Live GMAT classes with Target Test Prep start Nov 21 and Nov 22. First class free.

See classes
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.

Newsweek Readers’ Choice Awards 2026 winner: Target Test Prep, #1 Test Prep

Target Test Prep was voted #1 Best Test Prep in the 2026 Newsweek Readers’ Choice™ Awards.

★★★★★5.0563 reviews
GMATLiveTeachStarts Nov 22
Josh Braslow, Target Test Prep GMAT expert
LIVE ONLINE CLASSES

Get Ready for GMAT Test Day Faster with Live Online Classes

with Josh Braslow, 20+ years in test prep

Nov 22 · Josh Braslow
Sun · 9:30 AM to 12:30 PM ET
Included
40 hours of live online classes + 6 months of TTP OnDemand
  • Attend the first class for free
  • Every class is recorded, so you never fall behind
View classes & enroll
Limited seats availableTarget Test Prep
EALiveTeachOnDemandStart anytime
EXECUTIVE ASSESSMENT

Target Test Prep EA OnDemand

Self-paced EA prep. Study on your schedule.

EXECUTIVE ASSESSMENT

with

165+ EA score guarantee
$05-day trial no automatic billing
Schedule
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 Start free 5-day trial
Limited cohort · enrollment openTrial includes full course accessTarget Test Prep
GMATOnDemandStart 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
Start free 5-day trial
Read 563 reviewsTarget Test Prep

Companies are often torn between the benefits of focusing on

Expert replies
Post new topic Post Reply
Subscribe topic
Previous Topic Next Topic
Moderator
Posts: 7187
Joined: Thu Sep 07, 2017 4:43 pmFollowed by: 23 members
by BTGmoderatorDC » Sun Jul 15, 2018 1:11 am
Timer
00:00
Your answer
Difficulty–

right wrong

Pick an answer to see how members did

Companies are often torn between the benefits of focusing on one major product or service and the drawbacks of relying too heavily on one primary source of income. While narrow focus can provide a company with an advantage over competitors that offer a wider range of products or services, an undiversified income stream can leave a company susceptible to major fluctuations in cash flow. We can see this tension realized when, for example, ________________.

(A) a local messenger service known for its speedy deliveries is forced to lay off twenty percent of its work force after a rise in local taxes encourages many local businesses to move out of state
(B) an advertising agency loses one of its clients
(C) a holding company that owns a car rental agency and a national doughnut chain is now interested in purchasing a professional basketball team
(D) a construction company opts to use non-union labor to increase its profits
(E) a specialty sandwich store decides to open franchises throughout the country that will focus on using local ingredients
Top
Join the discussion
Source: — Critical Reasoning |
Legendary Member
Posts: 2214
Joined: Fri Mar 02, 2018 2:22 pmFollowed by: 5 members

by deloitte247 » Thu Jul 19, 2018 11:16 pm
Option A - INCORRECT
Citing the local messenger as an example here, shows that a narrow business can collapse at any point in time when it cannot meet up with dues to be paid, Example is the Taxes that has caused many local messenger to move out of state but the ones able to withstand the tension are those that have more helping hands to continue with effective delivery even though they still retrench some of their workers so they can pay off taxes and still maintain the business.

Option B - INCORRECT.
An advertising agent losing one of its client can cost the agency to collapse if the client loosed is one of the topmost client that sustain the agency.

Option C - CORRECT.
This option is more detailed on diversity in business chain. Since narrow focus is profitable but can lead to fluctuation of cash flow and also risky when sustaining the market share, then it is advisable to diversify into varieties of business that can provide more funds so the company can generate funds to maintain business that is been threaten by competition and other influences.

Option D - INCORRECT.
This option is still narrow focus on the service provided by the construction company to increase its profit but not diversified in nature.

Option E - INCORRECT.
This option is still cycled on a narrow focus business plan, which means that if there is a threat on the business its still going to affect both the specialty sandwich store and its local franchise.
Top
Join the discussion