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RC major shareholders

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Director
Joined: 09 Aug 2006
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06 Oct 2007, 12:19
Hey guys .. have a look at this RC and please help me with the explanation of Q's 18 and 19 in particular..

thanks..
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VP
Joined: 15 Jul 2004
Posts: 1457
Schools: Wharton (R2 - submitted); HBS (R2 - submitted); IIMA (admitted for 1 year PGPX)
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06 Oct 2007, 12:35
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..

18 - A;; C was pretty close but it's too strong.

19 - C
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06 Oct 2007, 13:12
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..

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.
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06 Oct 2007, 13:55
16 B
17 D
18 A
19 C
20 B
21 B
22 B
23 E

Total time 12 min.

18. Line 12 supports A.

Director
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09 Oct 2007, 09:24
Ok Guys.. Here is your reward.. The OA's

16 - B
17 - C
18 - D
19 - C
20 - B
21 - B
22 - B
23 - E
09 Oct 2007, 09:24
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