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bonus money

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by maihuna » Fri Oct 30, 2009 11:15 am
The amount of bonus money that
managers take home has declined
through the 1990s, causing an exodus
of experienced financial services
advisors to a variety of nontraditional
industries. These industries, while
unable to offer competitive salaries and
bonuses, have been forced to find
creative methods of compensation for
productive managers.


Which of the following is an assumption underlying the information presented in the first paragraph of the passage?




There was no cause for the managerial exodus more significant than the decrease in bonus levels.

Nontraditional industries provide more comprehensive benefits than does the financial services industry.

The rise in profits at nontraditional industries is due to the influx of financial managers.

A longer tenure at a given company leads to greater managerial and experiential efficiencies.

Prior to 1990, bonus levels in the financial services industry were consistently rising.
Charged up again to beat the beast :)
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Source: — Critical Reasoning |
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by gmatmachoman » Fri Oct 30, 2009 12:32 pm
[spoiler]E & A[/spoiler] seems tempting.. I go for [spoiler]E!!![/spoiler]
IMO E
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by pandeyvineet24 » Fri Oct 30, 2009 1:02 pm
I was between A and B. Picked A
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by mehravikas » Fri Oct 30, 2009 1:13 pm
I would like to go with A.

E seems to be irrelevant to the argument. There is no information whether the bonus was constant or was it rising.
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by gmatv09 » Fri Oct 30, 2009 1:29 pm
By PoE ... IMO - A
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by crackgmat007 » Sat Oct 31, 2009 12:51 pm
Yeah...by POE only A seems plausible
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by 2010gmat » Sat Oct 31, 2009 10:56 pm
The amount of bonus money that
managers take home has declined
through the 1990s,

causing an exodus
of experienced financial services
advisors to a variety of nontraditional
industries

so if there is some other reason for the exodus then the argument falls apart...hence A
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by gmatmachoman » Sun Nov 01, 2009 12:24 am
Yeah.. A seems to be the right Pick
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A

by brick2009 » Sun Nov 01, 2009 11:06 pm
In assumoption problem, try the denial test.

A: IF there is another reason(stress @ work) , other than bonus for exodus of managers, then this whole argument falls apart.

This (finance) is the only reason why the exodus occurred.

Hence A correct.
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