Need expert help - Assumption

Expert replies

voodoo_child: Master | Next Rank: 500 Posts; Posts: 405; Joined: Thu Feb 10, 2011 1:44 amFollowed by: 1 member; Thanked: 3 times

by voodoo_child » Tue Jul 17, 2012 9:17 am

Journalist: Workers at Facsum Inc. have threatened to strike if management does not meet their demands for an immediate 5% pay raise and a paid lunch break. Further, workers are insisting that the company rehire 12 employees who were laid off for complaining about substandard wages and working conditions. It is well-known that Facsum reported that negative profits in 3 of its previous 4 quarterly earnings reports. We believe a strike is inevitable.

Identify an assumption required by the journalist's argument

The workers would likely be willing to compromise with respect to the paid lunch break.
Facsum is unwilling to negotiate with the workers.
The majority of the losses were due to a significant decline in profit margins.
The 12 laid-off employees were not laid off for any performance-related reasons.
Facsum likely does not have sufficient cash flow or cash reserves to support increased expenses.

OA - E.

Can someone explain why B) is incorrect?

Thanks

Source: Beat The GMAT — Critical Reasoning | Tue Jul 17, 2012 9:17 am

eagleeye: Legendary Member; Posts: 520; Joined: Sat Apr 28, 2012 9:12 pmFollowed by: 49 members; Thanked: 339 times; GMAT Score:770

by eagleeye » Tue Jul 17, 2012 10:12 am

voodoo_child wrote:Journalist: Workers at Facsum Inc. have threatened to strike if management does not meet their demands for an immediate 5% pay raise and a paid lunch break. Further, workers are insisting that the company rehire 12 employees who were laid off for complaining about substandard wages and working conditions. It is well-known that Facsum reported that negative profits in 3 of its previous 4 quarterly earnings reports. We believe a strike is inevitable.

Identify an assumption required by the journalist's argument

The workers would likely be willing to compromise with respect to the paid lunch break.
Facsum is unwilling to negotiate with the workers.
The majority of the losses were due to a significant decline in profit margins.
The 12 laid-off employees were not laid off for any performance-related reasons.
Facsum likely does not have sufficient cash flow or cash reserves to support increased expenses.

OA - E.

Can someone explain why B) is incorrect?

Thanks

B is incorrect because nowhere in the passage is it suggested that Facsum is "unwilling" to negotiate. We know that workers demands are not being met at the moment; however, that does not mean that Facsum are not willing to negotiate. They may be or they may not be. We just don't know. Hence B is not a required assumption.

Cheers!

Shalini Suresh: Junior | Next Rank: 30 Posts; Posts: 26; Joined: Thu Dec 22, 2011 10:22 pmFollowed by: 1 member; Thanked: 4 times

by Shalini Suresh » Tue Jul 17, 2012 10:22 am

Since the journalist has mentioned 'It is well-known that Facsum reported that negative profits in 3 of its previous 4 quarterly earnings reports' its safe to assume that Facsum is cash strapped and thats why they wouldnt be able to meet the workers' demands. So E) would be correct.

venmic: Master | Next Rank: 500 Posts; Posts: 222; Joined: Mon Oct 13, 2008 4:04 pmFollowed by: 2 members; Thanked: 3 times

by venmic » Thu Jul 19, 2012 7:16 pm

Factors or issues can never be an assumption

B sounds more like a possibility

faltuhaiye11: Newbie | Next Rank: 10 Posts; Posts: 5; Joined: Thu Jun 14, 2012 11:29 am; GMAT Score:680

by faltuhaiye11 » Tue Jul 24, 2012 10:53 am

please provide the source of this question ..

"D" day matter .. not Mocks...
GPREP1- 740 ; GPREP2 700 ;
MGMAT 1:650 ; MGMAT 2 :700
MGMAT 3 :710 ; MGMAT 4 :720
MGMAT 5 :730 ; MGMAT 6 :730
D day - 680

vbalhara: Newbie | Next Rank: 10 Posts; Posts: 6; Joined: Mon Jul 12, 2010 6:12 am; Thanked: 1 times

by vbalhara » Tue Aug 21, 2012 2:26 am

Assumptions are of 2 types
1) protect the conclusion
2) link the related premises to form a good conclusion .

This example deals with 2 category.

B and E are the only relevant choice.

Conclusion workers will go on strike (they are demanding hike)

What can connect strike with demand? - Money

When left with 2 choices .. Negate each of them and see which weakens the conclusion strongly.

Company is willing to negotiate. -- Impact on conclusion -> MILD (worker may go with strike)
Company have money -- Impact on conclusion greater than above

hjafferi: Senior | Next Rank: 100 Posts; Posts: 83; Joined: Sun Aug 19, 2012 12:42 am

by hjafferi » Tue Aug 21, 2012 7:25 am

Got this wrong...chose D instead of E

Thanks vbalhara for the clarification

7777: Senior | Next Rank: 100 Posts; Posts: 57; Joined: Thu Aug 23, 2012 7:50 pm; Thanked: 4 times

by 7777 » Fri Aug 24, 2012 10:03 pm

eagleeye wrote:
voodoo_child wrote:Journalist: Workers at Facsum Inc. have threatened to strike if management does not meet their demands for an immediate 5% pay raise and a paid lunch break. Further, workers are insisting that the company rehire 12 employees who were laid off for complaining about substandard wages and working conditions. It is well-known that Facsum reported that negative profits in 3 of its previous 4 quarterly earnings reports. We believe a strike is inevitable.

Identify an assumption required by the journalist's argument

The workers would likely be willing to compromise with respect to the paid lunch break.
Facsum is unwilling to negotiate with the workers.
The majority of the losses were due to a significant decline in profit margins.
The 12 laid-off employees were not laid off for any performance-related reasons.
Facsum likely does not have sufficient cash flow or cash reserves to support increased expenses.

OA - E.

Can someone explain why B) is incorrect?

Thanks
B is incorrect because nowhere in the passage is it suggested that Facsum is "unwilling" to negotiate. We know that workers demands are not being met at the moment; however, that does not mean that Facsum are not willing to negotiate. They may be or they may not be. We just don't know. Hence B is not a required assumption.

Cheers!

negotiation is successful when both the parties are willing to negotiate. what if workers dont want to negotiate. this can't be an assumption.
negating the sentence makes it " facsum is willing to negotiate." so what?? it doesnt undermine the conclusion that strike is inevitable.

GMAT Course Reviews

563 reviews

1168 reviews

431 reviews

359 reviews

147 reviews

5/5

5 Star (563 Reviews)

"Target Test Prep is the closest to the official version of the GMAT exam, about 99% accuracy in terms of the quality and quantity of information. The course has excellently created singular sets of focused lessons and tests for every possible topic that one could come across in the official GMAT exam."

"The TTP course maximizes the efficiency of the time you spend studying. It will take time and effort but I could almost guarantee that if you complete the course exactly as it is laid out you will get an amazing score. They also have a very responsive team willing to help with any questions you might have."

"TTP has two things that I think no other test prep company offers: A teaching approach that reinforces understanding and an attitude that will give you the mental preparedness needed to succeed on the test. TTP gives you a deep understanding of the concept you need to know while teaching you how to think."

Write a Review