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GRE Prep Club Team Member
Joined: 20 Feb 2017
Posts: 2506
Given Kudos: 1055
GPA: 3.39
Kitchen magazine plans to license the use of its name by a line of coo
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26 Mar 2022, 02:42
26 Mar 2022, 02:42
Expert Reply
Question 1
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Question Stats:
43% (02:05) correct
57% (02:12) wrong based on 14 sessions
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Kitchen magazine plans to license the use of its name by a line of cookware. For a magazine, licensing the use of its name for products involves some danger, since if the products disappoint consumers, the magazine's reputation suffers, with consequent reduction in circulation and advertising. However, experts have evaluated the cookware and found it superior to all other cookware advertised in Kitchen. Therefore, Kitchen can collect its licensing fees without endangering its other revenues.
The argument above assumes which of the following?
(A) No other line of cookware is superior to that which will carry the Kitchen name.
(B) Kitchen will not license the use of its name for any products other than the line of cookware.
(C) Makers of cookware will not find Kitchen a less attractive advertising vehicle because the magazine's name is associated with a competing product.
(D) Consumers who are not regular readers of Kitchen magazine will be attracted to the cookware by the Kitchen name.
(E) Kitchen is one of the most prestigious cooking-related magazines.
Target Test Prep Representative
Joined: 13 Jul 2021
Posts: 32
Given Kudos: 416
Re: Kitchen magazine plans to license the use of its name by a line of coo
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27 Mar 2022, 10:30
27 Mar 2022, 10:30
1
Expert Reply
To find the correct answer to this question, we have to determine what must be true in order for the conclusion "Kitchen can collect its licensing fees without endangering its other revenues" to follow from the facts presented in the passage.
So, notice that, if (C) Makers of cookware will not find Kitchen a less attractive advertising vehicle because the magazine's name is associated with a competing product is not true, then Kitchen may endanger its advertising revenue by licensing its name by a line of cookware. After all, if makers of cookware WILL find Kitchen a less attractive advertising vehicle because the magazine's name is associated with a competing product, then makers of cookware may reduce their use of Kitchen for advertising when Kitchen associates its name with a line of cookware.
The correct answer is (C).
So, notice that, if (C) Makers of cookware will not find Kitchen a less attractive advertising vehicle because the magazine's name is associated with a competing product is not true, then Kitchen may endanger its advertising revenue by licensing its name by a line of cookware. After all, if makers of cookware WILL find Kitchen a less attractive advertising vehicle because the magazine's name is associated with a competing product, then makers of cookware may reduce their use of Kitchen for advertising when Kitchen associates its name with a line of cookware.
The correct answer is (C).
gmatclubot
Re: Kitchen magazine plans to license the use of its name by a line of coo [#permalink]
27 Mar 2022, 10:30
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