventeen casinos, Moneyland operates the most casinos [#permalink]

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07 Aug 2017, 13:21
adkikani wrote:
Hi sonikavadhera

I used similar approach to yours but can you validate my below reasoning
on the lines of RaghavSingla in above post:
M A E
17 25 x before acquisition
22 20 x-5 after acquisition

Let's leave E since we know it is acquired by A and as such had less casinos than A and M

Now my goal of weakening the argument should be to weaken the prediction that
A does not have maximum no of casinos

This is possible if option (A) is true then as per your remarks M has more casinos than A but
only if there are no other casino organizations in country.

Hi adkikani

I am not quite sure what your question is but it seems like you answered your own question:
Pasting Option A for your reference below:
'A) Apex, Eldorado, and Moneyland are the only organizations licensed to operate casinos in the state.'

This says, that if Apex, Eldorado and Moneyland can only operate casinos and there are no other casino organizations.

Hope I was clear

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Manager
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Re: With seventeen casinos, Moneyland operates the most casinos [#permalink]

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13 Aug 2017, 07:45
walker wrote:
With seventeen casinos, Moneyland operates the most casinos in a certain state. Although intent on expanding, it was outmaneuvered by Apex Casinos in negotiations to acquire the Eldorado chain. To complete its acquisition of Eldorado, Apex must sell five casinos to comply with a state law forbidding any owner to operate more than one casino per county. Since Apex will still be left operation twenty casinos in the state, it will then have the most casinos in the state.

Which of the following, if true, most seriously undermines the prediction?

A) Apex, Eldorado, and Moneyland are the only organizations licensed to operate casinos in the state.
B) The majority of Eldorado's casinos in the state will need extensive renovations if they are to continue to operate profitably.
C) Some of the state's counties do not permit casinos.
D) Moneyland already operates casinos in the majority of the state's counties.
E) Apex will use funds it obtains from the sale of the five casinos to help fund its acquisition of the Eldorado chain.

Great Question .
Nicely explained by Singal
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With seventeen casinos, Moneyland operates the most casinos [#permalink]

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20 Nov 2017, 04:25
walker wrote:
With seventeen casinos, Moneyland operates the most casinos in a certain state. Although intent on expanding, it was outmaneuvered by Apex Casinos in negotiations to acquire the Eldorado chain. To complete its acquisition of Eldorado, Apex must sell five casinos to comply with a state law forbidding any owner to operate more than one casino per county. Since Apex will still be left operation twenty casinos in the state, it will then have the most casinos in the state.

Which of the following, if true, most seriously undermines the prediction?

A) Apex, Eldorado, and Moneyland are the only organizations licensed to operate casinos in the state.
B) The majority of Eldorado's casinos in the state will need extensive renovations if they are to continue to operate profitably.
C) Some of the state's counties do not permit casinos.
D) Moneyland already operates casinos in the majority of the state's counties.
E) Apex will use funds it obtains from the sale of the five casinos to help fund its acquisition of the Eldorado chain.

Hi mikemcgarry,

Need your help here.

I do understand the logic of the argument but by selecting A aren't we assuming that the casinos sold by Apex will be purchased by other casinos only. Isn't this an additional assumption ?
For example: A casino might also be just sold off as a property (not necessarily to some other casino) and utilized later for some other purpose.

Thanks in advance!

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Re: With seventeen casinos, Moneyland operates the most casinos [#permalink]

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21 Nov 2017, 14:29
Poorvasha wrote:
walker wrote:
With seventeen casinos, Moneyland operates the most casinos in a certain state. Although intent on expanding, it was outmaneuvered by Apex Casinos in negotiations to acquire the Eldorado chain. To complete its acquisition of Eldorado, Apex must sell five casinos to comply with a state law forbidding any owner to operate more than one casino per county. Since Apex will still be left operation twenty casinos in the state, it will then have the most casinos in the state.

Which of the following, if true, most seriously undermines the prediction?

A) Apex, Eldorado, and Moneyland are the only organizations licensed to operate casinos in the state.
B) The majority of Eldorado's casinos in the state will need extensive renovations if they are to continue to operate profitably.
C) Some of the state's counties do not permit casinos.
D) Moneyland already operates casinos in the majority of the state's counties.
E) Apex will use funds it obtains from the sale of the five casinos to help fund its acquisition of the Eldorado chain.

Hi mikemcgarry,

Need your help here.

I do understand the logic of the argument but by selecting A aren't we assuming that the casinos sold by Apex will be purchased by other casinos only. Isn't this an additional assumption ?
For example: A casino might also be just sold off as a property (not necessarily to some other casino) and utilized later for some other purpose.

Thanks in advance!

Dear Poorvasha,

I'm happy to respond.

My friend, in doing the GMAT CR, it's very important to have a sense, especially a business person's sense, of how things operate in the real world. See:
GMAT Critical Reasoning and Outside Knowledge.

This is a brilliant official question, and the OA is (A). You are correct: the logic of this is that the pool of buyers is limited. If Apex buys Eldorado and wants to sell 5 casinos, who can buy them? Apex is the seller, Eldorado would be no longer an independent entity, and Moneyland is the competitor that Apex is trying to outmaneuver.

Think about it: more so than, say, an office building, a casino is a building that has tremendous infrastructure: gaming machines, specific play tables, etc. Almost no other industry could come in and use the space for purposes other that a casino. The cost of the casino itself would be substantially more than the cost of the land it occupies, so for someone to buy it purely for the land--that is, intending to liquidate and knock-down the casino and then build anew--then either Apex or that land-buyer would take a HUGE capital loss. Let's say that the casino + land is \$20M and the land alone is \$4M--there would be a \$!6M loss, absorbed by Apex or the land-buyer or split between them. That is not the stuff of financial success. When the argument says that "Apex must sell five casinos," what's implied is that they are sold as casinos, not written off as losses.

If you just use your own creativity and imagination on GMAT CR, you will wind up going down all kinds of rabbit holes that will lead you away from the correct answer. You have to have a real-world sense of how much different things cost, how much money or effort or difficulty is involved in pursuing various actions. You get that sense by reading the business news every single day.

Does all this make sense?
Mike
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Mike McGarry
Magoosh Test Prep

Education is not the filling of a pail, but the lighting of a fire. — William Butler Yeats (1865 – 1939)

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Re: With seventeen casinos, Moneyland operates the most casinos [#permalink]

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06 Jan 2018, 03:56
M has 17 casinos.
A - 5 = 20 ( sell 5 to buy eldrado) and still left with 20 casinos( this includes eldrado chain casinos too).

But what if there are only 3 brands out there?
Those 5 sold will be bought by moneyland and hence have 22 casinos.
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Re: With seventeen casinos, Moneyland operates the most casinos   [#permalink] 06 Jan 2018, 03:56

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# With seventeen casinos, Moneyland operates the most casinos

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