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07 Aug 2023, 08:00
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Difficulty:
75%
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Question Stats:
61% (01:56) correct
39%
(02:03)
wrong
based on 1795
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A consulting firm compiles a yearly ranking of the world's leading companies according to the amount of money each spent on research. It has shown in the past that spending more on research has no correlation with better financial performance. But this year's study found that multinational companies that took a global approach to research financially outperformed those that concentrated their spending on research in their home market.
Which of the following statements is most strongly supported by the information provided?
A. Taking a global approach to research has become necessary in order to achieve business financial success.
B. Companies seeking to improve their financial performance can usually do so by increasing their global research spending.
C. Only the largest countries are able to provide sufficient research innovation to ensure a leading company's profitability.
D. A company with a low ranking in research spending may have better financial performance than a company with a high ranking.
E. The company currently spending the most on research and development is not likely to be among the best in financial performance.
Which of the following statements is most strongly supported by the information provided?
A. Taking a global approach to research has become necessary in order to achieve business financial success.
B. Companies seeking to improve their financial performance can usually do so by increasing their global research spending.
C. Only the largest countries are able to provide sufficient research innovation to ensure a leading company's profitability.
D. A company with a low ranking in research spending may have better financial performance than a company with a high ranking.
E. The company currently spending the most on research and development is not likely to be among the best in financial performance.
23 Aug 2023, 01:28
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A consulting firm compiles a yearly ranking of the world's leading companies according to the amount of money each spent on research. It has shown in the past that spending more on research has no correlation with better financial performance. But this year's study found that multinational companies that took a global approach to research financially outperformed those that concentrated their spending on research in their home market.
Which of the following statements is most strongly supported by the information provided?
The correct answer to this question is the one that is "most strongly supported" by the passage. So, this question is a Conclusion question, and the correct answer must follow logically from the statements in the passage.
A. Taking a global approach to research has become necessary in order to achieve business financial success.
The passage says that "this year's study found that multinational companies that took a global approach to research financially outperformed those that concentrated their spending on research in their home market."
Notice that that information means that companies that did not take "a global approach to research" did not perform as well financially as companies that did take a global approach.
At the same time, it does not mean that companies that did not take a a global approach to research did not achieve business financial success. After all, a company can achieve financial success even if it does not perform as well as another company.
So, this choice goes beyond what's supported by the passage.
Eliminate.
B. Companies seeking to improve their financial performance can usually do so by increasing their global research spending.
Here's what the passage says that's related to "global research spending": "But this year's study found that multinational companies that took a global approach to research financially outperformed those that concentrated their spending on research in their home market."
Notice that this information is about "multinational companies that took a global approach to research." Since multinational companies are not all companies, information about multinational companies does not support a conclusion about what companies "can usually do." After all, multinational companies represent only a fraction of companies.
So, this choice is not supported by the passage.
Eliminate.
C. Only the largest countries are able to provide sufficient research innovation to ensure a leading company's profitability.
There is basically no support for this choice since the passage says nothing about countries' ability to provide research innovation.
Eliminate.
D. A company with a low ranking in research spending may have better financial performance than a company with a high ranking.
Here's what the passage says about "ranking in research spending" and "financial performance": "A consulting firm compiles a yearly ranking of the world's leading companies according to the amount of money each spent on research. It has shown in the past that spending more on research has no correlation with better financial performance."
We see that the passage indicates that "spending more on research," in other words, having a high "ranking in research spending," is not correlated with better financial performance. What that information also means is that having a low ranking is not correlated with worse financial performance.
According, we can see that this choice follows from what the passage says since, if having a low ranking is not correlated with worse financial performance, then "A company with a low ranking in research spending may have better financial performance than a company with a high ranking."
Keep.
E. The company currently spending the most on research and development is not likely to be among the best in financial performance.
Here's what the passage says about "spending on research and development" and "financial performance": "It (a consulting firm) has shown in the past that spending more on research has no correlation with better financial performance."
Notice that what the passage says about the consulting firm's research indicates that, in general, spending on research in is not correlated, in other words, does not move along with, financial performance. So, the two are not positively or negatively correlated. In other words, research spending doesn't indicate anything about financial performance.
Accordingly, the fact that a company is "currently spending the most on research and development" does not indicate that it "is not likely to be among the best in financial performance." After all, if research spending doesn't indicate anything about financial performance, then information on research spending doesn't indicate how likely a company is to be among the best in financial performance.
So, this choice isn't supported.
Eliminate.
The correct answer is (D).
Which of the following statements is most strongly supported by the information provided?
The correct answer to this question is the one that is "most strongly supported" by the passage. So, this question is a Conclusion question, and the correct answer must follow logically from the statements in the passage.
A. Taking a global approach to research has become necessary in order to achieve business financial success.
The passage says that "this year's study found that multinational companies that took a global approach to research financially outperformed those that concentrated their spending on research in their home market."
Notice that that information means that companies that did not take "a global approach to research" did not perform as well financially as companies that did take a global approach.
At the same time, it does not mean that companies that did not take a a global approach to research did not achieve business financial success. After all, a company can achieve financial success even if it does not perform as well as another company.
So, this choice goes beyond what's supported by the passage.
Eliminate.
B. Companies seeking to improve their financial performance can usually do so by increasing their global research spending.
Here's what the passage says that's related to "global research spending": "But this year's study found that multinational companies that took a global approach to research financially outperformed those that concentrated their spending on research in their home market."
Notice that this information is about "multinational companies that took a global approach to research." Since multinational companies are not all companies, information about multinational companies does not support a conclusion about what companies "can usually do." After all, multinational companies represent only a fraction of companies.
So, this choice is not supported by the passage.
Eliminate.
C. Only the largest countries are able to provide sufficient research innovation to ensure a leading company's profitability.
There is basically no support for this choice since the passage says nothing about countries' ability to provide research innovation.
Eliminate.
D. A company with a low ranking in research spending may have better financial performance than a company with a high ranking.
Here's what the passage says about "ranking in research spending" and "financial performance": "A consulting firm compiles a yearly ranking of the world's leading companies according to the amount of money each spent on research. It has shown in the past that spending more on research has no correlation with better financial performance."
We see that the passage indicates that "spending more on research," in other words, having a high "ranking in research spending," is not correlated with better financial performance. What that information also means is that having a low ranking is not correlated with worse financial performance.
According, we can see that this choice follows from what the passage says since, if having a low ranking is not correlated with worse financial performance, then "A company with a low ranking in research spending may have better financial performance than a company with a high ranking."
Keep.
E. The company currently spending the most on research and development is not likely to be among the best in financial performance.
Here's what the passage says about "spending on research and development" and "financial performance": "It (a consulting firm) has shown in the past that spending more on research has no correlation with better financial performance."
Notice that what the passage says about the consulting firm's research indicates that, in general, spending on research in is not correlated, in other words, does not move along with, financial performance. So, the two are not positively or negatively correlated. In other words, research spending doesn't indicate anything about financial performance.
Accordingly, the fact that a company is "currently spending the most on research and development" does not indicate that it "is not likely to be among the best in financial performance." After all, if research spending doesn't indicate anything about financial performance, then information on research spending doesn't indicate how likely a company is to be among the best in financial performance.
So, this choice isn't supported.
Eliminate.
The correct answer is (D).
07 Aug 2023, 12:17
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Bunuel
A consulting firm compiles a yearly ranking of the world's leading companies according to the amount of money each spent on research. It has shown in the past that spending more on research has no correlation with better financial performance. But this year's study found that multinational companies that took a global approach to research financially outperformed those that concentrated their spending on research in their home market.
Which of the following statements is most strongly supported by the information provided?
A. Taking a global approach to research has become necessary in order to achieve business financial success.
B. Companies seeking to improve their financial performance can usually do so by increasing their global research spending.
C. Only the largest countries are able to provide sufficient research innovation to ensure a leading company's profitability.
D. A company with a low ranking in research spending may have better financial performance than a company with a high ranking.
E. The company currently spending the most on research and development is not likely to be among the best in financial performance.
Which of the following statements is most strongly supported by the information provided?
A. Taking a global approach to research has become necessary in order to achieve business financial success.
B. Companies seeking to improve their financial performance can usually do so by increasing their global research spending.
C. Only the largest countries are able to provide sufficient research innovation to ensure a leading company's profitability.
D. A company with a low ranking in research spending may have better financial performance than a company with a high ranking.
E. The company currently spending the most on research and development is not likely to be among the best in financial performance.
Answer choice elimination
A. Taking a global approach to research has become necessary in order to achieve business financial success.
The passage doesn't specify that it is necessary to take a global approach to research in order to achieve business financial success. The passage merely presents a co-relation that was observed in this year's study. Hence, we can eliminate this option.
B. Companies seeking to improve their financial performance can usually do so by increasing their global research spending.
We cannot infer this. The passage provides an observation that was made in this year's study. We cannot infer that companies can seek to improve their financial performance by in by increasing their global research spending.
C. Only the largest countries are able to provide sufficient research innovation to ensure a leading company's profitability.
The passage doesn't mention any correlation between the size of the nation and its ability to innovate. We can eliminate this option.
D. A company with a low ranking in research spending may have better financial performance than a company with a high ranking.
This option looks reasonable.
We know that the ranking was based on the amount of money each firm spent on research. However, firms who a global approach to research financially outperformed those that concentrated their spending on research in their home market. Hence, it is well possible that a firm spent less amount, but took a global approach. As the firm spent less, it appeared lower in the rankings but still outperformed and had a better financial performance than a firm that spent high (thereby had a better ranking) but concentrated its spending on research in its home market. We can keep this option.
E. The company currently spending the most on research and development is not likely to be among the best in financial performance.
I believe this option is pretty close. However, one key decision point for me is the use of "is not likely to be among". We know that it is possible for a firm that spends the most but concentrates its spending on research in its home market to have a lower ranking than a firm that takes a global approach to research. However, we cannot infer that it's not likely that spends the most on R&D to be among the best in financial performance. It is possible provided the firm takes a global approach to research, Hence, we can eliminate this option.
Option D
