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independent concert promoters

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independent concert promoters

by rahul.s » Sat Feb 13, 2010 3:14 am
Independent concert promoters, in order to maintain their credibility and compete with larger, publicly traded promoters, must represent the concert tours of well-known artists. To attract such business, these private companies have had to increase their guaranteed payments to famous clients. To offset these increases, smaller promoters have raised their ticket prices, resulting in low attendance at a number of recent shows.

Which of the following assertions is best drawn from the information above?

(A) Independent concert promoters often lose money by representing well-known artists.

(B) The largest independent concert promoter has fewer employees than the smallest publicly traded promoter.

(C) Ticket price is the most important determining factor for concert attendance.

(D) Future ticket prices for well-known artists will continue to increase.

(E) The contracts between concert promoters and artists are not always based solely on revenue generated by ticket sales.

OA: E
Source: MGMAT

i'm quite confused with the answer options.
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by ldoolitt » Sat Feb 13, 2010 7:43 am
rahul.s wrote:Independent concert promoters, in order to maintain their credibility and compete with larger, publicly traded promoters, must represent the concert tours of well-known artists. To attract such business, these private companies have had to increase their guaranteed payments to famous clients. To offset these increases, smaller promoters have raised their ticket prices, resulting in low attendance at a number of recent shows.

Which of the following assertions is best drawn from the information above?

(A) Independent concert promoters often lose money by representing well-known artists.

(B) The largest independent concert promoter has fewer employees than the smallest publicly traded promoter.

(C) Ticket price is the most important determining factor for concert attendance.

(D) Future ticket prices for well-known artists will continue to increase.

(E) The contracts between concert promoters and artists are not always based solely on revenue generated by ticket sales.

OA: E
Source: MGMAT

i'm quite confused with the answer options.
Looking at them one by one...

(A) This cannot be drawn from the argument. It states that ticket prices are up and attendance is down but the price of tickets could have been raised enough to offset the reduced attendance. Or not.

(B) This is out of scope and totally irrelivant to the problem.

(C) Note the use of strong language "MOST IMPORTANT." Its obvious from the passage that it is important but its not clear how important it is. And you certainly cant infer that is most important.

(D) Outside of the scope of the problem. Its making a call about future events and the problem clearly states that this only applies to "recent shows."

(E) This HAS to be inferred in the problem because it states that the famous clients will receive "guaranteed payments" and thus the payments are NOT based solely on the ticket revenue; they are guaranteed.

Choose E
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by gmatmachoman » Sat Feb 13, 2010 9:16 am
This is a gud one...Very subtle points are mentioned in the premises...
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by vscid » Sat Feb 13, 2010 9:49 am
ldoolitt wrote:
rahul.s wrote:Independent concert promoters, in order to maintain their credibility and compete with larger, publicly traded promoters, must represent the concert tours of well-known artists. To attract such business, these private companies have had to increase their guaranteed payments to famous clients. To offset these increases, smaller promoters have raised their ticket prices, resulting in low attendance at a number of recent shows.

Which of the following assertions is best drawn from the information above?

(A) Independent concert promoters often lose money by representing well-known artists.

(B) The largest independent concert promoter has fewer employees than the smallest publicly traded promoter.

(C) Ticket price is the most important determining factor for concert attendance.

(D) Future ticket prices for well-known artists will continue to increase.

(E) The contracts between concert promoters and artists are not always based solely on revenue generated by ticket sales.

OA: E
Source: MGMAT

i'm quite confused with the answer options.
Looking at them one by one...

(A) This cannot be drawn from the argument. It states that ticket prices are up and attendance is down but the price of tickets could have been raised enough to offset the reduced attendance. Or not.

(B) This is out of scope and totally irrelivant to the problem.

(C) Note the use of strong language "MOST IMPORTANT." Its obvious from the passage that it is important but its not clear how important it is. And you certainly cant infer that is most important.

(D) Outside of the scope of the problem. Its making a call about future events and the problem clearly states that this only applies to "recent shows."

(E) This HAS to be inferred in the problem because it states that the famous clients will receive "guaranteed payments" and thus the payments are NOT based solely on the ticket revenue; they are guaranteed.

Choose E
Yea good explanation, I have almost the same reasoning. E by POE.
The GMAT is indeed adaptable. Whenever I answer RC, it proficiently 'adapts' itself to mark my 'right' answer 'wrong'.
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by komal » Tue Feb 16, 2010 6:25 am
rahul.s wrote:Independent concert promoters, in order to maintain their credibility and compete with larger, publicly traded promoters, must represent the concert tours of well-known artists. To attract such business, these private companies have had to increase their guaranteed payments to famous clients. To offset these increases, smaller promoters have raised their ticket prices, resulting in low attendance at a number of recent shows.

Which of the following assertions is best drawn from the information above?

(A) Independent concert promoters often lose money by representing well-known artists.
Incorrect : Just because it is stated that there is low attendance does not necessarily mean promoters are losing money.
They could be generating revenue from advertisers/sponsors for all we know !!

(B) The largest independent concert promoter has fewer employees than the smallest publicly traded promoter.
Incorrect : A new topic is introduced here. Eliminated.

(C) Ticket price is the most important determining factor for concert attendance.
Incorrect : Ticket price may be important but certainly not MOST imp. here. Eliminated.

(D) Future ticket prices for well-known artists will continue to increase.
Incorrect : Just because current ticket prices have increased we cannot generalise that future ticket prices will increase.

(E) The contracts between concert promoters and artists are not always based solely on revenue generated by ticket sales.
Correct : This can be correctly inferred from the information given above.
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by harshavardhanc » Tue Feb 16, 2010 10:51 am
ldoolitt wrote:
rahul.s wrote:Independent concert promoters, in order to maintain their credibility and compete with larger, publicly traded promoters, must represent the concert tours of well-known artists. To attract such business, these private companies have had to increase their guaranteed payments to famous clients. To offset these increases, smaller promoters have raised their ticket prices, resulting in low attendance at a number of recent shows.

Which of the following assertions is best drawn from the information above?

(A) Independent concert promoters often lose money by representing well-known artists.

(B) The largest independent concert promoter has fewer employees than the smallest publicly traded promoter.

(C) Ticket price is the most important determining factor for concert attendance.

(D) Future ticket prices for well-known artists will continue to increase.

(E) The contracts between concert promoters and artists are not always based solely on revenue generated by ticket sales.

OA: E
Source: MGMAT

i'm quite confused with the answer options.
Looking at them one by one...

(A) This cannot be drawn from the argument. It states that ticket prices are up and attendance is down but the price of tickets could have been raised enough to offset the reduced attendance. Or not.

(B) This is out of scope and totally irrelivant to the problem.

(C) Note the use of strong language "MOST IMPORTANT." Its obvious from the passage that it is important but its not clear how important it is. And you certainly cant infer that is most important.

(D) Outside of the scope of the problem. Its making a call about future events and the problem clearly states that this only applies to "recent shows."

(E) This HAS to be inferred in the problem because it states that the famous clients will receive "guaranteed payments" and thus the payments are NOT based solely on the ticket revenue; they are guaranteed.

Choose E

sooooooooooper!!!!!
Regards,
Harsha
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