Free Practice Question
CR · Critical Reasoning
555-605
Weaken
A global technology firm reported in its 2022 financial summary that three of its four product lines were profitable, a significant increase from the previous year when only the mobile division was in the black. The Chief Financial Officer attributed this success to a new marketing strategy targeting younger consumers.
Which of the following, if true, would most seriously weaken the CFO's assertion regarding the reasons for the firm's improved profitability?
Answer Choices
Correct answer marked belowA
The technology firm launched several new products that were well-received in the market last year.
B
The other product lines did not see any major changes in their operational costs.
The firm implemented a new accounting policy that allowed it to recognize revenue from sales earlier than before.
Correct
D
The company reduced its workforce in the unprofitable divisions to cut costs significantly.
E
The technology firm had previously experienced higher profits across all divisions five years ago.
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Explanation
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Official Explanation
Official
To determine which option most seriously weakens the CFO's assertion, we need to analyze the implications of each statement. The CFO claims that the new marketing strategy targeting younger consumers is responsible for the improved profitability. If we consider option C, which states that the firm implemented a new accounting policy allowing it to recognize revenue from sales earlier, this suggests that the reported profits may not be entirely due to…
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P
PradJan 16, 2025
Amazing
E
ekaApr 27, 2025
Thankss
A
AbhayMay 17, 2024
Amazing
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.
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Details
Difficulty
555-605
Type
CR