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22 Sep 2023, 10:30
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Question 1
B
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
25%
(medium)
Question Stats:
74% (02:25) correct
26%
(02:28) wrong
based on 677
sessions
History
Date
Time
Result
Not Attempted Yet
Question 2
A
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
5%
(low)
Question Stats:
80% (00:42) correct 20%
(00:50) wrong
based on 671
sessions
History
Date
Time
Result
Not Attempted Yet
Question 3
B
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
25%
(medium)
Question Stats:
73% (01:26) correct 27%
(01:35) wrong
based on 687
sessions
History
Date
Time
Result
Not Attempted Yet
Intense competition for grants and donations has prompted some nonprofit organizations to help support their missions by generating revenues in the marketplace. Generally, however, these groups are led by people who, though entrepreneurial, have never launched a competitive venture. One way for nonprofit organizations to learn from the for-profit sector is to enter business plan competitions, whose sponsors, such as universities, provide free business consulting to entrants and offer awards based on the strength of the business plan developed. The process of developing the plans helps participants understand economic realities and foresee conflicts with their core mission.
For example, CIPO Productions, the 2001 winner of Brazil's Social Entrepreneur Award, was created in 1999 by journalist Anna Penido. The organization offers impoverished young people in northeastern Brazil training in media skills such as journalism, photography, and video production. Recognizing that CIPO's video and computer equipment was in use only part-time, Penido believed she could exploit the idle capacity and sell communications services to other organizations. By producing educational brochures, magazines, and Web sites, CIPO could generate income to supplement the donations that financed its educational work. It would also give its graduates an opportunity to continue their professional development. Realizing that accomplishing these objectives required a viable business plan, Penido submitted a general description of her business idea and its objectives to the competition and was one of 80 applicants accepted in 2001.
For example, CIPO Productions, the 2001 winner of Brazil's Social Entrepreneur Award, was created in 1999 by journalist Anna Penido. The organization offers impoverished young people in northeastern Brazil training in media skills such as journalism, photography, and video production. Recognizing that CIPO's video and computer equipment was in use only part-time, Penido believed she could exploit the idle capacity and sell communications services to other organizations. By producing educational brochures, magazines, and Web sites, CIPO could generate income to supplement the donations that financed its educational work. It would also give its graduates an opportunity to continue their professional development. Realizing that accomplishing these objectives required a viable business plan, Penido submitted a general description of her business idea and its objectives to the competition and was one of 80 applicants accepted in 2001.
1. Based on the passage, which of the following can be most reasonably inferred about the contestants in business plan competitions?
A. Most of them are companies devoted to providing educational services to specific groups of people.
B. They have the opportunity to benefit from a competition even if they do not win it.
C. Most of them seek to revise or redefine their core mission.
D. They are often intent on changing from a nonprofit to a for-profit company.
E. They view the competitions as a way to attract potential donors to support their core missions.
A. Most of them are companies devoted to providing educational services to specific groups of people.
B. They have the opportunity to benefit from a competition even if they do not win it.
C. Most of them seek to revise or redefine their core mission.
D. They are often intent on changing from a nonprofit to a for-profit company.
E. They view the competitions as a way to attract potential donors to support their core missions.
2. The passage states that the process of developing a business plan for a competition helps nonprofit participants do which of the following?
A. Foresee conflicts with the core mission of their companies
B. Identify potential donors within the for-profit business sector
C. Differentiate themselves from for-profit companies
D. Identify idle capacities within their companies
E. Maintain relationships with business consultants
A. Foresee conflicts with the core mission of their companies
B. Identify potential donors within the for-profit business sector
C. Differentiate themselves from for-profit companies
D. Identify idle capacities within their companies
E. Maintain relationships with business consultants
3. The passage most strongly supports which of the following statements?
A. Prior to winning the business plan competition, CIPO Productions was failing to achieve its nonprofit core mission.
B. Anna Penido believed that CIPO's competitive venture would be compatible with CIPO Production's nonprofit core mission.
C. After the business plan competition, CIPO Productions retained the services of the consultants it used in the competitions.
D. Brazil's Social Entrepreneur Award is awarded primarily based on an evaluation of the expected magnitude of the profits the contestant's planned activities could generate.
E. CIPO Productions planned to have its graduates provide unpaid volunteer labor toward the production of educational materials for profit.
A. Prior to winning the business plan competition, CIPO Productions was failing to achieve its nonprofit core mission.
B. Anna Penido believed that CIPO's competitive venture would be compatible with CIPO Production's nonprofit core mission.
C. After the business plan competition, CIPO Productions retained the services of the consultants it used in the competitions.
D. Brazil's Social Entrepreneur Award is awarded primarily based on an evaluation of the expected magnitude of the profits the contestant's planned activities could generate.
E. CIPO Productions planned to have its graduates provide unpaid volunteer labor toward the production of educational materials for profit.
23 Sep 2023, 11:11
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Explanation for Question 1
1. Based on the passage, which of the following can be most reasonably inferred about the contestants in business plan competitions?
A. Most of them are companies devoted to providing educational services to specific groups of people.
The passage uses CIPO, an organization that provides training to impoverished young people in northeastern Brazil, as an example.
However, the passage does not say that most contestants in business plan competitions are companies devoted to providing educational services.
Eliminate.
B. They have the opportunity to benefit from a competition even if they do not win it.
Regarding business plan competitions, the passage says the following:
and
If business plan competitions' sponsors "provide free business consulting to entrants" and "The process of developing the plans helps participants understand economic realities and foresee conflicts," then the contestants "have the opportunity to benefit from a competition even if they do not win it."
So, this choice is supported.
Keep.
C. Most of them seek to revise or redefine their core mission.
Regarding "core mission," the passage says the following:
Participants would be concerned about conflicts with their core mission if they plan to maintain their core mission, rather than revise or redefine it.
Eliminate.
D. They are often intent on changing from a nonprofit to a for-profit company.
The passage indicates that non-profit organizations sometimes enter business plan competitions to "to learn from the for-profit sector" in order to "help support their missions by generating revenues in the marketplace."
It doesn't say that the organizations are intent on changing from nonprofits to for-profit companies.
Eliminate.
E. They view the competitions as a way to attract potential donors to support their core missions.
Scanning the passage for "donors," we find the following two statements:
and
So, the only information that the passage provides about donors is that the organizations seek to generate revenues to supplement donations. There's no information about "a way to attract potential donors."
Eliminate.
The correct answer is (B).
Explanation for Question 2
2. The passage states that the process of developing a business plan for a competition helps nonprofit participants do which of the following?
A. Foresee conflicts with the core mission of their companies
Scanning the passage for "conflicts" and "core mission," we find the following at the end of the first paragraph:
We see that that sentence supports this choice.
Keep.
B. Identify potential donors within the for-profit business sector
While the passage mentions that CIPO could "supplement ... donations," it says nothing about identifying potential donors.
Eliminate.
C. Differentiate themselves from for-profit companies
The passage says nothing about nonprofits doing anything to differentiate themselves from for-profit companies. On the contrary, the passage indicates that nonprofits enter business plan competitions "to learn from the for-profit sector."
Eliminate.
D. Identify idle capacities within their companies
There is something in the passage about identifying idle capacities:
However, the passage does not say that developing a business plan for a competition helped CIPO or any other nonprofit identify idle capacities.
Eliminate.
E. Maintain relationships with business consultants
The passage says, "business plan competitions, whose sponsors, such as universities, provide free business consulting to entrants."
However, it does not say that developing a business plan for a competition helps nonprofit participants "maintain relationships" with business consultants. Maintaining a relationship would involve continuing that relationship over time, not just getting free business consulting while participating in a competition.
Eliminate.
The correct answer is (A).
Explanation for Question 3
3. The passage most strongly supports which of the following statements?
A. Prior to winning the business plan competition, CIPO Productions was failing to achieve its nonprofit core mission.
Regarding how CIPO was doing prior to winning the competition, the passage says the following:
We see that the passage indicates that, prior to winning the competition, CIPO was doing donation-financed educational work, not failing.
Eliminate.
B. Anna Penido believed that CIPO's competitive venture would be compatible with CIPO Production's nonprofit core mission.
The passage indicates the following about what Anna Penido believed:
The fact that the competitive venture would allow CIPO to supplement donations and allow its graduates to continue their professional development indicates that the venture would be compatible with CIPO Production's nonprofit core mission.
So, while the passage does not directly state that Anna Penido believed that CIPO's competitive venture would be compatible with its core mission, by indicating that Anna Penido believed that the venture would allow those outcomes, the passage suggests that she believed the venture to be compatible with CIPO Production's nonprofit core mission.
Keep
C. After the business plan competition, CIPO Productions retained the services of the consultants it used in the competitions.
The passage says nothing about CIPO retaining any services after the competition.
Eliminate.
D. Brazil's Social Entrepreneur Award is awarded primarily based on an evaluation of the expected magnitude of the profits the contestant's planned activities could generate.
The passage provides no information on the basis on which Brazil's Social Entrepreneur Award is awarded.
Eliminate.
E. CIPO Productions planned to have its graduates provide unpaid volunteer labor toward the production of educational materials for profit.
Scanning the passage for "graduates," we find the following:
We see that the passage says that the production of education materials would give CIPO graduates "an opportunity to continue their professional development."
Continuing "professional development" could involve paid work. So, the passage gives no reason to believe that the plan was for graduates to provide unpaid volunteer labor.
Eliminate.
The correct answer is (B).
1. Based on the passage, which of the following can be most reasonably inferred about the contestants in business plan competitions?
A. Most of them are companies devoted to providing educational services to specific groups of people.
The passage uses CIPO, an organization that provides training to impoverished young people in northeastern Brazil, as an example.
However, the passage does not say that most contestants in business plan competitions are companies devoted to providing educational services.
Eliminate.
B. They have the opportunity to benefit from a competition even if they do not win it.
Regarding business plan competitions, the passage says the following:
- business plan competitions, whose sponsors, such as universities, provide free business consulting to entrants and offer awards based on the strength of the business plan developed
and
- The process of developing the plans helps participants understand economic realities and foresee conflicts with their core mission.
If business plan competitions' sponsors "provide free business consulting to entrants" and "The process of developing the plans helps participants understand economic realities and foresee conflicts," then the contestants "have the opportunity to benefit from a competition even if they do not win it."
So, this choice is supported.
Keep.
C. Most of them seek to revise or redefine their core mission.
Regarding "core mission," the passage says the following:
- The process of developing the plans helps participants understand economic realities and foresee conflicts with their core mission.
Participants would be concerned about conflicts with their core mission if they plan to maintain their core mission, rather than revise or redefine it.
Eliminate.
D. They are often intent on changing from a nonprofit to a for-profit company.
The passage indicates that non-profit organizations sometimes enter business plan competitions to "to learn from the for-profit sector" in order to "help support their missions by generating revenues in the marketplace."
It doesn't say that the organizations are intent on changing from nonprofits to for-profit companies.
Eliminate.
E. They view the competitions as a way to attract potential donors to support their core missions.
Scanning the passage for "donors," we find the following two statements:
- Intense competition for grants and donations has prompted some nonprofit organizations to help support their missions by generating revenues in the marketplace.
and
- By producing educational brochures, magazines, and Web sites, CIPO could generate income to supplement the donations that financed its educational work.
So, the only information that the passage provides about donors is that the organizations seek to generate revenues to supplement donations. There's no information about "a way to attract potential donors."
Eliminate.
The correct answer is (B).
Explanation for Question 2
2. The passage states that the process of developing a business plan for a competition helps nonprofit participants do which of the following?
A. Foresee conflicts with the core mission of their companies
Scanning the passage for "conflicts" and "core mission," we find the following at the end of the first paragraph:
- The process of developing the plans helps participants understand economic realities and foresee conflicts with their core mission.
We see that that sentence supports this choice.
Keep.
B. Identify potential donors within the for-profit business sector
While the passage mentions that CIPO could "supplement ... donations," it says nothing about identifying potential donors.
Eliminate.
C. Differentiate themselves from for-profit companies
The passage says nothing about nonprofits doing anything to differentiate themselves from for-profit companies. On the contrary, the passage indicates that nonprofits enter business plan competitions "to learn from the for-profit sector."
Eliminate.
D. Identify idle capacities within their companies
There is something in the passage about identifying idle capacities:
- Recognizing that CIPO's video and computer equipment was in use only part-time, Penido believed she could exploit the idle capacity and sell communications services to other organizations.
However, the passage does not say that developing a business plan for a competition helped CIPO or any other nonprofit identify idle capacities.
Eliminate.
E. Maintain relationships with business consultants
The passage says, "business plan competitions, whose sponsors, such as universities, provide free business consulting to entrants."
However, it does not say that developing a business plan for a competition helps nonprofit participants "maintain relationships" with business consultants. Maintaining a relationship would involve continuing that relationship over time, not just getting free business consulting while participating in a competition.
Eliminate.
The correct answer is (A).
Explanation for Question 3
3. The passage most strongly supports which of the following statements?
A. Prior to winning the business plan competition, CIPO Productions was failing to achieve its nonprofit core mission.
Regarding how CIPO was doing prior to winning the competition, the passage says the following:
- By producing educational brochures, magazines, and Web sites, CIPO could generate income to supplement the donations that financed its educational work.
We see that the passage indicates that, prior to winning the competition, CIPO was doing donation-financed educational work, not failing.
Eliminate.
B. Anna Penido believed that CIPO's competitive venture would be compatible with CIPO Production's nonprofit core mission.
The passage indicates the following about what Anna Penido believed:
- By producing educational brochures, magazines, and Web sites, CIPO could generate income to supplement the donations that financed its educational work. It would also give its graduates an opportunity to continue their professional development.
The fact that the competitive venture would allow CIPO to supplement donations and allow its graduates to continue their professional development indicates that the venture would be compatible with CIPO Production's nonprofit core mission.
So, while the passage does not directly state that Anna Penido believed that CIPO's competitive venture would be compatible with its core mission, by indicating that Anna Penido believed that the venture would allow those outcomes, the passage suggests that she believed the venture to be compatible with CIPO Production's nonprofit core mission.
Keep
C. After the business plan competition, CIPO Productions retained the services of the consultants it used in the competitions.
The passage says nothing about CIPO retaining any services after the competition.
Eliminate.
D. Brazil's Social Entrepreneur Award is awarded primarily based on an evaluation of the expected magnitude of the profits the contestant's planned activities could generate.
The passage provides no information on the basis on which Brazil's Social Entrepreneur Award is awarded.
Eliminate.
E. CIPO Productions planned to have its graduates provide unpaid volunteer labor toward the production of educational materials for profit.
Scanning the passage for "graduates," we find the following:
- By producing educational brochures, magazines, and Web sites, CIPO could generate income to supplement the donations that financed its educational work. It would also give its graduates an opportunity to continue their professional development.
We see that the passage says that the production of education materials would give CIPO graduates "an opportunity to continue their professional development."
Continuing "professional development" could involve paid work. So, the passage gives no reason to believe that the plan was for graduates to provide unpaid volunteer labor.
Eliminate.
The correct answer is (B).
General Discussion
04 Oct 2025, 14:40
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Hello from the GMAT Club VerbalBot!
Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).
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Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).
Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
