BREAKING: Target Test Prep releases Brand New 2026 On Demand GMAT prep course

Redeem

Target Test Prep · GMAT

Choose how you want to prepare

Learn live with an expert or move at your own pace. Every option includes the complete TTP study system.

★★★★★5.0559 reviews
Vote for Target Test Prep, Newsweek Readers’ Choice Awards 2026
NEWSWEEK READERS’ CHOICE 2026

BIG NEWS! Target Test Prep has been nominated, and they’d love your vote!

TTP has worked incredibly hard to build the best test prep experience possible, and winning Newsweek’s 2026 Readers’ Choice Award for Best Test Prep would mean a lot to them. If TTP has helped you, they’d be incredibly grateful for your vote. You can vote once each day through September 9.

Vote for TTP
GMATLiveTeach 7 seats left
Chris Peckover
NEXT LIVE COHORT

Oct 13 to Jan 7, 2027

with Chris Peckover

Schedule
Tue, Thu · 8:00 to 10:00 PM ET
Included
40 live hours + 6 months of GMAT OnDemand
  • Live instruction and real-time questions
  • Class recordings and assigned practice
View class & enroll
Limited cohort · enrollment openTarget Test Prep
EALiveTeach 5 seats left
Logan Thompson
EXECUTIVE ASSESSMENT

Sep 6 to Dec 6, 2026

with Logan Thompson

Schedule
Sun · 9:30 AM to 12:30 PM ET
Included
40 hours of live online classes plus six months of access to the complete TTP EA OnDemand course.
  • 165+ EA Score Guarantee
  • 4,100+ Quant, Verbal, and Integrated Reasoning practice questions
  • 400+ hours of in-depth video lessons
  • 3,000+ step-by-step video solutions
View EA class & enroll
Limited cohort · enrollment openTarget Test Prep
GMATOnDemand Start anytime
SELF-PACED MASTERCLASS

Target Test Prep GMAT OnDemand

Complete access from day one. Study on your schedule.

715+ score guarantee
$0to start then $127/mo
  • Personalized study plan and analytics
  • Thousands of lessons and practice questions

Compare the format, schedule, and included access before enrolling. Prices and seat counts shown reflect the supplied offer details.

According to a recent study, fifteen corporations in the Us

Expert replies
by rajibgmat » Sat Dec 06, 2008 11:04 am
According to a recent study, fifteen corporations in the United States that follow a
credo of social responsibility are also very profitable. Because of their credos, these
fifteen corporations give generously to charity, follow stringent environmentalprotection
policies, and have vigorous affirmative-action programs.
Which of the following can be correctly inferred from the statements above?
(A) Following a credo of social responsibility helps to make a corporation very
profitable.
(B) It is possible for a corporation that follows a credo of social responsibility to be
very profitable.
(C) A corporation that gives generously to charity must be doing so because of its
credo of social responsibility.
(D) Corporations that are very profitable tend to give generously to charity.
(E) Corporations that have vigorous affirmative-action programs also tend to follow
stringent environmental-protection policies.
I am gonna get u my love(GMAT)
Join the discussion
Source: — Critical Reasoning |

by vittalgmat » Sun Dec 07, 2008 1:57 am
IMO C.


Here is my analysis. Appreciate feedback.

(A) Following a credo of social responsibility helps to make a corporation very profitable.
>>> cannot be inferred. credo of social responsibility and profitability are
parallel attributes. The stimulus says "also very profitable", implying these two attributed could be correlations at best.


(B) It is possible for a corporation that follows a credo of social responsibility to be very profitable.

This sentence is ambigous. I see two differerent meanings.
1) it is possible that a corp that follows 'a blablah procedure ' to be profitable
implying if u follow this blahblahprocedure , u will be profitable.
2) It is possible for a very profitable company to follow credo of social resp. Here "follow" means 'support' or adopt.

Am I missing something ??


(C) A corporation that gives generously to charity must be doing so because of its credo of social responsibility.
I think this is correct..


(D) Corporations that are very profitable tend to give generously to charity.

Cant infer

(E) Corporations that have vigorous affirmative-action programs also tend to follow
stringent environmental-protection policies.

cant infer


OA please
Join the discussion

by ronniecoleman » Sun Dec 07, 2008 3:13 am
IMO B

Question stem stays: infered: means must be true

option C:

CREDO -----> DOING SOCIAL WORK

this does not mean

DOING SOCIAL WORK----> CREDO
Admission champion, Hauz khaz
011-27565856
Join the discussion

by gl750raj » Mon Dec 08, 2008 1:17 pm
My answer B. Here is the explanation:

The inference to gather is corporations that have a credo for social responsibility can also be profitable. Usually this would be considered a loss of profitability to support social (not relating to their business) causes. The argument made supports this inference. Please note that it does not exclusively say only such corporations are profitable.

What's the OA?
Attitude is everything!
Join the discussion

by rajibgmat » Mon Dec 08, 2008 8:46 pm
OA is B.
I am gonna get u my love(GMAT)
Join the discussion

by garima01 » Fri Jun 11, 2010 2:48 am
answer is B
15 corporations that follow credo are also profitable
=> some corporations that follow credo are profitable

(C) cannot be correct
Passage says -The 15 corporation that has credo..because of their credo they give charity.
(C) says the corporation that gives charity must be because of their credo>> it doesn't mentions if the corporation is the one among the 15 corporations talked about in the passage,and so we cannot so this for any corporation - incorrect
Join the discussion

by RumpelThickSkin » Fri Jun 11, 2010 5:48 am
ronniecoleman wrote:IMO B

Question stem stays: infered: means must be true

option C:

CREDO -----> DOING SOCIAL WORK

this does not mean

DOING SOCIAL WORK----> CREDO
Bang on Ronnie Coleman ... B is the answer.
Join the discussion

by RumpelThickSkin » Fri Jun 11, 2010 5:48 am
ronniecoleman wrote:IMO B

Question stem stays: infered: means must be true

option C:

CREDO -----> DOING SOCIAL WORK

this does not mean

DOING SOCIAL WORK----> CREDO
Bang on Ronnie Coleman ... B is the answer.
Join the discussion

by sanp_l » Fri Jun 11, 2010 10:13 am
Option C, D And E are from the passage itself. When a fact is already stated clearly in the passage, it can never be an inference.

Option B is narrow in that it says "it is possible" and can be rightly inferred.

Option A goes too far in its conclusion.

Hence, option B stands out.
Sandy
Join the discussion

by kevincanspain » Fri Jun 11, 2010 10:54 am
sanp_l wrote:Option C, D And E are from the passage itself. When a fact is already stated clearly in the passage, it can never be an inference.

Option B is narrow in that it says "it is possible" and can be rightly inferred.

Option A goes too far in its conclusion.

Hence, option B stands out.
Careful! Neither C D and E are from the passage.

Who knows why companies other than the 15 singled out give to charity (tax reasons?). We are only told about the 15 that follow a credo. What sort of inference can made about companies in general on the basis of these 15 companies?
Kevin Armstrong
GMAT Instructor
Gmatclasses
Madrid
Join the discussion

by sanp_l » Fri Jun 11, 2010 11:55 am
kevincanspain wrote:
sanp_l wrote:Option C, D And E are from the passage itself. When a fact is already stated clearly in the passage, it can never be an inference.

Option B is narrow in that it says "it is possible" and can be rightly inferred.

Option A goes too far in its conclusion.

Hence, option B stands out.
Careful! Neither C D and E are from the passage.

Who knows why companies other than the 15 singled out give to charity (tax reasons?). We are only told about the 15 that follow a credo. What sort of inference can made about companies in general on the basis of these 15 companies?


My reasons for saying that C, D & E are from passage are as below:

OptionC: A corporation that gives generously to charity must be doing so because of its
credo of social responsibility.

Text from passage: "Because of their credos, these fifteen corporations give generously to charity"

Option D: Corporations that are very profitable tend to give generously to charity.

Text from passage: "that follow a credo of social responsibility are also very profitable. Because of their credos, these
fifteen corporations give generously to charity,"


Option E: Corporations that have vigorous affirmative-action programs also tend to follow
stringent environmental-protection policies.

Text from passage: "follow stringent environmentalprotection policies, and have vigorous affirmative-action programs. "

I feel that the options C, D & E are nothing but re-iteration of above quoted sentences
from the passage as shown above.


On a different note, as to your question "Who knows why companies other than the 15 singled out give to charity (tax reasons?).".....................................all we know is that they do so because of the credos. Because we may have other reasons, Option B stands correct as it says that "It is possible". Had it said that "It follows that...", it would have been wrong.
Sandy
Join the discussion

by kevincanspain » Fri Jun 11, 2010 3:01 pm
sanp_l wrote:
kevincanspain wrote:
sanp_l wrote:Option C, D And E are from the passage itself. When a fact is already stated clearly in the passage, it can never be an inference.

Option B is narrow in that it says "it is possible" and can be rightly inferred.

Option A goes too far in its conclusion.

Hence, option B stands out.
Careful! Neither C D and E are from the passage.

Who knows why companies other than the 15 singled out give to charity (tax reasons?). We are only told about the 15 that follow a credo. What sort of inference can made about companies in general on the basis of these 15 companies?


My reasons for saying that C, D & E are from passage are as below:

OptionC: A corporation that gives generously to charity must be doing so because of its
credo of social responsibility.

Text from passage: "Because of their credos, these fifteen corporations give generously to charity"

Option D: Corporations that are very profitable tend to give generously to charity.

Text from passage: "that follow a credo of social responsibility are also very profitable. Because of their credos, these
fifteen corporations give generously to charity,"


Option E: Corporations that have vigorous affirmative-action programs also tend to follow
stringent environmental-protection policies.

Text from passage: "follow stringent environmentalprotection policies, and have vigorous affirmative-action programs. "

I feel that the options C, D & E are nothing but re-iteration of above quoted sentences
from the passage as shown above.


On a different note, as to your question "Who knows why companies other than the 15 singled out give to charity (tax reasons?).".....................................all we know is that they do so because of the credos. Because we may have other reasons, Option B stands correct as it says that "It is possible". Had it said that "It follows that...", it would have been wrong.
You are right about B, but wrong about C, D and E.

C is too vague to be a simple reiteration: we know nothing about why a corporation that is not among the 15 studied would give money to charity, as we cannot assume that only 15 companies give generously to charity. To put it another way, the company mentioned in C may not be of the 15 studied.
Similarly, the study is much too narrow for D and E to be simple restatements of the text
Kevin Armstrong
GMAT Instructor
Gmatclasses
Madrid
Join the discussion

by sanp_l » Fri Jun 11, 2010 7:57 pm
kevincanspain wrote:
sanp_l wrote:
kevincanspain wrote:
sanp_l wrote:Option C, D And E are from the passage itself. When a fact is already stated clearly in the passage, it can never be an inference.

Option B is narrow in that it says "it is possible" and can be rightly inferred.

Option A goes too far in its conclusion.

Hence, option B stands out.
Careful! Neither C D and E are from the passage.

Who knows why companies other than the 15 singled out give to charity (tax reasons?). We are only told about the 15 that follow a credo. What sort of inference can made about companies in general on the basis of these 15 companies?


My reasons for saying that C, D & E are from passage are as below:

OptionC: A corporation that gives generously to charity must be doing so because of its
credo of social responsibility.

Text from passage: "Because of their credos, these fifteen corporations give generously to charity"

Option D: Corporations that are very profitable tend to give generously to charity.

Text from passage: "that follow a credo of social responsibility are also very profitable. Because of their credos, these
fifteen corporations give generously to charity,"


Option E: Corporations that have vigorous affirmative-action programs also tend to follow
stringent environmental-protection policies.

Text from passage: "follow stringent environmentalprotection policies, and have vigorous affirmative-action programs. "

I feel that the options C, D & E are nothing but re-iteration of above quoted sentences
from the passage as shown above.


On a different note, as to your question "Who knows why companies other than the 15 singled out give to charity (tax reasons?).".....................................all we know is that they do so because of the credos. Because we may have other reasons, Option B stands correct as it says that "It is possible". Had it said that "It follows that...", it would have been wrong.
You are right about B, but wrong about C, D and E.

C is too vague to be a simple reiteration: we know nothing about why a corporation that is not among the 15 studied would give money to charity, as we cannot assume that only 15 companies give generously to charity. To put it another way, the company mentioned in C may not be of the 15 studied.
Similarly, the study is much too narrow for D and E to be simple restatements of the text
I got what you mean. The difference between "A Corporation" and the fifteen corporations is obviously huge. Thanks for pointing that out.
Sandy
Join the discussion