A global technology firm reported in its 2022 annual review that three of its four sectors achieved significant growth, a notable change from the previous year when only the Asian sector showed any increase in revenue. The Chief Financial Officer attributed this success to a new initiative aimed at enhancing digital services in emerging markets.

Which of the following, if true, would most seriously undermine the CFO's assertion regarding the firm's improved revenue performance?

Answer Choices

Correct answer marked below

The technology firm launched several new digital service products that were well-received in established markets.

The growth in the Asian sector was primarily due to a one-time government contract that will not recur.

Correct

The other sectors experienced a decline in operational costs due to improved efficiency.

The firm invested heavily in marketing campaigns that did not yield any measurable results.

The company had previously reported losses in all sectors before the last fiscal year.

See the full step-by-step explanation

You can see the correct answer above. Sign in for free to unlock the complete worked solution.

Track your performance and improve

Get detailed analytics, unlock full explanations, and move up difficulty tiers as you practice.

Start for free Sign in

Explanation

Preview

Official Explanation

Official

To determine which statement most seriously undermines the CFO's assertion, we need to analyze the options. The CFO claims that the growth is due to a new initiative in emerging markets. If the growth in the Asian sector was primarily due to a one-time government contract that will not recur, it…

Read the full explanation

Create free account Sign in

Comments

SanyaFeb 24, 2025

thanks for the answer

RohanMay 3, 2024

taking my GMAT next month, this helps!

What this question tests

What it tests

Whether you can identify the option that most undermines an argument's conclusion.

Common trap

Choosing an irrelevant objection or one that attacks the premise rather than the reasoning.