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GMATprep: Downtown Vilieu

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GMATprep: Downtown Vilieu

by nhai2003 » Thu Jul 02, 2009 12:55 am
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.

Please help me with this one!
Thanks!
C
Last edited by nhai2003 on Thu Jul 02, 2009 1:29 am, edited 1 time in total.
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by mehravikas » Thu Jul 02, 2009 1:24 am
Answer should be 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. - If the local tax rates are lower than the tax rates proposed by the officials, then why would anybody move to the new buildings?

OA please.
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by jkaustubh » Tue Apr 02, 2013 12:40 am
The OA is C
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by srcc25anu » Tue Apr 02, 2013 3:59 am
I was a little confused between A and C and ultimately selected A (which was incorrect)

A states Most of the businesses currently located downtown have long term leases on the spaces they occupy. so they will not move to these newer buildings despite lower tax rates offered. At least not until their lease ends - that's why I selected A.

Can anyone help me understand why this option is wrong?
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by Gowri@CrackVerbal » Thu Apr 04, 2013 6:43 am
srcc25anu wrote:I was a little confused between A and C and ultimately selected A (which was incorrect)

A states Most of the businesses currently located downtown have long term leases on the spaces they occupy. so they will not move to these newer buildings despite lower tax rates offered. At least not until their lease ends - that's why I selected A.

Can anyone help me understand why this option is wrong?
The objective of the initiative is "to lure more businesses downtown".

The problem with option A is that it talks about businesses already based downtown.
So their shift from old offices to new offices downtown will not really fulfill the Villieu officials' objective. So option A is irrelevant to the plan's success.

Hope this is clear now!
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by Lifetron » Fri Apr 05, 2013 12:52 am
srcc25anu wrote:I was a little confused between A and C and ultimately selected A (which was incorrect)

A states Most of the businesses currently located downtown have long term leases on the spaces they occupy. so they will not move to these newer buildings despite lower tax rates offered. At least not until their lease ends - that's why I selected A.

Can anyone help me understand why this option is wrong?
Argument : "Downtown Villieu was once a flourishing business district" - So, it has lesser business activities now => Less Business now.

Option A : "Most of the businesses currently located in downtown Villieu have long-term leases on the space they occupy there" - The "Most" here is most of the existing[less] business. We already have lots of opportunities for new business. I guess, you should have linked the "most" with the total business opportunities.

Since we are talking about luring new business into the area, A doesn't affect the plan.

Hope this helps !
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by rashedhbs » Thu Nov 15, 2018 5:31 am
nhai2003 wrote: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.

Please help me with this one!
Thanks!
C
Why (A) is wrong? I think option (A) also threatens the plan's likelihood of success. Please help
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