Which of the following,if true,would MOST strongly support Jonathan's contention?
A) AB Distributor is a relatively new company.
B) AB Distributor is a for-profit company.
C) AB Distributor's costs have decreased from the previous year.
D) AB Distributor's competitors have had increased revenue.
E) AB Distributor has hired more employees recently.

Question

Quizplus · Accepted Answer

C)Since profit is revenue minus costs, a decrease in costs while revenue increases would certainly entail higher profitability. Choice A would not be directly relevant to whether the company is more profitable, since it could be more or less profitable regardless of whether the company is new. Choice B simply states that the company's objective is to make profit; it does not tell whether the company has actually succeeded in its profitability. Choice D is not directly relevant to whether the company has been profitable; it may be profitable or unprofitable while its competitors have also increased revenue. Choice E might weaken the claim since it would involve an increase in costs.

Which of the Following,if True,would MOST Strongly Support Jonathan's Contention