Candy bars may seem sweet to the average consumer, but the companies

Question

Candy bars may seem sweet to the average consumer, but the companies that make them have to be tougher than nails in order to survive. That, at least, is one of the lessons taken from Kari Paulson’s new book, Candynomics: The Death of the Small Candy Producer. According to Paulson, there were over 2,000 candy companies thriving in the United States in the period between the world wars. Local consumers took pride in their regional candy bars, such as the Caravelle, Clark Bar, Goo Goo Cluster, and the Valomilk, and many factories shipped their confections directly from the factory to local stores. But the economic forces at work over the last sixty years have led to substantial consolidation in the candy industry and, perhaps more importantly, in the way that candy is distributed.

The process that consolidated over 2,000 independent enterprises into three large companies—Mars, Hershey’s, and Nestle—and a few hundred lingering hangers-on has been paralleled in most consumer-oriented manufacturing businesses over the past half century. The largest companies bought up smaller companies in order to grow larger and take advantage of economies of scale in production and distribution. The larger companies could negotiate better rates on sugar, cocoa butter, peanut butter, coconut, and the other central ingredients of the candy industry. These cost advantages resulted in the biggest companies having the financial resources to advertise nationally and to promote national brands such as Snickers, Three Musketeers, and the Mars Bar. The smaller companies, lacking the resources to advertise nationally, stuck to their regional markets.

The strategy of sticking to a regional market, however, only works when there are regional distributors who play along. The consolidation of the food distribution industry over the last few decades into a relatively small number of powerful regional grocery chains and convenience stores, and particularly the overwhelming force now exerted on the entire retail business by extremely high-volume discount retailers such as Walmart and Kmart, has provided a strong advantage for national brands over regional brands. Almost all large food retailers now charge “slotting fees” a payment, often as much as $25,000, to get a particular kind of candy placed on the store shelves. The smaller candy companies, unable to pay the slotting fees demanded by large chains, are relying increasingly on small independent groceries and specialty candy retailers to sell their products. With the numbers of these small retailers dwindling, the smallest candy makers are running out of options.    1 
 1. According to the information given in the passage, which of the following candy bars is most likely to be found in a large regional grocery chain?

A. Caravelle
B. Three Musketeers
C. Charleston Chew
D. Clark Bar
E. Goo Goo Cluster

2 
 2. Which of the following business examples most closely parallels that of the candy industry in recent decades, as described in the passage?

A. Many formerly non-profit hospitals are bought and managed by large, for-profit health care consortiums that use their size to negotiate better rates from insurance companies and health care product suppliers.
B. A small number of very large agricultural companies purchase hundreds of thousands of acres of farmland from small farmers when a period of sustained drought makes most of these smaller farms nonviable as independent operations.
C. An online book retailer eats into the market share of both large and small traditional book retailers by opening up an entirely new bookbuying marketplace and offering free shipping.
D. A small number of soft-drink conglomerates buy up smaller regional competitors and use economies of scale to negotiate preferential rates from both suppliers and distributors.
E. A medium-sized regional telecom company uses an inflated stock price to purchase a string of smaller regional competitors and in the process becomes one of the largest companies in the telecom industry.

3 
 3. According to the information presented in the passage, which of the following presents an accurate statement about small and large candy companies?

A. A large candy company can expect to pay less for a given amount of cocoa butter than a small candy company.
B. A small candy company can expect to pay a larger slotting fee for a given space in a retail outlet than a larger company.
C. A small candy company may have one or two national brands, while a large candy company will usually have dozens of regional brands.
D. A large candy company has probably been in operation longer than a small candy company.
E. A small candy company probably offers its employees better employment benefits than does a large candy company.

4 
 4. The final sentence of the first paragraph plays what role in the passage?

A. It refutes the conclusions of the first paragraph.
B. It suggests the subject matter for the second paragraph.
C. It raises a question that is answered in the following paragraphs.
D. It suggests an alternative hypothesis to that proposed by Paulson in her book.
E. It provides a conclusion to the premises of the first paragraph and outlines the subject matter of the following paragraphs.

GMAT Club's Reading Comprehension (RC) Quiz-II 2023   
   05 Days | 10 Passages | Win Prizes | Get Better at GMAT   
 Passage # 04  |  Date: 02 September 2023 
 Click here for more details and master thread

nivivacious · Answer

https://gmatclub.com/forum/download/file.php?mode=view&id=72350 1. According to the information given in the passage, which of the following candy bars is most likely to be found in a large regional grocery chain? A. Caravelle The passage mentions Caravelle as a regional candy bar. It doesn't specify the producer, but it implies that such regional bars are less likely to be found in large regional grocery chains due to the consolidation of the candy industry and the high slotting fees. B. Three Musketeers The passage mentions that larger companies like Mars, Hershey’s and Nestle have an advantage in large regional grocery chains. Three Musketeers is a product of Mars, which is one of the three large companies mentioned C. Charleston Chew This candy bar is not mentioned in the passage D. Clark Bar Like Caravelle, Clark Bar is mentioned as a regional candy bar in the passage. Same reasoning as A E. Goo Goo Cluster This is another regional candy bar mentioned in the passage. Same reasoning as A -- 2. Which of the following business examples most closely parallels that of the candy industry in recent decades, as described in the passage? A. Many formerly non-profit hospitals are bought and managed by large, for-profit health care consortiums that use their size to negotiate better rates from insurance companies and health care product suppliers. This option does show consolidation and negotiation of better rates. However, it does not mention the aspect of buying up smaller entities to grow larger which is a key point in the passage about the candy industry. B. A small number of very large agricultural companies purchase hundreds of thousands of acres of farmland from small farmers when a period of sustained drought makes most of these smaller farms nonviable as independent operations. This option shows consolidation but the reason for the consolidation (a period of drought) is not parallel to the candy industry's situation. The candy industry's consolidation was driven by a desire for economies of scale and better negotiation power, not external environmental factors. We can keep this on hold until there is something better C. An online book retailer eats into the market share of both large and small traditional book retailers by opening up an entirely new bookbuying marketplace and offering free shipping. This option is not parallel, it talks about a new player disrupting the market not consolidation within the industry. D. A small number of soft-drink conglomerates buy up smaller regional competitors and use economies of scale to negotiate preferential rates from both suppliers and distributors. This option is better than B and close to the candy industry's consolidation into a few large companies that bought up smaller ones to take advantage of economies of scale in production and distribution. These larger companies could negotiate better rates from suppliers, similar to the soft-drink conglomerates in this option E. A medium-sized regional telecom company uses an inflated stock price to purchase a string of smaller regional competitors and in the process becomes one of the largest companies in the telecom industry. This option does show a company growing larger by buying up smaller competitors but it does not mention economies of scale or better negotiation power with suppliers, as in D - making D the bigger answer -- 3. According to the information presented in the passage, which of the following presents an accurate statement about small and large candy companies? A. A large candy company can expect to pay less for a given amount of cocoa butter than a small candy company. The passage mentions that larger companies could negotiate better rates on ingredients like cocoa butter due to their size and economies of scale. B. A small candy company can expect to pay a larger slotting fee for a given space in a retail outlet than a larger company. Passage mentions that slotting fees are a challenge for smaller companies but it doesn't say that these fees are higher for smaller companies than for larger ones. C A small candy company may have one or two national brands, while a large candy company will usually have dozens of regional brands. This is contradictory to the information in the passage. The passage suggests that smaller companies stick to their regional markets, while larger companies promote national brands. D. A large candy company has probably been in operation longer than a small candy company. Passage discusses the consolidation of the candy industry and the challenges faced by smaller companies but it doesn't mention how long companies of different sizes have been in operation. E. A small candy company probably offers its employees better employment benefits than does a large candy company. Passage does not discuss employee benefits at candy companies of any size. -- 4. The final sentence of the first paragraph plays what role in the passage? A. It refutes the conclusions of the first paragraph. The final sentence doesn't refute anything, it rather concludes the first paragraph and introduces the subject of the following paragraphs. B. It suggests the subject matter for the second paragraph. This is partially correct. The final sentence does suggest the subject matter for the second paragraph, but it also outlines the subject matter for the rest of the passage. We can keep this on hold for now C. It raises a question that is answered in the following paragraphs. The final sentence doesn't raise a question, it states a fact about the consolidation in the candy industry. D. It suggests an alternative hypothesis to that proposed by Paulson in her book. The final sentence doesn't propose an alternative hypothesis, it continues the narrative started by Paulson's book. E. It provides a conclusion to the premises of the first paragraph and outlines the subject matter of the following paragraphs. This is better than B. The final sentence concludes the first paragraph and outlines the subject matter for the rest of the passage. Candy Industry.png

PK1 · Answer

Para 1: Description of one lesson from KP's new book. Candy companies need to be tougher to survive. Economic forces led Consolidation in candy industry and the way it is distributed. Once this industry was thriving and locals used to take pride in regional candy

Para 2: Process that led consolidation of candy industry is similar to that in manufacturing in past half century. Explains the process . Smaller companies stuck to their regional markets

Para 3: Strategy of sticking to regional market works when distributors play along. Explains why it is being difficult to smaller players and they are running out of options

1. According to the information given in the passage, which of the following candy bars is most likely to be found in a large regional grocery chain? 
"These cost advantages resulted in the biggest companies having the financial resources to advertise nationally and to promote national brands such as Snickers, Three Musketeers, and the Mars Bar."
" Local consumers took pride in their regional candy bars, such as the Caravelle, Clark Bar, Goo Goo Cluster, and the Valomilk, "

Almost all large grocery chains charge “slotting fees” a payment, often as much as $25,000, to get a particular kind of candy placed on the store shelves. The smaller candy companies, unable to pay the slotting fees demanded by large chains. So answer should be a product of a large national company

A. Caravelle -- Regional product
B. Three Musketeers -- Product of large national company and is the answer
C. Charleston Chew -- Not mentioned
D. Clark Bar -- Regional product
E. Goo Goo Cluster -- Regional product

2. Which of the following business examples most closely parallels that of the candy industry in recent decades, as described in the passage?

A. Many formerly non-profit hospitals are bought and managed by large, for-profit health care consortiums that use their size to negotiate better rates from insurance companies and health care product suppliers.
-- non-profit hospitals are bought by for profit large consortiums. So though the option looks good, it talks about two different segments and hence out

B. A small number of very large agricultural companies purchase hundreds of thousands of acres of farmland from small farmers when a period of sustained drought makes most of these smaller farms nonviable as independent operations.
-- large agriculture companies are buying farms but there is no small agriculture companies which get diminished from this action. So the option is not in the same line as in example of candy industry

C. An online book retailer eats into the market share of both large and small traditional book retailers by opening up an entirely new bookbuying marketplace and offering free shipping.
--It talks about a new type of retailer that eats both large and small so not in the same line as in candy industry example

D. A small number of soft-drink conglomerates buy up smaller regional competitors and use economies of scale to negotiate preferential rates from both suppliers and distributors.
-- It is in line with what large companies in candy industry did. "The largest companies bought up smaller companies in order to grow larger and take advantage of economies of scale in production and distribution. "

This is the answer

E. A medium-sized regional telecom company uses an inflated stock price to purchase a string of smaller regional competitors and in the process becomes one of the largest companies in the telecom industry.
-- This option shows that medium size firm utilizes foul practises to purchase regional competitors to become one of the largest. While consolidation in candy industry happened and it preferred large companies as they were able to negotiate better

3. According to the information presented in the passage, which of the following presents an accurate statement about small and large candy companies? 
"The larger companies could negotiate better rates on sugar, cocoa butter, peanut butter, coconut, and the other central ingredients of the candy industry. These cost advantages resulted in the biggest companies having the financial resources to advertise nationally and to promote national brands"

A. A large candy company can expect to pay less for a given amount of cocoa butter than a small candy company.
-- As a large company could negotiate better rates, they can expect to pay less

This is the answer

B. A small candy company can expect to pay a larger slotting fee for a given space in a retail outlet than a larger company.
-- Does not support as small candy company cannot pay hefty amounts ."Almost all large food retailers now charge “slotting fees” a payment, often as much as $25,000, to get a particular kind of candy placed on the store shelves. The smaller candy companies, unable to pay the slotting fees demanded by large chains, are relying increasingly on small independent groceries"

C. A small candy company may have one or two national brands, while a large candy company will usually have dozens of regional brands.
-- Not given int he passage

D. A large candy company has probably been in operation longer than a small candy company.
-- Not mentioned that large candy company is longer in the operation than small candy company

E. A small candy company probably offers its employees better employment benefits than does a large candy company.
-- Employment benefits are not discussed.

4. The final sentence of the first paragraph plays what role in the passage? 
"But the economic forces at work over the last sixty years have led to substantial consolidation in the candy industry and, perhaps more importantly, in the way that candy is distributed."

A. It refutes the conclusions of the first paragraph.
-- It does not refute any conclusion of first paragraph rather concludes the first paragraph and provides context for following paragraphs

B. It suggests the subject matter for the second paragraph.
-- It does suggest subject matter for second paragraph but it also concludes on the what is the lesson from Paulson's new book.

C. It raises a question that is answered in the following paragraphs.
-- it does not raise any question rather explains conclusion of one of the lesson from Paulson's new book.

D. It suggests an alternative hypothesis to that proposed by Paulson in her book.
-- It does not provide any alternate hypothesis of Paulson's new book. infact his book is "Candynomics: The Death of the Small Candy Producer." and the last sentence just elaborates on that rather suggest any alternate hypothesis

E. It provides a conclusion to the premises of the first paragraph and outlines the subject matter of the following paragraphs.   
-- It does provide a context to the new book, demise of small candy producer and also outlines subject matter for following paragraph

This is the answer

Catman · Answer

1. According to the information given in the passage, which of the following candy bars is most likely to be found in a large regional grocery chain? 
Refer to the line "The smaller candy companies, unable to pay the slotting fees demanded by large chains, are relying increasingly on small independent groceries and specialty candy retailers to sell their products. " Only Large Companies Candy Bar will be positioned in the large regional grocery chain.
Regional (Smaller Companies) Candy bars- Caravelle, Charleston Crew, Clark Bar, Goo Goo Cluster
National (Large Companies) Candy bar- Three Musketeers.

A. Caravelle
 B. Three Musketeers 
C. Charleston Chew
D. Clark Bar
E. Goo Goo Cluster

2. Which of the following business examples most closely parallels that of the candy industry in recent decades, as described in the passage? 
Gist- Big Corporations eliminating regional competitions by buying them and taking advantage of economies of scale in distribution and production.
Regional Players are limited only to small areas.

A. Many formerly non-profit hospitals are bought and managed by large, for-profit health care consortiums that use their size to negotiate better rates from insurance companies and health care product suppliers.  ~ Incorrect, Both Regional and National Candy companies are for profit companies.

B. A small number of very large agricultural companies purchase hundreds of thousands of acres of farmland from small farmers when a period of sustained drought makes most of these smaller farms nonviable as independent operations.  ~ In this case large company acquiring farmlands from individuals and not from small companies.

C. An online book retailer eats into the market share of both large and small traditional book retailers by opening up an entirely new book buying marketplace and offering free shipping.  ~ In the candy industry only large companies acquire the small companies. They both are not disrupted by entry of new player.
 
D. A small number of soft-drink conglomerates buy up smaller regional competitors and use economies of scale to negotiate preferential rates from both suppliers and distributors.  Similar methodology as adopted by the Large Candy Companies.

E. A medium-sized regional telecom company uses an inflated stock price to purchase a string of smaller regional competitors and in the process becomes one of the largest companies in the telecom industry.  ~ Large Candy companies bought regional candy companies and uses economies of scale in distribution and production to become larger. No inflated stock price is mentioned.

3. According to the information presented in the passage, which of the following presents an accurate statement about small and large candy companies?

A. A large candy company can expect to pay less for a given amount of cocoa butter than a small candy company.
The passage mentions that larger companies could negotiate better rates on ingredients like cocoa butter due to their size and economies of scale.

B. A small candy company can expect to pay a larger slotting fee for a given space in a retail outlet than a larger company.  ~ Slotting fees is same for large and small companies.

C. A small candy company may have one or two national brands, while a large candy company will usually have dozens of regional brands.  ~ The smaller companies, lacking the resources to advertise nationally, stuck to their regional markets. Small candy companies have only regional brands and not national brands.Large candy may or may not have dozens of regional brands.

D. A large candy company has probably been in operation longer than a small candy company.  ~ Small candy companies are older in operation Refer to the line "But the economic forces at work over the last sixty years have led to substantial consolidation in the candy industry".

E. A small candy company probably offers its employees better employment benefits than does a large candy company.  ~ The employment benefits might be better in large corporations due to their scale of operations and better financial resources than small candy companies.But no information related to it is presented in the passage

4. The final sentence of the first paragraph plays what role in the passage? 
The first paragraph use the Kari Paulson’s new book, Candynomics: The Death of the Small Candy Producer to explain that the small candy companies which were once thriving now due to economies at work have consolidated industry wise and distribution wise.
Subsequent paragraph explains how this consolidation takes place in candy production and how the small candy distribution market is affected by the consolidation of food distribution industry.
Conclusion "Candy bars may seem sweet to the average consumer, but the companies that make them have to be tougher than nails in order to survive"

A. It refutes the conclusions of the first paragraph.  ~ It does not refute the conclusion "Candy bars may seem sweet to the average consumer, but the companies that make them have to be tougher than nails in order to survive "

B. It suggests the subject matter for the second paragraph.  The last line does provide the subject matter for the second paragraph, but the candy distribution is covered in the third paragraph of the passage.

C. It raises a question that is answered in the following paragraphs.  ~ The first paragraph raise a question although small candy companies are thriving at one time now due to consolidation and distribution they are having a tough time. The consolidation is discussed in the 2nd paragraph and distribution is discussed in the third paragraph.

D. It suggests an alternative hypothesis to that proposed by Paulson in her book.  ~ No alternative hypothesis is presented, author agrees with what was proposed by Paulson in her book.

E. It provides a conclusion to the premises of the first paragraph and outlines the subject matter of the following paragraphs.  ~ Last line is not the conclusion of the first paragraph.

IMO B,D,A,C.

007radhika · Answer

Please post the answer and explanation of the passage

Archit3110 · Answer

1. According to the information given in the passage, which of the following candy bars is most likely to be found in a large regional grocery chain?

A. Caravelle
 B. Three Musketeers 
C. Charleston Chew
D. Clark Bar
E. Goo Goo Cluster

given in passage advantages resulted in the biggest companies having the financial resources to advertise nationally and to promote national brands such as Snickers, Three Musketeers, and the Mars Bar.
OPTION B

2. Which of the following business examples most closely parallels that of the candy industry in recent decades, as described in the passage?

A. Many formerly non-profit hospitals are bought and managed by large, for-profit health care consortiums that use their size to negotiate better rates from insurance companies and health care product suppliers.
B. A small number of very large agricultural companies purchase hundreds of thousands of acres of farmland from small farmers when a period of sustained drought makes most of these smaller farms nonviable as independent operations.
C. An online book retailer eats into the market share of both large and small traditional book retailers by opening up an entirely new bookbuying marketplace and offering free shipping.
 D. A small number of soft-drink conglomerates buy up smaller regional competitors and use economies of scale to negotiate preferential rates from both suppliers and distributors.  
E. A medium-sized regional telecom company uses an inflated stock price to purchase a string of smaller regional competitors and in the process becomes one of the largest companies in the telecom industry.

option D goes well with the passage 
The largest companies bought up smaller companies in order to grow larger and take advantage of economies of scale in production and distribution.

3. According to the information presented in the passage, which of the following presents an accurate statement about small and large candy companies?
 
A. A large candy company can expect to pay less for a given amount of cocoa butter than a small candy company. 
B. A small candy company can expect to pay a larger slotting fee for a given space in a retail outlet than a larger company.
C. A small candy company may have one or two national brands, while a large candy company will usually have dozens of regional brands.
D. A large candy company has probably been in operation longer than a small candy company.
E. A small candy company probably offers its employees better employment benefits than does a large candy company.

Option A ; The larger companies could negotiate better rates on sugar, cocoa butter, peanut butter, coconut, and the other central ingredients of the candy industry

4. The final sentence of the first paragraph plays what role in the passage?

A. It refutes the conclusions of the first paragraph.
B. It suggests the subject matter for the second paragraph.
C. It raises a question that is answered in the following paragraphs.
D. It suggests an alternative hypothesis to that proposed by Paulson in her book.
 E. It provides a conclusion to the premises of the first paragraph and outlines the subject matter of the following paragraphs.

P1 says Candy bars may seem sweet to the average consumer, but the companies that make them have to be tougher than nails in order to survive
P3 The strategy of sticking to a regional market, however, only works when there are regional distributors who play along

OPTION E

0Lucky0 · Answer

BDAE

1. According to the information given in the passage, which of the following candy bars is most likely to be found in a large regional grocery chain?

A. Caravelle -->This is a regional brand so can't be found in a large chain.
 B. Three Musketeers  -->Yes, this is a national brand.
C. Charleston Chew -->Out of scope.
D. Clark Bar -->Regional brand.
E. Goo Goo Cluster -->Regional brand.

2. Which of the following business examples most closely parallels that of the candy industry in recent decades, as described in the passage?

A. Many formerly non-profit hospitals are bought and managed by large, for-profit health care consortiums that use their size to negotiate better rates from insurance companies and health care product suppliers. -->This doesn't parallel.
B. A small number of very large agricultural companies purchase hundreds of thousands of acres of farmland from small farmers when a period of sustained drought makes most of these smaller farms nonviable as independent operations. -->This is not correct.
C. An online book retailer eats into the market share of both large and small traditional book retailers by opening up an entirely new bookbuying marketplace and offering free shipping. -->out of scope.
 D. A small number of soft-drink conglomerates buy up smaller regional competitors and use economies of scale to negotiate preferential rates from both suppliers and distributors.  -->Yes, this is parallel.
E. A medium-sized regional telecom company uses an inflated stock price to purchase a string of smaller regional competitors and in the process becomes one of the largest companies in the telecom industry. -->Incorrect.

3. According to the information presented in the passage, which of the following presents an accurate statement about small and large candy companies?

A. A large candy company can expect to pay less for a given amount of cocoa butter than a small candy company.  -->Yes, that's correct.
B. A small candy company can expect to pay a larger slotting fee for a given space in a retail outlet than a larger company. -->This is not accurate.
C. A small candy company may have one or two national brands, while a large candy company will usually have dozens of regional brands. -->We can't infer this.
D. A large candy coempany has probably been in operation longer than a small candy company. -->This is incorrect.
E. A small candy company probably offers its employees better employment benefits than does a large candy company. -->Out of scope.

4. The final sentence of the first paragraph plays what role in the passage?

A. It refutes the conclusions of the first paragraph. -->Not correct.
B. It suggests the subject matter for the second paragraph. -->This might be right but I think it provides the subject matter for all the following paragraphs.
C. It raises a question that is answered in the following paragraphs. -->It's not a question.
D. It suggests an alternative hypothesis to that proposed by Paulson in her book. -->Incorrect.
 E. It provides a conclusion to the premises of the first paragraph and outlines the subject matter of the following paragraphs.  -->Yes, that's correct.

BDAE

pintukr · Answer

1. According to the information given in the passage, which of the following candy bars is most likely to be found in a large regional grocery chain?
 
A. Caravelle
 mentioned as a local brand 
B. Three Musketeers
 mentioned as a large regional brand 
C. Charleston Chew
 Irrelevant; not found mentioned 
D. Clark Bar
 mentioned as a local brand 
E. Goo Goo Cluster
 mentioned as a local brand

2. Which of the following business examples most closely parallels that of the candy industry in recent decades, as described in the passage?

A. Many formerly non-profit hospitals are bought and managed by large, for-profit health care consortiums that use their size to negotiate better rates from insurance companies and health care product suppliers.
 not an example of a consolidation in the industry , exemplified in the form of survival of a few large conglomerates and disappearance of regional competitors -- driven by market forces  
B. A small number of very large agricultural companies purchase hundreds of thousands of acres of farmland from small farmers when a period of sustained drought makes most of these smaller farms nonviable as independent operations.
 pattern in the stimulus not similar to --- a consolidation in the industry , exemplified in the form of survival of a few large conglomerates and disappearance of regional competitors -- driven by market forces 
C. An online book retailer eats into the market share of both large and small traditional book retailers by opening up an entirely new bookbuying marketplace and offering free shipping.
 different analogy --- not an example of a consolidation in the industry , exemplified in the form of survival of a few large conglomerates and disappearance of regional competitors -- driven by market forces 
D. A small number of soft-drink conglomerates buy up smaller regional competitors and use economies of scale to negotiate preferential rates from both suppliers and distributors.
 a perfect example of a consolidation in the industry , exemplified in the form of survival of a few large conglomerates and disappearance of regional competitors -- driven by market forces 
E. A medium-sized regional telecom company uses an inflated stock price to purchase a string of smaller regional competitors and in the process becomes one of the largest companies in the telecom industry.
 not an example of a consolidation in the industry , exemplified in the form of survival of a few large conglomerates and disappearance of regional competitors -- driven by market forces

3. According to the information presented in the passage, which of the following presents an accurate statement about small and large candy companies?

A. A large candy company can expect to pay less for a given amount of cocoa butter than a small candy company.
 can be inferred on basis of 2nd paragraph --- The larger companies could negotiate better rates on sugar, cocoa butter, peanut butter, coconut, and the other central ingredients of the candy industry. 
B. A small candy company can expect to pay a larger slotting fee for a given space in a retail outlet than a larger company.
 slotting fee for a given space in a retail outlet -- is same , irrespective of the size of the outlet 
C. A small candy company may have one or two national brands, while a large candy company will usually have dozens of regional brands.
 number of brands for the large/samll companies -- no information in the passage 
D. A large candy company has probably been in operation longer than a small candy company.
 Out of scope--duration of operation not discussed 
E. A small candy company probably offers its employees better employment benefits than does a large candy company.
 again, Irrelevant --employment benefits not covered in the passage

4. The final sentence of the first paragraph plays what role in the passage?

A. It refutes the conclusions of the first paragraph.
 doesn't refute the the premises only highlighted in 1st paragraph 
B. It suggests the subject matter for the second paragraph.
 2nd paragraph deals with process of consolidation -- in line with the final sentence of the first paragraph 
C. It raises a question that is answered in the following paragraphs.
 no questions raised through the final sentence of the first paragraph 
D. It suggests an alternative hypothesis to that proposed by Paulson in her book.
 Out of scope -- no suggestion of an alternative hypothesis 
E. It provides a conclusion to the premises of the first paragraph and outlines the subject matter of the following paragraphs.
provides subject matter only for the 2nd paragraph; also, the conclusion of the 1st paragraph is the first sentence of the 1st paragraph

BDAB is the correct sequence

Sajjad1994 · Answer

Hello Everyone!

OAs here are also posted now

B D A E

Almost everyone got this one but only  nivivacious  and  PK1  made some serious efforts to write up the explanations. Kudos!

OE to follow soon at 08:30 am Pacific.

Day 3 RCs are posted.

Good Luck!

Sajjad1994 · Answer

Official Explanation

1. According to the information given in the passage, which of the following candy bars is most likely to be found in a large regional grocery chain?

Explanation

The Three Musketeers bar is identified at the end of the second paragraph as one of the national brands promoted by the industry giants. In the third paragraph it is stated that large regional groceries favor national brands over regional brands, and that they charge  “slotting fees,”  which exclude all but the largest companies from selling in their store. The other candy bars are examples of smaller regional brands.

Answer: B

Sajjad1994 · Answer

Official Explanation

2. Which of the following business examples most closely parallels that of the candy industry in recent decades, as described in the passage?

Explanation

The example in  D  provides many salient similarities to the history of candy competition as presented in the passage: a small number of large companies come to dominate the industry by exploiting economies of scale and buying up smaller regional competitors. The parallel is made stronger by the fact that both products are impulse-oriented consumer products.

Answer: D

Sajjad1994 · Answer

Official Explanation

3. According to the information presented in the passage, which of the following presents an accurate statement about small and large candy companies?

Explanation

The passage states in the second paragraph:  “The larger companies could negotiate better rates on sugar, cocoa butter, peanut butter, coconut, and the other central ingredients of the candy industry.”  While the other statements may or may not be true, none of them are supported as directly by the text as  choice A.

Answer: A

Sajjad1994 · Answer

Official Explanation

4. The final sentence of the first paragraph plays what role in the passage?

Explanation

The sentence in question— “But the economic forces at work over the last sixty years have led to substantial consolidation in the candy industry and, perhaps more importantly, in the way that candy is distributed” —provides a conclusion to the first paragraph (the sentence presents the thesis of Paulson’s book, and it is the reason the history of the candy industry was cited in the two preceding sentences), and it outlines both the subject matter of  paragraph 2 —the consolidation of the candy industry—and of  paragraph 3 —the changes in food distribution and how this has affected the candy industry

Answer: E

Candy bars may seem sweet to the average consumer, but the companies

Prep Toolkit

Top 5 GMAT Debrief Videos

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards

GMAT Reading Comprehension (RC) Questions

Candy bars may seem sweet to the average consumer, but the companies

Prep Toolkit

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards