stockholder should not sell their shares of the company

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veenu08: Master | Next Rank: 500 Posts; Posts: 106; Joined: Sat Mar 30, 2013 11:55 pmFollowed by: 1 member; Thanked: 1 times

by veenu08 » Sun Oct 06, 2013 6:57 am

Although computer manufacturer X has experienced decreasing sales in the last quarter, stockholder should not sell their shares of the company. The stock price of a financially troubled company can rise dramatically once these problems are solved. Last year, the stock price of steel manufacturer Y rebounded after the company reduced its accounts receivable backlog.

A - The first phrase contains the author's conclusion and the second phrase contains unrelated information.

B - The first phrase states a position and the second phrase provides evidence to undermine that position.

C - The first phrase states a premise on which the conclusion is based and the second phrase provides the conclusion.

D - The first phrase states the conclusion and the second phrase supports the conclusion with an analogy.

E - The first phrase offers advice and the second phrase draws a contrast between two companies.

Source: Beat The GMAT — Critical Reasoning | Sun Oct 06, 2013 6:57 am

vinay1983: Legendary Member; Posts: 643; Joined: Wed Aug 14, 2013 4:27 amFollowed by: 7 members; Thanked: 48 times

by vinay1983 » Sun Oct 06, 2013 7:04 am

veenu08 wrote:Although computer manufacturer X has experienced decreasing sales in the last quarter, stockholder should not sell their shares of the company. The stock price of a financially troubled company can rise dramatically once these problems are solved. Last year, the stock price of steel manufacturer Y rebounded after the company reduced its accounts receivable backlog.

A - The first phrase contains the author's conclusion and the second phrase contains unrelated information.

B - The first phrase states a position and the second phrase provides evidence to undermine that position.

C - The first phrase states a premise on which the conclusion is based and the second phrase provides the conclusion.

D - The first phrase states the conclusion and the second phrase supports the conclusion with an analogy.

E - The first phrase offers advice and the second phrase draws a contrast between two companies.

E for me

You can, for example never foretell what any one man will do, but you can say with precision what an average number will be up to!

theCodeToGMAT: Legendary Member; Posts: 1556; Joined: Tue Aug 14, 2012 11:18 pmFollowed by: 34 members; Thanked: 448 times; GMAT Score:650

by theCodeToGMAT » Sun Oct 06, 2013 7:13 am

Must be [spoiler]{D}[/spoiler]

R A H U L

abhimak: Newbie | Next Rank: 10 Posts; Posts: 7; Joined: Wed Apr 03, 2013 8:09 am

by abhimak » Wed Oct 09, 2013 2:37 am

veenu08 wrote:Although computer manufacturer X has experienced decreasing sales in the last quarter, stockholder should not sell their shares of the company. The stock price of a financially troubled company can rise dramatically once these problems are solved. Last year, the stock price of steel manufacturer Y rebounded after the company reduced its accounts receivable backlog.

A - The first phrase contains the author's conclusion and the second phrase contains unrelated information. < Second phrase is not unrelated >

B - The first phrase states a position and the second phrase provides evidence to undermine that position. < Second phrase is meant to support not undermine >

C - The first phrase states a premise on which the conclusion is based and the second phrase provides the conclusion. < Wrong second phrase is not conclusion >

D - The first phrase states the conclusion and the second phrase supports the conclusion with an analogy. < Though I am not sure first statement can be called conclusion(it certainly seems advice), this choice is the best among all ... My choice for right answer >

E - The first phrase offers advice and the second phrase draws a contrast between two companies.

< Second is not providing any contrast >

sana.noor: Legendary Member; Posts: 512; Joined: Mon Jun 18, 2012 11:31 pmFollowed by: 20 members; Thanked: 42 times

by sana.noor » Sat Oct 12, 2013 6:08 am

it must be D
"Stockholder SHOULD NOT" (conclusion indicator)
analogy means "similarity". so the second phrase supports the conclusion with posting similar case.

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