Jorge,the Shipping Manager at Durable Products,writes a Memo Proposing That

question 14

Multiple Choice

Jorge,the shipping manager at Durable Products,writes a memo proposing that that they stop using RoadHog Trucking Company and ship everything by L.B.Haines.The reason he gives is that two of the accounts that have been shipping by L.B.Haines during the last year increased their orders by more than 10%,so he is certain that switching trucking firms will cause other accounts to grow too.The executives of the company do not accept Jorge's suggestion.Why was his memo unconvincing?

• A) slanting of facts
• B) exaggeration
• C) either/or logic
• D) weak analogy
• E) faulty cause/effect argument

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Definitions:

AMT Income

Income calculated for the Alternative Minimum Tax, which includes certain adjustments and preferences to regular taxable income.

Alternative Minimum Tax

A parallel tax system designed to ensure that high-income individuals, corporations, estates, and trusts pay at least a minimum amount of tax.

Estimated Income Tax Payments

Payments made to the IRS on a quarterly basis by taxpayers who do not have their taxes withheld at source, to avoid underpayment penalties.

Fiscal Year-End

The end of a company's financial year, a critical date for accounting and financial reporting purposes.