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With seventeen casinos, Moneyland operates the most casinos

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by BTGmoderatorDC » Wed Sep 26, 2018 7:00 pm
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With seventeen casinos, Moneyland operates the most casinos in a certain state. Although intent on expanding, it was outmaneuvered by Apex Casinos in negotiations to acquire the Eldorado chain. To complete its acquisition of Eldorado, Apex must sell five casinos to comply with a state law forbidding any owner to operate more than one casino per county. Since Apex will still be left operation twenty casinos in the state, it will then have the most casinos in the state.

Which of the following, if true, most seriously undermines the prediction?

A) Apex, Eldorado, and Moneyland are the only organizations licensed to operate casinos in the state.
B) The majority of Eldorado's casinos in the state will need extensive renovations if they are to continue to operate profitably.
C) Some of the state's counties do not permit casinos.
D) Moneyland already operates casinos in the majority of the state's counties.
E) Apex will use funds it obtains from the sale of the five casinos to help fund its acquisition of the Eldorado chain.

OA A

Source: Official Guide
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by deloitte247 » Fri Sep 28, 2018 9:34 am
Option A - CORRECT.
This option has seriously undermine the prediction. According to the statement presented in the argument, Apex, Eldorado, and Moneyland are not the only organizations licensed to operate casinos in the state. There are seventeen casinos in total in the state, which Moneyland operates the most casino in a certain state, unfortunately Apex casino plans to outsmart Moneyland by acquiring Eldorado casino to his numerous numbers of casino but, he has to sell off 5 casinos to be able to abide by the law governing ownership of casinos per country. However, Apex casino is still the top rated casino owners amongst all with ownership of twenty casinos in the state.

Option B - INCORRECT.
The majority of Eldorado's casinos in the state will need extensive renovations if they are to continue to operate profitably, but it is of no need, because they might not be able to keep up with the level of competition in the casino organization. Therefore, it is better they sell their shares off totally to Apex casino.

Option C - INCORRECT.
Some of the state's counties that do not permit casinos is not part of the matter arising in this argument. Therefore, this option is of no need to debate about.

Option D - INCORRECT.
Apparently Moneyland already operates casinos in the majority of the state's counties, but the competition is still strong that is why Apex casino is on the move to dominate most of the state's countries.

Option E - INCORRECT.
It is definitely right to think that Apex will use funds it obtains from the sale of the five casinos to help fund its acquisition of the Eldorado chain, so as to remain the highest bidder to acquire Eldorado casino.
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