Free GMAT Practice Questions

Question 1 of 1
ID: GMAT-CR-10
Section: Verbal Reasoning - Critical Reasoning
Topic: Resolve the Paradox
Difficulty level: Easy

(Practice Mode: Single selected Question » Back to Overview)

At Keya Consumer Goods Limited, the year-on-year increase in the salary of the executives who head product lines depends only on the extent of revenue growth shown by their respective product lines during the year. The product line headed by Executive A showed a year-on-year revenue growth of 10 percent, while the product line headed by Executive B showed a year-on-year revenue growth of 50 percent. However, Executive A received a year-on-year salary increase of 40 percent, while Executive B received a year-on-year salary increase of only 5 percent.

Which one of the following, if true, most helps to explain the apparent discrepancy in the information given above?

AThe product line headed by Executive A accounts for 50 percent of the total annual costs of the company, while the product line headed by Executive B accounts for only 10 percent.
BExecutive A has consistently achieved higher year-on-year salary increase than Executive B for the past five years.
CExecutive A is better connected than Executive B with the senior executives who approve each year-on-year increase in the salary of the executives who head product lines.
DThe product line headed by Executive A operates in a shrinking market whose total revenue, across all companies, had a year-on-year decrease of 30 percent, while the product line headed by Executive B operates in a booming market whose total revenue, across all companies, had a year-on-year increase of 1000 percent.
EThe number of units sold by the product line headed by Executive A during the year was eight times that sold by the product line headed by Executive B.

Further information and related topics

When Should I Take the EA?

Image

Struggling to figure out how you will schedule enough time to take the GMAT? Good news, there is an alternative to the GMAT for many MBA programs in the form of the Executive Assessment. Finding the appropriate date to take the EA will help you feel more confident on test day with a prep schedule that fits into your already busy calendar.

Read more »

Love the EA

Image

Having anxiety over taking the Executive Assessment? If you read this article, you will see that it is a very learnable exam and there is no reason to worry. Implementing this knowledge will unlock your full potential and allow you to go into the preparation with a positive mental state.

Read more »

Adaptive Testing Explained

Image

Wouldn't it be great to know the average GMAT score of the business school of your dreams? You've studied hard for the GMAT, but are you fully sure of what ...

Read more »