Logical reasoning PrepTest 145 · Section 4 · Question 14

Incorrect. It's a part of an example, and those will almost never be the main point of an argument.

Incorrect. If the argument seeks to explain a phenomenon, it's businesses failing. However, the example here isn't a specific example of that—rather, it's a statement about one way that businesses can fail. If this were the correct answer, the statement would need to bring up a business that failed because of entrepreneurial and managerial shortcomings.

Incorrect. It's a part of an example that supports an intermediate conclusion that serves as part of the main point, so it's not an aside.

Incorrect. This answer is tempting because of the order of statements in the stimulus (the statement in question immediately preceding the main point of the argument). However, since it serves as part of an example, it supports the claim it's an example of—and that statement is the one preceding it.

Correct. Argument or Facts:
Argument

Valid or Flawed:
Valid

Question Type:
Argument Structure

Stimulus Summary:
Background Ð You need entrepreneurial skill to start a business
Example Ð Some companies fail because leaders mess up market trends/growth
Intermediate conclusion Ð Some companies fail because of management issues
Conclusion Ð Lacking managerial or entrepreneurial skills can hurt a business

Answer Anticipation:
The statement in question here is part of a sentence starting with, "For instance," so it's part of an example. That example is going to support the statement immediately preceding it, making that sentence (the pivot—"Yet") a conclusion. The final statement is also a conclusion ("Hence"), so we need to determine which statement is the intermediate conclusion and which is the main conclusion.

Since the final statement includes that intermediate conclusion and expands to include the opening/background statement, the pivot statement must support the final sentence, and thus it's the intermediate conclusion.

So the statement in question—the example—supports an intermediate conclusion that then goes on to support the main point.

Answer Explanation:
This answer reflects the structure of the argument. The statement in question is a part of an example that supports the intermediate conclusion of the argument, which in turn supports the main point of the argument.

Key Takeaway:
The phrase, "For example . . . " highlights that the following statement is a premise that's supporting the prior statement—it's a great structure phrase for that reason!