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

It is currently 21 Sep 2014, 04:24

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

Start-up companies financed by venture capitalist have a

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
Manager
Manager
avatar
Joined: 03 Jul 2006
Posts: 179
Followers: 1

Kudos [?]: 3 [0], given: 0

GMAT Tests User
Start-up companies financed by venture capitalist have a [#permalink] New post 10 Aug 2006, 17:40
00:00
A
B
C
D
E

Difficulty:

  5% (low)

Question Stats:

92% (01:58) correct 8% (01:17) wrong based on 215 sessions
Official Guide for GMAT Verbal Review, 2nd Edition
Practice Question
Question No.: 20
Page: 122
Difficulty:

Start-up companies financed by venture capitalist have a much lower failure rate than companies financed by other means. Source of financing, therefore, must be a more important causative factor in the success of a start-up company than are such factors as the personal characteristics of the entrepreneur, the quality of strategic planning, or the management structure of the company.

Which of the following, if true, most seriously weakens the argument above?

(A) Venture capitalists tend to be more responsive than other sources of financing to changes in a start-up company’s financial needs.
(B) The strategic planning of a start-up company is a less important factor in the long-term success of the company than are the personal characteristics of the entrepreneur.
(C) More than half of all new companies fall within five years.
(D) The management structures of start-up companies are generally less formal than the management structures of ongoing businesses.
(E) Venture capitalists base their decisions to fund start-up companies on such factors as the characteristics of the entrepreneur and quality of strategic planning of the company.
please explain the reasoning.
[Reveal] Spoiler: OA

Last edited by dentobizz on 21 Oct 2013, 21:29, edited 2 times in total.
formatting for the verbal review project
Kaplan GMAT Prep Discount CodesKnewton GMAT Discount CodesGMAT Pill GMAT Discount Codes
Senior Manager
Senior Manager
User avatar
Joined: 26 Jun 2006
Posts: 445
Followers: 1

Kudos [?]: 15 [0], given: 0

GMAT Tests User
 [#permalink] New post 10 Aug 2006, 18:02
Quote:

(E) it must be. the characteristics that VCs consider important have been indicated as not important in the statement.
Manager
Manager
avatar
Joined: 03 Jul 2006
Posts: 179
Followers: 1

Kudos [?]: 3 [0], given: 0

GMAT Tests User
 [#permalink] New post 10 Aug 2006, 18:34
why not 'A'
SVP
SVP
avatar
Joined: 30 Mar 2006
Posts: 1741
Followers: 1

Kudos [?]: 27 [0], given: 0

GMAT Tests User
 [#permalink] New post 10 Aug 2006, 20:41
Clear E.

It stresses that even venture capitalists look for the same qualities that have been rejected by the author.

Why not A

A strengthens the argument.
CEO
CEO
User avatar
Joined: 20 Nov 2005
Posts: 2922
Schools: Completed at SAID BUSINESS SCHOOL, OXFORD - Class of 2008
Followers: 15

Kudos [?]: 80 [0], given: 0

GMAT Tests User
 [#permalink] New post 10 Aug 2006, 21:53
Straight E.
_________________

SAID BUSINESS SCHOOL, OXFORD - MBA CLASS OF 2008

Current Student
User avatar
Joined: 29 Jan 2005
Posts: 5252
Followers: 23

Kudos [?]: 133 [0], given: 0

GMAT Tests User Reviews Badge
 [#permalink] New post 11 Aug 2006, 06:14
Straight (E), fundamental venture capital investment logic.

2:02

*** Always start with E on "which of the following" CRs/PSs/DSs if pressed for time. Another Kaplandish strategy. Disclaimer: may not be effective with the PVue version of GMAT because kaplan simply reprints the same books each year with a different cover...
Verbal Forum Moderator
Verbal Forum Moderator
avatar
Joined: 23 Jul 2010
Posts: 484
Followers: 40

Kudos [?]: 426 [0], given: 243

Premium Member
Re: Start-up companies financed by venture capitalist have a [#permalink] New post 06 Oct 2013, 13:48
bumping up for review and further discussion
_________________

How to CHOOSE your Business School
Thanks = Kudos. Kudos are appreciated

Rules for posting on the verbal forum
When you post a question Pls. Provide its source & TAG your questions
Avoid posting from unreliable sources such as 1000 series.

Re: Start-up companies financed by venture capitalist have a   [#permalink] 06 Oct 2013, 13:48
    Similar topics Author Replies Last post
Similar
Topics:
Experts publish their posts in the topic Startup v/s Company Work exp Krishant 1 12 Jun 2014, 05:27
3 Finance => Venture Capital agold2 3 03 Feb 2009, 12:18
Venture capitalists, investors who use huge sums of money to GMATT73 7 02 Dec 2005, 10:21
Venture capitalists, investors who use huge sums of money to GMATT73 11 13 Oct 2005, 23:45
Venture capitalists, investors who use huge sums of money to GMATT73 19 27 Apr 2005, 08:03
Display posts from previous: Sort by

Start-up companies financed by venture capitalist have a

  Question banks Downloads My Bookmarks Reviews Important topics  


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®.