Which of the following, if true, weakens the argument for competing in

QUESTION

Which of the following, if true, weakens the argument for competing in the Chinese market?

A) An American fast food chain found that the time to recoup its investments in China was greater under the franchise model as opposed to the corporate chain store model.
B) Chinese government policies can impose lengthy delays on businesses seeking food sale licenses.
C) Studies show that modern Chinese consumers are more likely than previous generations to dine outside the home.
D) When choosing a restaurant, Chinese consumers seek benefits beyond simple food quality.
E) Expanding into every market within China would require more resources than The Hungry Cow has at its disposal.

ANSWER

Answer: B
Explanation: B) While the Chinese market sounds attractive, it would be less attractive if Choice B were true and the government could hold up development while sorting out licensing issues. Choice A is on the wrong subject. The issue here is whether expansion into China is a good idea, not the specifics of how to expand. Choice C only strengthens the argument by suggesting that demand will be strong. Choice D makes no clear difference because we can’t tell whether The Hungry Cow is positioned to offer the benefits that Chinese customers seek. Choice E is a reason not to expand everywhere, but that is not a reason to avoid China entirely.