PrepTest 132, Section 2, Question 4
Carol Morris wants to own a majority of(48 more words not shown)
Which one of the following,(11 more words not shown)
- AAzedcorp does not(9 more words not shown)
- BMorris has recently(15 more words not shown)
- CNo one other(15 more words not shown)
- DMorris already owns(9 more words not shown)
- EAzedcorp is financially(14 more words not shown)
Reading the argument
Wanting to own a newspaper doesn't make its owner willing to sell. I might want a majority of Amazon too. That doesn't tell us how I'd get it.
But the next sentence settles a lot: Azedcorp's refusal is Morris's only obstacle. So we shouldn't invent a separate problem with her resources. The question is how she gets past an owner who won't sell. If I refuse to sell my pen, your having money doesn't by itself put that pen in your pocket.
What could change? Perhaps Morris offers an extraordinary price. Perhaps she acquires the company that owns the shares. Or perhaps Azedcorp suddenly needs money. Those are possibilities to explore. The analysts could also simply be wrong; their confidence doesn't remove the obstacle.
What we’re looking for
We're asked to support their prediction. Give us a reason to expect that the refusal won't keep blocking Morris. Then read carefully: an answer that sounds like one of our guesses still has to supply the relevant change.
Working the answers
- A
Other newspapers aren't the issue. Whether Azedcorp owns one newspaper or ten doesn't show that it will part with its shares of The Daily.
- B
More than Azedcorp paid isn't necessarily an attractive offer today. Suppose it bought shares for $1 each, they're now worth $5, and Morris offers $2. She has offered twice the purchase price and still offered far less than their current value.
This resembles the high-offer prediction, but it doesn't establish that extraordinary offer. Even a genuinely generous offer might not persuade an owner attached to the business. B leaves the refusal in place; E gives us a much stronger reason it won't matter.
- C
Being the only person to express interest doesn't make the owner sell. Azedcorp could keep the shares. Nor does the absence of other expressed interest establish that no other buyer could ever appear. The central obstacle is the refusal, not a bidding contest.
- D
Second place still isn't a majority. Morris could own more shares than every other minority shareholder while Azedcorp retains its controlling stake. This tells us her position without showing a way around the owner's refusal.
- ECorrect
Azedcorp will probably be forced to sell soon. That directly addresses why its wishes may no longer prevent a sale: financial trouble could remove its ability to keep the newspaper holdings.
The passage says refusal is Morris's only obstacle. Evidence that this obstacle will probably disappear therefore supports the prediction that she will soon gain the majority. We don't have to invent a rule about every bankruptcy; the answer itself supplies the probable forced sale.
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