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

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

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New post Updated on: 10 Nov 2018, 06:58
1
7
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A
B
C
D
E

Difficulty:

  75% (hard)

Question Stats:

51% (01:39) correct 49% (01:36) wrong based on 238 sessions

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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, 06:55.
Last edited by Bunuel on 10 Nov 2018, 06:58, edited 1 time in total.
Renamed the topic and edited the question.
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Re: There's one reliable indicator to demonstrate that a startup informati  [#permalink]

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New post 10 Nov 2018, 07:36
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.
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Re: There's one reliable indicator to demonstrate that a startup informati  [#permalink]

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New post 11 Nov 2018, 03:07
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
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New post 11 Nov 2018, 05:51
Yes, choice E is very poorly worded and I rejected it for the same reason.
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New post 11 Nov 2018, 07:17
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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
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New post 11 Nov 2018, 09:31
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.
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Re: There's one reliable indicator to demonstrate that a startup informati  [#permalink]

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New post 11 Nov 2018, 11:26
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

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New post 23 Nov 2019, 06:55
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Re: There's one reliable indicator to demonstrate that a startup informati   [#permalink] 23 Nov 2019, 06:55
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