Admission Tests Admission Tests Certifications GMAT Questions & Answers

• Question 171:

  

  (1)

  x is an even integer. (2)* Is greater than 0.

  A.

  Statement (1) ALONE is sufficient, but statement (2) alone is not sufficient.

  B.

  Statement (2) ALONE is sufficient, but statement (1) alone is not sufficient.

  C.

  BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE Is sufficient.

  D.

  EACH statement ALONE is sufficient.

  E.

  Statements (1) and (2) TOGETHER are NOT sufficient.

  Correct Answer: E

• Question 172:

  Coal Exporter: Environmentalists oppose allowing coal trains to pass a national park because they believe coal dust blowing off the trains could cause significant environmental damage. This belief is mistaken. Exporters have Incentives to prevent a low In the total weight of coal cargo during transport Consequently, they spray it with an environmentally safe sealant proven to reduce coal dust loss.

  Which of the following most accurately describes how the two sentences in boldface function in the coal exporter's reasoning?

  A. The first sentence functions as support for the only conclusion of the reasoning; the second sentence states that conclusion.

  B. The first sentence functions as support for the only conclusion of the reasoning; the second sentence describes a supposed result of the circumstance that the first sentence describes.

  C. The first sentence functions as support for an intermediate conclusion; the second sentence functions as support for the assertion made by the first sentence.

  D. The first sentence states an intermediate conclusion; the second sentence states the main conclusion of the reasoning.

  E. The first sentence describes a situation that the reasoning seeks to causally explain; the second sentence provides a possible explanation.

  Correct Answer: B

• Question 173:

  Which of the following, if true, would most undermine the reasoning offered for the claim that gray markets can in certain conditions lead to increased profits among authorized retailers?

  A. More consumers have become price-sensitive over the last ten years and this trend will continue for the foreseeable future.

  B. Gray markets typically remain strong even in markets where authorized retailers have introduced service enhancements.

  C. Price wars among authorized retailers, triggered by the appearance of gray markets when few, if any, consumers are price-insensitive, lead to a cycle of increasing price reductions that severely narrow profit margins.

  D. Authorized retailers who are competing for the business of price-insensitive consumers often become involved in a cycle of expensive service enhancements that significantly narrow profit margins.

  E. Manufacturers who fear that gray marketing will tarnish their brand names sometimes subsidize advertising for authorized retailers, thereby narrowing the manufacturers' profit margins.

  Correct Answer: D

  Manufacturers and retailers tend to look askance at gray markets, where products are sold at cut-rate prices outside their authorized distribution channels. Manufacturers fear that gray markets will undercut margins and tarnish brand names. Retailers fear that they will siphon away customers and erode prices. A new study indicates, however, that gray marketing actually benefits manufacturers and retailers in markets that meet two criteria: first, sharp differences exist in consumers' price sensitivity; second, large numbers of consumers are price-insensitive. In such markets, the low prices of the gray market will attract the most price-sensitive customers. The authorized channels will then compete only for the remaining customers--those who are insensitive to price but sensitive to service. When that happens, the structure of competition and the economics of the market shift. The authorized retailers, freed from having to cater to the bargain hunters, can raise their prices and focus on service. If the concentration of price-insensitive shoppers is high enough, the resulting increase in prices will more than offset the loss of sales to the bargain hunters. The margins and profits of the authorized retailers will increase, and manufacturers will, as a result, be able to boost their wholesale prices.

• Question 174:

  The laws of the European Union and of its member states must each be clear, up to date, and all work well together.

  A. clear, up to date, and all

  B. clear and up to date, and they must all

  C. clear, must each be up to date, and

  D. clear, and each must be up to date and

  E. clear, be up to date, and have to

  Correct Answer: B

• Question 175:

  With globalization, companies often save on costs by paying lower wages abroad rather than by enhancing the abilities of their domestic workers, and this helps explain why productivity in many countries has been high over the last decade even as, despite year-to- year variation, domestic wages and job creation have barely grown.

  A. even as, despite year-to-year variation, domestic wages and job creation have barely grown

  B. despite year-to-year variation, domestic wages and job creation have barely grown

  C. even though, though there has been year-to-year variation, domestic wages and job creation have barely grown

  D. though domestic wages, despite year-to-year variation, and job creation have barely grown

  E. even, as despite year-to-year variation domestic wages and job creation have barely grown

  Correct Answer: A

• Question 176:

  Although a substantial body of evidence Indicates that flexible and participative work arrangements make possible significant performance advantages over more traditional centralized and hierarchical structures, the proportion of businesses that have so transformed themselves remains quite small. Why, then, do firms that purport to be rationally acting organizations appear to resist the very methods that would best equip them to achieve their stated goals?

  The passage most strongly suggests that most firms aim to

  A. adopt flexible and participative work arrangements

  B. adopt innovative routines and production methods

  C. enhance the centralization and hierarchy of their bureaucratic structures

  D. produce more-marketable goods and services

  E. achieve improved performance

  Correct Answer: D

  The passage most strongly suggests that most firms aim to adopt flexible and participative work arrangements adopt innovative routines and production methods enhance the centralization and hierarchy of their bureaucratic structures produce more- marketable goods and services achieve improved performance One line of analysis points toward the phenomenon of structural inertia, suggesting that organizations are "imprinted" with the conditions under which they were bom, tending thereafter to ding to long-established routines, production methods, and identities. A second approach fastens on resistance to change among middle managers, who are said to view new work practices as threats to their traditional status and authority. A third approach suggests that because firms have tended to adopt innovations singly, rather than in clusters, the firms often fail to achieve far-reaching organization change. Although each of these perspectives contains a partial truth, each one is limited. Analysis using the concept of structural inertia tends to emphasize the conservative aspects of organizational culture and to neglect inside factors as sources of change. While theories of managerial resistance have stressed the importance of within-firm political processes, they often endow upper level of management with an omniscience and openness to egalitarian practices that upper-level managers do not possess. Finally, the last approach often views new practices as if they exist in a vacuum--as if they are unmedtated by the manner in which they are introduced. An alternative approach builds on developments within industrial sociology. The outcome of workplace change initiatives is shaped in large part by the social and organizational processes that unfold during the implementation of new work practices. In other words, workplace change is not akin to a surgical procedure performed under anesthesia. Rather, it constitutes a negotiated phenomenon In which the language and strategies that particular occupational groups employ can either blur or sharpen the boundaries that exist within the firm. Where workplace change fails to transform existing organizational patterns, the reasons may stem less from the nature of the innovations than from the processes that surround and shape their introduction.

• Question 177:

  In 90 percent of the commercial airline accidents last year, one or another of a group consisting of only 18 percent of the world's commercial airlines was involved. Since the other 82 percent of airlines were generally flying the same types of airplanes as the accident-prone airlines, significant differences in safety procedures must have been responsible for these differences In safety records.

  Which of the following, if true about the world's commercial airlines last year, most seriously weakens the argument above?

  A. Fifteen percent of the airlines were responsible for 97 percent of all air miles flown, and those airlines were involved in 87 percent of the accidents.

  B. The accident-prone airlines were cited by their governments for a significantly higher number of safety violations than were the other airlines.

  C. After an airline is involved in a serious accident, many of its regular customers switch to another airline, and some flights are canceled.

  D. Twenty percent of the airlines employ personnel currently serving in their country's armed forces.

  E. Twenty-four percent of the airplanes in regular service are over fifteen years old.

  Correct Answer: A

• Question 178:

  In the sixteenth century, England had no banks In the modern sense of the word, but among the services that were offered by many businessmen there were included currency exchange and bans.

  A. among the services that were offered by many businessmen there were included currency exchange and loans

  B. among the services offered by many businessmen was included currency exchange and loans

  C. among the services many businessmen offered was currency exchange and loans

  D. many businessmen Included currency exchange and loans among the services they offered

  E. many businessmen offered services, among which included currency exchange and loans

  Correct Answer: C

• Question 179:

  It can be inferred from the passage that which of the following has been the effect of the increasing involvement of managers in informal networks?

  A. Managers have had to rely less on established sources of authority.

  B. Managers have played a reduced role in shaping company strategy.

  C. Managers have sacrificed access to company resources.

  D. Managers have fewer ways of obtaining backing for projects.

  E. Managers have fewer ways of gaining access to information.

  Correct Answer: A

  Managerial work is undergoing enormous and rapid change. With little precedent to guide them, managers are coping with the fading away of hierarchy and the blurring of clear distinctions of title, task, department, even corporation. Traditional sources of power are being eroded as levels of complexity and interdependence increase. Competitive pressures from recent business downturns are forcing corporations to adopt flexible strategies and structures, including reductions In management staff and increased use of performance-based (rather than longevity-based) rewards. In a more profound change, in a growing number of companies horizontal ties between peers are replacing vertical ties as channels of activity and communication. Companies are asking departmental staff to play a more strategic role, with greater cross-departmental collaboration. Some organizations are forming strategic alliances with customers and outside suppliers that bring external relationships inside, where they can influence company policy. Fundamentally, the new managerial work involves new ways of obtaining and using power. Position, title, and authority are no longer adequate tools when managers have to work cooperatively with other departments and even other companies. The ability of managers to get things done depends more on the number of networks in which they are included than on their rank in a hierarchy. In the past, formal structures and the emphasis on rank were more limiting. For example, access to information and the ability to get informal backing were often confined to the few officially sanctioned contact points between departments or between the company and Its suppliers or customers. Today, official barriers between departments and between companies are disappearing while Informal networks grow in importance. The new corporation has many more channels for action, strategic pathways that ignore the chain of command. These strategic pathways also serve to diffuse power. As the number of ways to combine resources Increases, the ability to command diminishes. Alternative paths of communication and resource access erode the authority of those in the nominal chain of command. In other words, greater speed and flexibility undermine hierarchy. As more and more of the strategic action takes place in these informal networks, the Jobs that focus inward on particular departments decline In power.

• Question 180:

  Which of the following claims about profits does the passage indicate is most likely to be supported by at least some eco-conscious companies in emerging markets?

  A. A company that makes consistently high profits has less motivation to implement environmental sustainability initiatives than does a company that is not as profitable.

  B. Emulating multinational companies' environmental sustainability inJtiatjves will most likely result in lower profits than can be obtained otherwise.

  C. Participating In global forums on environmental sustainability can most likely Increase a company's profits.

  D. It is necessary to forgo some profits in order to pay for resources of sufficient quality to produce premium goods.

  E. Environmental sustainability initiatives that fail to yield profits immediately may nevertheless be in a company's best interest to Implement.

  Correct Answer: E

  Many policymakers adopt a macro approach to environmental problems in emerging markets (countries experiencing rapid economic growth): discussing ambitious regulations in global faums and looking to giant multinational companies and non- governmental organizations (NGOs) for insight. But examining what successful companies in these countries are already doing to make growth more environmentally sustainable may make more sense. One study identifies several such firms that are turning eco-consciousness into a source of competitive advantage. The most salient quality of these highly profitable companies Is that they turn limitations (of resources, labor, and Infrastructure) into opportunities. An Indian cement company suffering water shortages developed the world's most water-efficient cement-making method, using air-cooling rather than water cooling. A Philippines utility reduced its water loss through wastage and illegal tapping from 63 percent (1997) to 12 percent (2010) by making water more affordable for lower-Income consumers. A Chinese company makes air conditioners powered with buildings' waste heat, reducing strain on the electric grid. The companies also seek to shape their business environment to support sustainable objectives. Some lobby regulators: a Brazilian organic-sugar producer works with Brazil's government to establish an organic certification system. Some form partnerships: Kenya's Equity Bank allies with international groups to reduce its risks when lending to smallholders or single-family farms; a Brazilian cosmetics company works with suppliers to produce sustainable packaging. Some firms also work to reach and educate lower-income consumers, sacrificing short-term profits to create future markets: a Chilean forestry company organizes local carpenters into networks and connects them to low-income customers. One could quibble with the study. Switzerland's Phil Rosenzweig has argued that management writers are prone to a halo effect: they treat a company's temporary success as proof that It has discovered some eternal principle of good management. That some successful companies have embraced environmental sustainability does not prove that It makes companies successful. Some firms, having prospered, can afford splurging on green Initiatives; some pursue eco-Initiatives for public relations purposes. Nonetheless, the study Is thought-provoking. Critics argue that environmentalism Is a rich- world luxury, but such fears are overblown. When natural resources are scarce and consumers are cash-strapped, sustainability can be a lucrative business strategy.