PT127.S3.Q2 > Question

SECTION 1 · lr

Question 1 Question 2 Question 3 Question 4 Question 5 Question 6 Question 7 Question 8 Question 9 Question 10 Question 11 Question 12 Question 13 Question 14 Question 15 Question 16 Question 17 Question 18 Question 19 Question 20 Question 21 Question 22 Question 23 Question 24 Question 25 Question 26

SECTION 2 · lr

SECTION 3 · lr

SECTION 4 · rc

PASSAGE 1

Question 1 Question 2 Question 3 Question 4 Question 5 Question 6 Question 7

PASSAGE 2

Question 8 Question 9 Question 10 Question 11 Question 12 Question 13 Question 14 Question 15

PASSAGE 3

Question 16 Question 17 Question 18 Question 19 Question 20 Question 21

PASSAGE 4

Question 22 Question 23 Question 24 Question 25 Question 26 Question 27

If the company moves into food services, that could take away funds needed by other, currently successful operations. Moreover, the food service industry is volatile. Food service is riskier than pharmaceuticals, where company has also considered expanding.

Moving into food service would create some risk of the company becoming less profitable.

Moving into food services would be a greater risk for the company compared to moving into pharmaceuticals.

This answer is unsupported. The only thing that the shareholder tells us about current operations is that they're successful. We have no idea whether they're currently adequately funded.

This answer is unsupported. We don’t know from the stimulus whether or not pharmaceuticals would require siphoning funds from other operations. We know that expansion into food services would, but this doesn't imply anything about pharmaceuticals one way or the other.

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 carries some possible risk.

This answer is unsupported. The shareholder never indicates any necessary conditions for the company to increase profits. The shareholder is discussing the possible risks of moving into food service, not overall profitability.

This answer is strongly supported. The shareholder says that food service is volatile and risker than moving into pharmaceuticals. Since it's a risker industry, food service represents a greater chance of losing money.

PrepTest 127 - Section 3 - Question 2

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