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franchises revenue

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by maihuna » Thu Jan 08, 2009 6:43 am
In an effort to reduce costs and increase profits, a parent company reviewed the account books of thirty of its franchises and found six franchises that had the same ratio of profits to revenues in 1990 as they had in 1970. The parent company then concluded that these six franchises should serve as examples for those franchises that want to keep their ratio of profits to revenues stable over the years.

Which of the following, if true, most seriously weakens the author’s conclusion that these six franchises are best suited to the role described above?


Most franchises want to increase their ratio of profits to revenues.

Most franchises are more concerned with profits alone than with the ratio of profits to revenues.

Each of the six franchises deals with its customers in different ways.

Of the six franchises, three had a much smaller, and three had a much larger, ratio of profits to revenues in 1980 than in 1990.

The profits of the six companies range from 25 percent to 40 percent of their revenues.
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Source: — Critical Reasoning |

Re: franchises revenue

by logitech » Thu Jan 08, 2009 8:01 am
IMO (B)


Most franchises are more concerned with profits alone than with the ratio of profits to revenues.



Each of the six franchises deals with its customers in different ways.

Irrelevant

Of the six franchises, three had a much smaller, and three had a much larger, ratio of profits to revenues in 1980 than in 1990.

Never ever divide a group into sub groups in CR when the whole group is discussed!


The profits of the six companies range from 25 percent to 40 percent of their revenues.

SO ? :)
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by bec.amit » Thu Jan 08, 2009 8:03 am
IMO C
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by ronniecoleman » Thu Jan 08, 2009 8:16 am
IMO D


franchises are the role model for STABLE revenue

Option A doesnot make any sense
It doesnot matter what franchise think
parent company thinks otherwise
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by gg1 » Thu Jan 08, 2009 8:21 am
It is [D]

we need to attack the argument that the profit/revenue ratio remains stable.
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by logitech » Thu Jan 08, 2009 8:23 am
Well true, STABLE is the key word.
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Re: franchises revenue

by ankit1383 » Thu Jan 08, 2009 8:33 am
Of the six franchises, three had a much smaller, and three had a much larger, ratio of profits to revenues in 1980 than in 1990.

Never ever divide a group into sub groups in CR when the whole group is discussed!
Logitech can you elaborate on this...
ratio of profits to revenues stable over the years.


Dont you think this makes choice D as valid......
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Re: franchises revenue

by logitech » Thu Jan 08, 2009 8:41 am
ankit1383 wrote:
Of the six franchises, three had a much smaller, and three had a much larger, ratio of profits to revenues in 1980 than in 1990.

Never ever divide a group into sub groups in CR when the whole group is discussed!
Logitech can you elaborate on this...
ratio of profits to revenues stable over the years.


Dont you think this makes choice D as valid......
Yes it does. Answer should be D.
Never ever divide a group into sub groups in CR [/b]when the whole group is discussed!
I got confused here, but it is rule when you compare a group with other groups, you do not break the group. It is X vs Y & Z

You dont compare X1 vs X2
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by maihuna » Thu Jan 08, 2009 9:41 am
Yes OA is D. I just picked in my exam B as an option and was incorrect. Reason behind D is that these six companies are not representative as over the period mention there earnings/profit has fluctuated a lot, and again similar towards the begining and close of that period. So they cannt be choosed as model frenchise.
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Re: franchises revenue

by vivek.kapoor83 » Thu Jan 08, 2009 9:53 am
logitech wrote: ]Never ever divide a group into sub groups in CR [/b]when the whole group is discussed!
I got confused here, but it is rule when you compare a group with other groups, you do not break the group. It is X vs Y & Z

You dont compare X1 vs X2[/quote]

Logitech,
I also thought the ans should be D before readin this

Now, if a group cant be divided as quoted above,then in D...we are dividing the group of 6 into 3 & 3...
wt u hv to say on this
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Re: franchises revenue

by logitech » Thu Jan 08, 2009 10:47 am
vivek.kapoor83 wrote:
logitech wrote: ]Never ever divide a group into sub groups in CR [/b]when the whole group is discussed!
I got confused here, but it is rule when you compare a group with other groups, you do not break the group. It is X vs Y & Z

You dont compare X1 vs X2
Logitech,
I also thought the ans should be D before readin this

Now, if a group cant be divided as quoted above,then in D...we are dividing the group of 6 into 3 & 3...
wt u hv to say on this[/quote]

nevermind, that rule is not applicable in this case. If we have a problem like that I will mention it
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by Brad.C » Fri May 13, 2016 1:58 pm
I'd say D, but I'm afraid more because of my intuition than any logic.
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