Source: Official Guide for GMAT Review 2016 Critical Reasoning; #7

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# Which of the following, if true, most helps

Which of the following, if true most helps to explain why Suncorp has been pursuing the less profitable of the two economic activities mentioned above?

### 1 Explanation

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John Robertson

Question: Why is Suncorp pursing cattle ranching in the Amazon, given the information that rubber tapping doesn't destroy the forest like ranching, and is more profitable than cattle ranching.

Important supporting info: I missed until I reviewed after the fact, but Suncorp has limited funds.

A: WRONG: This had some potential at first so I marked it as a maybe and narrowed it down to this and choice E. This shows why cattle ranching could be profitable (great soil), but it doesn't drill down into the WHY CATTLE NOT RUBBER question we're trying to answer specifically. So that, plus the Amazon obviously is great for rubber tapping as well based off the prompt, so either industries clearly work, made me mark this wrong as it doesn't truly explain Suncorp choosing cattle over rubber.

B: WRONG: This seemed to be a bit of a question meant to misguide you. Cattle ranching is more profitable in warm climates than cold..but that comparison is nowhere in the prompt as relevant info (i.e. Suncorp is mandated by law to only do cattle ranching and they can choose Siberia or Amazon) and doesn't answer Cattle v. Rubber. Rubber could be more profitable in warm v. cold climates, who knows.

C: WRONG: If cattle ranching is less profitable, it doesn't explain why Suncorp chose it, the point of the question.

D: WRONG: another disadvantage of cattle ranching, doesn't explain why Suncorp chose it.

E: CORRECT: Before I reviewed this (and noticed the bit about limited start up funds), I decided this was better than A, because it clearly states why Suncorp/any company would choose cattle over rubber- the rubber has higher startup costs. Going back to the prompt after, it states Suncorp has limited funds, so a company with limited funds could logically choose Cattle over Rubber for this reason, all else equal.

Dec 29, 2016 • Comment