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Joined: 23 Jun 2009
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Location: Brazil
GMAT 1: 470 Q30 V20
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Measuring the performance of British business in Asia from the late 18
[#permalink]
Updated on: 26 Sep 2019, 10:19
Updated on: 26 Sep 2019, 10:19
4
Kudos
22
Bookmarks
Question 1
00:00
A
B
C
D
E
Difficulty:
5%
(low)
based on 1152 sessions
84% (02:52) correct
16%
(02:47) wrong
Question 2
00:00
A
B
C
D
E
Difficulty:
35%
(medium)
based on 1128 sessions
64% (01:32) correct 36%
(01:43) wrong
Question 3
00:00
A
B
C
D
E
Difficulty:
15%
(low)
based on 1098 sessions
76% (00:59) correct 24%
(01:09) wrong New Project RC Butler 2019 - Practice 2 RC Passages Everyday
Passage # 354, Date : 26-Sep-2019
This post is a part of New Project RC Butler 2019. Click here for Details
Passage # 354, Date : 26-Sep-2019
This post is a part of New Project RC Butler 2019. Click here for Details
Measuring the performance of British business in Asia from the late 1800s to the present is difficult. Profits Offer one measure, but collecting and comparing the profits and dividends (shares of profits distributed to stockholders) of thousands of enterprises present problems of data and interpretation. British overseas banks, for example, all maintained large hidden reserves to which transfers were made before published profits were declared. The actual dividends paid to stockholders were subject to factors such as taxation policy or exchange fluctuations or other factors. For example, the high dividends paid in India by many British managing companies in the early 1920s were more a response to stockholders' demands for short-term profit-taking of earnings the companies had retained from the First World War years—coupled with low rates of dividend taxation in India and a highly favorable currency exchange rate for the Indian rupee against British sterling—than the result of spectacularly successful enterprise during the period 1919 to 1921. Comparisons between different industries in different Asian countries present further difficulties.
Perhaps a more satisfactory measure of business performance is market share. In the late 1800s, British enterprise was dominant in many Asian countries; in Iran as late as the 1920s, the entire modern business sector was under British control. Although it declined at different rates in different countries, by the 1980s British business no longer played such a central role in the market of any Asian country.
Perhaps a more satisfactory measure of business performance is market share. In the late 1800s, British enterprise was dominant in many Asian countries; in Iran as late as the 1920s, the entire modern business sector was under British control. Although it declined at different rates in different countries, by the 1980s British business no longer played such a central role in the market of any Asian country.
1. The author of the passage mentions reserves in British overseas banks most likely in order to
(a) point out that published profits are less useful in measuring business success than are dividends
(b) suggest that many British businesses in Asia were less successful than their published profits indicated
(c) indicate that data about the profits of various businesses provide more useful information about short-term than about long-term performance
(d) illustrate the difficulties in drawing conclusions about business success or failure from published profits
(e) explain the role played by British overseas banks in British business transactions in the twentieth century
2. The passage suggests which of the following about the high dividends paid in India by many British managing companies
during the early 1920s?
(a) They were made possible by the long-term profits gained by British business in India prior to the 1920s.
(b) They furnish evidence that undermines the accepted view of the results of low dividend-taxation rates on British business in India.
(c) They were unusually high because the exchange rate was more favorable for the rupee against the sterling than at any other time during the twentieth century.
(d) They were commensurate with the dividends paid by British managing companies in other Asian countries during the same period.
(e) They provide a misleading picture of the performance of British business in India from 1919 to 1921.
3. The passage is primarily concerned with
(a) refuting a theory about the performance of British business in Asia
(b) criticizing a widely used method of collecting data about British business in Asia
(c) considering ways to evaluate the success of British business in Asia
(d) discussing the advantages and disadvantages of an approach to studying British business in Asia
(e) presenting an explanation for certain unique features of British business in Asia
(a) point out that published profits are less useful in measuring business success than are dividends
(b) suggest that many British businesses in Asia were less successful than their published profits indicated
(c) indicate that data about the profits of various businesses provide more useful information about short-term than about long-term performance
(d) illustrate the difficulties in drawing conclusions about business success or failure from published profits
(e) explain the role played by British overseas banks in British business transactions in the twentieth century
2. The passage suggests which of the following about the high dividends paid in India by many British managing companies
during the early 1920s?
(a) They were made possible by the long-term profits gained by British business in India prior to the 1920s.
(b) They furnish evidence that undermines the accepted view of the results of low dividend-taxation rates on British business in India.
(c) They were unusually high because the exchange rate was more favorable for the rupee against the sterling than at any other time during the twentieth century.
(d) They were commensurate with the dividends paid by British managing companies in other Asian countries during the same period.
(e) They provide a misleading picture of the performance of British business in India from 1919 to 1921.
3. The passage is primarily concerned with
(a) refuting a theory about the performance of British business in Asia
(b) criticizing a widely used method of collecting data about British business in Asia
(c) considering ways to evaluate the success of British business in Asia
(d) discussing the advantages and disadvantages of an approach to studying British business in Asia
(e) presenting an explanation for certain unique features of British business in Asia
Originally posted by felippemed on 17 Jan 2017, 10:05.
Last edited by Sajjad1994 on 26 Sep 2019, 10:19, edited 5 times in total.
Last edited by Sajjad1994 on 26 Sep 2019, 10:19, edited 5 times in total.
Updated - Complete topic (682).
Re: Measuring the performance of British business in Asia from the late 18
[#permalink]
26 Sep 2019, 13:23
26 Sep 2019, 13:23
8
Kudos
1. The author of the passage mentions reserves in British overseas banks most likely in order to
Type of Question: Author's opinion/ Miscellaneous/ Location-Based
Location in the passage:
"Profits Offer one measure, but collecting and comparing the profits and dividends (shares of profits distributed to stockholders) of thousands of enterprises present problems of data and interpretation. British overseas banks, for example, all maintained large hidden reserves to which transfers were made before published profits were declared. The actual dividends paid to stockholders were subject to factors such as taxation policy or exchange fluctuations or other factors."
Approach:
a) Find the exact location.
b) Read one line above the exact location. If required, read one line after the location.
c) Read the question carefully.
d) Predict the answer.
e) Eliminate the options.
(a) point out that published profits are less useful in measuring business success than are dividends - author doesn't compare - Eliminate
(b) suggest that many British businesses in Asia were less successful than their published profits indicated - Irrelevant
(c) indicate that data about the profits of various businesses provide more useful information about short-term than about long-term performance - author doesn't mention about short-term/long-term performance - Eliminate
(d) illustrate the difficulties in drawing conclusions about business success or failure from published profits - In line with what is mentioned one line above the exact location.
(e) explain the role played by British overseas banks in British business transactions in the twentieth century - Eliminate
Correct Answer (D)
===========================================
2. The passage suggests which of the following about the high dividends paid in India by many British managing companies during the early 1920s?
Type of Question: Inference
Approach:
a) Find the exact location.
b) Read one line above the exact location. If required, read one line after the location.
c) Read the question carefully.
d) Predict the answer.
e) Eliminate the options.
Location in the passage:
"The actual dividends paid to stockholders were subject to factors such as taxation policy or exchange fluctuations or other factors. For example, the high dividends paid in India by many British managing companies in the early 1920s were more a response to stockholders' demands for short-term profit-taking of earnings the companies had retained from the First World War years—coupled with low rates of dividend taxation in India and a highly favorable currency exchange rate for the Indian rupee against British sterling—than the result of spectacularly successful enterprise during the period 1919 to 1921."
(a) They were made possible by the long-term profits gained by British business in India prior to the 1920s. - Incorrect as per the above highlighted text from passage (in blue)
(b) They furnish evidence that undermines the accepted view of the results of low dividend-taxation rates on British business in India. - Same as (a)
(c) They were unusually high because the exchange rate was more favorable for the rupee against the sterling than at any other time during the twentieth century. - Out of Scope
(d) They were commensurate with the dividends paid by British managing companies in other Asian countries during the same period. - out of scope
(e) They provide a misleading picture of the performance of British business in India from 1919 to 1921. - In line with the highlighted text from the passage.
Correct Answer (E)
=============================================
3. The passage is primarily concerned with
Type of Question: Primary Purpose
Approach:
a) Get the gist of the passage.
b)Eliminate answer choices based on the words which are not in sync with the summary.
(a) refuting a theory about the performance of British business in Asia - author doesn't deny or agree with theory, he simpy gives views
(b) criticizing a widely used method of collecting data about British business in Asia - author doesn't criticize, he simply gives his views
(c) considering ways to evaluate the success of British business in Asia - author considers the ways - he mentions about what could be challenging in one approach and how the second approach could be better.
(d) discussing the advantages and disadvantages of an approach to studying British business in Asia - passage doesn't talk about only one approach.
(e) presenting an explanation for certain unique features of British business in Asia - passage doesn't talk about unique feature.
Correct Answer (C)
Type of Question: Author's opinion/ Miscellaneous/ Location-Based
Location in the passage:
"Profits Offer one measure, but collecting and comparing the profits and dividends (shares of profits distributed to stockholders) of thousands of enterprises present problems of data and interpretation. British overseas banks, for example, all maintained large hidden reserves to which transfers were made before published profits were declared. The actual dividends paid to stockholders were subject to factors such as taxation policy or exchange fluctuations or other factors."
Approach:
a) Find the exact location.
b) Read one line above the exact location. If required, read one line after the location.
c) Read the question carefully.
d) Predict the answer.
e) Eliminate the options.
(a) point out that published profits are less useful in measuring business success than are dividends - author doesn't compare - Eliminate
(b) suggest that many British businesses in Asia were less successful than their published profits indicated - Irrelevant
(c) indicate that data about the profits of various businesses provide more useful information about short-term than about long-term performance - author doesn't mention about short-term/long-term performance - Eliminate
(d) illustrate the difficulties in drawing conclusions about business success or failure from published profits - In line with what is mentioned one line above the exact location.
(e) explain the role played by British overseas banks in British business transactions in the twentieth century - Eliminate
Correct Answer (D)
===========================================
2. The passage suggests which of the following about the high dividends paid in India by many British managing companies during the early 1920s?
Type of Question: Inference
Approach:
a) Find the exact location.
b) Read one line above the exact location. If required, read one line after the location.
c) Read the question carefully.
d) Predict the answer.
e) Eliminate the options.
Location in the passage:
"The actual dividends paid to stockholders were subject to factors such as taxation policy or exchange fluctuations or other factors. For example, the high dividends paid in India by many British managing companies in the early 1920s were more a response to stockholders' demands for short-term profit-taking of earnings the companies had retained from the First World War years—coupled with low rates of dividend taxation in India and a highly favorable currency exchange rate for the Indian rupee against British sterling—than the result of spectacularly successful enterprise during the period 1919 to 1921."
(a) They were made possible by the long-term profits gained by British business in India prior to the 1920s. - Incorrect as per the above highlighted text from passage (in blue)
(b) They furnish evidence that undermines the accepted view of the results of low dividend-taxation rates on British business in India. - Same as (a)
(c) They were unusually high because the exchange rate was more favorable for the rupee against the sterling than at any other time during the twentieth century. - Out of Scope
(d) They were commensurate with the dividends paid by British managing companies in other Asian countries during the same period. - out of scope
(e) They provide a misleading picture of the performance of British business in India from 1919 to 1921. - In line with the highlighted text from the passage.
Correct Answer (E)
=============================================
3. The passage is primarily concerned with
Type of Question: Primary Purpose
Approach:
a) Get the gist of the passage.
b)Eliminate answer choices based on the words which are not in sync with the summary.
(a) refuting a theory about the performance of British business in Asia - author doesn't deny or agree with theory, he simpy gives views
(b) criticizing a widely used method of collecting data about British business in Asia - author doesn't criticize, he simply gives his views
(c) considering ways to evaluate the success of British business in Asia - author considers the ways - he mentions about what could be challenging in one approach and how the second approach could be better.
(d) discussing the advantages and disadvantages of an approach to studying British business in Asia - passage doesn't talk about only one approach.
(e) presenting an explanation for certain unique features of British business in Asia - passage doesn't talk about unique feature.
Correct Answer (C)
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Re: Measuring the performance of British business in Asia from the late 18
[#permalink]
19 Oct 2017, 00:52
19 Oct 2017, 00:52
5
Kudos
paolo_giordanello
Problems with question 1. Someone could enlighten me?
Hi Paolo,
Let me try to help. I have picked the portion of the passage which relates to Question 1.
Measuring the performance of British business in Asia from the late 1800s to the present is difficult. Profits Offer one measure, but collecting and comparing the profits and dividends of thousands of enterprises present problems of data and interpretation. British overseas banks, for example, all maintained large hidden reserves to which transfers were made before published profits were declared.
The author says that collecting and comparing profits of the enterprises that comprised the British business in Asia is one method of measuring the performance of British Business in Asia from the specified time period. However, there is a problem of huge chunks of data and its interpretation. Also, the published profits were not the same as the actual profits, therefore, the data interpretation from the published profits would not be the accurate one. So, this example illustrates the fact that profit is not a successful measure to analyse the performance of the British business in Asia. Also, later in the passage one can double confirm this fact, as the author has mentioned MARKET SHARE as a satisfactory measure.
This is clearly expressed by option D - illustrate the difficulties in drawing conclusions about business success or failure from published profits.
Hope this helps. Let me know, if you have any questions.
Thanks.
-Varun
