CR - Similar statement logical structure

This topic has expert replies
User avatar
Legendary Member
Posts: 1665
Joined: Thu Nov 03, 2011 7:04 pm
Thanked: 165 times
Followed by:70 members
Federal regulations require that corporations use separate accounting firms for audit and non-audit services. This presents difficulties for many multi-national companies because there are only four large international accounting firms based in the United States. An outspoken group of CEOs has suggested breaking up the "Big Four" firms into smaller operations, so that corporations will have more options for their accounting needs.

Which of the following is most like the CEOs' plan in logical structure?

The owners of a prosperous, family-run bakery with several food preparation facilities decide to sell various buildings to local restaurants and coffee shops so that they can retire.
A federal court rules that a communications conglomerate is in violation of anti-trust laws and must break into smaller companies to enable competition from local businesses.
A school district superintendent writes a letter to the publisher or his district's textbooks complaining about lack of variety and suggesting that the publisher add new divisions with different emphases to their corporate structure.
A subsidiary of a large textile manufacturer is bought out in a hostile takeover, and its operations are changed.
The board of a hospital decides to retain only a small number of staff physicians and to rent out remaining space to specialists in private practice.
Regards,
Karthik
The source of the questions that i post from JUNE 2013 is from KNEWTON

---If you find my post useful, click "Thank" :) :)---
---Never stop until cracking GMAT---
Source: — Critical Reasoning |

User avatar
Senior | Next Rank: 100 Posts
Posts: 57
Joined: Fri Apr 09, 2010 11:54 am
Location: India
Thanked: 8 times
GMAT Score:640

by chetansharma » Tue May 29, 2012 8:05 am
IMO the answer should be C , though I am not really sure... used POE

Regards,
Chetan Sharma
If my post helped you - let me know by pushing the thanks button :wink:

User avatar
Legendary Member
Posts: 1665
Joined: Thu Nov 03, 2011 7:04 pm
Thanked: 165 times
Followed by:70 members

by karthikpandian19 » Tue May 29, 2012 4:38 pm
OA is C.

If you can give your reasoning, it will be great
chetansharma wrote:IMO the answer should be C , though I am not really sure... used POE

Regards,
Chetan Sharma
Regards,
Karthik
The source of the questions that i post from JUNE 2013 is from KNEWTON

---If you find my post useful, click "Thank" :) :)---
---Never stop until cracking GMAT---

User avatar
Legendary Member
Posts: 1665
Joined: Thu Nov 03, 2011 7:04 pm
Thanked: 165 times
Followed by:70 members

by karthikpandian19 » Tue May 29, 2012 4:44 pm
Inference:

Group of CEO's suggest to break up the big four firms (but they dont have the power or authority to do so)
By this way the corporations will have more options for their acc. needs.......Now refer below:
karthikpandian19 wrote:Federal regulations require that corporations use separate accounting firms for audit and non-audit services. This presents difficulties for many multi-national companies because there are only four large international accounting firms based in the United States. An outspoken group of CEOs has suggested breaking up the "Big Four" firms into smaller operations, so that corporations will have more options for their accounting needs.

Which of the following is most like the CEOs' plan in logical structure?

The owners of a prosperous, family-run bakery with several food preparation facilities decide to sell various buildings to local restaurants and coffee shops so that they can retire. ----- Owners have the authority to do, so invalid

A federal court rules that a communications conglomerate is in violation of anti-trust laws and must break into smaller companies to enable competition from local businesses. ----- Federal court has the authority to do, so invalid

A school district superintendent writes a letter to the publisher or his district's textbooks complaining about lack of variety and suggesting that the publisher add new divisions with different emphases to their corporate structure. ----The School Dist. Sup. has no authority but only suggests the publisher to add new divisions - aligns with the statement

A subsidiary of a large textile manufacturer is bought out in a hostile takeover, and its operations are changed. ----- Irrelevant

The board of a hospital decides to retain only a small number of staff physicians and to rent out remaining space to specialists in private practice. ----- Board has the authority to do, hence invalid
Regards,
Karthik
The source of the questions that i post from JUNE 2013 is from KNEWTON

---If you find my post useful, click "Thank" :) :)---
---Never stop until cracking GMAT---

User avatar
Master | Next Rank: 500 Posts
Posts: 342
Joined: Wed Jul 08, 2009 8:50 am
Thanked: 214 times
Followed by:19 members
GMAT Score:740

by Birottam Dutta » Tue May 29, 2012 7:58 pm
Let us see f we can attack this problem in a different way as well:

Logical structure of the parent argument => As there are very few accounting firms, the CEOs suggest that the big 4 accounting firms are split into more number of firms to give more options to the corporations for their accounting needs.

Now, let us see the options one by one:

A)This does not have the same logical structure because the owners are selling their various business units so that they can get the money and retire peacefully. Not the same structure.

B)The federal court rules that the communications conglomerate be broken up into slammer units because they have violated the anti-trust laws. Again, the logic behind this move is not to create options but to curb corruption.

C) Here, the district superintendent requests the publisher to add new divisions with different emphasis to corporate structure so as to add variety into the curriculum. This seems to be the same logic as the parent argument, as the requirement here is that of variety or options.

D) Totally out of context

E) The action of the board ha more to do with business augmentation than increasing options so again not the same structure.

Hence, C is correct.

Remember, during preparation stage of the GMAT, correct understanding is always more important than correct answers. This is so because the understanding will always take you to the correct answer but the reverse may not be true :)