Answers are in
bold.
1. The primary purpose of the passage is to
A. present evidence that resolves a contradiction in business theory
B. discuss reasons an accepted business pattern is changingC. describe a theoretical model and a method whereby that model can be tested
D. argue that a traditional ideology deserves new attention
E. resolve two conflicting explanations for a Phenomenon
Explanation of question 1For the primary purpose, I usually write down the tone of the passage while reading. This helps to answer the main point/primary purpose of the passage. For this passage the tone is neutral but with a positive tone. Now lets go through the choices.
A - there is no contradiction.
B - Since tone is neutral, it does discuss. Accepted business pattern - big companies are better. This is looking like a strong choice.
C - whereby the model can be tested? Not really no.
D - First of all the author is not arguing. Secondly he argues for the new ideology, not the traditional one. Completely off.
E - This is definitely not conflicting explanations. The author just shows 2 different types of corporations.
B is our answer.
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2. According to the passage, all of the following are examples of developments that helped promote the growth of large companies earlier in this century EXCEPT
A. the growth of the railroad industry
B. America’s westward expansion
C. an almost inexhaustible source of raw materials
D. the existence of an inexpensive source of laborE. the development of an industry to produce Steel
Explanation of question 2This is an except question. Therefore we are looking for 4 correct choices, the odd one out is our answer.
A - stated in the passage
B - Actually it is not explicitly mentioned if it is America's westward expansion or not. I mean there is mention of westward expansion, but we do not know for a fact if the author is talking about America or not. In absence of a more compelling choice I might select this.
C - states in the passage
D - Aha, definitely not inexpensive. See in the passage the author states -"Supply of cheap raw materials, plus a population boom that provided an ever-increasing demand for new products (
although not a cheap source of labor) all coincided to encourage the growth of large companies." This pretty much tells us labour IS EXPENSIVE.
E - Steel making is mentioned as well.
D is our answer.
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3. The author's attitude toward the traditional view expressed in first para in bold lines can best be described as
A. scornful and denunciatory
B. dispirited and morose
C. critical but respectfulD. admiring and deferential
E. uncertain but interested
Explanation of question 3I am not a fan of this choice, but actually all the others are way off. The closest choice is "critical and respectful". Yes he is critical as he starts the passage
until recently.... Yes he is not going out of his way to be disrespectful, he is just stating facts. But the other choices are waaaaay off -
A - scornful - no way
B - morose - again no way, he tone is pretty neutral
D - he also is not admiring, stating facts here and drawing his conclusion
E - interested - maybe but definitely not uncertain.
C is my final answer.
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4. It can be inferred from the passage that which of the following actions would be most consistent with the traditional ideology described in the passage?
A. Splitting a manufacturing company into several smaller divisions
B. Bringing a new product to market within a year
C. Creating a department to utilize new emerging technologies
D. Expanding an existing company in anticipation of growing demandE. Cutting inventory and decreasing overhead
Explanation of question 4Two choices come close B and D.
Actually the wording of B, is what makes it close. I will explain in the next line why B wording is not the greatest. But the moment we encounter a strong choice like D then not selecting B is easy.
B - Firstly lets see what the passage states - "..in which new products and technologies can
become outmoded within a year of their being brought to market." This tells us that smaller companies must be getting their products in the market from the design board to shelves in less than a year. So the bigger companies are not doing it. We do not know how long the bigger companies take, but they definitely do not do it within a year.
D - Ok yes exactly this is a big company mentality that bigger is better.
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5. According to the passage, to avoid the trap posed by “a potential dilemma” (Highlighted) emerging successful small companies will have to do which of the following?
A. Turn for advice to the industry analysts who earlier predicted the problems of large companies
B. Avoid taking paths that will make them too successful
C. Learn to embrace the traditional ideology of large corporations
D. Create small interconnected divisions rather than expanding in traditional waysE. Hire successful CEOs from other firms
Explanation of question 5A - Out of scope
B - I cannot imagine avoiding to become successful would be any companies strategy. I mean this is 2020, capitalism rules. What is wrong with you people?
C - Nope, stay away from big company mentality. At least thats what the author thinks.
D - Yes, and also this is mentioned in the passage for the traditional companies "..several CEOs of large corporations who have broken down their sprawling organizations into small, semi-independent divisions.."
E - This might work s well, but actually the author says take inspiration from the CEOs of bigger firms, not just hire CEOs.
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6. Which of the following best describes the organization of the first paragraph of the passage?
A. A conventional model is described and an alternative is introduced.B. An assertion is made and a general supporting example is given.
C. Two contradictory points of view are presented and evaluated.
D. A historical overview is given to explain a phenomenon.
E. A new theory is described and then qualified.
Explanation of question 6A - conventional model is traditional corporate model that bigger the better. Alternative - new generation of smaller streamlined business.
B - The presence of a general supporting example is absent. This is not representative of the structure of the first para.
C - Not contradictory at all.
D - I cannot find any historical overiew in the first para.
E - A new theory - yes maybe the theory that smaller firms are better. But the first para just states this conclusion.
A is the strongest choice.
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7. It can be inferred from the passage that small companies are better able to adapt to the new business climate due to which of the following factors?
I. Low overhead and inventory
II. The ability to predict when new products will become outmoded
III. The capacity to change quickly to meet new challenges
A. I only
B. II only
C. III only
D. I and III onlyE. I, II and III
Explanation of question 7This should be easy.
I - Low overhead and inventory is actually mentioned in the passage.
YES.II - No not the ABILITY TO PREDICT, but only ability to RESPOND QUICKLY. Therefore this cannot be inferred.
NO.III - Yes extending on point II, the capacity to change quickly - respond quicker - is a characteristic of a small company.
YES