Find all School-related info fast with the new School-Specific MBA Forum

It is currently 31 Jul 2014, 20:33

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

RC - 1

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
Director
Director
avatar
Joined: 04 Jul 2004
Posts: 905
Followers: 3

Kudos [?]: 17 [0], given: 0

GMAT Tests User
RC - 1 [#permalink] New post 12 Feb 2005, 05:55
Please explain ur thought Process while u r reading Passage. It would be much helpful for rest of us.

Last edited by jpv on 12 Feb 2005, 06:00, edited 1 time in total.
Director
Director
avatar
Joined: 04 Jul 2004
Posts: 905
Followers: 3

Kudos [?]: 17 [0], given: 0

GMAT Tests User
 [#permalink] New post 12 Feb 2005, 05:56
(This passage was written in 1978.)
Recent years have brought minority-owned businesses in the United States unprecedented opportunities—as well as new and significant risks. Civil rights activists have long argued that one of the principal reasons why Blacks, Hispanics, and other minority groups have difficulty establishing themselves in business is that they lack access to the sizable orders and subcontracts that are generated by large companies. Now Congress, in apparent agreement, has required by law that businesses awarded federal contracts of more than $500,000 do their best to find minority subcontractors and record their efforts to do so on forms filed with the government. Indeed, some federal and local agencies have gone so far as to set specific percentage goals for apportioning parts of public works contracts to minority enterprises.
Corporate response appears to have been substantial. According to figures collected in 1977, the total of corporate contracts with minority businesses rose from $77 million in 1972 to $1.1 billion in 1977. The projected total of corporate contracts with minority businesses for the early 1980’s is estimated to be over 53 billion per year with no letup anticipated in the next decade. Promising as it is for minority businesses, this increased patronage poses dangers for them, too. First, minority firms risk expanding too fast and overextending themselves financially, since most are small concerns and, unlike large businesses, they often need to make substantial investments in new plants, staff, equipment, and the like in order to perform work subcontracted to them. If, thereafter, their subcontracts are for some reason reduced, such firms can face potentially crippling fixed expenses. The world of corporate purchasing can be frustrating for small entrepreneurs who get requests for elaborate formal estimates and bids. Both consume valuable time and resources, and a small company’s efforts must soon result in orders, or both the morale and the financial health of the business will suffer.
A second risk is that White-owned companies may seek to cash in on the increasing apportionments through formation of joint ventures with minority-owned concerns. Of course, in many instances there are legitimate reasons for joint ventures; clearly, White and minority enterprises can team up to acquire business that neither could acquire alone. But civil rights groups and minority business owners have complained to Congress about minorities being set up as “frontsâ€
Director
Director
avatar
Joined: 04 Jul 2004
Posts: 905
Followers: 3

Kudos [?]: 17 [0], given: 0

GMAT Tests User
 [#permalink] New post 12 Feb 2005, 05:58
1. The primary purpose of the passage is to
(A) present a commonplace idea and its inaccuracies
(B) describe a situation and its potential drawbacks
(C) propose a temporary solution to a problem
(D) analyze a frequent source of disagreement
(E) explore the implications of a finding


2. The passage suggests that the failure of a large business to have its bids for subcontracts result quickly in orders might cause it to
(A) experience frustration but not serious financial harm
(B) face potentially crippling fixed expenses
(C) have to record its efforts on forms filed with the government
(D) increase its spending with minority subcontractors
(E) revise its procedure for making bids for federal contracts and subcontracts

3. The author implies that a minority-owned concern that does the greater part of its business with one large corporate customer should
(A) avoid competition with larger, more established concerns by not expanding
(B) concentrate on securing even more business from that corporation
(C) try to expand its customer base to avoid becoming dependent on the corporation
(D) pass on some of the work to be done for the corporation to other minority-owned concerns
(E) use its influence with the corporation to promote subcontracting with other minority concerns

4. The author would most likely agree with which of the following statements about corporate response to working with minority subcontractors?
(A) Annoyed by the proliferation of “frontâ€
Director
Director
avatar
Joined: 04 Jul 2004
Posts: 905
Followers: 3

Kudos [?]: 17 [0], given: 0

GMAT Tests User
 [#permalink] New post 13 Feb 2005, 17:34
seems like no one is interested in RC.
Director
Director
User avatar
Joined: 25 Jan 2004
Posts: 728
Location: Milwaukee
Followers: 2

Kudos [?]: 9 [0], given: 0

GMAT Tests User
 [#permalink] New post 13 Feb 2005, 18:05
that was tough one.

BACC

which question do u need explanation?
_________________

Praveen

VP
VP
User avatar
Joined: 25 Nov 2004
Posts: 1498
Followers: 5

Kudos [?]: 26 [0], given: 0

GMAT Tests User
 [#permalink] New post 13 Feb 2005, 18:07
1.B
2.B
3.C
4.C
Director
Director
avatar
Joined: 04 Jul 2004
Posts: 905
Followers: 3

Kudos [?]: 17 [0], given: 0

GMAT Tests User
 [#permalink] New post 14 Feb 2005, 16:37
Praveen or MA!
Will you please explain Qus. 2,3,4. It would be more helpful if you tell me what exactly you keyed in ur mind related to these questions when you were reading passage?

Thanks for the response..
VP
VP
User avatar
Joined: 25 Nov 2004
Posts: 1498
Followers: 5

Kudos [?]: 26 [0], given: 0

GMAT Tests User
 [#permalink] New post 14 Feb 2005, 18:20
jpv wrote:
Praveen or MA!
Will you please explain Qus. 2,3,4. It would be more helpful if you tell me what exactly you keyed in ur mind related to these questions when you were reading passage?

Thanks for the response..


2. refer here: If, thereafter, their subcontracts are for some reason reduced, such firms can face potentially crippling fixed expenses.

3. refer here: Third, a minority enterprise that secures the business of one large corporate customer often runs the danger of becoming—and remaining—dependent. Even in the best of circumstances, fierce competition from larger, more established companies makes it difficult for small concerns to broaden their customer bases:

4. refer here: Corporate response appears to have been substantial. According to figures collected in 1977, the total of corporate contracts with minority businesses rose from $77 million in 1972 to $1.1 billion in 1977. The projected total of corporate contracts with minority businesses for the early 1980’s is estimated to be over 53 billion per year with no letup anticipated in the next decade.
Director
Director
avatar
Joined: 04 Jul 2004
Posts: 905
Followers: 3

Kudos [?]: 17 [0], given: 0

GMAT Tests User
 [#permalink] New post 15 Feb 2005, 16:50
Thanks MA.. for the explaination.. u got 75% :)
Praveen got 100% :-D

OA : BACC.
  [#permalink] 15 Feb 2005, 16:50
    Similar topics Author Replies Last post
Similar
Topics:
Pls discuss !!RC 1.doc tenaman10 1 18 May 2009, 22:30
Long RC -1 Science/Medical - Thursday rs2010 5 02 Apr 2009, 16:32
RC 1 & 2---(19-20 March)-RCs Are back Again nitya34 6 19 Mar 2009, 10:03
RC 1K Questions seephani1 2 16 Jan 2006, 20:31
RC NEWKID 4 03 Nov 2004, 21:49
Display posts from previous: Sort by

RC - 1

  Question banks Downloads My Bookmarks Reviews Important topics  


cron

GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.