PT132.S2.Q4

PrepTest 132 - Section 2 - Question 4

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Carol Morris wants to own a majority of the shares of the city's largest newspaper, . ███ ██████ ███ ████ ████████ ██ ████████ ████████ █ ████████ ██ █████ ██████ ██ ████ █████████ █████ █████████ ████ █ █████████ ███ ███████████ ███████ ██ █████ ████████ ████████ ████████████ ███████ ████ ██████ ████ ████ ██ ███ ████████ █████ ██ ███ ██████

Summarize Argument

The stimulus tells us that though Carol Morris wants to own the majority of The Daily's shares, Azedcorp, the current majority shareholder, refuses to sell. Despite the current situation, industry analysts predict that Morris will soon be the majority owner of The Daily. We are not given an explanation for why they think this.

Notable Assumptions

Since Azedcorp is currently owns the majority of The Daily's shares, the only way for Morris to become the majority shareholder is to buy some of Azedcorp's shares. So the industry analysts must assume that Azedcorp will soon sell its shares to Morris, for whatever reason.

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4.

Which one of the following, ██ █████ ████████ ███ ████ ███████ ███ ███ ████████ █████████ ███████████

a

Azedcorp does not ███ ██████ ██ ███ █████████ █████ ████ ███ ██████

Irrelevant. It doesn't matter if Azedcorp owns shares in a hundred other newspapers, or only in this one. What we want to know is whether Azedcorp's steadfast refusal to sell its shares in The Daily will change.

0%
b

Morris has recently ███████ ████████ ████ ████ ███ ███ ██████ ██ ███ █████ ████ ████████ ████ ███ █████

If anything, this makes it seem less likely that Azedcorp will sell its shares. If Morris has already offered a much higher price than Azedcorp paid, and the company still refused to sell, it's unclear what would make the company suddenly likely to sell in the near future.

4%
c

No one other ████ ██████ ███ █████████ ███ ████████ ██ ██████████ █ ████████ ██ ███ ███████ ███████

Irrelevant. Regardless of whether Morris is the only person interested in buying or not, we know Azedcorp is refusing to sell. We need to know if that will change in the near future.

1%
d

Morris already owns ████ ██████ ██ ███ █████ ████ ██████ ██████ █████████

This doesn't support the analysts' prediction. However many shares Morris currently owns, we know she is not the majority shareholder. She will need to buy shares from Azedcorp to become the majority shareholder, so to strengthen the analysts' claim, we need to figure out if Azedcorp will in fact sell.

5%
e

Azedcorp is financially ██ ████ ████ ██████████ ████ ████████ ████ █████ ███ ████ ██ ███ █████████ █████████

This supports the analysts' prediction. If Azedcorp will soon be forced to sell its shares in The Daily, Morris will be able to buy them and become The Daily’s majority owner.

89%

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