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Critical Reasoning: Inference Questions

Which of the following best completes the passage below?

Prices for home cinema equipment are decreasing dramatically, allowing many people to install such cinemas in their own homes. This factor coupled with the accesibility of films through online rentals, downloads, and purchases has led to a boom in the number of films being watched internationally. However, because of the availability of a variety of cheap methods for the illicit distribution of entertainment materials, investors are to __________.

Incorrect.

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This answer choice is more like an additional premise than a conclusion. The issue of tax is not discussed in the argument so a statement revolving around tax cannot be a logical conclusion.

Incorrect.

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This answer choice cannot be inferred from the premises as it fails to consider the last premise. If movies are being sold illegally using cheap methods, then investing in them does not make much sense, especially if distributing them worldwide requires no special adaptation.

Incorrect.

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This answer choice cannot be inferred from the premises as it fails to consider the last premise. If movies are being sold illegally using cheap methods, then investing in them does not make much sense, irrelative to the question of which genres are the most successful.

Incorrect.

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This answer choice contradicts premise A and cannot, therefore, be a conclusion to the argument. If many people are buying home cinema equipment, then it seems quite logical to invest in retail outlets or developers that are dealing with that kind of product.

Exactly right!

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This answer choice provides a logical conclusion to the argument. The last premise tells us that people are viewing movies without paying. Therefore, it seems quite logical to conclude that investments whose returns are based on paid views are unwise.

keep accurate documentation of any profits earned from the sales or royalties of a particular movie for tax purposes
invest in films that can be easily marketed to international audiences without making serious changes to the actual content
avoid financial ventures or acquisitions related to the industry associated with movie rights and royalties
form comparisons between the commercial successes of certain movie genres before deciding what kind of movie to invest in
refrain from investing in retail outlets or developers in the field of audio and visual equipment intended for use in small private cinemas