Retired GMAT CR Question

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Retired GMAT CR Question

by chaitanya.mehrotra » Sun Jul 03, 2011 12:43 pm
Kitchen magazine plans to license the use of its name by a line of cookware. For a magazine, licensing the use of its name for products involves some danger, since if the products disappoint consumers, the magazine's reputation suffers, with consequent reductions in circulation and advertising. However, experts have evaluated the cookware and found it superior to all other cookware advertised in Kitchen. Therefore, Kitchen can collect its licensing fee without endangering its other revenues.

The argument above assumes which of the following?
A. No other line of cookware is superior to that which will carry the Kitchen name.
B. Kitchen will not license the use of its name for any products other than the line of cookware.
C. Makers of cookware will not find Kitchen a less attractive advertising vehicle because the magazine's name is associated with a competing product.
D. Consumers who are not regular readers of Kitchen magazine will be attracted to the cookware by the Kitchen name.
E. Kitchen is one of the most prestigious cooking-related magazines.

OA: C

Doubt:Is the option c correct because it is speaking about reduction in the revenue of the magazine due to existing advertisers ?
Source: — Critical Reasoning |

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by kevincanspain » Sun Jul 03, 2011 1:10 pm
This is a common sort of argument: mention a potential advantage of or drawback to a plan, give evidence that suggests or even proves that this advantage or drawback does not exist, and then conclude that the plan is devoid of advantages altogether. C shows us that the licensing could lead to a decline in revenues, abeit not for the reason mentioned in the argument.

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