GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 13 Dec 2018, 12:16

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel
Events & Promotions in December
PrevNext
SuMoTuWeThFrSa
2526272829301
2345678
9101112131415
16171819202122
23242526272829
303112345
Open Detailed Calendar
  • GMATbuster's Weekly GMAT Quant Quiz, Tomorrow, Saturday at 9 AM PST

     December 14, 2018

     December 14, 2018

     09:00 AM PST

     10:00 AM PST

    10 Questions will be posted on the forum and we will post a reply in this Topic with a link to each question. There are prizes for the winners.
  • The winning strategy for 700+ on the GMAT

     December 13, 2018

     December 13, 2018

     08:00 AM PST

     09:00 AM PST

    What people who reach the high 700's do differently? We're going to share insights, tips and strategies from data we collected on over 50,000 students who used examPAL.

The modern multinational corporation is described as having

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Magoosh GMAT Instructor
User avatar
S
Joined: 30 Oct 2017
Posts: 195
Re: The modern multinational corporation is described as having  [#permalink]

Show Tags

New post 13 Nov 2017, 22:30
2
adkikani wrote:
mikemcgarry wrote:
Here, the author says --- scholars studying the the origins of modern multinationals usually start with the period when "when the owner-managers of nineteenth-century British firms carrying on international trade were replaced by teams of salaried managers organized into hierarchies." That's a perfectly sensible and appropriate thing to study, but the author is saying --- they would understand a little bit better if they also paid some attention to the early chartered trading companies. That not at all the same as saying they are "quite mistaken." This is OUT.

I can not infer this from passage at all. In the first paragraph the complete facts are stated by author and no where scholars are mentioned. I did read your comment - Again, if the passage is about an academic topic, as many many RC passages are, then don't be the least bit surprised if the word "scholar" or "professor" or similar words don't appear in the passage but do appear in the answer choices.
but then how did you infer from passage the distinction between narrator - author / scholars?


Hi adkikani! Carolyn from Magoosh here - I'll step in for Mike :-)

First, let's talk about the mention of "scholars". Here are a few excerpts from the text:

The modern multinational corporation is described as having originated when the owner-managers of nineteenth-century British firms carrying on international trade were replaced by teams of salaried managers organized into hierarchies.

Sixteenth- and seventeenth century chartered trading companies, despite the international scope of their activities,
are usually considered irrelevant to this discussion

Despite these differences, however, early trading companies organized effectively in remarkably modern ways and
merit further study as analogues of more modern structures.

Most of the passage here is written in a passive tense, like the first two sentences here, which we can see from the verbs "is described..." and "are usually considered...", and the last sentence talks about further studying this concept. The passage voice here shows that the narrator is simply describing research or information that has been collected by others (not him- or herself), implying that other people, most likely scholars of some sort, are or were studying these ideas. Also, whenever we have historical passages like this, we have to assume that the information was collected by someone - and that someone is pretty much always going to be a scholar of some sort :-) So whenever we see an academic text, "scholars", generally referring to the people who study the topic or compiled the information, are directly implied. The narrator here is likely also a scholar of some sort, but that doesn't change our interpretation :-) We can distinguish between the narrator's perspective and the general view of other scholars by the tense that is used. So again, anything in passive tense ("is described", "are typically considered") reflects the perspective of other scholars. In those cases, the narrator is simply describing the typical view held by others (scholars). Anything that's in a more active tense ("did differ strikingly", "depended") is probably information that the narrator is adding in, reflecting his or her own viewpoint.

So now let's think about the whole passage in that context :-) The first paragraph is setting the scene - it's pretty much completely written in passive voice, talking about things that are "commonly believed" or "usually considered irrelevant" (again, by scholars). After that, we start seeing the narrator's personal view: "In reality...". So this passage is setting up a contrast between what scholars typically believe and what the narrator believes. One of those differences is the view of how modern multinationals originated. Again, the author says:

The modern multinational corporation is described as having originated when the owner-managers of nineteenth-century British firms carrying on international trade were replaced by teams of salaried managers organized into hierarchies.

Here we see passive voice, indicating the view of "scholars", rather than the narrator's personal view.

adkikani wrote:
Also usually I see words like evaluate, discuss, criticize as first starting word in POE for main point Qs, whereas here all POE and solutions seem to approach this Q as an inference since POE are facts. Am I correct?


Awesome catch :-) Words like "evaluate", "discuss", and "criticize" are very commonly used in the answer choices for questions that ask about the main or primary purpose of a passage. However, "main point" isn't quite the same thing. A point can also be interpreted as the main thing that the author is trying to say. So when we're asked about the main point, we want to ask ourselves, "What is the main thing that the author is trying to get across here?" Whereas when we're asked about the main purpose of a passage, we ask "Why is the author writing this?" While these are very related, they're not quite identical. In the case of a primary purpose question, the answer choices will typically be verbs, like "evaluate", "discuss", etc.. But when we're asked for the main point, the answer choices will look more like pieces of information - what is the main piece of information that the author is trying to convey? So again, there is a subtle difference :-)

I hope that helps clear things up here! :-)
-Carolyn
_________________

Magoosh Test Prep

Image

Image

Study Buddy Forum Moderator
User avatar
D
Joined: 04 Sep 2016
Posts: 1267
Location: India
WE: Engineering (Other)
Premium Member CAT Tests
Re: The modern multinational corporation is described as having  [#permalink]

Show Tags

New post 15 Nov 2017, 03:04
MagooshExpert mikemcgarry GMATNinja

Quote:
Awesome catch :-) Words like "evaluate", "discuss", and "criticize" are very commonly used in the answer choices for questions that ask about the main or primary purpose of a passage. However, "main point" isn't quite the same thing. A point can also be interpreted as the main thing that the author is trying to say. So when we're asked about the main point, we want to ask ourselves, "What is the main thing that the author is trying to get across here?" Whereas when we're asked about the main purpose of a passage, we ask "Why is the author writing this?" While these are very related, they're not quite identical. In the case of a primary purpose question, the answer choices will typically be verbs, like "evaluate", "discuss", etc.. But when we're asked for the main point, the answer choices will look more like pieces of information - what is the main piece of information that the author is trying to convey? So again, there is a subtle difference :-)


I wanted to ask a bit different question for this part. What I meant was-
while reading Expert's approach or even on GmatPrep solutions, I meant that for this main purpose question,
we approached as if we are trying to infer something from the passage (must be true).
As per me main point of RC is much like conclusion for CR but MUST BE TRUE statements that
follow from argument / passage in CR/RC are almost identical which are better knows as inferences.

Let me know if I made my query more clear.
_________________

It's the journey that brings us happiness not the destination.

Magoosh GMAT Instructor
User avatar
S
Joined: 30 Oct 2017
Posts: 195
Re: The modern multinational corporation is described as having  [#permalink]

Show Tags

New post 15 Nov 2017, 19:23
adkikani wrote:
MagooshExpert
I wanted to ask a bit different question for this part. What I meant was-
while reading Expert's approach or even on GmatPrep solutions, I meant that for this main purpose question,
we approached as if we are trying to infer something from the passage (must be true).
As per me main point of RC is much like conclusion for CR but MUST BE TRUE statements that
follow from argument / passage in CR/RC are almost identical which are better knows as inferences.

Let me know if I made my query more clear.


Hi adkikani,

I'd like to help, but I'm not sure if I completely understand your question still! The differences between "conclusion" questions and "inference" questions are sometimes very small and very subtle. I think that's the case here - this "main point" question isn't 100% a "conclusion"-type question, but it also isn't 100% an "inference"-type question - it's something in between. But we can and should use strategies from both of those question types to answer "main point" questions like this one :-) We just can't necessarily categorize them into one "type" or another.

Does that help at all? If not, let me know :-)
-Carolyn
_________________

Magoosh Test Prep

Image

Image

Manager
Manager
User avatar
G
Joined: 21 Mar 2017
Posts: 141
Location: India
GMAT 1: 560 Q48 V20
WE: Other (Computer Software)
GMAT ToolKit User Premium Member Reviews Badge
Re: The modern multinational corporation is described as having  [#permalink]

Show Tags

New post 04 Jan 2018, 12:44
Took 8 mins to answer and 4 mins just to read the Passage.

adkikani Main point is not inference. It is something that author wants to convey to you. It is the heart of the passage. More importantly it is in line with the tone that author uses in the passage.

Inference could be something that has been mentioned in the passage and not of outmost importance but true.
_________________

--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
When nothing seem to help, I would go and look at a Stonecutter hammering away at his rock perhaps a hundred time without as much as a crack showing in it.
Yet at the hundred and first blow it would split in two.
And I knew it was not that blow that did it, But all that had gone Before
.

Manager
Manager
User avatar
S
Status: On the journey of achieving
Affiliations: Senior Manager, CA by profession, CFA(USA) Level 2
Joined: 06 Feb 2016
Posts: 204
Location: India
Concentration: Finance, Finance
GMAT 1: 560 Q44 V21
GPA: 3.82
WE: Other (Commercial Banking)
Reviews Badge
Re: The modern multinational corporation is described as having  [#permalink]

Show Tags

New post 12 Sep 2018, 19:18
C B E A took me 7 minutes along with reading to answer :)

All correct
_________________

Never Settle for something less than what you deserve...........

I've failed over and over and over again in my life and that is why I succeed--Michael Jordan
Kudos drives a person to better himself every single time. So Pls give it generously
Wont give up till i hit a 700+

Intern
Intern
User avatar
B
Joined: 06 May 2015
Posts: 46
Location: India
Schools: Darden '21
GPA: 4
Re: The modern multinational corporation is described as having  [#permalink]

Show Tags

New post 14 Sep 2018, 08:23
kraizada84 wrote:
The modern multinational corporation is described as having originated when the owner-managers of nineteenth-century British firms carrying on international trade were replaced by teams of salaried managers organized into hierarchies. Increases in the volume of transactions in such firms are commonly believed to have necessitated this structural change. Nineteenth-century inventions like the steamship and the telegraph, by facilitating coordination of managerial activities, are described as key factors. Sixteenth- and seventeenth century chartered trading companies, despite the international scope of their activities, are usually considered irrelevant to this discussion: the volume of their transactions is assumed to have been too low and the communications and transport of their day too primitive to make comparisons with modern multinationals interesting.

In reality, however, early trading companies successfully purchased and outfitted ships, built and operated offices and warehouses, manufactured trade goods for use abroad, maintained trading posts and production facilities overseas, procured goods for import, and sold those goods both at home and in other countries. The large volume of transactions associated with these activities seems to have necessitated hierarchical management structures well before the advent of modern communications and transportation. For example, in the Hudson's Bay Company, each far-flung trading outpost was managed by a salaried agent, who carried out the trade with the Native Americans, managed day-to-day operations, and oversaw the post's workers and servants. One chief agent, answerable to the Court of Directors in London through the correspondence committee, was appointed with control over all of the agents on the bay.

The early trading companies did differ strikingly from modern multinationals in many respects. They depended heavily on the national governments of their home countries and thus characteristically acted abroad to promote national interests. Their top managers were typically owners with a substantial minority share, whereas senior managers' holdings in modern multinationals are usually insignificant. They operated in a pre-industrial world, grafting a system of capitalist international trade onto a pre-modern system of artisan and peasant production. Despite these differences, however, early trading companies organized effectively in remarkably modern ways and merit further study as analogues of more modern structures.
1. The author's main point is that

(A) modern multinationals originated in the sixteenth and seventeenth centuries with the establishment of chartered trading companies
(B) the success of early chartered trading companies, like that of modern multinationals, depended primarily on their ability to carry out complex operations
(C) early chartered trading companies should be more seriously considered by scholars studying the origins of modern multinationals
(D) scholars are quite mistaken concerning the origins of modern multinationals
(E) the management structures of early chartered trading companies are fundamentally the same as those of modern multinationals



2. With which of the following generalizations regarding management structures would the author of the passage most probably agree?

(A) Hierarchical management structures are the most efficient management structures possible in a modern context.
(B) Firms that routinely have a high volume of business transactions find it necessary to adopt hierarchical management structures.
(C) Hierarchical management structures cannot be successfully implemented without modern communications and transportation.
(D) Modern multinational firms with a relatively small volume of business transactions usually do not have hierarchically organized management structures.
(E) Companies that adopt hierarchical management structures usually do so in order to facilitate expansion into foreign trade.



3. The passage suggests that modern multinationals differ from early chartered trading companies in that

(A) the top managers of modern multinationals own stock in their own companies rather than simply receiving a salary
(B) modern multinationals depend on a system of capitalist international trade rather than on less modern trading systems
(C) modern multinationals have operations in a number of different foreign countries rather than merely in one or two
(D) the operations of modern multinationals are highly profitable despite the more stringent environmental and safety regulations of modern governments
(E) the overseas operations of modern multinationals are not governed by the national interests of their home countries



4. According to the passage, early chartered trading companies are usually described as

(A) irrelevant to a discussion of the origins of the modern multinational corporation
(B) interesting but ultimately too unusual to be good subjects for economic study
(C) analogues of nineteenth-century British trading firms
(D) rudimentary and very early forms of the modern multinational corporation
(E) important national institutions because they existed to further the political aims of the governments of their home countries




Solve with timing.

P.S.: guys I was stuck with Q-4marked E (Someone pls explain why its incorrect), DOUBT: according to passage and according to author, are they different? Someone explain.


1) C
Despite these differences, however, early trading companies organized effectively in remarkably modern ways and merit further study as analogues of more modern structures.

2) B
Increases in the volume of transactions in such firms are commonly believed to have necessitated this structural change.

3) E
They depended heavily on the national governments of their home countries and thus characteristically acted abroad to promote national interests.

4)A
Sixteenth- and seventeenth century chartered trading companies, despite the international scope of their activities, are usually considered irrelevant to this discussion: the volume of their transactions is assumed to have been too low and the communications and transport of their day too primitive to make comparisons with modern multinationals interesting.
Intern
Intern
avatar
Joined: 13 Oct 2018
Posts: 2
Location: Taiwan
GPA: 3.8
WE: Business Development (Other)
Re: The modern multinational corporation is described as having  [#permalink]

Show Tags

New post 14 Oct 2018, 00:07
Hello experts,

I am a new member here.
I had a question about Q2 (With which of the following generalizations regarding management structures would the author of the passage most probably agree?), and wondered why the choice D cannot be the answer?

Thanks a lot!
SC Moderator
User avatar
V
Joined: 23 Sep 2015
Posts: 1556
GMAT ToolKit User Premium Member Reviews Badge CAT Tests
Re: The modern multinational corporation is described as having  [#permalink]

Show Tags

New post 14 Oct 2018, 07:44
1
P1 - a transition and a comparison.
P2 - some success for early trading companies.
P3 - early trading companies diff with now.
Main point - despite so many diff with modern companies, how early companies were great.

1. The author's main point is that

(C) early chartered trading companies should be more seriously considered by scholars studying the origins of modern multinationals - seems best of the lot. in first para such companies were not important for author, but later they were, proved in p3.
------------------------------------------------
2. With which of the following generalizations regarding management structures would the author of the passage most probably agree?

Lines to read - The large volume of transactions associated with these activities seems to have necessitated hierarchical management structures well before the advent of modern communications and transportation.

(A) Hierarchical management structures are the most efficient management structures possible in a modern context.- no
(B) Firms that routinely have a high volume of business transactions find it necessary to adopt hierarchical management structures. - best of the lot.
(C) Hierarchical management structures cannot be successfully implemented without modern communications and transportation. - too extreme choice.
(D) Modern multinational firms with a relatively small volume of business transactions usually do not have hierarchically organized management structures. - as above lines said > it is for large volume of transactions.
(E) Companies that adopt hierarchical management structures usually do so in order to facilitate expansion into foreign trade. too narrow, also not mentioned in passage.

-----------------------------------------------

3. The passage suggests that modern multinationals differ from early chartered trading companies in that
this should be in p2/p3

They depended heavily on the national governments of their home countries and thus characteristically acted abroad to promote national interests.

(E) the overseas operations of modern multinationals are not governed by the national interests of their home countries

-------------------------------------------------

4. According to the passage, early chartered trading companies are usually described as

despite the international scope of their activities, are usually considered irrelevant to this discussion

(A) irrelevant to a discussion of the origins of the modern multinational corporation
-------------------------------------------------

5. It can be inferred from the passage that the author would characterize the activities engaged in by early chartered trading companies as being

should be from P1 - the volume of their transactions is assumed to have been too low and the communications and transport of their day too primitive to make comparisons with modern multinationals interesting.

(A) complex enough in scope to require a substantial amount of planning and coordination on the part of management

-------------------------------------------

6. The author lists the various activities of early chartered trading companies in order to

last line of P1 say - the volume of their transactions is assumed to have been too low and the communications and transport of their day too primitive to make comparisons with modern multinationals interesting.
'however' in first line of P2 says something against above lines.

(C) refute the view that the volume of business undertaken by such companies was relatively low

----------------------------------------------
7. The author mentions the artisan and peasant production systems of early chartered trading companies as an example of

They operated in a pre-industrial world, grafting a system of capitalist international trade onto a pre-modern system of artisan and peasant production.

next sentence talking about the similarity, a point raised in p1/p2 , above lines are proving it.

(B) a similarity that allows fruitful comparison of these companies with modern multinationals
_________________

Thanks!
Do give some kudos.

Simple strategy:
“Once you’ve eliminated the impossible, whatever remains, however improbable, must be the truth.”

Want to improve your Score:
GMAT Ninja YouTube! Series 1| GMAT Ninja YouTube! Series 2 | How to Improve GMAT Quant from Q49 to a Perfect Q51

My Notes:
Reading comprehension | Critical Reasoning | Absolute Phrases | Subjunctive Mood

SC Moderator
User avatar
V
Joined: 23 Sep 2015
Posts: 1556
GMAT ToolKit User Premium Member Reviews Badge CAT Tests
Re: The modern multinational corporation is described as having  [#permalink]

Show Tags

New post 14 Oct 2018, 07:46
hsinyu - welcome to the club. I have tried to answer your question. Basically you need to read the correct lines and find this conclusion from them. let me know if you have any further doubts.
_________________

Thanks!
Do give some kudos.

Simple strategy:
“Once you’ve eliminated the impossible, whatever remains, however improbable, must be the truth.”

Want to improve your Score:
GMAT Ninja YouTube! Series 1| GMAT Ninja YouTube! Series 2 | How to Improve GMAT Quant from Q49 to a Perfect Q51

My Notes:
Reading comprehension | Critical Reasoning | Absolute Phrases | Subjunctive Mood

Intern
Intern
avatar
Joined: 13 Oct 2018
Posts: 2
Location: Taiwan
GPA: 3.8
WE: Business Development (Other)
The modern multinational corporation is described as having  [#permalink]

Show Tags

New post 14 Oct 2018, 22:58
aragonn Thank you for answering me! I have pretty much understood why D has to be eliminated now!
GMAT Club Bot
The modern multinational corporation is described as having &nbs [#permalink] 14 Oct 2018, 22:58

Go to page   Previous    1   2   [ 30 posts ] 

Display posts from previous: Sort by

The modern multinational corporation is described as having

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


Copyright

GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.