Shareholder: The company’s current operations are time-proven successes. The move into food services may siphon off funds needed by these other operations. Also, the food service industry is volatile, with a higher inherent risk than with, for instance, pharmaceuticals, another area into which the company has considered expanding.
Summary
Current operations are successful. Moving into food services may take away funds needed by other operations. Moreover, the food service industry is volatile and has a higher risk than pharmaceuticals. The company has considered expanding into pharmaceuticals.
Strongly Supported Conclusions
Moving into food services would be a greater risk for the company compared to moving into pharmaceuticals.
A
The company’s present operations require increased funding.
This answer is unsupported. The shareholder tells us that current operations are a success.
B
Investment into pharmaceuticals would not siphon off money from other operations.
This answer is unsupported. We don’t know from the stimulus whether pharmaceuticals would not require funds to be taken from other operations. We know that expansion into food services would, but this does not imply that pharmaceuticals would not.
C
The company will lose money as it expands into the food service industry.
This answer is unsupported. We don’t know from the stimulus whether the company would for a fact lose money. We only know that this move is risker than a move into pharmaceuticals.
D
Only if the company expands its operations into pharmaceuticals are increased profits possible.
This answer is unsupported. We don’t know from the stimulus whether expansion into pharmaceuticals is a necessary condition for the company to increase their profits.
E
The company has a greater chance of losing money in food services than in pharmaceuticals.
This answer is strongly supported. We know from the stimulus that food service is volatile and risker than moving into pharmaceuticals. Therefore, since it is a risker expansion, food service represents a greater chance of losing money.
A
To the extent that it is possible to do so, we should eliminate the use of insecticides in gardening.
B
Allowing certain kinds of weeds to grow in vegetable gardens may contribute to a net increase in unwanted garden pests.
C
Allowing the right kinds of weeds to grow in vegetable gardens can help toward controlling caterpillars without the use of insecticides.
D
We should be cautious about the practice of allowing certain kinds of weeds to grow among garden vegetables.
E
We should be skeptical about the extent to which certain kinds of weeds can reduce the presence of caterpillars in gardens.
A
Plover are ground-nesting birds, which makes them easy prey for coyotes.
B
Wild cat and plover populations tend to fluctuate together.
C
Coyotes are not susceptible to any of the diseases that commonly infect plover or wild cats.
D
The wild cat population on the island was once significantly larger than it is currently.
E
The coyotes preyed mainly on wild cats, and wild cats prey on plover.
A
Employee morale is usually the primary concern driving companies’ decisions about whether to lay off employees or to reduce their wages.
B
In general, companies increase wages only when they are unable to find enough qualified employees.
C
Some companies will be unable to make a profit during recessions no matter how much they reduce personnel costs.
D
When companies cut personnel costs during recessions by reducing wages, some employees usually resign.
E
Some companies that have laid off employees during recessions have had difficulty finding enough qualified employees once economic growth resumed.