GMAT Critical Reasoning
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Source: PREP
Level: 2
Downtown Villieu was once a flourishing business district, but most Villieu-area businesses are now located only in the suburbs. The office buildings downtown lack the modern amenities most business operators demand today. To lure more businesses downtown, Villieu officials plan to have several modern office buildings constructed and to offer reduced local tax rates to any business that leases space in a new downtown building.
Which of the following, if true, most threatens the plan's likelihood of success?
- A Most of the businesses currently located in downtown Villieu have long-term leases on the space they occupy there.
- B The existing office buildings in downtown Villieu have, on average, a much higher vacancy rate than do office buildings in Villieu's suburbs.
- C The local tax rates in Villieu's suburbs are significantly lower than downtown Villieu's proposed rate for businesses that lease space in the new office buildings.
- D Most of the businesses that currently lease office space in downtown Villieu also lease office space in Villieu's suburbs.
- E With the new office buildings, downtown Villieu would have a greater amount of modern office space than any other downtown business district in the region.