Amit05 wrote:
Hey guys .. have a look at this RC and please help me with the explanation of Q's 18 and 19 in particular..
thanks..
Please post OA later...
My answers are:
16. B
17. B
18. A
19. C
20. B
21. B
22. B
23. E
For 17, the author is asking what is true about TODAY majority share holders, which means institutions. Choice D comes close, but I feel that although the author mentions that they
can make short-term profits, the author did not mention that institutions
are more interested in doing so. Moreover, the author said on line 9 that there are few exceptions to these institutions that make short term profits. Therefore, you cannot infer that all institutions are more interested in short-term profit. There institutions that are exception to that.
(Opps, I thought you need help on 17, so I wrote the passage above...oh well, I 'll just leave it)
For 18, A is right
A is correct as it is clear from the passage that the Antitrust law prevents institutions from owning a majority of a company's stock (line 12-13).
B is not correct because from the second passage, this in one of the thing that the author recommends to enforce. Therefore, this is not true now.
C is not correct because nothing in the passage mention who make the decision in a corporation today.
D is not correct because it is an extreme choice. "any one corporation" makes this false.
E is not correct because nothing is mention in the passage about relationship of short-term increase and productivity. Only relationship about long-term increase and productivity is mentioned.
For 19, C is correct
Line 30-33 states recommendation that major institution holders should give warning before selling stocks. The author recommends this solution because he wants everything to return to capitalist-style. For capitalists, they believe that long term is good for the company. Therefore, if you read all other choices, only C makes sense.