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27 Jan 2025, 11:12
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Xindi Corp.: This company is in an unstable industry.
Warez Inc.: This company had poor management compared to its competitors.
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
45%
(medium)
Question Stats:
67% (02:36) correct
33%
(02:55)
wrong
based on 1252
sessions
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Not Attempted Yet
Stocks traded in the Mid-Atlantic stock exchange last year exhibited a full range of trading volume, from high volume to low volume. The two stocks with the highest trading volume last year were Xindi Corp and Warez Inc. All companies with high trading volume have at least one of the following three features: poor management relative to its competitors, instability within its industry, or general instability within the market as a whole. Consider Alpha Corp, a competitor of Xindi Corp, which produces landline telephone handsets. While Alpha Corp is a historically stable, well-run company, the instability within the landline telephone industry has caused its stock to be among the most actively traded. Last year the market as a whole was generally stable, and Warez Inc is in a stable industry.
Which of the following statements about Xindi Corp and Warez Inc are most supported by the information contained in the passage above? Make only one selection in each column.
Which of the following statements about Xindi Corp and Warez Inc are most supported by the information contained in the passage above? Make only one selection in each column.
| Xindi Corp. | Warez Inc. | Statements |
| This company had a lower trading volume than Alpha Corp. | ||
| This company had higher sales than Alpha Corp. | ||
| This company is a historically stable, well-run company. | ||
| This company had poor management compared to its competitors. | ||
| This company is in an unstable industry. |
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Official Answer
Xindi Corp.: This company is in an unstable industry.
Warez Inc.: This company had poor management compared to its competitors.
28 Jan 2025, 07:00
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1. The question asks us to find which statements each best represent the two given companies.
2. Xindi Corp has a competitor Alpha Corp in which produces landline telephone handsets. This means that both companies are in that industry. It is also known that "while Alpha Corp is a historically stable, well-run company, the instability within the landline telephone industry has caused its stock to be among the most actively traded." The same can then be said about Xindi Corp. The statement that best matches this is, "This company is in an unstable industry."
3. Warez Inc is mentioned to have a high trading volume, which has to happen for at least one of the following reasons: poor management relative to its competitors, instability within its industry, or general instability within the market as a whole. It is also said that, "Last year the market as a whole was generally stable, and Warez Inc is in a stable industry." That crosses out two reasons and implies that Warez Inc must have poor management relative to its competitors. So, the best statement that matches this is, "This company had poor management compared to its competitors."
4. Our answer will be: Xindi Corp. - This company is in an unstable industry and Warez Inc. - This company had poor management compared to its competitors.
2. Xindi Corp has a competitor Alpha Corp in which produces landline telephone handsets. This means that both companies are in that industry. It is also known that "while Alpha Corp is a historically stable, well-run company, the instability within the landline telephone industry has caused its stock to be among the most actively traded." The same can then be said about Xindi Corp. The statement that best matches this is, "This company is in an unstable industry."
3. Warez Inc is mentioned to have a high trading volume, which has to happen for at least one of the following reasons: poor management relative to its competitors, instability within its industry, or general instability within the market as a whole. It is also said that, "Last year the market as a whole was generally stable, and Warez Inc is in a stable industry." That crosses out two reasons and implies that Warez Inc must have poor management relative to its competitors. So, the best statement that matches this is, "This company had poor management compared to its competitors."
4. Our answer will be: Xindi Corp. - This company is in an unstable industry and Warez Inc. - This company had poor management compared to its competitors.
General Discussion
19 Apr 2026, 08:36
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Given: All companies with high trading volume have at least one of the following three features: poor management relative to its competitors, instability within its industry, or general instability within the market as a whole.
1. Alpha Corp, a competitor of Xindi Corp: The instability within the landline telephone industry has caused its stock to be among the most actively traded.
Hence Xindi Corp: Instability in market
2. Last year the market as a whole was generally stable, and Warez Inc is in a stable industry.
Hence Warez Inc: poor management relative to its competitors
1. Alpha Corp, a competitor of Xindi Corp: The instability within the landline telephone industry has caused its stock to be among the most actively traded.
Hence Xindi Corp: Instability in market
2. Last year the market as a whole was generally stable, and Warez Inc is in a stable industry.
Hence Warez Inc: poor management relative to its competitors
