This winter, we will be studying the Analytical Writing Assessment (AWA) task. Questions usedare all from the Pool of Sample Topics available in the Official Guide to the GMAT. Alert, some ofthe questions will look familiar when you actually take the test.
Now, we will be reading the question:
[Brief Passage No. 48]
The following appeared in the editorial section of a local newspaper:
"The profitability of Croesus Company, recently restored to private ownership, is a clearindication that businesses fare better under private ownership than under public ownership.
Since the first time we launched this GMAT AWA program, we have received questions aboutthe length of a typical GMAT AWA essay. Today, the question will be answered as the followingsample essay -its body is of the typical length.
Introduction
Body
First, the author obviously omits to consider the multiple other factors that also decidewhether a business fares well but only sees profitability. The many other factors include thebusiness's market share, brand awareness, and having a committed staff. However, those factorsare automatically ruled out without proper explanation.
Second, the author assumes that Croesus Company' s profits are credited to the privateownership. This is a questionable assumption, since the restoration was recent and what actuallycontributed to the company’s profitability might have been before the restoration. ln addition, itis not unlikely that the profitability of Croesus Company is not associated with the company’sownership at all. Instead, the Croesus’ s profits may have been produced by capable executivesregardless of the ownership under which the company does business. Also, likely, it is the favorableconditions of the market, rather than the ownership, that has contributed to the company'sprofitability.
In addition, the differences between businesses are not taken into the author’ s consideration.Because of the disparities, private ownership may be helpful for Croesus Company as one companyin one industry and unhelpful for other businesses, in the same industry or in other industries.
At the end of the argument, there is another dubious assumption that Croesus Company hadbeen publicly owned before its recent restoration to the private ownership. However, if thecompany was jointly owned by both private owners and the public, as we call it mixed ownershipthe author cannot safely draw the conclusion that private ownership is more favorable than publicownership.
(The body of this essay is 256 words in length.)
