In an effort to reduce costs and increase profits, a parent company reviewed the account books of thirty of its franchises and found six franchises that had the same ratio of profits to revenues in 1990 as they had in 1970. The parent company then concluded that these six franchises should serve as examples for those franchises that want to keep their ratio of profits to revenues stable over the years.
Which of the following, if true, most seriously weakens the author’s conclusion that these six franchises are best suited to the role described above?
Most franchises want to increase their ratio of profits to revenues.
Most franchises are more concerned with profits alone than with the ratio of profits to revenues.
Each of the six franchises deals with its customers in different ways.
Of the six franchises, three had a much smaller, and three had a much larger, ratio of profits to revenues in 1980 than in 1990.
The profits of the six companies range from 25 percent to 40 percent of their revenues.
Which of the following, if true, most seriously weakens the author’s conclusion that these six franchises are best suited to the role described above?
Most franchises want to increase their ratio of profits to revenues.
Most franchises are more concerned with profits alone than with the ratio of profits to revenues.
Each of the six franchises deals with its customers in different ways.
Of the six franchises, three had a much smaller, and three had a much larger, ratio of profits to revenues in 1980 than in 1990.
The profits of the six companies range from 25 percent to 40 percent of their revenues.
