medium · GMAT Verbal

Argument: Analysts have noted that every company in the Alpha Index has reported positive quarterly earnings for the last four quarters. Furthermore, any company that reports positive quarterly earnings for four consecutive quarters is automatically eligible for a preferential corporate tax rate. TechCorp, a large software firm, has reported positive quarterly earnings for the last six quarters.

Which of the following must be true based on the statements above?

  1. TechCorp is currently a member of the Alpha Index.
  2. Eligibility for the preferential tax rate requires a company to be part of the Alpha Index.
  3. Because TechCorp has reported positive earnings for six quarters, it must already be a member of the Alpha Index.
  4. All companies eligible for the preferential tax rate have reported positive earnings for at least six quarters.
  5. TechCorp is eligible for a preferential corporate tax rate.

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