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Directions: The question given below is followed by two arguments numbered I and II. You have to decide which of the given arguments is a 'strong' argument and which is a 'weak' argument.
Should success of a business be judged by the amount of money the business makes?
Arguments:
I. Yes, to be successful and remain in business, both profitability and growth are important and necessary for a company; these help it to survive and remain attractive to investors and analysts.
II. Yes, the interrelation of profitability and growth is illustrated by a basic operating principle that growth can best be evaluated by examining profit and total sales.
  • a)
    Only argument I is strong.
  • b)
    Either argument I or II is strong.
  • c)
    Only argument II is strong.
  • d)
    Neither argument I nor II is strong.
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Directions: The question given below is followed by two arguments numb...
Introduction:
The question asks whether the success of a business should be judged solely based on the amount of money it makes. Two arguments are provided to support their respective viewpoints.

Argument I: Profitability and growth are important for a successful business:
- Profitability and growth are crucial for a business to survive and remain attractive to investors and analysts.
- Profitability ensures that the business is generating sufficient revenue to cover its expenses and provide returns to its shareholders.
- Growth indicates that the business is expanding its operations and gaining market share, which leads to increased revenue and potential profitability.
- Both profitability and growth are key metrics that investors and analysts consider when evaluating the success and potential of a business.

Argument II: Profit and total sales are interrelated indicators of growth:
- The argument states that growth can be best evaluated by examining profit and total sales.
- Profit is a measure of how efficiently a business is utilizing its resources and generating returns.
- Total sales indicate the level of demand for the business's products or services.
- By analyzing the relationship between profit and total sales, one can assess the effectiveness of the business's growth strategy.

Analysis:
- Both arguments provide valid points regarding the importance of profitability and growth for a successful business.
- Argument I emphasizes the necessity of profitability and growth for the survival and attractiveness of a business to investors and analysts.
- Argument II highlights the interrelation between profit and total sales as indicators of growth.
- However, neither argument explicitly addresses whether the amount of money made by a business is the sole determinant of its success.

Conclusion:
- None of the arguments directly address the question of whether the success of a business should be solely judged based on the amount of money it makes.
- Therefore, neither argument I nor argument II can be considered strong arguments.
- The question of how to judge the success of a business requires a more comprehensive evaluation that considers various factors, including profitability, growth, market share, customer satisfaction, and social impact, among others.
- Thus, the correct answer is option 'D' - Neither argument I nor argument II is strong.
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Directions: The question given below is followed by two arguments numbered I and II. You have to decide which of the given arguments is a strong argument and which is a weak argument.Should success of a business be judged by the amount of money the business makes?Arguments:I. Yes, to be successful and remain in business, both profitability and growth are important and necessary for a company; these help it to survive and remain attractive to investors and analysts.II. Yes, the interrelation of profitability and growth is illustrated by a basic operating principle that growth can best be evaluated by examining profit and total sales.a)Only argument I is strong.b)Either argument I or II is strong.c)Only argument II is strong.d)Neither argument I nor II is strong.Correct answer is option 'D'. Can you explain this answer?
Question Description
Directions: The question given below is followed by two arguments numbered I and II. You have to decide which of the given arguments is a strong argument and which is a weak argument.Should success of a business be judged by the amount of money the business makes?Arguments:I. Yes, to be successful and remain in business, both profitability and growth are important and necessary for a company; these help it to survive and remain attractive to investors and analysts.II. Yes, the interrelation of profitability and growth is illustrated by a basic operating principle that growth can best be evaluated by examining profit and total sales.a)Only argument I is strong.b)Either argument I or II is strong.c)Only argument II is strong.d)Neither argument I nor II is strong.Correct answer is option 'D'. Can you explain this answer? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about Directions: The question given below is followed by two arguments numbered I and II. You have to decide which of the given arguments is a strong argument and which is a weak argument.Should success of a business be judged by the amount of money the business makes?Arguments:I. Yes, to be successful and remain in business, both profitability and growth are important and necessary for a company; these help it to survive and remain attractive to investors and analysts.II. Yes, the interrelation of profitability and growth is illustrated by a basic operating principle that growth can best be evaluated by examining profit and total sales.a)Only argument I is strong.b)Either argument I or II is strong.c)Only argument II is strong.d)Neither argument I nor II is strong.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions: The question given below is followed by two arguments numbered I and II. You have to decide which of the given arguments is a strong argument and which is a weak argument.Should success of a business be judged by the amount of money the business makes?Arguments:I. Yes, to be successful and remain in business, both profitability and growth are important and necessary for a company; these help it to survive and remain attractive to investors and analysts.II. Yes, the interrelation of profitability and growth is illustrated by a basic operating principle that growth can best be evaluated by examining profit and total sales.a)Only argument I is strong.b)Either argument I or II is strong.c)Only argument II is strong.d)Neither argument I nor II is strong.Correct answer is option 'D'. Can you explain this answer?.
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