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# The long-term financial stability of big multinational

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CEO
Joined: 15 Aug 2003
Posts: 3452

Kudos [?]: 924 [0], given: 781

The long-term financial stability of big multinational [#permalink]

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19 Jul 2005, 16:28
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2. The long-term financial stability of big multinational companies is in clear danger. As competition in the market intensifies, directors tend to put more emphasis on immediate rather than far-off benefits and judge the rest of the personnel on the same quick-advantage principle. As a result, seeking immediate improvement, managers often make populist decisions which can prove detrimental to the well-being of the company in the long run.

Which of the following best reflects the roles of the highlighted portions of the argument?
A: the first is a course of action that brought about a problem; the second is the argumentâ€™s main conclusion
B: the first is a piece of data necessary for the conclusion to be properly drawn; the second is an example that illustrates the authorâ€™s main point
C: the first explains reasons for a type of behavior; the second is an example that shows why this behavior is self-destructive
D: the first mentions a phenomenon that led to the situation which is described in the second to support the authorâ€™s main point
E: the first is a piece of evidence used to support the argumentâ€™s main conclusion set out in the second

Last edited by Praetorian on 19 Jul 2005, 17:31, edited 1 time in total.

Kudos [?]: 924 [0], given: 781

Director
Joined: 18 Feb 2005
Posts: 666

Kudos [?]: 7 [0], given: 0

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19 Jul 2005, 17:17
C looks OK

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Manager
Joined: 22 May 2005
Posts: 139

Kudos [?]: 23 [0], given: 0

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19 Jul 2005, 17:43
My VOTE for B...

Main point is what stated in the first line of the argument and B explains what first and second bold highlighted parts do..

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SVP
Joined: 05 Apr 2005
Posts: 1706

Kudos [?]: 96 [0], given: 0

Re: Bold Face CR- #2 [#permalink]

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19 Jul 2005, 18:41
I pick (D) the first mentions a phenomenon that led to the situation which is described in the second to support the authorâ€™s main point.

conclusion/main point: The long-term financial stability of big multinational companies is in clear danger.

phenomenon (a kind of behavior): directors tend to put more emphasis on immediate rather than far-off benefits and judge the rest of the personnel on the same quick-advantage principle.

situation: managers often make populist decisions which can prove detrimental to the well-being of the company in the long run.

Kudos [?]: 96 [0], given: 0

Manager
Joined: 06 Jul 2005
Posts: 117

Kudos [?]: 117 [0], given: 0

Location: Bangalore, India

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19 Jul 2005, 20:25
I am not sure whether its C or D:(:(
Can somebody explain why C is wrong??

Kudos [?]: 117 [0], given: 0

CEO
Joined: 15 Aug 2003
Posts: 3452

Kudos [?]: 924 [0], given: 781

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20 Jul 2005, 05:38
D is the correct answer.

In this passage the author argues that â€œlong-term financial stability of big multinational companies is in clear dangerâ€

Kudos [?]: 924 [0], given: 781

20 Jul 2005, 05:38
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# The long-term financial stability of big multinational

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