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Downtown Villieu was once a flourishing business district,

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by BTGmoderatorDC » Wed Aug 22, 2018 3:20 pm
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Downtown Villieu was once a flourishing business district, but most Villieu-area businesses are now located only in the suburbs. The office buildings downtown lack the modern amenities most business operators demand today. To lure more businesses downtown, Villieu officials plan to have several modern office buildings constructed and to offer reduced local tax rates to any business that leases space in a new downtown building.

Which of the following, if true, most threatens the plan's likelihood of success?

(A) Most of the businesses currently located in downtown Villieu have long-term leases on the space they occupy there.

(B) The existing office buildings in downtown Villieu have, on average, a much higher vacancy rate than do office buildings in Villieu's suburbs.

(C) The local tax rates in Villieu's suburbs are significantly lower than downtown Villieu's proposed rate for businesses that lease space in the new office buildings.

(D) Most of the businesses that currently lease office space in downtown Villieu also lease office space in Villieu's suburbs.

(E) With the new office buildings, downtown Villieu would have a greater amount of modern office space than any other downtown business district in the region.

OA C

Source: GMAT Prep
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Source: — Critical Reasoning |

edited:

by deloitte247 » Sun Aug 26, 2018 2:43 am
This is a little bit technical so we have to be very critical in the choice of options we have do as to choosing the best.
OPTION A - INCORRECT
The tax cuts given to the new business owners would affect the official s in the long run because the spaces leased could be for longer years in order to enjoy the tax coupons. More money would be needed in the development of more office buildings since it's a developing arena. This is a position of strength though

OPTION B - INCORRECT
The downtown villieu was once flourishing business center but due to the lack of modern facilities, the owners of the businesses have moved to the suburbs which is exactly the statement by the author.

OPTION C - CORRECT
No, the local tax rates are not lower than it used to be in the downtown villieu but for the amenities available in the suburbs which is a major attraction to investors. The Downtown officials are willing to offer a lesser rate.

OPTION D - INCORRECT
It is possible the offices are spread over the two districts in order to enjoy the privileges of tax cuts in downtown and the available amenities in the suburbs.

OPTION E - INCORRECT
Very true because it's bigger and more spacious. Besides, the mouthwatering offers of tax cuts would mean more people begin construction of modern office complexes in order to make more money.
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