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Charlie's company

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Re: Charlie's company

by dally_gmat » Fri Sep 19, 2008 7:51 am
IMO E

C and D are wrong and A and B does not talk about monetary factor..

What is OA?
ddm wrote:help
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by jeenashiva » Fri Sep 19, 2008 9:36 am
I will go with E.

What is the OA?
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by nikhilagrawal » Fri Sep 19, 2008 12:53 pm
Ans D
it supports the economic decision
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by anju » Fri Sep 19, 2008 2:07 pm
IMO: E
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by Mustang » Fri Sep 19, 2008 5:55 pm
nikhilagrawal wrote:Ans D
it supports the economic decision
Although D supports the economic decision, it talks about "publicly traded companies". We cannot assume the particular company is publicly traded.

I think answers is E.
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by nikhilagrawal » Fri Sep 19, 2008 7:15 pm
Mustang .... read the question stem:

Which of the following if true .... it means we can assume things outside the Premise
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by abhi75 » Fri Sep 19, 2008 7:55 pm
The answer is D. It supports the conclusion that the company would be fine economically after 12 months even with the temporary losses of $5 million.
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by ddm » Fri Sep 19, 2008 10:27 pm
OA-E
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by nikhilagrawal » Sat Sep 20, 2008 3:42 am
DDm,
Can you pls post the reasoning also ..
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If E, here is my doubt...

by rprasanna » Sun Sep 21, 2008 7:14 am
what is the large punitive damages amount to less than 5 million dollars?
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by banker1 » Mon Sep 22, 2008 1:50 pm
I also chose E:

I was between (D) and (E). Look closely at the wording in (D) and you'll see why it's wrong.

Aside from the fact that we don't know if Charlie's company is public or not, The stocks of companies that announce recalls often drop initially but they generally return to pre-announcement levels within 12 months.

We want to support the recall being the best economic decision. That said, if stocks often drop there is still a possibility they will be uneffected. Conversely, if they generally return there is still a possibility the stocks don't recover.

There doesn't seem to be enough economic certainty with choice (D). Choice (E) on the other hand is clear, a rival which didn't announce a recall went out of business because of litigation.
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by john83.amar » Thu May 12, 2016 11:41 am
A seems to be the best choice here E
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