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20 Feb 2023, 03:38
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A
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
35%
(medium)
Question Stats:
73% (02:05) correct
27%
(02:10)
wrong
based on 205
sessions
History
Date
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Not Attempted Yet
The stock price of companies that have high earnings per share growth increases fast. Because CEO compensation is tied to the increase in stock price, many companies use cash from operations to buy back shares to increase the overall earnings per share. However, in practice, this strategy is often counterproductive as this leaves little cash to be invested in developing new products and services. In the long run this reduces the overall earnings per share and the stock price.
In the passage above, the two boldfaced portions play the following roles:
A. The first is a reason to pursue a certain strategy to achieve an aim, the second is that strategy.
B. The first is a consideration raised to support a certain strategy that may be counter- productive; the second is a strategy that can help mitigate the consideration.
C. The first is a reason to pursue a certain strategy to achieve an goal; the second is that goal
D. The first is inferred from the opening line of the passage while the second is the key to achieving the first
E. The first is a consideration that is used to justify adopting a certain strategy, the second presents the intended outcome of that strategy.
In the passage above, the two boldfaced portions play the following roles:
A. The first is a reason to pursue a certain strategy to achieve an aim, the second is that strategy.
B. The first is a consideration raised to support a certain strategy that may be counter- productive; the second is a strategy that can help mitigate the consideration.
C. The first is a reason to pursue a certain strategy to achieve an goal; the second is that goal
D. The first is inferred from the opening line of the passage while the second is the key to achieving the first
E. The first is a consideration that is used to justify adopting a certain strategy, the second presents the intended outcome of that strategy.
26 Feb 2023, 01:58
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Bunuel
The first part says that the reason why the stock price of companies with high earnings per share growth increases fast is because the CEO's compensation is tied to it. That's the reason why many companies choose to use cash from operations to buy back shares, as stated in the second boldfaced part. So, the first part gives a reason for a certain strategy to achieve an aim, and the second part is that strategy. Therefore, A is the correct answer.
03 Jul 2025, 08:45
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WHY A NOT C, BECAUSE ISN'T GOAL AND AIM THE MEAN THE SAME HERE. THOUGH I KNOW THAT GOAL IS LONG TERM AND AIM IS SHORT TERM. BUT STILL SHOULDN'T THE ANSWER BE C BECAUSE EPS IS CALCULATE FOR THE A SINGLE YEAR ?
