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The city of Northtown collects an average of $2.2 million in business taxes per year. Neighboring Southtown collects an average of $1.8 million in business taxes per year. Both cities assess business taxes on net profits. In an attempt to attract new businesses to Southtown, the spokesperson for the chamber of commerce of that city uses these statistics to claim that Southtown’s lower business tax rate offers amore favorable environment for business than can be found in Northtown.

Which of the following, if true, would most seriously undermine the spokesperson’s argument?
  • a)
    Most tax revenue collected in Northtown comes from business taxes.
  • b)
    Most tax revenue collected in Southtown comes from business taxes.
  • c)
    The net profits generated by Northtown businesses are currently twice those of Southtown businesses.
  • d)
    Northtown has twice the population of Southtown.
  • e)
    Southtown businesses generate twice as much sales revenue as do Northtown businesses.
Correct answer is option 'C'. Can you explain this answer?
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Most Upvoted Answer
The city of Northtown collects an average of $2.2 million in business ...
(A) Most tax revenue collected in Northtown comes from business taxes.
This option does not directly undermine the spokesperson's argument. It simply indicates that business taxes are a significant source of revenue for Northtown. It does not provide any information about the relative tax rates or the business environment in Northtown and Southtown.
(B) Most tax revenue collected in Southtown comes from business taxes.
Similar to option (A), this option does not directly undermine the spokesperson's argument. It suggests that business taxes are a significant source of revenue for Southtown, but it does not provide information about the relative tax rates or the business environment in the two cities.
(C) The net profits generated by Northtown businesses are currently twice those of Southtown businesses.
This option seriously undermines the spokesperson's argument. Despite Southtown's lower business tax rate, if the net profits generated by businesses in Northtown are significantly higher than those in Southtown, it suggests that Northtown may offer a more favorable business environment overall. Higher net profits may compensate for the higher tax rate in Northtown, making the spokesperson's claim less convincing.
(D) Northtown has twice the population of Southtown.
This option does not directly undermine the spokesperson's argument. It provides information about the population size of the two cities, but it does not offer any insights into the tax rates or the business environment. The size of the population alone does not determine the attractiveness of a business environment.
(E) Southtown businesses generate twice as much sales revenue as do Northtown businesses.
This option does not directly undermine the spokesperson's argument. It provides information about the sales revenue generated by businesses in Southtown and Northtown, but it does not provide any information about the tax rates or the profitability of the businesses. Sales revenue alone does not determine the overall business environment or the impact of tax rates on businesses.
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Community Answer
The city of Northtown collects an average of $2.2 million in business ...
(A) Most tax revenue collected in Northtown comes from business taxes.
This option does not directly undermine the spokesperson's argument. It simply indicates that business taxes are a significant source of revenue for Northtown. It does not provide any information about the relative tax rates or the business environment in Northtown and Southtown.
(B) Most tax revenue collected in Southtown comes from business taxes.
Similar to option (A), this option does not directly undermine the spokesperson's argument. It suggests that business taxes are a significant source of revenue for Southtown, but it does not provide information about the relative tax rates or the business environment in the two cities.
(C) The net profits generated by Northtown businesses are currently twice those of Southtown businesses.
This option seriously undermines the spokesperson's argument. Despite Southtown's lower business tax rate, if the net profits generated by businesses in Northtown are significantly higher than those in Southtown, it suggests that Northtown may offer a more favorable business environment overall. Higher net profits may compensate for the higher tax rate in Northtown, making the spokesperson's claim less convincing.
(D) Northtown has twice the population of Southtown.
This option does not directly undermine the spokesperson's argument. It provides information about the population size of the two cities, but it does not offer any insights into the tax rates or the business environment. The size of the population alone does not determine the attractiveness of a business environment.
(E) Southtown businesses generate twice as much sales revenue as do Northtown businesses.
This option does not directly undermine the spokesperson's argument. It provides information about the sales revenue generated by businesses in Southtown and Northtown, but it does not provide any information about the tax rates or the profitability of the businesses. Sales revenue alone does not determine the overall business environment or the impact of tax rates on businesses.
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The city of Northtown collects an average of $2.2 million in business taxes per year. Neighboring Southtown collects an average of $1.8 million in business taxes per year. Both cities assess business taxes on net profits. In an attempt to attract new businesses to Southtown, the spokesperson for the chamber of commerce of that city uses these statistics to claim that Southtown’s lower business tax rate offers amore favorable environment for business than can be found in Northtown.Which of the following, if true, would most seriously undermine the spokesperson’s argument?a)Most tax revenue collected in Northtown comes from business taxes.b)Most tax revenue collected in Southtown comes from business taxes.c)The net profits generated by Northtown businesses are currently twice those of Southtown businesses.d)Northtown has twice the population of Southtown.e)Southtown businesses generate twice as much sales revenue as do Northtown businesses.Correct answer is option 'C'. Can you explain this answer?
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The city of Northtown collects an average of $2.2 million in business taxes per year. Neighboring Southtown collects an average of $1.8 million in business taxes per year. Both cities assess business taxes on net profits. In an attempt to attract new businesses to Southtown, the spokesperson for the chamber of commerce of that city uses these statistics to claim that Southtown’s lower business tax rate offers amore favorable environment for business than can be found in Northtown.Which of the following, if true, would most seriously undermine the spokesperson’s argument?a)Most tax revenue collected in Northtown comes from business taxes.b)Most tax revenue collected in Southtown comes from business taxes.c)The net profits generated by Northtown businesses are currently twice those of Southtown businesses.d)Northtown has twice the population of Southtown.e)Southtown businesses generate twice as much sales revenue as do Northtown businesses.Correct answer is option 'C'. Can you explain this answer? for GMAT 2024 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about The city of Northtown collects an average of $2.2 million in business taxes per year. Neighboring Southtown collects an average of $1.8 million in business taxes per year. Both cities assess business taxes on net profits. In an attempt to attract new businesses to Southtown, the spokesperson for the chamber of commerce of that city uses these statistics to claim that Southtown’s lower business tax rate offers amore favorable environment for business than can be found in Northtown.Which of the following, if true, would most seriously undermine the spokesperson’s argument?a)Most tax revenue collected in Northtown comes from business taxes.b)Most tax revenue collected in Southtown comes from business taxes.c)The net profits generated by Northtown businesses are currently twice those of Southtown businesses.d)Northtown has twice the population of Southtown.e)Southtown businesses generate twice as much sales revenue as do Northtown businesses.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for GMAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The city of Northtown collects an average of $2.2 million in business taxes per year. Neighboring Southtown collects an average of $1.8 million in business taxes per year. Both cities assess business taxes on net profits. In an attempt to attract new businesses to Southtown, the spokesperson for the chamber of commerce of that city uses these statistics to claim that Southtown’s lower business tax rate offers amore favorable environment for business than can be found in Northtown.Which of the following, if true, would most seriously undermine the spokesperson’s argument?a)Most tax revenue collected in Northtown comes from business taxes.b)Most tax revenue collected in Southtown comes from business taxes.c)The net profits generated by Northtown businesses are currently twice those of Southtown businesses.d)Northtown has twice the population of Southtown.e)Southtown businesses generate twice as much sales revenue as do Northtown businesses.Correct answer is option 'C'. Can you explain this answer?.
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In an attempt to attract new businesses to Southtown, the spokesperson for the chamber of commerce of that city uses these statistics to claim that Southtown’s lower business tax rate offers amore favorable environment for business than can be found in Northtown.Which of the following, if true, would most seriously undermine the spokesperson’s argument?a)Most tax revenue collected in Northtown comes from business taxes.b)Most tax revenue collected in Southtown comes from business taxes.c)The net profits generated by Northtown businesses are currently twice those of Southtown businesses.d)Northtown has twice the population of Southtown.e)Southtown businesses generate twice as much sales revenue as do Northtown businesses.Correct answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of The city of Northtown collects an average of $2.2 million in business taxes per year. Neighboring Southtown collects an average of $1.8 million in business taxes per year. Both cities assess business taxes on net profits. In an attempt to attract new businesses to Southtown, the spokesperson for the chamber of commerce of that city uses these statistics to claim that Southtown’s lower business tax rate offers amore favorable environment for business than can be found in Northtown.Which of the following, if true, would most seriously undermine the spokesperson’s argument?a)Most tax revenue collected in Northtown comes from business taxes.b)Most tax revenue collected in Southtown comes from business taxes.c)The net profits generated by Northtown businesses are currently twice those of Southtown businesses.d)Northtown has twice the population of Southtown.e)Southtown businesses generate twice as much sales revenue as do Northtown businesses.Correct answer is option 'C'. Can you explain this answer?, a detailed solution for The city of Northtown collects an average of $2.2 million in business taxes per year. Neighboring Southtown collects an average of $1.8 million in business taxes per year. Both cities assess business taxes on net profits. In an attempt to attract new businesses to Southtown, the spokesperson for the chamber of commerce of that city uses these statistics to claim that Southtown’s lower business tax rate offers amore favorable environment for business than can be found in Northtown.Which of the following, if true, would most seriously undermine the spokesperson’s argument?a)Most tax revenue collected in Northtown comes from business taxes.b)Most tax revenue collected in Southtown comes from business taxes.c)The net profits generated by Northtown businesses are currently twice those of Southtown businesses.d)Northtown has twice the population of Southtown.e)Southtown businesses generate twice as much sales revenue as do Northtown businesses.Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of The city of Northtown collects an average of $2.2 million in business taxes per year. Neighboring Southtown collects an average of $1.8 million in business taxes per year. Both cities assess business taxes on net profits. In an attempt to attract new businesses to Southtown, the spokesperson for the chamber of commerce of that city uses these statistics to claim that Southtown’s lower business tax rate offers amore favorable environment for business than can be found in Northtown.Which of the following, if true, would most seriously undermine the spokesperson’s argument?a)Most tax revenue collected in Northtown comes from business taxes.b)Most tax revenue collected in Southtown comes from business taxes.c)The net profits generated by Northtown businesses are currently twice those of Southtown businesses.d)Northtown has twice the population of Southtown.e)Southtown businesses generate twice as much sales revenue as do Northtown businesses.Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice The city of Northtown collects an average of $2.2 million in business taxes per year. Neighboring Southtown collects an average of $1.8 million in business taxes per year. Both cities assess business taxes on net profits. In an attempt to attract new businesses to Southtown, the spokesperson for the chamber of commerce of that city uses these statistics to claim that Southtown’s lower business tax rate offers amore favorable environment for business than can be found in Northtown.Which of the following, if true, would most seriously undermine the spokesperson’s argument?a)Most tax revenue collected in Northtown comes from business taxes.b)Most tax revenue collected in Southtown comes from business taxes.c)The net profits generated by Northtown businesses are currently twice those of Southtown businesses.d)Northtown has twice the population of Southtown.e)Southtown businesses generate twice as much sales revenue as do Northtown businesses.Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice GMAT tests.
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