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The Megac Corporation has an ownership stake in the Sysinc Corporation. The Exino Corporation has an ownership stake in the...

GMAT Two Part Analysis : (TPA) Questions

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Two Part Analysis
Verbal - Conditions
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The Megac Corporation has an ownership stake in the Sysinc Corporation. The Exino Corporation has an ownership stake in the Naturo Corporation. The Green Valley Corporation has an ownership stake in the Exino Corporation. The Jenyx Corporation and the Sysinc Corporation both have an ownership stake in the Green Valley Corporation. Furthermore, if Corporation A has an ownership stake in Corporation B, then Corporation A has an ownership stake in any corporation that Corporation B has an ownership stake in. But if Corporation A has an ownership stake in Corporation B, then Corporation B cannot have an ownership stake in Corporation A.

Assume that the information provided is accurate and that the ownership stakes listed are the only ones that have ever existed between or among the listed corporations. Select Megac for the listed corporation that Megac could acquire a first-time ownership stake in and select Jenyx for the listed corporation that Jenyx could acquire a first-time ownership stake in. Make only two selections, one in each column.

Megac
Jenyx

Exino

Green Valley

Jenyx

Megac

Naturo

Solution

Solution: Ownership Structure Analysis

Visual Representation of Ownership Structure

Direct Ownership Relationships (as stated):

  • \(\mathrm{Megac} \rightarrow \mathrm{Sysinc}\)
  • \(\mathrm{Exino} \rightarrow \mathrm{Naturo}\)
  • \(\mathrm{Green\ Valley} \rightarrow \mathrm{Exino}\)
  • \(\mathrm{Jenyx} \rightarrow \mathrm{Green\ Valley}\)
  • \(\mathrm{Sysinc} \rightarrow \mathrm{Green\ Valley}\)

Complete Ownership Map (including transitive ownership):

Applying the transitivity rule systematically:

Megac owns:

  • Sysinc (direct)
  • Green Valley (through Sysinc)
  • Exino (through \(\mathrm{Sysinc} \rightarrow \mathrm{Green\ Valley}\))
  • Naturo (through \(\mathrm{Sysinc} \rightarrow \mathrm{Green\ Valley} \rightarrow \mathrm{Exino}\))

Jenyx owns:

  • Green Valley (direct)
  • Exino (through Green Valley)
  • Naturo (through \(\mathrm{Green\ Valley} \rightarrow \mathrm{Exino}\))

Sysinc owns:

  • Green Valley (direct)
  • Exino (through Green Valley)
  • Naturo (through \(\mathrm{Green\ Valley} \rightarrow \mathrm{Exino}\))

Green Valley owns:

  • Exino (direct)
  • Naturo (through Exino)

Exino owns:

  • Naturo (direct)

Understanding the Question

We need to find corporations that:

  1. Megac could acquire a first-time ownership stake in
  2. Jenyx could acquire a first-time ownership stake in

Critical Insight: Anti-Circularity Constraint

The key constraint states: "if Corporation A has an ownership stake in Corporation B, then Corporation B cannot have an ownership stake in Corporation A."

This means:

  • If there's any ownership path from A to B, then B cannot own A
  • This prevents circular ownership structures

Strategic Analysis

For Megac:

  • Currently owns: Sysinc, Green Valley, Exino, Naturo
  • From answer choices, doesn't own: Jenyx
  • Can Megac acquire Jenyx? Check if this would violate anti-circularity:
  • There's no ownership path from Jenyx to Megac
  • Therefore, Megac can acquire Jenyx ✓

For Jenyx:

  • Currently owns: Green Valley, Exino, Naturo
  • From answer choices, doesn't own: Megac
  • Can Jenyx acquire Megac? Check if this would violate anti-circularity:
  • There's no ownership path from Megac to Jenyx
  • Therefore, Jenyx can acquire Megac ✓

Verification Through Logic

Why these acquisitions are valid:

  • Megac acquiring Jenyx: Creates \(\mathrm{Megac} \rightarrow \mathrm{Jenyx} \rightarrow \mathrm{Green\ Valley}\), but Megac already owns Green Valley through Sysinc. No cycle created.
  • Jenyx acquiring Megac: Creates \(\mathrm{Jenyx} \rightarrow \mathrm{Megac} \rightarrow \mathrm{Sysinc} \rightarrow \mathrm{Green\ Valley}\), but Jenyx already owns Green Valley directly. No cycle created.

Final Solution Synthesis

Step-by-step recap:

  1. Mapped all ownership relationships using transitivity
  2. Identified which corporations each entity currently owns
  3. Found corporations available for first-time acquisition
  4. Verified no anti-circularity violations would occur

Final Answer:

  • Megac column: Jenyx
  • Jenyx column: Megac

Key Insight: The anti-circularity rule prevents ownership loops but allows multiple paths to the same corporation. Both proposed acquisitions create additional paths to already-owned corporations without creating prohibited cycles.

Exam Strategy: In ownership/hierarchy problems, always map the complete transitive closure first, then check constraints systematically rather than testing combinations randomly.

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