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12 Apr 2021, 09:00
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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:
74% (01:48) correct
26%
(02:08)
wrong
based on 178
sessions
History
Date
Time
Result
Not Attempted Yet
In Country Y, universities have produced so few graduates with degrees in finance that many firms have struggled to attract qualified candidates. SimInc, a company in need of employees with finance training, opted instead to hire recent graduates with degrees in other fields and then design a fully-paid, one-year training program for their new hires in order to provide them the necessary finance education. SimIncís strategy will require a substantial initial investment, but will ultimately save the company money.
Which of the following, if true, is the best basis for an explanation of how this could be so?
(A) The shortage of qualified employees has made it more expensive to hire graduates with finance degrees than to provide a year of training to graduates in other fields.
(B) Companies that hire graduates with degrees in mathematics and physics are also finding that the number of qualified candidates has decreased substantially.
(C) The first year that SimIncís strategy was in effect, the company's average productivity per employee was nearly 10 percent lower than it had been the previous year.
(D) Firms that are not as well capitalized as SimInc would not have the ability to undertake a strategy such as SimIncís.
(E) To ensure that their competition would not take advantage of their training program, SimInc required that new hires commit to a five-year contract with the company in addition to signing an agreement by which they would not work in the industry for two years after that.
Which of the following, if true, is the best basis for an explanation of how this could be so?
(A) The shortage of qualified employees has made it more expensive to hire graduates with finance degrees than to provide a year of training to graduates in other fields.
(B) Companies that hire graduates with degrees in mathematics and physics are also finding that the number of qualified candidates has decreased substantially.
(C) The first year that SimIncís strategy was in effect, the company's average productivity per employee was nearly 10 percent lower than it had been the previous year.
(D) Firms that are not as well capitalized as SimInc would not have the ability to undertake a strategy such as SimIncís.
(E) To ensure that their competition would not take advantage of their training program, SimInc required that new hires commit to a five-year contract with the company in addition to signing an agreement by which they would not work in the industry for two years after that.
19 Apr 2021, 09:15
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Bunuel
OFFICIAL EXPLANATION
A
The passage and question of this explanation question comprise something of a paradox: SimInc has chosen to make a substantial financial outlay in additional training, yet it will ultimately save money. We need some information regarding how that money will be saved.
Choice (A) explains it. If hiring pre-trained graduates is more expensive than providing training to non-trained graduates, the cost of the training program is made up in the more inexpensive hiring choices. (B) is o§-topic, as we're focused on finance graduates. This choice might be more relevant if we knew that all graduates were becoming more di¢ cult to hire, but the choice is not that broad.
Choice (C), if anything, weakens the argument. However, it makes sense - if all the new hires are in training, productivity will go down until their training is completed. It doesn't address the financial aspects, though. (D) also doesn't address how SimInc saves money. (E) covers one way in which the plan would backfire, but it doesn't explain how the plan will save them money, only how the contracts would prevent them from losing more money. Choice (A) is correct.
General Discussion
12 Apr 2021, 10:10
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So here is my understanding
1. Country Y is producing few graduates in the Finance field.[Premise]
2. SimInc, opted to hire graduates from nonfinance backgrounds and then train them for 1 year in finance.[Premise]
3. SimInc will require substantial investment but this strategy will save more money. [Conclusion]
Question stem
We need to find the option which explains the conclusion.
Now let's look into Options
(A) The shortage of qualified employees has made it more expensive to hire graduates with finance degrees than to provide a year of training to graduates in other fields. [Eliminate as this does not answer that 1 year of training would be a huge investment]
(B) Companies that hire graduates with degrees in mathematics and physics are also finding that the number of qualified candidates has decreased substantially.
[Eliminate, this option does not answer the conclusion]
(C) The first year that SimIncís strategy was in effect, the company's average productivity per employee was nearly 10 percent lower than it had been the previous year. [Eliminate, this might help in understanding how the company might bear loss but does not tell about heavy investment and long term profitability]
(D) Firms that are not as well capitalized as SimInc would not have the ability to undertake a strategy such as SimIncís.
[Eliminate as it does not tell about how we arrived at the conclusion].
(E) To ensure that their competition would not take advantage of their training program, SimInc required that new hires commit to a five-year contract with the company in addition to signing an agreement by which they would not work in the industry for two years after that.
[Correct, this does tell us how the training program will save more money in the long term].
1. Country Y is producing few graduates in the Finance field.[Premise]
2. SimInc, opted to hire graduates from nonfinance backgrounds and then train them for 1 year in finance.[Premise]
3. SimInc will require substantial investment but this strategy will save more money. [Conclusion]
Question stem
We need to find the option which explains the conclusion.
Now let's look into Options
(A) The shortage of qualified employees has made it more expensive to hire graduates with finance degrees than to provide a year of training to graduates in other fields. [Eliminate as this does not answer that 1 year of training would be a huge investment]
(B) Companies that hire graduates with degrees in mathematics and physics are also finding that the number of qualified candidates has decreased substantially.
[Eliminate, this option does not answer the conclusion]
(C) The first year that SimIncís strategy was in effect, the company's average productivity per employee was nearly 10 percent lower than it had been the previous year. [Eliminate, this might help in understanding how the company might bear loss but does not tell about heavy investment and long term profitability]
(D) Firms that are not as well capitalized as SimInc would not have the ability to undertake a strategy such as SimIncís.
[Eliminate as it does not tell about how we arrived at the conclusion].
(E) To ensure that their competition would not take advantage of their training program, SimInc required that new hires commit to a five-year contract with the company in addition to signing an agreement by which they would not work in the industry for two years after that.
[Correct, this does tell us how the training program will save more money in the long term].
