It is currently 20 Oct 2017, 13:23

### 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

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# Transnational cooperation among corporations is experiencing

Author Message
Manager
Joined: 15 Oct 2008
Posts: 103

Kudos [?]: 10 [0], given: 0

Transnational cooperation among corporations is experiencing [#permalink]

### Show Tags

04 Nov 2008, 17:38
00:00

Difficulty:

(N/A)

Question Stats:

62% (00:09) correct 38% (00:58) wrong based on 19 sessions

### HideShow timer Statistics

Transnational cooperation among corporations is experiencing a modest renaissance among United States firms, even though projects undertaken by two or more corporations under a collaborative agreement are less profitable than projects undertaken by a single corporation. The advantage of transnational cooperation is that such joint international projects may allow United States firms to win foreign contracts that they would not otherwise be able to win.

Which of the following statements by a United States corporate officer best fits the situation of United States firms as described in the passage above?
A. "We would rather make only a share of the profit and also risk only a share of a possible loss than run the full risk of a loss."
B. "We would rather make a share of a relatively modest profit than end up making none of a potentially much bigger profit."
C. "We would rather cooperate and build good will than poison the business climate by all-out competition."
D. "We would rather have foreign corporations join us in American projects than join them in projects in their home countries."
E. "We would rather win a contract with a truly competitive bid of our own than get involved in less profitable collaborative agreements."
[Reveal] Spoiler: OA

Last edited by abhimahna on 02 Dec 2016, 09:48, edited 1 time in total.

Kudos [?]: 10 [0], given: 0

Intern
Joined: 14 Sep 2003
Posts: 45

Kudos [?]: 22 [0], given: 0

Location: california
Re: Transnational cooperation among corporations is experiencing [#permalink]

### Show Tags

04 Nov 2008, 18:08
Inference question..

A - incorrect coz it assumes the contract is already won by the US firm, which is not what the passage suggests
C - out of scope. goodwill is not at all suggested by the passage
D - trying to compare positions on projects, which is not what the passage suggests
E - this is exactly opposite to what the passage suggests

So my pick for an answer is B
_________________

excellence is the gradual result of always striving to do better

Kudos [?]: 22 [0], given: 0

Director
Joined: 30 Jun 2007
Posts: 781

Kudos [?]: 182 [0], given: 0

Re: Transnational cooperation among corporations is experiencing [#permalink]

### Show Tags

04 Nov 2008, 18:14
A. "We would rather make only a share of the profit and also risk only a share of a possible loss than run the full risk of a loss." - risk of loss not discussed
B. "We would rather make a share of a relatively modest profit than end up making none of a potentially much bigger profit." - hold
C. "We would rather cooperate and build good will than poison the business climate by all-out competition." – Good will is not discussed
D. "We would rather have foreign corporations join us in American projects than join them in projects in their home countries." – The scope is not mentioned
E. "We would rather win a contract with a truly competitive bid of our own than get involved in less profitable collaborative agreements." – This is not the case

B!

Kudos [?]: 182 [0], given: 0

Director
Joined: 06 Jan 2008
Posts: 547

Kudos [?]: 538 [0], given: 2

Re: Transnational cooperation among corporations is experiencing [#permalink]

### Show Tags

04 Nov 2008, 19:20
A - half right ,half wrong. As mentioned above, passage does not talk about 'loss'.
B - good.
C - Out of scope/ new element 'good will'.
D - Out of scope again.

B wins.

Kudos [?]: 538 [0], given: 2

Intern
Joined: 11 Jul 2008
Posts: 29

Kudos [?]: 21 [0], given: 0

Re: Transnational cooperation among corporations is experiencing [#permalink]

### Show Tags

05 Nov 2008, 01:35

"We would rather make a share of a relatively modest profit" is the first part of the statement. This is exactly what the businessmen are doing - they're engaging in a relatively unprofitable transaction. It says in the passage that collaborative agreements are less profitable than solo ventures.

"than end up making none of a potentially much bigger profit." This is saying that the whole reason they're doing collaborative agreements is because it gives them opportunities that would wouldn't otherwise get. If they didn't do the collaborative agreements, they would make non of the potentially much bigger profit (the foreign contracts). But, since they cooperated, they get a shot at those potentially much bigger profits.

Kudos [?]: 21 [0], given: 0

Manager
Joined: 12 Jun 2008
Posts: 76

Kudos [?]: 2 [0], given: 0

Re: Transnational cooperation among corporations is experiencing [#permalink]

### Show Tags

05 Nov 2008, 01:49
B as well

Kudos [?]: 2 [0], given: 0

SVP
Joined: 17 Jun 2008
Posts: 1534

Kudos [?]: 279 [0], given: 0

Re: Transnational cooperation among corporations is experiencing [#permalink]

### Show Tags

05 Nov 2008, 04:32
Another B.

The premise "The advantage of transnational cooperation is that such joint international projects may allow United States firms to win foreign contracts that they would not otherwise be able to win." indicates that the agreement will help US firms to win contracts.

D and E are out as they contradict the stimulus.
A and C do not hint at possible win of foreign contracts.

Kudos [?]: 279 [0], given: 0

VP
Joined: 15 Jul 2004
Posts: 1439

Kudos [?]: 218 [0], given: 13

Schools: Wharton (R2 - submitted); HBS (R2 - submitted); IIMA (admitted for 1 year PGPX)
Re: Transnational cooperation among corporations is experiencing [#permalink]

### Show Tags

05 Nov 2008, 10:59
nganle08 wrote:
Transnational cooperation among corporations is experiencing a modest renaissance among United States firms, even though projects undertaken by two or more corporations under a collaborative agreement are less profitable than projects undertaken by a single corporation. The advantage of transnational cooperation is that such joint international projects may allow United States firms to win foreign contracts that they would not otherwise be able to win.

Which of the following statements by a United States corporate officer best fits the situation of United States firms as described in the passage above?
A. "We would rather make only a share of the profit and also risk only a share of a possible loss than run the full risk of a loss."
B. "We would rather make a share of a relatively modest profit than end up making none of a potentially much bigger profit."
C. "We would rather cooperate and build good will than poison the business climate by all-out competition."
D. "We would rather have foreign corporations join us in American projects than join them in projects in their home countries."
E. "We would rather win a contract with a truly competitive bid of our own than get involved in less profitable collaborative agreements."

Nice question... B for me too. What's the source please?

Kudos [?]: 218 [0], given: 13

Manager
Joined: 15 Oct 2008
Posts: 103

Kudos [?]: 10 [0], given: 0

Re: Transnational cooperation among corporations is experiencing [#permalink]

### Show Tags

05 Nov 2008, 11:00
Thanks, everyone.
OA is B.

Kudos [?]: 10 [0], given: 0

Manager
Joined: 24 May 2016
Posts: 171

Kudos [?]: 133 [0], given: 33

Re: Transnational cooperation among corporations is experiencing [#permalink]

### Show Tags

14 Aug 2016, 10:04
Transnational cooperation among corporations is experiencing a modest renaissance among United States firms, even though projects undertaken by two or more corporations under a collaborative agreement are less profitable than projects undertaken by a single corporation. The advantage of transnational cooperation is that such joint international projects may allow United States firms to win foreign contracts that they would not otherwise be able to win.

Which of the following statements by a United States corporate officer best fits the situation of United States firms as described in the passage above?

A) "We would rather make only a share of the profit and also risk only a share of a possible loss than run the full risk of a loss."
The passage does not speak about losses.
This option presents a dichotomy between making a share of the profit or loss and running the entire risk of a loss, but why does it not include a profit in the latter part of the dichotomy?

B) "We would rather make a share of a relatively modest profit than end up making none of a potentially much bigger profit."
“We would rather make a share of a relatively modest profit…” is supported in the passage by ”…projects undertaken by two or more corporations under a collaborative agreement are less profitable than projects undertaken by a single corporation.”
“…than end up making none of a potentially much bigger profit.” is supported in the passage by “…such joint international projects may allow United States firms to win foreign contracts that they would not otherwise be able to win.”

C) "We would rather cooperate and build good will than poison the business climate by all-out competition."
The passage does not speak about building good will and trying not to poison the business climate.
D) "We would rather have foreign corporations join us in American projects than join them in projects in their home countries."
E) "We would rather win a contract with a truly competitive bid of our own than get involved in less profitable collaborative agreements."

Kudos [?]: 133 [0], given: 33

Re: Transnational cooperation among corporations is experiencing   [#permalink] 14 Aug 2016, 10:04
Display posts from previous: Sort by