bell

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bell

by pappueshwar » Sat Mar 17, 2012 1:31 am
The workers at Bell Manufacturing will shortly go on strike unless the management increases their wages. As Bell's president is well aware, however, in order to increase the worker's wages, Bell would have to sell off some of its subsidiaries. So, some of Bell's subsidiaries will be sold.

The conclusion above is properly drawn if which one of the following is assumed?
(A) Bell Manufacturing will begin to suffer increased losses.
(B) Bell's management will refuse to increase its worker's wages.
(C) The workers at Bell Manufacturing will not be going on strike.
(D) Bell's president has the authority to offer the workers their desired wage increase.
(E) Bell's workers will not accept a package of improved benefits in place of their desired wage increase.

oa is C

WHY IS A INCORRECT? to increase the salaries the subsidiaries are to be sold which leads to disruption of production and leads to losses , if salaries
are NOT increased then the workers go on strike. either way the bell manufacturing will suffer loses.

in C how can we assume that if subsidiaries are closed then worker will NOT go on strike? is it becoz they fear job loss which is much more horrible then reduced wages?

thanks
Source: — Critical Reasoning |

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by scholardream » Fri Mar 23, 2012 12:35 am
Hi Pappueshwar,
Plz comment on my work below:
Premise 1: workers at BM will go on strike if Management won't increase their wages.
Premise 2: president knowns that & to increase the workers' wayes, he have to sell some subsidiaries.
Conclusion: Some of BM's will be sold.
Question: assumption type -> need link between premises and conclusion. In this question: Sell some subsidiaries & those ones will be sold
(A) Don't necessary to sell some of its subsidiaries as it just begin to suffer increased losses
(B) If it's true, no need to sell anything, cost is stable
(C) So why workers won't going on strike, because they get the salary rise. How can BM give the rise, because it has money from selling the subsidiaries. Thus, some of BM's subsidiaries will be sold. -> correct answer
(D) whether Bell's president has the authority or not, it doesn't affect to the decision to sell some of its subsidiaries
(E) if Bell's workers won't accept that package -> no need to sell subsidiaries

Therefore, to my view, answer is (C)

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by pappueshwar » Fri Mar 23, 2012 1:04 am
thanks

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by proudtobeindian » Fri Mar 23, 2012 7:16 am
Hey,
The reason why A is incorrect is "loss" might not be the concern of Bell. May be they r concerned about "reputation"