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Problem 14 - Entrance Test

Company X is more profitable than Company Y. Company Z is less profitable than Company Y. Which of the following statements must be true?

Correct: D

From the statements, we know: X > Y and Z < Y. We can conclude that Y > Z. Also, since X > Y and Y > Z, then X > Z. However, we cannot determine that X is the *most* profitable (there might be a Company A that is even more profitable). The only statement that *must* be true based on the information given is that Company X is more profitable than Company Z. While option E looks correct too, D is more precise as it doesn't contain Company Y which is only used as an intermediary for comparison.