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SajjadAhmad please explain q3
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Official Explanation

3. It can be inferred from the passage that the author suggests which of the following concerning some corporations during the energy crisis of 1973?

Difficulty Level: 750

Explanation

Read closely around the words energy crisis of 1973. Remember that the credited response must be a paraphrase. Refer to the passage if you need to.

A. Yes. This is stated in the final sentence of the passage.

B. No. This answer choice confuses two notions of “powering.”

C. No. Mismanagement due to the growth/share matrix and the matrix itself came into play only after 1973.

D. This is never specifically related to the energy crisis of 1973.

E. No. The problem was not one of the lack of diversification, but rather too much.

Answer: A

Hope it helps

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SajjadAhmad please explain q3
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Hi TheNightKing
Even I got Q2 wrong but looking back at answer choices I tried to reason with choice A, I dont know if its correct please lmk if my thinking is correct

Actual Debt: USD 100
Underestimated Debt by the matrix: USD 50 (line 27)

So the matrix here overestimated the risk of debt leading it to underestimate the debt amount WHICH INDEED IS A PROBLEM.
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@Sajjadahmad, can you post the OE for Q2?

TIA
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@Sajjadahmad, can you post the OE for Q2?

TIA

Official Explanation

2. According to the passage, all of the following were problems associated with corporations’ reliance on the growth/share matrix EXCEPT

Difficulty Level: Hard

Explanation

Since this is an EXCEPT question, keep in mind that four answer choices address the question, and the fifth one, which does not, is the credited response. This question also applies to the passage as a whole, so use each answer choice as your lead words.

A No. Negative debt was discussed in the second paragraph of the passage.

B No. Divisions’ relations to each other were also discussed in the second paragraph.

C No. Lack of knowledge was addressed at the end of the first paragraph: “managers had a tool for understanding the relative success of those businesses with whose fields they were unfamiliar.”

D Yes. “Inability to correctly order division” was never mentioned as a problem in the passage, and so is a good answer for an EXCEPT question.

E No. This is summarized in the last sentence of the passage.

Answer: D
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TarPhi
@Sajjadahmad, can you post the OE for Q2?

TIA

Official Explanation

2. According to the passage, all of the following were problems associated with corporations’ reliance on the growth/share matrix EXCEPT

Difficulty Level: Hard

Explanation

Since this is an EXCEPT question, keep in mind that four answer choices address the question, and the fifth one, which does not, is the credited response. This question also applies to the passage as a whole, so use each answer choice as your lead words.

A No. Negative debt was discussed in the second paragraph of the passage.

B No. Divisions’ relations to each other were also discussed in the second paragraph.

C No. Lack of knowledge was addressed at the end of the first paragraph: “managers had a tool for understanding the relative success of those businesses with whose fields they were unfamiliar.”

D Yes. “Inability to correctly order division” was never mentioned as a problem in the passage, and so is a good answer for an EXCEPT question.

E No. This is summarized in the last sentence of the passage.

Answer: D


Hi , I have a question regarding your explanation for option C which says
C. the failure of the matrix to compensate for the lack of knowledge the corporations had about their own holdings.

from passage, The matrix worked by ordering each division according to its position within its industry overall.
Thus, managers had a tool for understanding the relative success of those businesses with whose fields they were unfamiliar

Basically the passage is saying people now understood if business A is successful (business A being a business they dont know), so IT IS compensating for their lack of knowledge right?
it is a problem that the matrix is solving. How is it failing to do so as in option C?
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could you please share the QE for question 4?
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Hi , I have a question regarding your explanation for option C which says
C. the failure of the matrix to compensate for the lack of knowledge the corporations had about their own holdings.

from passage, The matrix worked by ordering each division according to its position within its industry overall.
Thus, managers had a tool for understanding the relative success of those businesses with whose fields they were unfamiliar

Basically the passage is saying people now understood if business A is successful (business A being a business they dont know), so IT IS compensating for their lack of knowledge right?
it is a problem that the matrix is solving. How is it failing to do so as in option C?

No! the passage is not saying that, the passage actually highlights the failure of the growth/share matrix to provide information about the corporation's ability to manage even those divisions it identified as successful. In other words, the matrix did not compensate for the lack of knowledge that corporations had about their own holdings, particularly when it came to their ability to manage their acquisitions effectively. This is discussed in lines 27-35 of the passage: "And finally, the matrix was unable to provide information regarding the corporation's ability to manage even those successes identified by the matrix."

So, option C is a valid problem associated with the growth/share matrix, and it is mentioned in the passage as one of the limitations of the matrix.
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Kante
could you please share the QE for question 4?

Explanation

4. It can be inferred from the passage that the original intention of the growth/share matrix was to

Difficulty Level: Hard

Explanation

A) This option suggests that the original intention of the growth/share matrix was to identify successful smaller companies that would be good acquisitions for corporations. It implies that the matrix was designed to help corporations make strategic decisions about which divisions or companies to acquire. While the matrix did assess the performance of divisions, it didn't necessarily focus on identifying smaller companies for acquisitions. Instead, it evaluated the performance of existing divisions within a corporation.

B) This option implies that the matrix was introduced to address the chaotic nature of the acquisition and diversification trends of the 1960s and 1970s. While it is true that the matrix was introduced in response to the rapid acquisition and diversification during that time, its primary purpose was not to counter chaos but to evaluate the performance of existing divisions within corporations and help with decision-making regarding those divisions.

C) This option accurately reflects the main purpose of the growth/share matrix, as discussed in the passage. The matrix was introduced to help parent companies assess the performance of their various divisions and determine which ones were considered successful, especially in relation to their respective industries or fields.

D) This option suggests that the matrix was introduced to help companies respond to the challenges of the energy crisis of 1973. While the passage does mention the energy crisis as a backdrop for the introduction of the matrix, the primary purpose of the matrix was to evaluate division performance and identify successes rather than directly countering the effects of the crisis.

E) This option implies that the matrix was introduced to address issues related to corporations' debt management and their underestimation of debt limits. The passage does mention that the matrix underestimated the amount of debt corporations could safely assume, but this was not the primary focus or intention behind the matrix's introduction. Its primary goal was to assess division performance.

In light of the passage's emphasis, option C is the correct choice, as it aligns with the stated purpose of the growth/share matrix.

Answer: C
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