📊 GMAT Exam Prep

An argument claims that "Company X's profits increased by 50% last quarter, proving its exceptional growth." An AWA essay critiquing this statement should most likely question which of the following?

A The company's overall market share in the industry.
B The actual absolute value of the profit increase, as 50% of a small number might still be small.
C The ethical implications of the company's business practices.
D The historical trend of profit growth over the past decade.

✓ Correct Answer: Option B

A percentage increase alone can be misleading; 50% of a very small base profit might still result in a minimal absolute profit. The essay should question the significance of the percentage without absolute numbers.

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