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## A private bus company gained greater

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### Top Member

lheiannie07 Legendary Member
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#### A private bus company gained greater

Fri Nov 03, 2017 6:30 am
A private bus company gained greater profits and provided bus service to the area at lower fares by running buses more frequently and stimulating greater ridership. Hoping to continue these financial trends, the company plans to replace all older buses with new, larger buses, including some double-decker buses,.

The plan of the bus company as described above assumes all of the following EXCEPT

(A) the demand for bus service in the company's area of service will increase in the future
(B) increased efficiency and revenues will compensate for any new expenses the company incurs
(C) the new buses will be sufficiently reliable to ensure the company a net financial gain once they are in place
(D) driving the new buses will be no more difficult than driving the buses they are to replace
(E) the larger, double-decker buses will not face obstacles such as height and weight restrictions in the bus company's area of service

What is wrong with other options?

OA D

Marty Murray Legendary Member
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Fri Nov 03, 2017 10:40 pm
lheiannie07 wrote:
What is wrong with other options?
There is nothing wrong with the other options. This is an EXCEPT question. So, all of the options work EXCEPT for one of them. The option that does not work is the correct answer.

In this case, in expecting to generate increased profits by using larger buses, the company would not have to assume that the larger buses are not more difficult to drive than the smaller buses are. Even if the larger buses are more difficult to drive, the company could see increased profits if more passengers choose to ride in the buses.

Therefore, what D says does not have to be true in order for the plan to work.

Regarding the other choices.

A - must be true. If demand will not increase, then having larger buses will not have any effect on profitability. (Well, we could argue that there could already be enough demand to fill larger buses, but I am going to go with the assumption that what the creator of the question is getting at is that the company is going to buy larger buses and create more demand in order to use the additional space on the buses. This question could be a little more tightly constructed.)

B - must be true. If increased revenue and efficiency do not compensate for the additional expenses, then profits will not increase.

C - must be true. The buses have to be reliable enough to ensure financial gains, or, obviously, using them will not serve to increase profitability.

E - might be debatable. The company could still see increased profits from using larger buses even if they can't be operated in quite the way that the smaller buses were. However, that the company could be more profitable if D were not true is more clear than that the company could be more profitable if E were not true. So, D is less significant than E and is therefore the best answer.

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