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A prominent investor who holds a large stake in the Burton Tool Company has recently claimed that the company is mismanaged, citing as evidence the company's failure to slow down production in response to a recent rise in its inventory of finished products. It is doubtful whether an investor's sniping at management can ever be anything other than counterproductive, but in this case, it is clearly not justified. It is true that an increased inventory of finished products often indicates that production is outstripping demand, but in Burton's case it indicates no such thing. Rather, the increase in inventory is entirely attributable to products that have already been assigned to orders received from customers.
Q. In the argument given, the two boldfaced portions play which of the following roles? (underline)
  • a)
    The first states a generalization that underlies the position that the argument as a whole opposes; the second provides evidence to show that the generalization does not apply in the case at issue.
  • b)
    The first states a generalization that underlies the position that the argument as a whole opposes; the second clarifies the meaning of a specific phrase as it is used in that generalization.
  • c)
    The first provides evidence to support the conclusion of the argument as a whole; the second is evidence that has been used to support the position that the argument as a whole opposes.
  • d)
    The first provides evidence to support the conclusion of the argument as a whole; the second states that conclusion.
  • e)
    The first and the second each provide evidence against the position that the argument as a whole opposes.
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
A prominent investor who holds a large stake in the Burton Tool Compan...
Premise 1: An investor has claimed that Burton tool company is mismanaged. The evidence presented by him is failure to slow down production & increasing inventory of finished goods.
Premise 2: The author of the argument says in most cases the investors snipping has a positive effect on the strategy of a company, however in this case the investors claims are not justified. The author as a whole opposes the investors claim & provides a common view applicable for the situation and how it is not applicable in burton tool company's case
Conclusion: The argument as a whole thinks that the Burton tool company has valid reason for the inventory.
Analysis: The company strategy for holding inventory is justified with two supporting reasons by the author. The argument as a whole opposes the investors claims & justifies the case for burton tool company with supporting evidences.
(A) The first states a generalization that underlies the position that the argument as a whole opposes; the second provides evidence to show that the generalization does not apply in the case at issue. - Correct. The first provides a common view in favor of the opposing argument & the second proves that the first is not applicable in this case.
(B) The first states a generalization that underlies the position that the argument as a whole opposes; the second clarifies the meaning of a specific phrase as it is used in that generalization. - The second does not clarify meaning of first phrase. Incorrect
(C) The first provides evidence to support the conclusion of the argument as a whole; the second is evidence that has been used to support the position that the argument as a whole opposes. Incorrect. The first does not provide support for the conclusion
(D) The first provides evidence to support the conclusion of the argument as a whole; the second states that conclusion. - The second is not the conclusion. Incorrect.
(E) The first and the second each provide evidence against the position that the argument as a whole opposes. - Evidence is not against the position that is opposed. Incorrect.
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Irrespective of the general state of the economy, paying less for the same thing appeals to most consumers, who seem to have an intuitive dislike for inflation. But much as we may like to pay less, a sustained decline in prices, deflation, may not be in our best interests. Deflation, in fact, is considered to be a bigger evil than inflation, and evokes strong action by policymakers who would try everything possible to prop up prices. Deflation often results from a slowdown in which reduction in demand vis--vis supply causes prices to dip. With a sharp decline in prices, consumers tend to postpone purchases in the belief that prices will head further lower. This adds to the pressure on businesses, which in addition to a fall in prices also see an accumulation of inventory. Production cuts are hence resorted to, resulting in factory closures and consequent layoffs or salary cuts. With unemployment increasing, income levels in the economy fall, leading to further cuts in consumer spending and more pressure on prices. A vicious cycle emerges; the cascade effect is felt across sectors; and the economy goes into defeatist mode.To prevent deflations and to tackle the downward spiral caused by them, governments resort to large-scale spending, undertaking massive projects to increase employment, incomes, and prices and pumping in huge sums of money to propel demand. For instance, in the aftermath of the financial market crash in 2008, the US government undertook big-ticket stimulus measures and QE (quantitative easing) to revive the economy.However, not all dips in prices are bad. A fall in prices of goods and services due to technological innovations and increased competition could actually benefit both the consumers and the producers. Such a situation is very different from deflation, which affects prices across the economy on a sustained basis (mainly due to decreasing demand or liquidity problems) and which should indeed be considered a red flag.Which of the following describes the function of the final paragraph?

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A prominent investor who holds a large stake in the Burton Tool Company has recently claimed that the company is mismanaged, citing as evidence the companys failure to slow down production in response to a recent rise in its inventory of finished products. It is doubtful whether an investors sniping at management can ever be anything other than counterproductive, but in this case, it is clearly not justified. It is true thatan increased inventory of finished products often indicates that production is outstripping demand, but in Burtons case it indicates no such thing. Rather,the increase in inventory is entirely attributable to products that have already been assigned to orders received from customers.Q. In the argument given, the two boldfaced portions play which of the following roles? (underline)a)The first states a generalization that underlies the position that the argument as a whole opposes; the second provides evidence to show that the generalization does not apply in the case at issue.b)The first states a generalization that underlies the position that the argument as a whole opposes; the second clarifies the meaning of a specific phrase as it is used in that generalization.c)The first provides evidence to support the conclusion of the argument as a whole; the second is evidence that has been used to support the position that the argument as a whole opposes.d)The first provides evidence to support the conclusion of the argument as a whole; the second states that conclusion.e)The first and the second each provide evidence against the position that the argument as a whole opposes.Correct answer is option 'A'. Can you explain this answer?
Question Description
A prominent investor who holds a large stake in the Burton Tool Company has recently claimed that the company is mismanaged, citing as evidence the companys failure to slow down production in response to a recent rise in its inventory of finished products. It is doubtful whether an investors sniping at management can ever be anything other than counterproductive, but in this case, it is clearly not justified. It is true thatan increased inventory of finished products often indicates that production is outstripping demand, but in Burtons case it indicates no such thing. Rather,the increase in inventory is entirely attributable to products that have already been assigned to orders received from customers.Q. In the argument given, the two boldfaced portions play which of the following roles? (underline)a)The first states a generalization that underlies the position that the argument as a whole opposes; the second provides evidence to show that the generalization does not apply in the case at issue.b)The first states a generalization that underlies the position that the argument as a whole opposes; the second clarifies the meaning of a specific phrase as it is used in that generalization.c)The first provides evidence to support the conclusion of the argument as a whole; the second is evidence that has been used to support the position that the argument as a whole opposes.d)The first provides evidence to support the conclusion of the argument as a whole; the second states that conclusion.e)The first and the second each provide evidence against the position that the argument as a whole opposes.Correct answer is option 'A'. 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 A prominent investor who holds a large stake in the Burton Tool Company has recently claimed that the company is mismanaged, citing as evidence the companys failure to slow down production in response to a recent rise in its inventory of finished products. It is doubtful whether an investors sniping at management can ever be anything other than counterproductive, but in this case, it is clearly not justified. It is true thatan increased inventory of finished products often indicates that production is outstripping demand, but in Burtons case it indicates no such thing. Rather,the increase in inventory is entirely attributable to products that have already been assigned to orders received from customers.Q. In the argument given, the two boldfaced portions play which of the following roles? (underline)a)The first states a generalization that underlies the position that the argument as a whole opposes; the second provides evidence to show that the generalization does not apply in the case at issue.b)The first states a generalization that underlies the position that the argument as a whole opposes; the second clarifies the meaning of a specific phrase as it is used in that generalization.c)The first provides evidence to support the conclusion of the argument as a whole; the second is evidence that has been used to support the position that the argument as a whole opposes.d)The first provides evidence to support the conclusion of the argument as a whole; the second states that conclusion.e)The first and the second each provide evidence against the position that the argument as a whole opposes.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for GMAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A prominent investor who holds a large stake in the Burton Tool Company has recently claimed that the company is mismanaged, citing as evidence the companys failure to slow down production in response to a recent rise in its inventory of finished products. It is doubtful whether an investors sniping at management can ever be anything other than counterproductive, but in this case, it is clearly not justified. It is true thatan increased inventory of finished products often indicates that production is outstripping demand, but in Burtons case it indicates no such thing. Rather,the increase in inventory is entirely attributable to products that have already been assigned to orders received from customers.Q. In the argument given, the two boldfaced portions play which of the following roles? (underline)a)The first states a generalization that underlies the position that the argument as a whole opposes; the second provides evidence to show that the generalization does not apply in the case at issue.b)The first states a generalization that underlies the position that the argument as a whole opposes; the second clarifies the meaning of a specific phrase as it is used in that generalization.c)The first provides evidence to support the conclusion of the argument as a whole; the second is evidence that has been used to support the position that the argument as a whole opposes.d)The first provides evidence to support the conclusion of the argument as a whole; the second states that conclusion.e)The first and the second each provide evidence against the position that the argument as a whole opposes.Correct answer is option 'A'. Can you explain this answer?.
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(underline)a)The first states a generalization that underlies the position that the argument as a whole opposes; the second provides evidence to show that the generalization does not apply in the case at issue.b)The first states a generalization that underlies the position that the argument as a whole opposes; the second clarifies the meaning of a specific phrase as it is used in that generalization.c)The first provides evidence to support the conclusion of the argument as a whole; the second is evidence that has been used to support the position that the argument as a whole opposes.d)The first provides evidence to support the conclusion of the argument as a whole; the second states that conclusion.e)The first and the second each provide evidence against the position that the argument as a whole opposes.Correct answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. 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(underline)a)The first states a generalization that underlies the position that the argument as a whole opposes; the second provides evidence to show that the generalization does not apply in the case at issue.b)The first states a generalization that underlies the position that the argument as a whole opposes; the second clarifies the meaning of a specific phrase as it is used in that generalization.c)The first provides evidence to support the conclusion of the argument as a whole; the second is evidence that has been used to support the position that the argument as a whole opposes.d)The first provides evidence to support the conclusion of the argument as a whole; the second states that conclusion.e)The first and the second each provide evidence against the position that the argument as a whole opposes.Correct answer is option 'A'. 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(underline)a)The first states a generalization that underlies the position that the argument as a whole opposes; the second provides evidence to show that the generalization does not apply in the case at issue.b)The first states a generalization that underlies the position that the argument as a whole opposes; the second clarifies the meaning of a specific phrase as it is used in that generalization.c)The first provides evidence to support the conclusion of the argument as a whole; the second is evidence that has been used to support the position that the argument as a whole opposes.d)The first provides evidence to support the conclusion of the argument as a whole; the second states that conclusion.e)The first and the second each provide evidence against the position that the argument as a whole opposes.Correct answer is option 'A'. 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(underline)a)The first states a generalization that underlies the position that the argument as a whole opposes; the second provides evidence to show that the generalization does not apply in the case at issue.b)The first states a generalization that underlies the position that the argument as a whole opposes; the second clarifies the meaning of a specific phrase as it is used in that generalization.c)The first provides evidence to support the conclusion of the argument as a whole; the second is evidence that has been used to support the position that the argument as a whole opposes.d)The first provides evidence to support the conclusion of the argument as a whole; the second states that conclusion.e)The first and the second each provide evidence against the position that the argument as a whole opposes.Correct answer is option 'A'. 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(underline)a)The first states a generalization that underlies the position that the argument as a whole opposes; the second provides evidence to show that the generalization does not apply in the case at issue.b)The first states a generalization that underlies the position that the argument as a whole opposes; the second clarifies the meaning of a specific phrase as it is used in that generalization.c)The first provides evidence to support the conclusion of the argument as a whole; the second is evidence that has been used to support the position that the argument as a whole opposes.d)The first provides evidence to support the conclusion of the argument as a whole; the second states that conclusion.e)The first and the second each provide evidence against the position that the argument as a whole opposes.Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice GMAT tests.
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