GMAT Essay Topic 514 - The following appeared as part of a memorandum from the loan department of the Frostbite National Bank. "We should not approve the business loan application of the local group that wants to open a franchise outlet for the Kool Kone chain of ice cream parlors. Frostbite is known for its cold winters, and cold weather can mean slow ice cream sales. For example, even though Frostbite is a town of 10,000 people, it has only one ice cream spot ? the Frigid Cow. Despite the lack of competition, the Frigid Cow's net revenues fell by 10 percent last winter." Discuss how well reasoned . . . Etc.
In their memo above, the Frostbite National Bank’s loan department is recommending to reject a local group’s business loan application that wishes to open a franchise outlet for the Kool Kone chain of ice cream parlors. This recommendation was based on the fact that Frostbite has cold winters which generally means slower ice cream sales….