LSAT 102 | Section 2 | Logical Reasoning: Q18

LR Question 18 Explanation

QUESTION TEXT: President of Central Supply Company: Profits are at…

QUESTION TYPE: Flawed Reasoning

CONCLUSION: We have to slow down our expansion or get rid of some less profitable divisions.

REASONING: We might go bankrupt if our profits stay low.

ANALYSIS: This is a really bad argument. There are a million and one ways a company can save money. For some reason, the president thinks there are only two.

___________

1. This is fine to assume. Most companies are better off not failing.
2. The president is aware that there is an alternative. If the company doesn’t lose money, they’ll do alright.
3. The president didn’t say that decreased demand is the only cause of lower profits. He said that this time, decreased demand was to blame.
4. The company might not survive until the next fiscal year if it doesn’t increase profits.
5. CORRECT. There are as many ways for a company to cut costs as there are expenses.

Recap: The question begins with “President of Central Supply Company: Profits are at”. It is a Flawed Reasoning question. Learn more about LSAT Flaw questions in our guide to LSAT Logical Reasoning question types.