Question: Merco has been in business longer than Nolen. Inc, Olean Industries was founded years before the Potter Company, and the Potter Company was started years after the Quarles Corporation. Nolen, Inc., and the Quarles Corporation were founded in the same year.
If the information above is true, which of the following must also be true?

(A) Olean Industries has been in business for more years than Merco.
(B) Olean Industries has been in business for more years than the Quarles Corporation.
(C) Nolen, Inc., has not been in business for as many years as Olean Industries.
(D) Merco has been in business for more years than the Potter Company.
(E) Nolen, Inc., has not been in business for as many years as the Potter Company.

Correct Answer: D
Explanation: The argument of the passage claims that the company Merco has existed in business for longer years than Nolen Inc. It also claims that the company Olean Industries was established before the Potter Company. The passage further argues that the Potter company was launched after the establishment of Quarles Corporation. It was further mentioned that Nolen Inc and Quarles Corporation were established in the identical year. Therefore, the passage gives rise to three different possibilities with respect to the number of years they lead in business. These three possibilities are:

(i) Merco > Quarles = Nolen > Olean > Potter,
(ii) Merco > Olean > Quarles = Nolen > Potter, and
(iii) Olean > Merco > Quarles = Nolen > Potter.

The answer choice D clearly depicts that the company Merco has been leading the business for greater years than the Potter Company. Hence, it is evident that the answer choice satisfies all three possibilities. Therefore, option D is the correct answer. Let’s take a look at the other options.

Option A
As per the condition of the passage, it gives rise to three different possibilities in relation to the number of years they execute the business. These three possibilities are:

(i) Merco > Quarles = Nolen > Olean > Potter,
(ii) Merco > Olean > Quarles = Nolen > Potter, and
(iii) Olean > Merco > Quarles = Nolen > Potter.

The answer choice A states that Olean Industries has existed in business for greater years than Merco. From the above possibilities, it is therefore evident that the statement does not agree with any one of the three possibilities. Hence, option A holds irrelevant facts that do not support the content of the passage. Hence, option A is an incorrect answer choice and thereby gets eliminated.

Option B

As per the condition of the passage, three different possibilities can be deduced in relation to the number of years they accomplish the business. These three possibilities are:

(i) Merco > Quarles = Nolen > Olean > Potter,
(ii) Merco > Olean > Quarles = Nolen > Potter, and
(iii) Olean > Merco > Quarles = Nolen > Potter.

The answer choice B depicts that Olean Industries has been reigning the business for greater years than the Quarles Corporation. According to the three possibilities derived from the passage, the statement is true only for the second and third possibilities. However, the statement is irrelevant for the first possibility as per the conditions of the passage. Therefore, it cannot be guaranteed whether Olean Industries has reigned for greater years than the Quarles Corporation or not. Hence, option B is an incorrect answer choice since it does not support the content of the passage. Thus, option B gets eliminated.

Option C

As per the condition of the passage, three different possibilities can be inferred with respect to the number of years they accomplish the business. These three possibilities are:

(i) Merco > Quarles = Nolen > Olean > Potter,
(ii) Merco > Olean > Quarles = Nolen > Potter, and
(iii) Olean > Merco > Quarles = Nolen > Potter.

The answer choice C illustrates that Nolen, Inc., has not existed in business for as many years as Olean Industries. The passage precisely represents the first possibility that Nolen has reigned the business for more years than Olean Industries. Therefore, the statement is false for the first possibility. However, the statement is true for the second and third possibilities as per the conditions of the passage. Therefore, it cannot be surely confirmed whether Nolen, Inc., has not existed in business for as many years as Olean Industries or not. Hence, option C is an incorrect answer choice since it does not support the content of the passage. Thus option C gets eliminated.

Option E

As per the condition of the passage, three different possibilities can be concluded in relation to the number of years they execute the business. These three possibilities are:

(i) Merco > Quarles = Nolen > Olean > Potter,
(ii) Merco > Olean > Quarles = Nolen > Potter, and
(iii) Olean > Merco > Quarles = Nolen > Potter.

The answer choice E states that Nolen, Inc., has not existed in business for as many years as the Potter Company. The passage precisely illustrates in all three possibilities that Nolen has reigned the business for more years than Potter Company. Therefore, the statement in this answer choice holds irrelevant facts that do not support any one of the possibilities. Hence, option E is an incorrect answer choice since it does not meet the content of the passage. Thus option E gets eliminated.

“Merco has been in business longer than Nolen. Inc, Olean Industries was”- is a GMAT critical reasoning topic of the GMAT exam. This topic has been taken from the book “GMAT Graduate Management Admission Test Exam Practice Questions & Dumps”.This GMAT critical comes with five options and candidates need to choose the one which is correct. The GMAT critical reasoning section is designed to test the analytical and rational skills of the candidates.

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