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AB Distributors Is a Company That Serves as a Shipping

question 19

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AB Distributors is a company that serves as a shipping intermediary for other companies. Its sales revenue has increased from the previous year. Jonathan, a sales manager at AB, says, "Since the company has increased its revenue, it is now more profitable."
Which of the following points out a flaw in Jonathan's reasoning?
Information about the company's expenses is necessary to tell whether it is profitable.
AB Distributor may have lost money the previous year.
Most of AB Distributor's employees are relatively new.
Not all of the revenue may contribute toward profits.
Many of AB Distributor's competitors may not be doing as well.


Definitions:

Manifest Function

The intended and recognized positive consequences of any social pattern or institution.

Emotional Support

Describes assistance given to individuals through empathy, concern, encouragement, or companionship, helping them manage or overcome emotional distress.

Socially Constructed

A concept or perception of an object or idea that exists because people agree to behave as if it exists or follow certain conventional rules.

Human Interpretation

The process by which individuals understand or make sense of information, symbols, language, and actions based on their cognitive and subjective frameworks.

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