IBPS Clerk Mains 2019 Paper

Question : 39 of 190

Marks: +1, -0

Before the arrival of Joe, a new partner, sales output in Bill’s company, Midas in Revere Ltd., had been rising by10% per year on average. Innovations by Joe included computerization of technical processes and reductions in the work force, but annual sales output has only risen by5% per year. It appears that Joe’s innovations have caused the reduction in the annual growth rate.
Which of the following, if true, would most seriously weaken the conclusions above?

The investment in new machinery entails a provision for depreciation of the cost of the fixed assets, which causes a reduction in profit.
Midas in Reverse Ltd. Does not base increase in the selling price of its products with costs.
Joe’s innovations were intended as long-term investment and not made for short-term profit growth.
General demand for the product manufactured by the company has declined.
Workers laid off by Midas in Reverse Ltd. have been hired by a competitor who is taking an increasing share of the market.

Validate

Go to Question:

Prev Question

Next Question