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Company CEO: Launching an Internet site is an expensive

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by BTGmoderatorDC » Tue Nov 27, 2018 7:40 pm

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Company CEO: Launching an Internet site is an expensive process. Instead, we need to focus on our stores in malls in order to increase our profits.
Sales manager: The investment needed to build an Internet site can pay itself off fairly quickly. We should create an online store because Internet sales can generate huge income since they are open to the international market.

Which of the following, if true, most strengthens the sales manager's objection to the CEO's claim?

A) Since many complex decisions are involved, designing a profitable website can take long periods of time.
B) Profits from international sales through online stores are higher by 13% than the profits created by any other sales method.
C) Unsuccessful websites can create negative images of the companies they belong to.
D) Many consumers are not comfortable with buying products from retailers in foreign locations.
E) The sales in malls have not been affected by the introduction of Internet shopping, and are performing even better than before.

OA B

Source: Economist GMAT
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Source: — Critical Reasoning |

by deloitte247 » Fri Nov 30, 2018 8:58 am
Option A:- Incorrect
Here, much regard is given to the time it will take to develop a website as a result of the complex decision attached, this option poses a very strong objection to the adoption of the sale manager's presentation.

Option B:- correct
The point here, though not numerically verified completely justifies the point stated by the sales Manager.

Option C:- Incorrect
This takes a similar explanation as option A. Here, the CEO was not convinced that launching a website may be successful due to the rigorous process involving decision making and finances which in turn may create a negative impression of the organisation.

Option D:- Incorrect
This option stands in a strong position with the CEO's opinion, he believes that consumers trust more in products obtained from nearby locations rather than those obtained from a foreign retailer.

Option E:- Incorrect
This option is also focusing on the explanation obtained from the CEO regarding working on strategies that will improve sales to raise the profit margin in the Mall.
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