My understanding ->Structure of the argument ->- The author first
defines "outsourcing" for us: opting for a 3rd party for a product/service instead of continuing to do it in-house.
BF1 - is simply the author providing a definition.- Now, we see the
analysts' argument presented:
>>
Their conclusion: a company should outsource if an independent supplier can provide the product/service at a lower cost
>> The
justification provided:
because the goal of any company is to maximize its profit.
(less cost helps create more profit).- Next, we see a
claim made by the author. We realize that this claim is technically
a conclusion as we read on, because the author provides a reasoning for it in subsequent sentences.
>>
Author's conclusion: That goal
(maximizing profits), however, could require a company to make the opposite decision
(i.e., in-house instead of outsourcing). -
Author's reasoning for the above conclusion:
>> Companies that outsource generally dismantle some of their capabilities
(BF2). Factual truth.>> In doing so, they may become dependent on some suppliers
>> The companies have no control on these suppliers. So, their ops, their supply is not safe
(these could impact profits). It could be threatened because they are dependent on suppliers they have zero control over.
The above reasoning supports the author's conclusion that the goal of maximising profits could
require i.e., make it mandatory for a company to go in-house rather than outsource.
(because in the case of outsourcing, there could be a legitimate threat to profits because of dependency on suppliers the company has no control over).BF2 - is clearly a fact that is used to support a conclusion made by the author. But wait - is the above conclusion the author's main conclusion from the overall argument?
No. The author adds a little something extra here.
- "Thus, a company's long-term profitability might be better protected by not outsourcing."
>>
Main Conclusion: A company's long-term profitability might be better protected by not outsourcing.
>>
Reasoning: Because
it could be that the goal of maximising profits can only be achieved ("require") by going in-house rather than outsourcing (intermediate conclusion), it is that a company's long term profitability might actually be better protected by not outsourcing.
So, in essence ->
BF1 - is simply the author providing a definition.BF2 - is a fact that is used to support an intermediate conclusion made by the author, which is used to support the main conclusion of the argument.Choice E makes most sense.
Choice Analysis- Choice A:
- BF1
- Outsourcing can be called a phenomenon.
- But the explanation of what outsourcing is is not an issue in the argument.
- BF1 is incorrect.
- BF2
- The second is a fact related to outsourcing (what happens when outsourcing is done). It is not an explanation of what outsourcing is. More importantly, it is considered as a factual truth. The argument does not “conclude” that it is correct. It is considered correct as is.
- So, BF2 is also shady.
- Choice B:
- BF1
- Same as choice A. Incorrect.
- BF2
- BF2 is evidence used to support the intermediate conclusion that the goal of maximising profits could require a company to go for in-house instead of outsourcing. It is not evidence in support of some proposed explanation of the phenomenon of outsourcing. Beyond the stated definition, there is no explanation of outsourcing. “Proposed explanation of that phenomenon” does not make much sense.
- BF2 is also incorrect.
- Choice C:
- BF1
- Correct. The whole argument is concerned with outsourcing. BF1 provides the definition of this key term.
- BF2
- BF2 is a factual truth (premise) used to support the intermediate conclusion. It is not the intermediate conclusion.
- BF2 is incorrect.
- Choice D:
- BF1
- Correct. Same as choice C.
- BF2
- BF2 is a generalization, yes. It tells us something companies that outsource generally do.
- It is used to support a conclusion. Also yes, as we have seen before.
- But the conclusion BF2 supports is not something the argument rejects. Nope. That conclusion is in fact used to support the main conclusion of the argument.
- So, BF2 is incorrect.
- Choice E:
- BF1
- Correct. Same as choice C.
- BF2
- BF2 can be considered as evidence.
- It is indeed used to support an intermediate conclusion.
- That intermediate conclusion is indeed used to support the main conclusion of the argument.
- So, BF2 is also correct.
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Harsha
Enthu about all things GMAT | Exploring the GMAT space | My website: gmatanchor.com