BREAKING: Target Test Prep releases Brand New 2026 On Demand GMAT prep course

Redeem

CR - Infer conclusion

This topic has expert replies
Post new topic Post Reply
Previous Topic Next Topic
User avatar
Legendary Member
Posts: 1665
Joined: Thu Nov 03, 2011 7:04 pm
Thanked: 165 times
Followed by:70 members

CR - Infer conclusion

by karthikpandian19 » Wed Jun 27, 2012 11:17 pm
For two companies to merge successfully, the merger must increase the efficiency of the operations of both companies, and it must receive support from a majority of both company's employees. Both Graycorp and Magco would effectively streamline their businesses by merging, but doing so would require laying-off a large number of both Graycorp and Magco employees, causing most employees to be unlikely to support a merger attempt.

The statements above, if true, most strongly support which of the following conclusions?


(A) For a corporation to merge with Magco successfully, all of Magco's employees would need to cooperate with the merger.

(B) An attempt by Graycorp to merge with Magco is very unlikely to be successful.

(C) Any merger between Graycorp and Magco would result in increases in efficiency for both companies that would be unachievable otherwise.

(D) As long as both merging companies effectively streamline their operations, Magco would suffer no negative consequences from the acquisition.

(E) Most of Magco's employees would be likely to cooperate with the merger if both companies agreed to it.
Regards,
Karthik
The source of the questions that i post from JUNE 2013 is from KNEWTON

---If you find my post useful, click "Thank" :) :)---
---Never stop until cracking GMAT---
Top
Source: — Critical Reasoning |
Master | Next Rank: 500 Posts
Posts: 110
Joined: Wed Feb 22, 2012 11:28 pm
Location: India
Thanked: 13 times
Followed by:1 members

by spartacus1412 » Thu Jun 28, 2012 12:03 am
B
Its do or die this time!
Practise, practise and practise.
Top
User avatar
Legendary Member
Posts: 1665
Joined: Thu Nov 03, 2011 7:04 pm
Thanked: 165 times
Followed by:70 members

by karthikpandian19 » Thu Jun 28, 2012 12:13 am
@spartacus1412

Please provide your reasoning
spartacus1412 wrote:B
Regards,
Karthik
The source of the questions that i post from JUNE 2013 is from KNEWTON

---If you find my post useful, click "Thank" :) :)---
---Never stop until cracking GMAT---
Top
Master | Next Rank: 500 Posts
Posts: 110
Joined: Wed Feb 22, 2012 11:28 pm
Location: India
Thanked: 13 times
Followed by:1 members

by spartacus1412 » Thu Jun 28, 2012 12:20 am
the argument states that 2 conditions are necessary for merger to b successful.
1. operating efficiency should increase.
2. majority of employees of both the firm should support the decision.

If any of the above stated reasons fail, the merger is likely to be unsuccessful.

the argument further states that "require laying-off a large number of both Graycorp and Magco employees causing most employees to be unlikely to support a merger attempt."

This suggests that the employees will not support the merger attempt. Hence, condition 2 fails.


Conclusion: The merger would fail.
Its do or die this time!
Practise, practise and practise.
Top
User avatar
Legendary Member
Posts: 1665
Joined: Thu Nov 03, 2011 7:04 pm
Thanked: 165 times
Followed by:70 members

by karthikpandian19 » Thu Jun 28, 2012 12:25 am
The author of this passage asserts two premises. First, the author claims that a successful merger can only occur if the merger makes operations more efficient and the employees of both merging companies need to cooperate. Second, the author asserts that the two companies can only become more efficient through layoffs that would compromise the willingness of employees to cooperate.

We're asked to draw a conclusion from these premises. The two requirements for a successful merge cannot be achieved by Graycorp and Magco because a merge would cause laying-off employees, causing most (the majority) of these employees to be unlikely to support the merge. Employee support is necessary for a successful merge. Therefore, we can conclude that Graycorp's acquisition of Magco won't be successful.Correct choice B restates the inference that Graycorp's merger with Magco wouldn't succeed.

Choice A is too extreme based upon the information provided in the argument. According to the passage, a successful acquisition requires the support of a majority of employees, not all employees.

The statement in choice C is incorrect because we know nothing about these companies' abilities to achieve efficiency; perhaps a merger between Magco and another company would result in an even greater increase in efficiency.

Choice D is too extreme; Magco might well suffer some negative consequence from a well-supported merger (perhaps some of its longtime employees might be fired).

Choice E can't be concluded either, because we don't know if Magco's employees would approve of the merger if the layoffs are to take place. Even in the absence of these layoffs, nothing can be known about the employees of one of the two companies discussed in the argument.

Choice B is correct.
karthikpandian19 wrote:For two companies to merge successfully, the merger must increase the efficiency of the operations of both companies, and it must receive support from a majority of both company's employees. Both Graycorp and Magco would effectively streamline their businesses by merging, but doing so would require laying-off a large number of both Graycorp and Magco employees, causing most employees to be unlikely to support a merger attempt.

The statements above, if true, most strongly support which of the following conclusions?


(A) For a corporation to merge with Magco successfully, all of Magco's employees would need to cooperate with the merger.

(B) An attempt by Graycorp to merge with Magco is very unlikely to be successful.

(C) Any merger between Graycorp and Magco would result in increases in efficiency for both companies that would be unachievable otherwise.

(D) As long as both merging companies effectively streamline their operations, Magco would suffer no negative consequences from the acquisition.

(E) Most of Magco's employees would be likely to cooperate with the merger if both companies agreed to it.
Regards,
Karthik
The source of the questions that i post from JUNE 2013 is from KNEWTON

---If you find my post useful, click "Thank" :) :)---
---Never stop until cracking GMAT---
Top
Post new topic Post Reply
• Page 1 of 1