The following appeared as part of the business plan of the Capital Idea investment firm. “Across town in the Park Hill district, the Thespian Theater, Pizzazz Pizza, and the Niblick Golf Club have all had business increases within the past two years. Capi

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The following appeared as part of the business plan of the Capital Idea investment firm.
“Across town in the Park Hill district, the Thespian Theater, Pizzazz Pizza, and the Niblick Golf Club have all had business increases within the past two years. Capital Idea should therefore invest in the Roxy Playhouse, the Slice-o’-Pizza, and the Divot Golf Club, three new businesses in the Irongate district. As a condition, we should require them to participate in a special program: Any customer who patronizes two of the businesses will receive a substantial discount at the third. By motivating customers to patronize all three, we will thus contribute to the profitability of each and maximize our return.”

The argument that the investment will maximize the return of the firm omits some important concerns that must be addressed to substantiate the argument. The description based on the plan simply clarifies that Park Hill district is profitable for the above three and a discount plan. This alone does not constitute a logical argument in favor of the investment and it certainly does not provide support of the main conclusion.

Firstly, the plan assumes that because of the business increase in the theater, pizza store and the golf club in the Park Hill district, the company should invest the same...

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