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Firms traditionally claim that they downsize (i.e., make permanent per 23 Aug 2021, 11:19
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Question 4


dhilavikash
POE FOR QUESTION NUMBER 4

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We've discussed the correct answer choice for question 4 here. Check it out and let us know if you have additional questions about the other answer choices!
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Firms traditionally claim that they downsize (i.e., make permanent per 28 Mar 2022, 08:29
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AndrewN
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Quote:
3. The passage suggests which of the following about the claim that a firm will become more efficient and competitive by downsizing?

(A) Few firms actually believe this claim to be true.
(B) Fewer firms have been making this claim in recent years.
(C) This claim contradicts the basic assumption of organization theory.
(D) This claim is called into question by certain recent research.
(E) This claim is often treated with skepticism by the business press.
Hi AndrewN sir


Sorry for bringing your attention again on similar issue.

I have read GMATNinja ’s explanation above. I remember we need to understand from high level perspective . I have no doubts on why answer is D.

I wanted to clarify some points for option A. ( I find hard to eliminate A)


1. If the question says “passage suggests” then I need to take meaning from overall perspective as we have to take for Q3?

2. Should not the beginning of sentence should be “Firms traditionally claimeD xxx” . They used to claim before.

3. When I read first few lines , firms traditionally claim that they downsize xx.
Does traditionally claim not mean (actually) believe?

4. Since claim is in present tense, so even many companies agree that they are wrong still some companies may believe that downsizing is to become more efficient and competitive.
(since questions ask passage suggests so I may no need to find option that is directly given in passage but something that can be derived.)

5. IN order for A to be answer: If A were: Few firms traditionally claim, then this option could be true.
Or
If question were: Which of the claim is true?
Then A could have been answer?

Btw, How was your approach to eliminate A?
Some key words in option A? – “actually” ?
You need not worry about bringing questions to my attention, imSKR. As long as I feel you are doing so in a respectful manner and that your questions are put forth to help you in your preparation, then I will keep answering them. It helps me become a better student of the test myself, not to mention a more informed tutor. In this case, (A) is directly contradicted in the passage. What information do we have about the claim that a firm will become more efficient and competitive by downsizing? Such a belief is outlined in the third sentence:

Quote:
There is evidence that firms believe they are behaving rationally whenever they downsize; yet recent research has shown that the actual economic effects of downsizing are often negative for firms.
We can thus deduce that firms think they are doing the right thing in choosing to downsize. It seems to me as if you latched onto the word claim and went fishing for an answer in the opening line of the passage instead. But we have discussed trying to force an answer before. When you twist and turn to try to fit information into what you want to be the answer, you are almost certainly going to make an incorrect conclusion.

Does the opening line need to say claimed? No. The firms still exist, and the claim is the sort of reasoning they may still use to justify downsizing, similar to saying that the French traditionally believe in Catholicism. Getting back to answer choice (A), the only way it could be correct is if the passage said something different, so we cannot speculate on what would make it true.

I hope that helps. Although I may not agree with GMATNinja about the level of engagement the material provides—I happen to like business passages the least on the GMAT™—I did manage to navigate the passage and questions without any trouble, spending a little extra time to check my answers before committing, particularly in the beginning. (My times were 2:18, 1:11, 1:17, 0:46, and 1:02.) And, in case you were curious, no, I did not picture any attractive person reading the passage to me, or my times would have been way worse and my accuracy all over the place.

- Andrew
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Please help with question 3 again. Why is A wrong? The first line itself says that firms' traditional claim to downsize it to increase efficacy and competitiveness. Hence they do believe that the claim is true.
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Firms traditionally claim that they downsize (i.e., make permanent per 28 Mar 2022, 09:21
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aditijain1507
Please help with question 3 again. Why is A wrong? The first line itself says that firms' traditional claim to downsize it to increase efficacy and competitiveness. Hence they do believe that the claim is true.
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Hello, aditijain1507. How about we look at the question and answer choice (A) exclusively, along with the first line of the passage?

Quote:
3. The passage suggests which of the following about the claim that a firm will become more efficient and competitive by downsizing?

(A) Few firms actually believe this claim to be true.
Show more
Now, the first line of the passage:

Quote:
Firms traditionally claim that they downsize (i.e., make permanent personnel cuts) for economic reasons, laying off supposedly unnecessary staff in an attempt to become more efficient and competitive.
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To my eye, we are told what firms claim, but we gain no insight into their beliefs about that claim, so answer choice (A) has no support in the passage. Break down the statement bit by bit, with an eye on the line in question.

  • Few—Can we glean such a comparison?
  • believe—Where are beliefs mentioned?
  • true—Is this judgment present?

The answer to all three questions is no. A suggestion or inference question on the GMAT™ does not give you license to conjure up something that could be true. You still need to be able to put a finger on something in the text to support your answer.

GMATNinja has discussed the question in two posts above. (Just see this handy reference post if you have not already checked it out.) If you are still unsure about answer choice (A), though, let me know why you think it is justifiable, and I will do my best to disabuse you of that notion.

Thank you for following up, and good luck with your studies.

- Andrew
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Firms traditionally claim that they downsize (i.e., make permanent per 28 Mar 2022, 10:44
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AndrewN
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Please help with question 3 again. Why is A wrong? The first line itself says that firms' traditional claim to downsize it to increase efficacy and competitiveness. Hence they do believe that the claim is true.
Hello, aditijain1507. How about we look at the question and answer choice (A) exclusively, along with the first line of the passage?

Quote:
3. The passage suggests which of the following about the claim that a firm will become more efficient and competitive by downsizing?

(A) Few firms actually believe this claim to be true.
Now, the first line of the passage:

Quote:
Firms traditionally claim that they downsize (i.e., make permanent personnel cuts) for economic reasons, laying off supposedly unnecessary staff in an attempt to become more efficient and competitive.
To my eye, we are told what firms claim, but we gain no insight into their beliefs about that claim, so answer choice (A) has no support in the passage. Break down the statement bit by bit, with an eye on the line in question.

  • Few—Can we glean such a comparison?
  • believe—Where are beliefs mentioned?
  • true—Is this judgment present?

The answer to all three questions is no. A suggestion or inference question on the GMAT™ does not give you license to conjure up something that could be true. You still need to be able to put a finger on something in the text to support your answer.

GMATNinja has discussed the question in two posts above. (Just see this handy reference post if you have not already checked it out.) If you are still unsure about answer choice (A), though, let me know why you think it is justifiable, and I will do my best to disabuse you of that notion.

Thank you for following up, and good luck with your studies.

- Andrew
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Thank you for this elaborate comment. Cleared my entire doubt, well almost. So few in GMAT means not all?( in 100, few will mean 1-49?) Also, the alternate research mentions that downsizing can ----"Thus, even if downsizers do not become economically more efficient, downsizing’s mythic properties give them added prestige in the business community, enhancing their survival prospects." ---not make the firm more efficient, it nowhere mentions that it cannot increase (or decrease for that matter)competitiveness. So how does OA say that the research calls it into question for both eff and comp?
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Firms traditionally claim that they downsize (i.e., make permanent per 28 Mar 2022, 15:04
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aditijain1507
Thank you for this elaborate comment. Cleared my entire doubt, well almost. So few in GMAT means not all?( in 100, few will mean 1-49?) Also, the alternate research mentions that downsizing can ----"Thus, even if downsizers do not become economically more efficient, downsizing’s mythic properties give them added prestige in the business community, enhancing their survival prospects." ---not make the firm more efficient, it nowhere mentions that it cannot increase (or decrease for that matter)competitiveness. So how does OA say that the research calls it into question for both eff and comp?
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So, I partially cleared your doubt. I think GMATNinja has very well explained how the passage deals with your query, in this post. (And yes, it can reasonably be inferred to touch on both efficiency and competitiveness.) Concerning few, if I were looking at a sample size of 100 of something, I would say that a few must refer to at least 2, but probably nowhere close to half. A few would turn into several by the time we reached 10 in such a sample, to be honest. As with many other vocabulary words, though, context guides us to meaning.

- Andrew
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Firms traditionally claim that they downsize (i.e., make permanent per 26 Feb 2024, 08:04
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4 minutes...all correct...nice passage..
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Firms traditionally claim that they downsize (i.e., make permanent per 17 Nov 2024, 21:21
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Quote:

5. The author would be most likely to agree that the treatment by the business press of changes in the stock prices of downsizing press of changes in the stock prices of downsizing firms is misleading because the press tends to

(A) focus excessively on the short-term stock price movement of downsizing firms while paying insufficient attention to the long term
(B) exaggerate the extent to which stock prices of downsizing firms rise in the short term
(C) exaggerate the link between long-term stock performance and the economic viability of downsizing firms
(D) misinterpret a long-term decline in the stock prices of downsizing firms as a sign of desperation
(E) underestimate the impact that the press itself can have on the stock prices of downsizing firms[/box_in][/box_out]
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Can someone help with differentiating options A and B? They are both quite similar in terms of wording
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Firms traditionally claim that they downsize (i.e., make permanent per 26 Nov 2024, 09:28
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Question 5


Arsh001
Can someone help with differentiating options A and B? They are both quite similar in terms of wording
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Here's the relevant portion of the passage:

Quote:
the press often refers to soaring stock prices of downsizing firms (even though research shows that stocks usually rise only briefly after downsizing and then suffer a prolonged decline)
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Choice (B) implies that the press is EXAGGERATING the rise of stock prices of downsizing firms -- they're reporting that stock prices are "soaring" even though the stock prices are only rising slightly.

But that's not the author's objection to the business press. Instead, the author cites research showing that those stocks "usually rise only briefly after downsizing and then suffer a prolonged decline". So the author would not disagree with the fact that the prices soar when downsizing occurs.

However, the author likely thinks that it is misleading to report on the soaring unless there's a disclaimer: those stock prices might be soaring right now, but they are likely to suffer a prolonged decline after the initial soaring phase.

For more on question 5, check out this post: https://gmatclub.com/forum/firms-tradit ... l#p2259783
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