GMAT Question of the Day: Daily via email | Daily via Instagram New to GMAT Club? Watch this Video

 It is currently 27 Feb 2020, 18:57

### 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

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

# There's one reliable indicator to demonstrate that a startup informati

Author Message
TAGS:

### Hide Tags

Intern
Joined: 04 Feb 2018
Posts: 34
Location: India
Concentration: Marketing, Technology
There's one reliable indicator to demonstrate that a startup informati  [#permalink]

### Show Tags

Updated on: 10 Nov 2018, 05:58
1
7
00:00

Difficulty:

75% (hard)

Question Stats:

50% (01:41) correct 50% (01:36) wrong based on 275 sessions

### HideShow timer Statistics

There's one reliable indicator to demonstrate that a startup information technology company is successful. When one of the global IT giants, a Microsoft or an Intel, for instance buys a major stake in the company, you can bet that its business focus and products are on target.

Which of the conclusions can be best drawn from the passage above?

A. Microsoft and Intel invest in startups only after extensive research.

B. A startup cannot be taken seriously unless some reputed company buys a major stake in it.

C. Investment by a major IT company proves that the fundamentals are on target for a startup.

D. Other venture capitalists invest in startups only after a reputed firm has invested first.

E. Business focus and products must be on target for a big IT firm to invest in a startup

Originally posted by disenapati on 10 Nov 2018, 05:55.
Last edited by Bunuel on 10 Nov 2018, 05:58, edited 1 time in total.
Renamed the topic and edited the question.
Current Student
Joined: 24 Mar 2017
Posts: 148
Location: India
GMAT 1: 680 Q49 V34
GPA: 3.98
Re: There's one reliable indicator to demonstrate that a startup informati  [#permalink]

### Show Tags

10 Nov 2018, 06:36
disenapati wrote:
There's one reliable indicator to demonstrate that a startup information technology company is successful. When one of the global IT giants, a Microsoft or an Intel, for instance buys a major stake in the company, you can bet that its business focus and products are on target.

Which of the conclusions can be best drawn from the passage above?

A. Microsoft and Intel invest in startups only after extensive research.

B. A startup cannot be taken seriously unless some reputed company buys a major stake in it.

C. Investment by a major IT company proves that the fundamentals are on target for a startup.

D. Other venture capitalists invest in startups only after a reputed firm has invested first.

E. Business focus and products must be on target for a big IT firm to invest in a startup

Only E seems correct. rest all choice are a mere wishful conclusion.

For E the support is given by the last sentence of the argument. (you can bet that its business focus and products are on target.)

Hope it helps.
Director
Joined: 20 Sep 2016
Posts: 653
Location: India
Concentration: Strategy, Operations
GPA: 3.6
WE: Operations (Consumer Products)
Re: There's one reliable indicator to demonstrate that a startup informati  [#permalink]

### Show Tags

11 Nov 2018, 02:07
E is very poorly worded ,

Business focus and products must be on target for a big IT firm to invest in a startup
- focus and products must be on target for the big IT firm??? sounds so ambiguous.
what's the source?? can't be an official one
Manager
Joined: 08 Jan 2013
Posts: 102
Re: There's one reliable indicator to demonstrate that a startup informati  [#permalink]

### Show Tags

11 Nov 2018, 04:51
Yes, choice E is very poorly worded and I rejected it for the same reason.
Intern
Joined: 04 Feb 2018
Posts: 34
Location: India
Concentration: Marketing, Technology
Re: There's one reliable indicator to demonstrate that a startup informati  [#permalink]

### Show Tags

11 Nov 2018, 06:17
1
OE is as follows:

Explanation:
(A) Nothing is mentioned about the thoroughness of research conducted by big companies before they invest in startups.

(B) The passage does not necessarily imply that a startup cannot be taken seriously unless some reputed company has stake in it. In formal logic terms, "All A is B" does not necessarily mean "Only A is B".

(C) This is again an implicit statement that cannot be concluded directly from the passage. All fundamentals do not necessarily need to be perfect for big companies to invest in smaller ones. The passage mentions only two precise aspects of such decision-making.

(D) The passage mentions only a single example meaning this generalization cannot be logically drawn from the passage.

(E) Correct. This answer follows clearly and directly from the first two lines of the passage; if investment by a big IT firm means that business focus and products are on target then it must follow that these are requisite attributes for a big IT company to invest in a startup

Source - IMS GMAT TEST SERIES
Intern
Joined: 24 Feb 2018
Posts: 30
Location: India
GPA: 3.35
WE: Military Officer (Military & Defense)
Re: There's one reliable indicator to demonstrate that a startup informati  [#permalink]

### Show Tags

11 Nov 2018, 08:31
A. Microsoft and Intel invest in startups only after extensive research.

B. A startup cannot be taken seriously unless some reputed company buys a major stake in it.

C. Investment by a major IT company proves that the fundamentals are on target for a startup.

D. Other venture capitalists invest in startups only after a reputed firm has invested first.

E. Business focus and products must be on target for a big IT firm to invest in a startup best choice

The investment by a big IT firm means that business focus and products are on target and it implies that the requisite attributes for a big IT company to invest in a startup has been met.
Intern
Joined: 25 Jul 2018
Posts: 13
Re: There's one reliable indicator to demonstrate that a startup informati  [#permalink]

### Show Tags

11 Nov 2018, 10:26
disenapati wrote:
There's one reliable indicator to demonstrate that a startup information technology company is successful. When one of the global IT giants, a Microsoft or an Intel, for instance buys a major stake in the company, you can bet that its business focus and products are on target.

Which of the conclusions can be best drawn from the passage above?

A. Microsoft and Intel invest in startups only after extensive research.

B. A startup cannot be taken seriously unless some reputed company buys a major stake in it.

C. Investment by a major IT company proves that the fundamentals are on target for a startup.

D. Other venture capitalists invest in startups only after a reputed firm has invested first.

E. Business focus and products must be on target for a big IT firm to invest in a startup

Stimulus summarily says:

- An IT startup business launches products and services
- It becomes successful - but there is no indication
- Bigger and established IT organizations discover the startup and buys a stake with it - this is now a clear indication that the startup is doing fine

It's a close battle between options C and E. They are very similar

But C seems like putting the cart before the horse. C says that whether or not the startup is actually successful, once another big IT organization invests in it, that means they are successful.

This is not entirely true because the stimilus says that the startup has to be succesful before a big IT organization stakes on it.

Only E does precise justice to the question by implying that the startup must have gotten their acts right before a big IT orgazations stakes on them being more successful

Posted from my mobile device
Non-Human User
Joined: 01 Oct 2013
Posts: 8382
Re: There's one reliable indicator to demonstrate that a startup informati  [#permalink]

### Show Tags

23 Nov 2019, 05:55
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
Re: There's one reliable indicator to demonstrate that a startup informati   [#permalink] 23 Nov 2019, 05:55
Display posts from previous: Sort by