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

Redeem

Target Test Prep · GMAT

Choose how you want to prepare

Learn live with an expert or move at your own pace. Every option includes the complete TTP study system.

★★★★★5.0559 reviews
Vote for Target Test Prep, Newsweek Readers’ Choice Awards 2026
NEWSWEEK READERS’ CHOICE 2026

BIG NEWS! Target Test Prep has been nominated, and they’d love your vote!

TTP has worked incredibly hard to build the best test prep experience possible, and winning Newsweek’s 2026 Readers’ Choice Award for Best Test Prep would mean a lot to them. If TTP has helped you, they’d be incredibly grateful for your vote. You can vote once each day through September 9.

Vote for TTP
GMATLiveTeach 7 seats left
Chris Peckover
NEXT LIVE COHORT

Oct 13 to Jan 7, 2027

with Chris Peckover

Schedule
Tue, Thu · 8:00 to 10:00 PM ET
Included
40 live hours + 6 months of GMAT OnDemand
  • Live instruction and real-time questions
  • Class recordings and assigned practice
View class & enroll
Limited cohort · enrollment openTarget Test Prep
EALiveTeach 5 seats left
Logan Thompson
EXECUTIVE ASSESSMENT

Sep 6 to Dec 6, 2026

with Logan Thompson

Schedule
Sun · 9:30 AM to 12:30 PM ET
Included
40 hours of live online classes plus six months of access to the complete TTP EA OnDemand course.
  • 165+ EA Score Guarantee
  • 4,100+ Quant, Verbal, and Integrated Reasoning practice questions
  • 400+ hours of in-depth video lessons
  • 3,000+ step-by-step video solutions
View EA class & enroll
Limited cohort · enrollment openTarget Test Prep
GMATOnDemand Start anytime
SELF-PACED MASTERCLASS

Target Test Prep GMAT OnDemand

Complete access from day one. Study on your schedule.

715+ score guarantee
$0to start then $127/mo
  • Personalized study plan and analytics
  • Thousands of lessons and practice questions

Compare the format, schedule, and included access before enrolling. Prices and seat counts shown reflect the supplied offer details.

PT question

Expert replies
by jc114 » Sat Apr 28, 2007 4:14 pm
Corporate officer: Last year was an unusually poor one for our chemical division, which has traditionally contributed about 60% of the corporation's profits. It is therefore encouraging that there is the following evidence that the pharmaceutical division is growing stronger; it contributed 45% of the corporation's profits, up from 20% the previous year.
On the basis of the facts stated, which of the following is the best critique of the evidence stated above?

A. The increase in the pharmaceutical division's contribution to corporation profits could have resulted largely from the introduction of a single, new product.
B. In multidivisional corporations that have pharmaceutical divisions, over half of the corporation's profits comes from pharmaceuticals.
C. The % of the corporation's profits attributable to the pharmaceutical division could have increased even if that division's performance has not improved.
D. The information cited does not make it possible to determine whether the 20% share of profits cited was itself an improvement over the years before.
E. The information cited does not make it possible to cimpare the performance of the chemical and pharmaceutical divisions in terms of the percent of total profits attributable to each.


(I thought the answer was E...can someone explain why its C?)

Some companies in fields where skilled employees are hard to find make signing an "agreement not to compete" a condition of employment. In such an agreement, the employee promises not to go to work for a competing firm for a set period after leaving his or her current employer. Courts are increasingly ruling that these agreements are not binding. Yet paradoxically, for people who signed such agreements when working for competing firms, many firms are unwilling to consider hiring them during the period covered by the agreement.

Which of the following, if true, most helps to resolve the paradox?

A. Many companies will not risk having to become involved in lawsuits, even suits that they expect to have a favorable outcome, because of the associated costs and publicity.
B. In some industries, for example the broadcast media companies' main source of new employees tends to be people who are already employed by competing firms.
C. Most companies that require their employees to sign agreements not to compete are aware that these documents are not legally binding.
D. Many people who have signed agreements not to comepte are unwilling to renege on a promise by going to work for a competing firm.
E. Many companies consider their employees' established relationship with clients and other people outside the company to be valuable company assets.
Join the discussion
Source: — Critical Reasoning |

by Princeton Review » Sun Apr 29, 2007 3:59 am
For the first argument, you're looking at a favorite reasoning flaw on the GMAT: Sampling and Statistics. The error they love to throw in is the false assumption that %'s = #'s. In other words, just because the pharma div.'s % of the profits went up doesn't mean that they made more money.

That's pretty much what C says. E is a tempting trap answer, but the conclusion of the argument is that there is reason to be encouraged that the pharma's profits are up, not that specifically that there needs to be a comparison between the two divisions.

You don't mention your answer for the second one, but the paradox is that even though non-compete agreements are often not legally binding, companies still won't hire people who have them. So there must be some reason they don't want to have to fight the lawsuit. A gives you that reason.
Matt McIver

Princeton Review Instructor
Join the discussion