PrepTest 56, Section 3, Question 2
Shareholder: The company's current operations are time-proven successes. The move into food services may siphon off funds needed by these other operations. Also, the food service industry is volatile, with a higher inherent risk than with, for instance, pharmaceuticals, another area into which the company has considered expanding.
Shareholder: The company's current operations are time-proven successes. The move into food services may siphon off funds needed by these other operations. Also, the food service industry is volatile, with a higher inherent risk than with, for instance, pharmaceuticals, another area into which the company has considered expanding.
Shareholder: The company's current operations are time-proven successes. The move into food services may siphon off funds needed by these other operations. Also, the food service industry is volatile, with a higher inherent risk than with, for instance, pharmaceuticals, another area into which the company has considered expanding.
Shareholder: The company's current operations are time-proven successes. The move into food services may siphon off funds needed by these other operations. Also, the food service industry is volatile, with a higher inherent risk than with, for instance, pharmaceuticals, another area into which the company has considered expanding.
If the shareholder's statements are true, which one of the following is most strongly supported by them?
The company's present operations require increased funding.
Investment into pharmaceuticals would not siphon off money from other operations.
The company will lose money as it expands into the food service industry.
Only if the company expands its operations into pharmaceuticals are increased profits possible.
The company has a greater chance of losing money in food services than in pharmaceuticals.
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