1. The author mentions each of the following as a cause of excess inventory EXCEPT
(A) production of ]too much merchandise > mentioned
(B) inaccurate forecasting of buyers’ preferences > mentioned (C) unrealistic pricing policies.
> not mentioned
(D) products’ rapid obsolescence > mentioned
(E) availability of a better product > mentioned
2. The passage suggests that which of the following is a kind of product that a liquidator who sells to discount stores would be unlikely to wish to acquire?
(A) Furniture(B) Computers
> 1st paragraph
(C) Kitchen equipment
(D) Baby-care products
(E) Children’s clothing
3. The passage provides information that supports which of the following statements?
(A) Excess inventory results most often
from insufficient market analysis by the manufacturer.(B) Products with slight manufacturing defects may contribute to excess inventory
. > stated in the 1st paragraph
(C) Few manufacturers have taken advantage of the changes in the federal tax laws. > may be but we don't know.
(D) Manufacturers who dump their excess inventory are often
caught and exposed by the news media.
products available in discount stores have come from manufacturers’ excess-inventory stock.
4. The author cites the examples in lines 25-29 most probably in order to illustrate
(A) the fiscal irresponsibility of dumping as a policy for dealing with excess inventory
(B) the waste-management problems that dumping new products creates
(C) the advantages to the manufacturer of dumping as a policy
(D) alternatives to dumping explored by different companies(E) how the news media could portray dumping to the detriment of the manufacturer’s reputation
Clearly mentioned that how the news media distorts the picture
5. By asserting that manufacturers “are simply unaware” (line 31), the author suggests which of the following?
(A) Manufacturers might donate excess inventory to charity rather than dump it if they knew about the provision in the federal tax code.
(B) The federal government has failed to provide
sufficient encouragement to manufacturers to make use of advantageous tax policies.
(C) Manufacturers who choose to dump excess inventory are not aware
of the possible effects on their reputation of media coverage of such dumping. > they are
(D) The manufacturers of products disposed of by dumping are unaware of the needs
of those people who would find the products useful.
(E) The manufacturers who dump their excess inventory are not familiar with the employment of liquidators to dispose of overstock. > out of the view
6. The information in the passage suggests that which of the following, if true, would make donating excess inventory to charity less attractive to manufacturers than dumping?(A) The costs of getting the inventory to the charitable destination are greater than the above-cost tax deduction
. > directly mentioned
(B) The news media give manufacturers’ charitable contributions the same amount of coverage that they give dumping.
(C) No straight-cost tax benefit can be claimed for items that are dumped.
(D) The fair-market value of an item in excess inventory is 5 times its cost.
(E) Items end up as excess inventory because of a change in the public’s preferences.
7. Information in the passage suggests that one reason manufacturers might take advantage of the tax provision mentioned in the last paragraph is that
(A) there are many kinds of products that cannot be legally dumped in a landfill
(B) liquidators often refuse to handle products with slight imperfections(C) the law allows a deduction in excess of the cost of manufacturing the product
> directly stated
(D) media coverage of contributions of excess-inventory products to charity is widespread and favorable
(E) no tax deduction is available for products dumped or sold to a liquidator
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