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22 Feb 2022, 22:39
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KarishmaB egmat @VeritasPrep Magoosh GMATNinja Sajjad1994
Hi I am facing difficulties in selecting one option out of C and D in question 3. Could you please help me in this.
Que - The passage suggests that Bergh and a proponent of the upper echelons perspective would be most likely to disagree over which of the following?
(C) Whether adaptability is a useful trait for an executive who is managing an acquisition process
(D) Whether retaining less-tenured top executives of an acquired company is an optimal strategy for achieving postacquisition success
As given in last paragraph of the passage, RBV position 'While longer tenured top executives may have trouble adapting to change, it appears that their perspectives and knowledge bases offer unique value after the acquisition.' Indirectly it means adaptability is not important. UEP position - 'It is sensible to retain less tenured top executives' indirectly it means that adaptability is important. Hence, I wanted to understand why is option C incorrect. Is it because of word 'acquisition process' instead of 'acquisition success' in option C.
Additionally, Option D looks weak because of word 'optimal' because as per UEP position, it is given that it is a sensible strategy. Hence, we cannot say anything regarding it is a optimal strategy.
Hi I am facing difficulties in selecting one option out of C and D in question 3. Could you please help me in this.
Que - The passage suggests that Bergh and a proponent of the upper echelons perspective would be most likely to disagree over which of the following?
(C) Whether adaptability is a useful trait for an executive who is managing an acquisition process
(D) Whether retaining less-tenured top executives of an acquired company is an optimal strategy for achieving postacquisition success
As given in last paragraph of the passage, RBV position 'While longer tenured top executives may have trouble adapting to change, it appears that their perspectives and knowledge bases offer unique value after the acquisition.' Indirectly it means adaptability is not important. UEP position - 'It is sensible to retain less tenured top executives' indirectly it means that adaptability is important. Hence, I wanted to understand why is option C incorrect. Is it because of word 'acquisition process' instead of 'acquisition success' in option C.
Additionally, Option D looks weak because of word 'optimal' because as per UEP position, it is given that it is a sensible strategy. Hence, we cannot say anything regarding it is a optimal strategy.
23 Feb 2022, 01:48
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Official Explanation
3. The passage suggests that Bergh and a proponent of the upper echelons perspective would be most likely to disagree over which of the following?
Difficulty Level: 650-700
Explanation
Inference
The question asks about conclusions that can reasonably be drawn from the information provided in the passage. Bergh’s study supports the resource‐based view (RBV), which suggests that top executives with long tenure are more valuable to post acquisition success than other executives. The upper echelons perspective (UEP), in contrast, suggests that top executives with shorter tenure are more valuable to post acquisition success. Tus, Bergh, and a proponent of UEP would likely disagree about whether long or short tenure top executives are more valuable to a positive outcome in a post acquisition situation.
A. The passage does not provide sufficiently specifc information about statistical relationships to determine whether Bergh and proponents of UEP would agree or disagree about whether there is such a positive correlation.
B. There is a weak suggestion in the passage that Bergh believes such a positive correlation exists, but there is no indication that a proponent of UEP would question such a correlation.
C. The passage does not indicate that Bergh would disagree with proponents of UEP that adaptability is a valuable trait in an executive who is managing an acquisition.
D. Correct. The passage suggests that proponents of UEP believe that retaining less‐tenured top executives during and after an acquisition is a better strategy, while Bergh believes that retaining longer‐tenured top executives is better.
E. The passage suggests that Bergh and proponents of UEP agree that retaining the highest‐level top executives is more important to post acquisition success than is retaining lower‐ranked top executives.
The correct answer is D.
Difficulty Level: 650-700
Explanation
Inference
The question asks about conclusions that can reasonably be drawn from the information provided in the passage. Bergh’s study supports the resource‐based view (RBV), which suggests that top executives with long tenure are more valuable to post acquisition success than other executives. The upper echelons perspective (UEP), in contrast, suggests that top executives with shorter tenure are more valuable to post acquisition success. Tus, Bergh, and a proponent of UEP would likely disagree about whether long or short tenure top executives are more valuable to a positive outcome in a post acquisition situation.
A. The passage does not provide sufficiently specifc information about statistical relationships to determine whether Bergh and proponents of UEP would agree or disagree about whether there is such a positive correlation.
B. There is a weak suggestion in the passage that Bergh believes such a positive correlation exists, but there is no indication that a proponent of UEP would question such a correlation.
C. The passage does not indicate that Bergh would disagree with proponents of UEP that adaptability is a valuable trait in an executive who is managing an acquisition.
D. Correct. The passage suggests that proponents of UEP believe that retaining less‐tenured top executives during and after an acquisition is a better strategy, while Bergh believes that retaining longer‐tenured top executives is better.
E. The passage suggests that Bergh and proponents of UEP agree that retaining the highest‐level top executives is more important to post acquisition success than is retaining lower‐ranked top executives.
The correct answer is D.
24 Feb 2022, 06:59
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waytowharton
3. The passage suggests that Bergh and a proponent of the upper echelons perspective would be most likely to disagree over which of the following?
(A) Whether there is a positive correlation between short organizational tenure and managerial adaptability
(B) Whether there is a positive correlation between long organizational tenure and the acquisition of idiosyncratic and nontransferable knowledge
(C) Whether adaptability is a useful trait for an executive who is managing an acquisition process
(D) Whether retaining less-tenured top executives of an acquired company is an optimal strategy for achieving postacquisition success
(E) Whether retaining highest-level top executives of acquired companies is more important than retaining lower-ranked top executives
Note Bergh's position -
...Bergh’s findings support the RBV position. Apparently, the benefits of long organizational tenure lead to more successful outcomes than the benefits of short organizational tenure. While longer tenured top executives may have trouble adapting to change, it appears that their perspectives and knowledge bases offer unique value after the acquisition.
...
The opposing position, offered by the upper echelons perspective (UEP), suggests that retaining top executives having short organizational tenure would lead to more successful outcomes, as they would have the adaptability to manage most effectively during the uncertainty of the acquisition process.
Bergh doesn't say that adaptability is useless. In fact, he says that they executive do have trouble adapting. The point he makes is that something else plays a bigger role (unique insights). Bergh says that long tenure increases probability of success.
The UEP perspective is that short tenure increases probability of success due to adaptability.
On what do they disagree? On whether long tenure retention is better or short tenure.
Answer (D)
Bergh doesn't imply that adaptability is not important, only that the unique perspective is even more important. He does admit that long tenure execs do face trouble because of adaptability issues but overall do better. Hence (C) is not correct.
