Critical Reasoning

help

IMO E

C and D are wrong and A and B does not talk about monetary factor..

What is OA?

ddm wrote:help

I will go with E.

What is the OA?

Ans D
it supports the economic decision

IMO: E

nikhilagrawal wrote:Ans D
it supports the economic decision

Although D supports the economic decision, it talks about "publicly traded companies". We cannot assume the particular company is publicly traded.

I think answers is E.

Mustang .... read the question stem:

Which of the following if true .... it means we can assume things outside the Premise

The answer is D. It supports the conclusion that the company would be fine economically after 12 months even with the temporary losses of $5 million.

OA-E

DDm,
Can you pls post the reasoning also ..

what is the large punitive damages amount to less than 5 million dollars?

I also chose E:

I was between (D) and (E). Look closely at the wording in (D) and you'll see why it's wrong.

Aside from the fact that we don't know if Charlie's company is public or not, The stocks of companies that announce recalls often drop initially but they generally return to pre-announcement levels within 12 months.

We want to support the recall being the best economic decision. That said, if stocks often drop there is still a possibility they will be uneffected. Conversely, if they generally return there is still a possibility the stocks don't recover.

There doesn't seem to be enough economic certainty with choice (D). Choice (E) on the other hand is clear, a rival which didn't announce a recall went out of business because of litigation.

A seems to be the best choice here E