LSAT Explanation PT 25, S2, Q18: President of Central Supply Company: Profits

LSAT Question Stem

Which one of the following most accurately describes a flaw in the company president's reasoning? 

Logical Reasoning Question Type

This is a Flaw question. 

Correct Answer

The correct answer to this question is E. 

LSAT Question Complete Explanation

First, let's analyze the argument in the passage. The president of Central Supply Company states that profits are at an all-time low this fiscal year due to decreased demand for their products. This is a premise. The president then concludes that if this situation continues, the company may have to declare bankruptcy. This is another premise. The president then states that it is important to prevent any further decrease in profits, which is a conclusion. Based on this conclusion, the president presents two options: reduce planned expansion or eliminate some less profitable existing operations.

An "Evaluate" question for this argument could be: "Are there any other ways to stop the decrease in profits?"

The question type of this problem is Flaw, which means we need to identify the flaw in the company president's reasoning. The correct answer is E.

Now, let's discuss each answer choice in detail:

a) This answer choice suggests that the president presumes the survival of the company is a good thing without justification. However, this is not a flaw in the president's reasoning, as it is reasonable for the president to assume that the company's survival is a good thing.

b) The president does not take into account alternatives to declaring bankruptcy, but this is not the main flaw in the argument. The main focus of the argument is about preventing further decrease in profits, not about alternatives to bankruptcy.

c) While the president does state that decreased demand is the cause of decreased profits, they do not presume that it is the only cause. This answer choice does not accurately describe the flaw in the argument.

d) The president does not allow for the possibility that profits will decrease only slightly during the next fiscal year. However, this is not the main flaw in the argument. The main flaw is related to the options presented to stop the decrease in profits.

e) This answer choice correctly identifies the flaw in the president's reasoning. The president does not take into account that there may be other ways to stop the decrease in profits. By stating that the only options are to reduce planned expansion or eliminate some less profitable existing operations, the president is committing a false dilemma, which is a flaw in the argument. This is the correct answer.

In summary, the correct answer is E, as it accurately describes the flaw in the president's reasoning by pointing out the false dilemma of presenting only two options to stop the decrease in profits.