A Minority but Influential Investor in Quell has Recently Claimed that the Company's Stock is Undervalued

Question: A minority but influential investor in Quell has recently claimed that the company's stock is undervalued, citing as evidence the announced plan of Quell's CEO, who is the majority shareholder, to sell the company in a short period of time. According to the minority investor, the CEO is permitting or even encouraging an undervalued stock price so that he may get the company sold and liquidate his stake in the company. By accusing the CEO of having personal motives allow the stock price to become distorted, however, the minority investor is guilty of the precise accusation that he himself is making. This investor is known for using his influence to attempt to sway public opinion and meddle in otherwise well-calibrated deals in order to drive up share prices for his personal financial benefit.

In the argument given, the two underlined portions play which of the following roles?

1. The first states the position that the argument as a whole opposes; the second provides reasoning to undermine the support for the position being opposed.
2. The first states the position that the argument as a whole opposes; the second is reasoning that has been used to support the position being opposed.
3. The first states the position that the argument as a whole opposes; the second states the conclusion of the argument as a whole.
4. The first is reasoning that has been used to support a position that the argument as a whole opposes; the second provides information to undermine the force of that reasoning.
5. The first is reasoning that has been used to support a position that the argument as a whole opposes; the second states the conclusion of the argument as a whole.

“A Minority but Influential Investor in Quell has Recently Claimed that the Company's Stock is Undervalued” – is a GMAT Critical question. This particular GMAT Critical Reasoning topic has been taken from the book ‘GMAT Critical Reasoning-By Manhattan Prep’. This weakens the argument type of the GMAT CR question. To answer the question, a candidate can either find a piece of evidence that would weaken the argument or have logical flaws in the argument. GMAT critical reasoning tests the logical and analytical skills of the candidates. This topic requires candidates to find the strengths and weaknesses of the argument, or find the logical flaw in the argument. The GMAT CR section contains 10 -13 GMAT critical reasoning questions out of 36 GMAT verbal questions.

Answer: C
Explanation: This is a GMAT critical reasoning question. An assumption is an implied hypothesis. So we are looking for something that is implied in the argument. In case it is wrong or maybe disable the argument.
Let us analyse the assumptions to get the correct one that fits the argument.

1. The first states the position that the argument as a whole opposes; the second provides reasoning to undermine the support for the position being opposed.
   In Option A, the first part is correct. The second part does not state the reason but a conclusion. Hence this is incorrect. 
2. The first states the position that the argument as a whole opposes; the second is reasoning that has been used to support the position being opposed.
   In Option B, the first part is correct. The second part does not state the reason but a conclusion. Hence this is incorrect.
3. The first states the position that the argument as a whole opposes; the second states the conclusion of the argument as a whole.
   In option C, both the parts are correct. It correctly states the argument and reason. Hence option C is the correct answer. 
4. The first is reasoning that has been used to support a position that the argument as a whole opposes; the second provides information to undermine the force of that reasoning.
   Option D is incorrect as the underlined portion is claimed by the investor. The second part does not support the first part. Hence incorrect answer. 
5. The first is reasoning that has been used to support a position that the argument as a whole opposes; the second states the conclusion of the argument as a whole.
   In option E, the first does not justify the second. Hence option E is an incorrect answer. 

Suggested GMAT Critical Reasoning Questions

1. According to a study, after a week of high-altitude living, twenty men had slimmed down.
2. Shelby Industries Manufactures and Sells the Same Gauges as Jones Industries.
3. Building a space station, in which astronauts would live for a considerable time
4. The interview is an essential part of a successful hiring program because, with it, job applicants who have personalities that are unsuited to the requirements of the job will be eliminated from consideration.
5. According to a recent study, retirees in the United States are four times more likely to give regular financial aid to their children as to receive it from them.
6. Using oil-based paints to paint walls or furniture requires the use of turpentine and each coat takes a long time to dry.
7. President of the United States: I have Received over 2,000 Letters on this Issue, and the Vast Majority of them Support my Current Position.
8. Roland: The alarming fact is that 90 percent of the people in this country now report that they know someone who is unemployed.
9. TOMMY: That telephone always rings when I am in the shower and can’t hear it.
10. A major network news organization experienced a drop in viewership in the week
11. Experienced pilots often have more trouble than novice pilots in learning to fly
12. It is Difficult to Keep Deep Wounds Free of Bacteria.
13. Jane drinks 4 Cups of Coffee Every Day.
14. Johnson is on Firm Ground When he Asserts that the Early Editors of Dickinsons Poetry Often Distorted her Intentions
15. One Reason why European Music has had Such a Strong Influence Throughout the World
16. The Elk City Garbage Dumps are so Full that Elk City has Been Forced to Pay a Large Sum to Caribou City to Accept much of Elk City’s Garbage.
17. Turtles, like Other Reptiles, can Endure Long Fasts, in their Ability to Survive on Weekly
18. A Diet High in Saturated Fats Increases a Person's Risk of Developing Heart Disease
19. Carol is Shorter Than Juan, But She is Taller than Ed. Sandra is Shorter than Juan, and She is Shorter than Ed
20. Ethicist: It Would be a Mistake to Say that Just Because Someone is Inclined to do Otherwise