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18 Apr 2021, 10:49
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Sneha2021
“To simplify” means “to make something easier to do or understand.” If a company removes the need for some purchasing and marketing functions, that will reduce the overall amount of purchasing and marketing work that is done. With less work required, purchasing and marketing operations would certainly be easier.
For that reason, removing the need for some functions does mean simplification, and (C) can be eliminated.
I hope that helps!
krittapat
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27 Mar 2022, 08:08
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01 Apr 2022, 09:50
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Question 3
krittapat
Question 3 asks us to find the answer choice that is NOT mentioned in the passage as a benefit of backward integration.
Here's (D):
Quote:
In the last paragraph, we learn that certain factors "threaten the long-term financial stability" of firms that produce components. In other words, these firms are pretty unstable.
To mitigate this instability, assemblers often buy those firms "just to keep their suppliers in business." So, backward integration is a way to increase the reliability of the supply of necessary components.
(D) is a benefit of backward integration, so eliminate (D).
Here's (B):
Quote:
The main issue with (B) is that the manufacturers discussed in the passage aren't interested in selling components -- they're actually interested in acquiring components to assemble into other products. So, these companies won't see enhanced profits on sales of components because they don't sell components.
(B) is the correct answer.
I hope that helps!
23 Apr 2023, 02:10
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2. According to passage, when an assembler buys a firm that makes some important component of the end product that the assembler produces, independent suppliers of the same component may
A. withhold technological innovations from the assembler
B. experience improved profit margins of on sales of their products
C. lower their prices to protect themselves from competition
D. suffer financial difficulties and go out of business
E. stop developing new versions of the component
Reading Q2 - At a first glance this question looks like it is referring to the last para where it talks about mnaufacturers buying the the suppliers inorder to stay them in the business. But the last line - individual suppliers refers to the third para where if manufacturers builds technology inhouse, the individual suppliers will withhold technology from them.
Hence, I had marked B as an answer thinking that they are buying suppliers to keep them in the business.
Please help in my understanding
GMATNinja @VeritasKarishma
A. withhold technological innovations from the assembler
B. experience improved profit margins of on sales of their products
C. lower their prices to protect themselves from competition
D. suffer financial difficulties and go out of business
E. stop developing new versions of the component
Reading Q2 - At a first glance this question looks like it is referring to the last para where it talks about mnaufacturers buying the the suppliers inorder to stay them in the business. But the last line - individual suppliers refers to the third para where if manufacturers builds technology inhouse, the individual suppliers will withhold technology from them.
Hence, I had marked B as an answer thinking that they are buying suppliers to keep them in the business.
Please help in my understanding
GMATNinja @VeritasKarishma
