The automaker Amcar has seen its best selling line of cars' sales drop by 25 percent over the last year. During this same time, the value of a share of the car company's stock has risen by 15 percent. It seems contradictory that sales would decrease and the stock would rise.
Which of the following, if true during the last 3 years, most helps to explain why the value of a share of Amcar stock changed in the way that it did?
A. Steel shortages forced Amcar to cut production and close factories.
B. Amcar has outsourced much of its production to lower cost areas.
C. Profits from sales of its sport utility vehicles have increased dramatically in the last six months.
D. Amcar employees formed a union that helped them get higher salaries and increased medical benefits.
E. Several articles in prominent business publications listed Amcar as a company that has poor management.
_________________________________________________________________________________________________
[spoiler]Answer: C
Can anyone explain why the choice C is preferable than B? [/spoiler]
Thanks,
Yvonne
Which of the following, if true during the last 3 years, most helps to explain why the value of a share of Amcar stock changed in the way that it did?
A. Steel shortages forced Amcar to cut production and close factories.
B. Amcar has outsourced much of its production to lower cost areas.
C. Profits from sales of its sport utility vehicles have increased dramatically in the last six months.
D. Amcar employees formed a union that helped them get higher salaries and increased medical benefits.
E. Several articles in prominent business publications listed Amcar as a company that has poor management.
_________________________________________________________________________________________________
[spoiler]Answer: C
Can anyone explain why the choice C is preferable than B? [/spoiler]
Thanks,
Yvonne
