Neilsheth2 wrote:Why is A wrong. Cant really rule this possibility. Having inventory of the products wouldn't strengthen the conclusion -Buddy has to go to new market segemt else likely go out of business?
A- also metions that inventory is not specialized and could be use in other industry?
Conclusion: if Buddy's doesn't expand it will go out of business.
Premise: Many of Buddy's regional customers - workshops and manufacturing firms - have closed down.
Imagine you're running Buddy's. You're trying to determine if you need to expand to stay in business. The most relevant question is whether the remaining manufacturing firms in the region are going to offer you enough business to stay afloat. If they do, you don't necessarily have to expand. If they don't, you need to expand.
'A' sheds no light on this issue. The versatility of your products won't matter if your potential customers are all out of business! You'll still need to expand. And if your regional customers are doing fine, presumably they'll continue to purchase your products. So the issue isn't the quality or versatility of Buddy's products, it's the health of the regional customers.
[spoiler]'D'[/spoiler] tells us definitively that the remaining regional customers (or potential customers) are in trouble, so Buddy's has no choice but to expand if it wishes to survive.
