Passage Summary: A company president says that because sales are down and profits are low, the only way to keep things from getting worse is to stop growing or close down the parts of the business that don't make much money.

Conclusion: To stop profits from falling further, the company must either scale back expansion or cut underperforming operations.

Reasoning: Profits are at record lows because of low demand, and continued low profits could lead to bankruptcy.

Analysis: The president falls into a classic 'false dilemma' trap by asserting there are only two possible solutions to the profit problem. While cutting costs is one way to handle low profits, the argument ignores the possibility of increasing revenue through better marketing or new product lines. When you see a 'the only options are...' structure on the LSAT, your first instinct should be to look for other reasonable alternatives the speaker ignored. It is a bit like a chef saying the only way to fix a salty soup is to throw it out or add water, completely forgetting they could add a potato or some cream.