PrepTest 127

Incorrect. There's no discussion of increased funding, just the possibility that a move into food services will siphon existing funds away from a time-proven success.

Incorrect. The Shareholder specifically notes that a move into food services might siphon funds off from current operations, but just because she fails to say the same about pharmaceuticals doesn't imply that it's not true for that move. That'd be like saying since buying a new TV could siphon funds away from food, and it's less useful than buying a new vacuum, that therefore the vacuum money couldn't be used for food.

Incorrect. The Shareholder notes that it's riskier to move into food services—that implies there's the chance to make money, but it's just less certain than moving into another area. Therefore, it's too strong to say that the company "will" lose money by making that move.

Incorrect. There's nothing strong enough in the stimulus to support this answer ("Only if"). First, the stimulus only discusses two potential moves (food services; pharmaceuticals). Second, the Shareholder leaves open the possibility that the company could increase profits by moving into food services—it's just riskier than one other option.

Correct. Argument or Facts:
Facts

Question Type:
Must Be True

Stimulus Summary:
Current operations - Time-proven successes
Considered moves - Food services; Pharmaceuticals
Food services - Might siphon off resources from successful enterprises
Food services vs. Pharmaceuticals - Food services is more volatile and riskier

Answer Anticipation:
This argument features a type of logic that frequently leads to the correct answer in a Must Be True question—comparative logic. While a lot of information is presented about the current operations and food services, there's a key line at the end.

There, the Shareholder compares a move into food services and a move into pharmaceuticals. The former, she notes, is riskier. While it's unclear what direction the correct answer will take on that front, it's likely going to be key to the correct answer, so let's head down to analyze them with this in mind.

Answer Explanation:
The point of comparison between the two moves being considered by the company—food services and pharmaceuticals—is that the former is riskier than the latter, thus supporting the answer that the company is more likely to lose money by going with that option.

Key Takeaway:
Must Be True questions tend to use the same types of statements to lead to correct answers—comparative statements, causal relationships, conditionals, and strong statements. When you find one in a Must Be True question, use it as a basis for your anticipation!