Which of the following points out a flaw in Jonathan's reasoning?
A) Information about the company's expenses is necessary to tell whether it is profitable.
B) AB Distributor may have lost money the previous year.
C) Most of AB Distributor's employees are relatively new.
D) Not all of the revenue may contribute toward profits.
E) Many of AB Distributor's competitors may not be doing as well.

Question

Quizplus · Accepted Answer

A)Profitability is revenue minus costs, so not knowing whether costs have increased is a hindrance to knowing whether the company is profitable. Choice B is not directly relevant to how profitable the company is for the current year. Choice C does not undermine the fact that the company's revenues have increased. Choice D cannot undermine the contribution of revenues to profitability, because by definition all revenues contribute to profitability. Choice E is incorrect because it is not relevant to whether AB Distributor has been profitable.

Which of the Following Points Out a Flaw in Jonathan's