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Verbal Practice Test 2

Description: GMAT Verbal test - 2
Number of Questions: 39
Created by:
Tags: GMAT Verbal test - 2 Others Sentence Improvement Conclusion Double Usage, Repetition and Redundancy Redundancy Weaken
Attempted 0/38 Correct 0 Score 0

Directions: The following question presents a sentence, part of which or all of which is underlined. Beneath the sentence you will find five ways of phrasing the underlined part. The first of these repeats the original; the other four are different. If you think the original is best, choose the first answer; otherwise choose one of the others.

Some psychiatric studies indicate that among distinguished artists the rates of manic depression and major depression are ten to thirteen times as prevalent as in the population at large.

  1. the rates of manic depression and major depression are ten to thirteen times as prevalent as in

  2. the rates of manic depression and major depression are ten to thirteen times more prevalent than in

  3. the rates of manic depression and major depression are ten to thirteen times more prevalent when compared to

  4. manic depression and major depression are ten to thirteen times as prevalent when compared to

  5. manic depression and major depression are ten to thirteen times more prevalent than in


Correct Option: E

Directions: For this question, select the best of the answer choices given.

Between 1990 and 1998, occupancy in Branson Hospital averaged 79 percent of capacity, while admission rates remained constant, at an average of 9 admissions per 100 beds per year. Between 1998 and 2002, however, occupancy rates increased to an average of 85 percent of capacity, while admission rates declined to 8 per 100 beds per year. Which of the following conclusions can be most properly drawn from the info given above?

  1. The average stay for Branson Hospital residents rose between 1998 and 2002.

  2. The proportion of children staying in Branson hospital was greater in 2002 than in 1990.

  3. Hospital admission rates tend to decline whenever occupancy rates rise.

  4. Hospitals built prior to 1998 generally had fewer beds than did hospitals built between 1998 and 2002.

  5. The more beds a nursing home has, the higher its occupancy rate is likely to be.


Correct Option: A
Explanation:

The best answer is (1). Choice (1) receives support from the fact stated above: between 1998 and 2002, Branson hospital occupancy rates rose though admission rats declined.

Directions: The following question presents a sentence, part of which or all of which is underlined. Beneath the sentence you will find five ways of phrasing the underlined part. The first of these repeats the original; the other four are different. If you think the original is best, choose the first answer; otherwise choose one of the others.

Many economists predict that the next recession, when it comes, will be caused by Federal Reserve action taken to prevent an inflationary upsurge that would result if the economy were to expand at an annual rate of three percent or more.

  1. taken to prevent an inflationary upsurge that would result

  2. they took for preventing an inflationary upsurge that would result

  3. taken to prevent an inflationary upsurge resulting

  4. they took to prevent an inflationary upsurge resulting

  5. taken for preventing an inflationary upsurge that will result


Correct Option: A

Directions: For this question, select the best of the answer choices given.

Abolition of government regulation of airfares has increased competition among airlines and thus will eventually lead to compromises in airline safety. Anxious to reduce fares in what has, as a result of deregulation, become a highly competitive market, airlines will be tempted to reduce costs by decreasing safety inspections and routine maintenance of aircraft. Which of the following, if true, would cast the most serious doubt on the prediction that deregulation of airfares will ultimately compromise airline safety?

  1. Consumers select an airline as much on the basis of its safety record as on the basis of its fares.

  2. There are a number of mechanical problems that cannot be detected in the routine inspection of aircraft.

  3. The amount of commercial air traffic has increased significantly since the regulation of airfares was abolished.

  4. The number of airline bankruptcies has increased since the regulation of airfares was abolished.

  5. When airfares were regulated, airlines were more inclined to invest in the development of new aircraft.


Correct Option: A

Directions: For this question, select the best of the answer choices given.

Last year in the United States, women who ran for state and national offices were about as likely to win as men. However, only about fifteen percent of the candidates for these offices were women. Therefore, the reason there are so few women who win elections for these offices is not that women have difficulty winning elections but that so few women want to run. Which of the following, if true, most seriously undermines the conclusion given?

  1. Last year the proportion of women incumbents who won reelection was smaller than the proportion of men incumbents who won reelection.

  2. Few women who run for state and national offices run against other women.

  3. Most women who have no strong desire to be politicians never run for state and national offices.

  4. The proportion of people holding local offices who are women is smaller than the proportion of people holding state and national offices who are women.

  5. Many more women than men who want to run for state and national offices do not because they cannot get adequate funding for their campaigns.


Correct Option: E

Directions: For this question, select the best of the answer choices given.

In a psychological experiment conducted at South bay University, groups of men with various levels of education read stories in which people caused harm, some of them doing so intentionally, and some accidentally. When asked about appropriate penalization for those who had caused harm, the less educated men, unlike the educated ones, assigned punishments that did not vary according to whether the harm was done intentionally or accidentally. Uneducated men, then, do not regard people's intentions as relevant to penalization. Which of the following, if true, would most seriously weaken the conclusion above?

  1. In these stories, the severity of the harm produced was clearly stated.

  2. In interpreting these stories, the listeners had to draw on a relatively feminine sense of human psychology in order to tell whether harm was produced intentionally or accidentally.

  3. Relatively uneducated men are as likely to produce harm unintentionally as are more educated men.

  4. The more educated men assigned penalization in a way that closely resembled the way women had assign penalization in a similar experiment.


Correct Option: B
Explanation:

The best answer is (2). Choice (2) indicates that less educated men might be unable to tell whether the harm in the stories was produced intentionally. Thus, even if less educated men do regard people's intentions as relevant, they might be unable to apply this criterion here. (2), therefore, undermines the conclusion's support.

Directions: The following question presents a sentence, part of which or all of which is underlined. Beneath the sentence you will find five ways of phrasing the underlined part. The first of these repeats the original; the other four are different. If you think the original is best, choose the first answer; otherwise choose one of the others.

Robinson is a botanist whose dream is to reestablish an authentic pre-human piece of Hawaii, a place now awash with introduced species of plants and animals.

  1. whose dream is to reestablish an authentic pre-human piece of Hawaii,

  2. whose dream it is to reestablish an authentic pre-human piece of Hawaii,

  3. who it is his dream to reestablish an authentic pre-human piece of Hawaii,

  4. that is dreaming to reestablish an authentic pre-human piece of Hawaii,

  5. who has the dream to reestablish an authentic pre-human piece of Hawaii,


Correct Option: A
Explanation:

The best answer is (1). The pronoun whose is the best way to link the dream with Robinson is a botanist.

Directions: For this question, select the best of the answer choices given.

An experimental microwave clothes dryer heats neither air nor cloth. Rather, it heats water on clothes, thereby saving electricity and protecting delicate fibers by operating at a lower temperature. Microwaves are waves that usually heat metal objects, but developers of a microwave dryer are perfecting a process that will prevent thin metal objects such as hairpins from heating up and burning clothes. Which of the following, if true, most strongly indicates that the process, when perfected, will be insufficient to make the dryer readily marketable?

  1. Metal snap fasteners on clothes that are commonly put into drying machines are about the same thickness as most hairpins.

  2. Many clothes that are currently placed into mechanical dryers are not placed there along with hairpins or other thin metal objects.

  3. The experimental microwave dryer uses more electricity than future, improved models would be expected to use.

  4. Drying clothes with the process would not cause more shrinkage than the currently used mechanical drying process causes.

  5. Many clothes that are frequently machine-dried by prospective customers incorporate thick metal parts such as decorative brass studs or buttons.


Correct Option: E

Directions: The following question presents a sentence, part of which or all of which is underlined. Beneath the sentence you will find five ways of phrasing the underlined part. The first of these repeats the original; the other four are different. If you think the original is best, choose the first answer; otherwise choose one of the others.

Psychologists now contend that the way adults think and feel are determined as much by their peers in early childhood than by their parents.

  1. are determined as much by their peers in early childhood than by their

  2. are determined as much by peers in early childhood as do their

  3. is determined as much by their early childhood peers as by their

  4. have been determined by childhood peers as much as their


Correct Option: C

Directions: The following question presents a sentence, part of which or all of which is underlined. Beneath the sentence you will find five ways of phrasing the underlined part. The first of these repeats the original; the other four are different. If you think the original is best, choose the first answer; otherwise choose one of the others.

Released the first Friday of every month and covering the preceding month, the Labor Department's employment report discloses the amount of new jobs to be created during the reporting period and the amount of hours to be worked.

  1. discloses the amount of new jobs to be created during the reporting period and the amount of hours to be worked

  2. discloses the amount of new jobs being created during the reporting period and the amount of hours worked

  3. discloses the number of new jobs created during the reporting period and the number of hours worked

  4. disclosed the number of new jobs that are created during the reporting period and the number of hours being worked


Correct Option: C

Directions: For this question, select the best of the answer choices given.

In Morigia the average age of cars that are still in use has historically been seven years, but now it is nearly nine years. Car manufacturers claim that the current poor economy has forced people to put off buying new cars, and thus when the economy improves, the average age of cars will return to former levels. Which of the following, if true, most seriously calls into question the car manufacturers' prediction?

  1. Fewer cars per year are now being manufactured in Morigia than were being manufactured there five years ago.

  2. When the threat of job loss is particularly strong, people are reluctant to commit themselves to expensive purchases.

  3. The older a car is, the greater the amount of upkeep it requires.

  4. The air-pollution control devices now being used in cars manufactured in Morigia cost less than those that were used seven years ago.

  5. Most people in Morigia now believe that replacing an old car with a new one has very undesirable ecological consequences.


Correct Option: E

Directions: For this question, select the best of the answer choices given.

After observing the Earth's weather patterns and the 11-year sunspot cycle of the Sun for 36 years, scientists have found that high levels of sunspot activity precede shifts in wind patterns that affect the Earth's weather. One can conclude that meteorologist will be able to improve their weather forecasts based on this information. Which of the following, if true, most seriously weakens the argument above?

  1. Weather forecasts are more detailed today than they were 36 years ago.

  2. Scientists can establish that sunspot activity directly affects the Earth's weather.

  3. Evidence other than sunspot activity has previously enabled meteorologists to forecast the weather conditions that are predictable on the basis of sunspot activity.

  4. Scientist have not determined why the sunspot activity on the Sun follows an 11-year cycle.


Correct Option: C

Directions: The following question presents a sentence, part of which or all of which is underlined. Beneath the sentence you will find five ways of phrasing the underlined part. The first of these repeats the original; the other four are different. If you think the original is best, choose the first answer; otherwise choose one of the others.

The proposed health care bill would increase government regulation of health insurance, establish standards that would guarantee wider access to people with past health problems and to workers changing jobs who otherwise could be uncovered for months.

  1. establish standards that would guarantee wider to people with past health problems and to workers changing jobs who

  2. establishing standards that would guarantee wider access to people with past health problems and to workers who are changing jobs and

  3. to establish standards that would guarantee wider access to people with past health problems and to workers who change jobs that

  4. for establishing standards that would guarantee wider access for people with past health problems and workers changing jobs who

  5. for the establishment of standards that would guarantee wider access for people with past health problems and workers who are changing jobs that


Correct Option: B

Directions: The following question presents a sentence, part of which or all of which is underlined. Beneath the sentence you will find five ways of phrasing the underlined part. The first of these repeats the original; the other four are different. If you think the original is best, choose the first answer; otherwise choose one of the others.

Because the financial review covered only the last few fiscal years, and therefore the investigators were unable to determine the extent of possible earlier overpayments.

  1. and therefore the investigators were unable to determine the extent of possible

  2. so therefore the investigators were not capable of determining the possible extent of

  3. therefore the investigators were unable to determine the possible extent of

  4. the investigators were not capable of determining the possible extent of

  5. the investigators were unable to determine the extent of possible


Correct Option: E

Directions: For this question, select the best of the answer choices given.

The chanterelle, a type of wild mushroom, grows beneath host trees such as the Douglas fir, which provide it with necessary sugars. The underground filaments of chanterelles, which extract the sugars, in turn provide nutrients and water for their hosts. Because of this mutually beneficial relationship, harvesting the chanterelles growing beneath a Douglas fir seriously endangers the tree. Which of the following, if true, casts the most doubt on the conclusion drawn above?

  1. The number of wild mushrooms harvested has increased in recent years.

  2. Chanterelles grow not only beneath Douglas firs but also beneath other host trees.

  3. Many types of wild mushrooms are found only in forests and cannot easily be grown elsewhere.

  4. The harvesting of wild mushrooms stimulates future growth of those mushrooms.

  5. Young Douglas fir seedlings die without the nutrients and water provided by chanterelle filaments.


Correct Option: D

Directions: For this question, select the best of the answer choices given.

A computer equipped with signature-recognition software, which restricts access to a computer to those people whose signatures are on file, identifies a person's signature by analyzing not only the form of the signature but also such characteristics as pen pressure and signing speed. Even the most adept forgers cannot duplicate all of the characteristics the program analyzes. Which of the following can be logically concluded from the passage above?

  1. The time it takes to record and analyze a signature makes the software impractical for everyday use.

  2. Computers equipped with the software will soon be installed in most banks.

  3. Nobody can gain access to a computer equipped with the software solely by virtue of skill at forging signatures.

  4. Signature-recognition software has taken many years to develop and perfect.

  5. In many cases even authorized users are denied legitimate access to computers equipped with the software.


Correct Option: C

Directions: The following question presents a sentence, part of which or all of which is underlined. Beneath the sentence you will find five ways of phrasing the underlined part. The first of these repeats the original; the other four are different. If you think the original is best, choose the first answer; otherwise choose one of the others.

Two new studies indicate that many people become obese more due to the fact that their bodies burn calories too slowly than overeating.

  1. due to the fact that their bodies burn calories too slowly than overeating

  2. due to their bodies burning calories too slowly than to eating too much

  3. because their bodies burn calories too slowly than that they are overeaters

  4. because their bodies burn calories too slowly than because they eat too much

  5. because of their bodies burning calories too slowly than because of their eating too much


Correct Option: D

Directions: For this question, select the best of the answer choices given.

Passengers must exit airplanes swiftly after accidents, since gases released following accidents are toxic to humans and often explode soon after being released. In order to prevent passenger deaths from gas inhalation, safety officials recommend that passengers be provided with smoke hoods that prevent inhalation of the gases. Which of the following, if true, constitutes the strongest reason not to require implementation of the safety officials' recommendation?

  1. Test evacuations showed that putting on the smoke hoods added considerably to the overall time it passengers to leave the cabin.

  2. Some airlines are unwilling to buy the smoke hoods because they consider them to be prohibitively expensive.

  3. Although the smoke hoods protect passengers from the toxic gases, they can do nothing to prevent the gases from igniting.

  4. Some experienced flyers fail to pay attention to the safety instructions given on every commercial flight before takeoff.

  5. In many airplane accidents, passengers who were able to reach emergency exits were overcome by toxic gases before they could exit the airplane.


Correct Option: A

Directions: For this question, select the best of the answer choices given.

Organic farmers are looking for non-chemical methods to rid their crops of pests. Giving crops a slight electric shock has no ill effect on crops but rids them of caterpillars. This method should be employed by organic farmers all over the country. Which of the following, if true, most strongly supports the view that it would not be advisable to try to eradicate agricultural pests with the method mentioned above?

  1. Most species of caterpillar are subject to some natural predators.

  2. Many agricultural pests do not go through a caterpillar stage.

  3. This method also kills insects that are agriculturally beneficial.

  4. Since caterpillars of different species appear at different times of the year, several shocks would be necessary.

  5. No large-scale production facilities exist today for the product that electrifies crops.


Correct Option: C
Explanation:

The best answer is (3). If electrifying crops kills beneficial insects along with the pests, it may do as much or more harm than good.

Directions: The following question presents a sentence, part of which or all of which is underlined. Beneath the sentence you will find five ways of phrasing the underlined part. The first of these repeats the original; the other four are different. If you think the original is best, choose the first answer; otherwise choose one of the others.

We now have wireless computer networks, direct-broadcast satellite television, digital wireless cable television networks, global telephone service, and global positioning systems that can pinpoint an individual's location to a few inches.

  1. that can pinpoint an individual's location to a few inches

  2. that can pinpoint an individual's location in a few inches

  3. which can pinpoint an individual's location to a few inches

  4. which can pinpoint an individual's location of a few inches


Correct Option: A
Explanation:

The best answer is (1). Choices (2) and (4) are incorrect because in a few inches is unidiomatic. In (3), (4) and (5) the pronoun which is incorrectly used for a non-restrictive relative clause.

Directions: The following question presents a sentence, part of which or all of which is underlined. Beneath the sentence you will find five ways of phrasing the underlined part. The first of these repeats the original; the other four are different. If you think the original is best, choose the first answer; otherwise choose one of the others.

The British colonies in North America attracted a mass immigration of religious dissenters and poor people throughout the 17th and 18th centuries, coming from all parts of the British Isles, Germany, the Netherlands, and other countries.

  1. The British colonies in North America attracted a mass immigration of religious dissenters and poor people throughout the 17th and 18th centuries, coming

  2. The British colonies in North America have attracted a mass immigration of religious dissenters and poor people throughout the 17th and 18th centuries, coming

  3. The British colonies in North America has attracted a mass immigration of religious dissenters and poor people throughout the 17th and 18th centuries, coming

  4. The British colonies in North America was attracting a mass immigration of religious dissenters and poor people throughout the 17th and 18th centuries, coming

  5. The British colonies in North America have attracted a mass immigration of religious dissenters and poor people throughout the 17th and 18th centuries, to come


Correct Option: A
Explanation:

The best answer is (A). The correct form of the verb attracted is the past simple.

Directions: For this question, select the best of the answer choices given.

American customers expect high quality. When the quality of a manufactured product is raised, it in turn raises customer expectations. A company that believes that the quality of its products is satisfactory will soon discover that its customers are not similarly satisfied. The goal of Sunnybrook Corporation is to meet or exceed customer expectations. Which of the following must be true on the basis of the statements above?

  1. Sunnybrook's competitors will succeed in attracting customers only if those competitors adopt Sunnybrook's goal as their own.

  2. A company that does not correctly forecast the expectations of its customers is certain to fail in advancing the quality of its products.

  3. It is possible to meet the goal of Sunnybrook Corporation only if the quality of their products can be continually improved upon.

  4. If a company becomes satisfied with the quality of the products it manufactures, then the quality is likely to decline.


Correct Option: C
Explanation:

The best answer is (3). Sunnybrook wishes to meet customer expectations, however these expectations are always being raised. Whatever the quality of Sunnybrook's products, it will be possible to meet their goal only by continually improving their products.

Directions: The following question presents a sentence, part of which or all of which is underlined. Beneath the sentence you will find five ways of phrasing the underlined part. The first of these repeats the original; the other four are different. If you think the original is best, choose the first answer; otherwise choose one of the others.

After adopting broadband internet access, wireless personal digital assistants, and super-fast home PCs, Weston Insurance has hired new employees, which doubles to 250 the junior staff in the claims department working from home.

  1. which doubles to 250 the junior staff in the claims department

  2. doubling to 250 the number of junior staff members in the claims department

  3. which doubles to 250 the junior staff of the claims department

  4. doubling to 250 the number of junior staff members of the claims department

  5. which doubles to 250 the junior staff in the claims department that


Correct Option: B
Explanation:

The best answer is (2). The pronoun which should be used to refer to a previously mentioned noun, not to the idea expressed in an entire clause. In (1), (3), and (5) there is no specific noun.

Directions: For this question, select the best of the answer choices given.

Although the new cochleae manufactured by Medotech will cost more than twice as much as the cochlear implants now in use, Medotech implants should still be cost-effective. Not only will surgery and recovery time be reduced, but Medotech cochlear replacements should last longer, thereby reducing the need for further hospital stays. Which of the following must be studied in order to evaluate the argument presented above?

  1. The amount of time a patient spends in surgery versus the amount of time spent recovering from surgery.

  2. The amount by which the cost of producing Medotech cochlear replacements has declined with the introduction of the new technique for producing them.

  3. The degree to which the use of Medotech cochlear replacements is likely to reduce the need for repeat surgery when compared with the use of the replacements now in use.

  4. The degree to which the use of Medotech replacements are more carefully manufactured than are the replacements now in use.

  5. The amount by which Medotech will drop in cost as the production procedures become standardized and applicable on a larger scale.


Correct Option: C
Explanation:

The best answer is (3). To evaluate the argument it must be determined whether these savings will compensate for the increased cost. Therefore, study of the expected reduction in the need for further hospital stays is needed.

Directions: The following question presents a sentence, part of which or all of which is underlined. Beneath the sentence you will find five ways of phrasing the underlined part. The first of these repeats the original; the other four are different. If you think the original is best, choose the first answer; otherwise choose one of the others.

The U.S. Forest Service, then five years old, decided to put out every fire in its domain, and within three decades the agency formulated what it called the 10 A.M. policy, directing that fires be extinguished quicker than they had been in the past.

  1. within three decades the agency formulated what it called the 10 A.M. policy, directing that fires be extinguished quicker than they had been in the past

  2. within three decades the agency has formulated what it called the 10 A.M. policy, directing that fires be extinguished quicker than they had been in the past

  3. within three decades the agency had formulated what it called the 10 A.M. policy, directing that fires be extinguished quicker than they had been in the past

  4. within three decades the agency formulated what it called the 10 A.M. policy, directing that fires be extinguished more quickly than they had been in the past

  5. within three decades the agency has formulated what it called the 10 A.M. policy, directing that fires be extinguished more quickly than they had been in the past


Correct Option: D
Explanation:

The best answer is (4). Choices (4) and (5) correctly use the adverbial phrase more quickly than. (5) is incorrect because of the unwarranted use of the present perfect tense.

Directions: The following question presents a sentence, part of which or all of which is underlined. Beneath the sentence you will find five ways of phrasing the underlined part. The first of these repeats the original; the other four are different. If you think the original is best, choose the first answer; otherwise choose one of the others.

Dr. Tonegawa won the Nobel Prize for discovering how the body can constantly change its genes to fashion a seeming unlimited number of antibodies, each specifically targeted at an invading microbe or foreign substance.

  1. seeming unlimited number of antibodies, each specifically targeted at

  2. seeming unlimited number of antibodies, each targeted specifically to

  3. seeming unlimited number of antibodies, all specifically targeted at

  4. seemingly unlimited number of antibodies, all of them targeted specifically to

  5. seemingly unlimited number of antibodies, each targeted specifically at


Correct Option: E

Directions: For this question, select the best of the answer choices given.

The Burmese ferret badger burrows its home in the ground. Based on the fact that different local populations of Burmese ferret badgers of the same species dig homes of different styles, zoologists have concluded that the badgers building styles are a culturally acquired, rather than a genetically transmitted, trait. Which of the following, if true, would most strengthen the conclusion drawn by the zoologists?

  1. There are more common characteristics than there are differences among the Burmese ferret badger's styles of the local Burmese ferret badger population that has been studied most extensively.

  2. Young Burmese ferret badgers are inept at digging burrows and apparently spend years watching their elders before becoming accomplished in the local style.

  3. The homes of one species of badger lack the characteristics of the homes of most other species of badger.

  4. Burmese ferret badgers are found only in Burma and India, where local populations of the badgers apparently seldom have contact with one another.


Correct Option: B
Explanation:

The best answer is (2). The information in choice (2) says that young Burmese ferret badgers progress slowly towards mastery of a burrow-digging style. This suggests that the skill is one they must learn, rather than one whose transmission is wholly genetic. Choice (2) also suggests a means of cultural transmission, namely, observation of older badger's techniques.

The primary purpose of the passage is to

Directions: This question is based on the following reading passage. Choose the best answer to the  question on the basis of what is stated or implied in the passage.

The fact that superior service can generate a competitive advantage for a company does not mean that every attempt at improving service will create such an advantage. Investments in service, like those in production and distribution, must be balanced against other types of investments on the basis of direct, tangible benefits such as cost reduction and increased revenues. If a company is already effectively on a par with its competitors because it provides service that avoids a damaging reputation and keeps customers from leaving at an unacceptable rate, then investment in higher service levels may be wasted, since service is a deciding factor for customers only in extreme situations. This truth was not apparent to managers of one regional bank, which failed to improve its competitive position despite its investment in reducing the time a customer had to wait for a teller. The bank managers did not recognize the level of customer inertia in the consumer banking industry that arises from the inconvenience of switching banks. Nor did they analyze their service improvement to determine whether it would attract new customers by producing a new standard of service that would excite customers or by proving difficult for competitors to copy. The only merit of the improvement was that it could easily be described to customers.

 

  1. contrast possible outcomes of a type of business investment

  2. suggest more careful evaluation of a type of business investment

  3. illustrate various ways in which a type of business investment could fail to enhance revenues

  4. trace the general problems of a company to a certain type of business investment

  5. criticize the way in which managers tend to analyze the costs and benefits of business investments


Correct Option: B

The author implies that one way that VHS producers won control over the VCR market was by

Directions: This question is based on the following reading passage. Choose the best answer to the  question on the basis of what is stated or implied in the passage.

Traditionally, the first firm to commercialize a new technology has benefited from the unique opportunity to shape product definitions, forcing followers to adapt to a standard or invest in an unproven alternative. Today, however, the largest payoffs may go to companies that lead in developing integrated approaches for successful mass production and distribution.
Producers of the Beta format for videocassette recorders (VCR's), for example, were first to develop the VCR commercially in 1975, but producers of the rival VHS (Video Home System) format proved to be more successful at forming strategic alliances with other producers and distributors to manufacture and market their VCR format. Seeking to maintain exclusive control over VCR distribution, Beta producers were reluctant to form such alliances and eventually lost ground to VHS in the competition for the global VCR market.
Despite Beta's substantial technological head start and the fact that VHS was neither technically better nor cheaper than Beta, developers of VHS quickly turned a slight early lead in sales into a dominant position. Strategic alignments with producers of prerecorded tapes reinforced the VHS advantage. The perception among consumers that prerecorded tapes were more available in VHS format further expanded VHS's share of the market. By the end of the 1980's, Beta was no longer in production.

  1. carefully restricting access to VCR technology

  2. giving up a slight early lead in VCR sales in order to improve long-term prospects

  3. retaining a strict monopoly on the production of prerecorded videotapes

  4. sharing control of the marketing of VHS-format VCR's

  5. sacrificing technological superiority over Beta-format VCR's in order to remain competitive in price


Correct Option: D

The passage is primarily concerned with which of the following?

Directions: This question is based on the following reading passage. Choose the best answer to the  question on the basis of what is stated or implied in the passage.

Traditionally, the first firm to commercialize a new technology has benefited from the unique opportunity to shape product definitions, forcing followers to adapt to a standard or invest in an unproven alternative. Today, however, the largest payoffs may go to companies that lead in developing integrated approaches for successful mass production and distribution.
Producers of the Beta format for videocassette recorders (VCR's), for example, were first to develop the VCR commercially in 1975, but producers of the rival VHS (Video Home System) format proved to be more successful at forming strategic alliances with other producers and distributors to manufacture and market their VCR format. Seeking to maintain exclusive control over VCR distribution, Beta producers were reluctant to form such alliances and eventually lost ground to VHS in the competition for the global VCR market.
Despite Beta's substantial technological head start and the fact that VHS was neither technically better nor cheaper than Beta, developers of VHS quickly turned a slight early lead in sales into a dominant position. Strategic alignments with producers of prerecorded tapes reinforced the VHS advantage. The perception among consumers that prerecorded tapes were more available in VHS format further expanded VHS's share of the market. By the end of the 1980's, Beta was no longer in production.

  1. Evaluating two competing technologies.

  2. Tracing the impact of a new technology by narrating a sequence of events.

  3. Reinterpreting an event from contemporary business history.

  4. Illustrating a business strategy by means of a case history.

  5. Proposing an innovative approach to business planning.


Correct Option: D

Which of the following best describes the relation of the first paragraph to the passage as a whole?

Directions: This question is based on the following reading passage. Choose the best answer to the  question on the basis of what is stated or implied in the passage.

Traditionally, the first firm to commercialize a new technology has benefited from the unique opportunity to shape product definitions, forcing followers to adapt to a standard or invest in an unproven alternative. Today, however, the largest payoffs may go to companies that lead in developing integrated approaches for successful mass production and distribution.
Producers of the Beta format for videocassette recorders (VCR's), for example, were first to develop the VCR commercially in 1975, but producers of the rival VHS (Video Home System) format proved to be more successful at forming strategic alliances with other producers and distributors to manufacture and market their VCR format. Seeking to maintain exclusive control over VCR distribution, Beta producers were reluctant to form such alliances and eventually lost ground to VHS in the competition for the global VCR market.
Despite Beta's substantial technological head start and the fact that VHS was neither technically better nor cheaper than Beta, developers of VHS quickly turned a slight early lead in sales into a dominant position. Strategic alignments with producers of prerecorded tapes reinforced the VHS advantage. The perception among consumers that prerecorded tapes were more available in VHS format further expanded VHS's share of the market. By the end of the 1980's, Beta was no longer in production.

  1. It makes a general observation to be exemplified.

  2. It outlines a process to be analyzed.

  3. It poses a question to be answered.

  4. It advances an argument to be disputed.

  5. It introduces conflicting arguments to be reconciled.


Correct Option: A

The author uses the word "only" in last sentence most likely in order to

Directions: This question is based on the following reading passage. Choose the best answer to the  question on the basis of what is stated or implied in the passage.

The fact that superior service can generate a competitive advantage for a company does not mean that every attempt at improving service will create such an advantage. Investments in service, like those in production and distribution, must be balanced against other types of investments on the basis of direct, tangible benefits such as cost reduction and increased revenues. If a company is already effectively on a par with its competitors because it provides service that avoids a damaging reputation and keeps customers from leaving at an unacceptable rate, then investment in higher service levels may be wasted, since service is a deciding factor for customers only in extreme situations. This truth was not apparent to managers of one regional bank, which failed to improve its competitive position despite its investment in reducing the time a customer had to wait for a teller. The bank managers did not recognize the level of customer inertia in the consumer banking industry that arises from the inconvenience of switching banks. Nor did they analyze their service improvement to determine whether it would attract new customers by producing a new standard of service that would excite customers or by proving difficult for competitors to copy. The only merit of the improvement was that it could easily be described to customers.

 

  1. highlight the oddity of the service improvement

  2. emphasize the relatively low value of the investment in service improvement

  3. distinguish the primary attribute of the service improvement from secondary attributes

  4. single out a certain merit of the service improvement from other merits

  5. point out the limited duration of the actual service improvement


Correct Option: B

The alignment of producers of VHS-format VCR's with producers of prerecorded videotapes is most similar to which of the following?

Directions: This question is based on the following reading passage. Choose the best answer to the  question on the basis of what is stated or implied in the passage.

Traditionally, the first firm to commercialize a new technology has benefited from the unique opportunity to shape product definitions, forcing followers to adapt to a standard or invest in an unproven alternative. Today, however, the largest payoffs may go to companies that lead in developing integrated approaches for successful mass production and distribution.
Producers of the Beta format for videocassette recorders (VCR's), for example, were first to develop the VCR commercially in 1975, but producers of the rival VHS (Video Home System) format proved to be more successful at forming strategic alliances with other producers and distributors to manufacture and market their VCR format. Seeking to maintain exclusive control over VCR distribution, Beta producers were reluctant to form such alliances and eventually lost ground to VHS in the competition for the global VCR market.
Despite Beta's substantial technological head start and the fact that VHS was neither technically better nor cheaper than Beta, developers of VHS quickly turned a slight early lead in sales into a dominant position. Strategic alignments with producers of prerecorded tapes reinforced the VHS advantage. The perception among consumers that prerecorded tapes were more available in VHS format further expanded VHS's share of the market. By the end of the 1980's, Beta was no longer in production.

  1. The alignment of an automobile manufacturer with another automobile manufacturer to adopt a standard design for automobile engines.

  2. The alignment of an automobile manufacturer with an automotive glass company whereby the manufacturer agrees to purchase automobile windshields only from that one glass company.

  3. The alignment of an automobile manufacturer with a petroleum company to ensure the widespread availability of the fuel required by a new type of engine developed by the manufacturer.

  4. The alignment of an automobile manufacturer with its dealers to adopt a plan to improve automobile design.

  5. The alignment of an automobile dealer with an automobile rental chain to adopt a strategy for an advertising campaign to promote a new type of automobile.


Correct Option: C

The passage suggests that bank managers failed to consider whether or not the service improvement mentioned

Directions: This question is based on the following reading passage. Choose the best answer to the  question on the basis of what is stated or implied in the passage.

The fact that superior service can generate a competitive advantage for a company does not mean that every attempt at improving service will create such an advantage. Investments in service, like those in production and distribution, must be balanced against other types of investments on the basis of direct, tangible benefits such as cost reduction and increased revenues. If a company is already effectively on a par with its competitors because it provides service that avoids a damaging reputation and keeps customers from leaving at an unacceptable rate, then investment in higher service levels may be wasted, since service is a deciding factor for customers only in extreme situations. This truth was not apparent to managers of one regional bank, which failed to improve its competitive position despite its investment in reducing the time a customer had to wait for a teller. The bank managers did not recognize the level of customer inertia in the consumer banking industry that arises from the inconvenience of switching banks. Nor did they analyze their service improvement to determine whether it would attract new customers by producing a new standard of service that would excite customers or by proving difficult for competitors to copy. The only merit of the improvement was that it could easily be described to customers.

 

  1. was too complicated to be easily described to prospective customers

  2. made a measurable change in the experiences of customers in the bank's offices

  3. could be sustained if the number of customers increased significantly

  4. was an innovation that competing banks could have imitated


Correct Option: D

The passage suggests which of the following about service provided by the regional bank prior to its investment in enhancing that service?

Directions: This question is based on the following reading passage. Choose the best answer to the  question on the basis of what is stated or implied in the passage.

The fact that superior service can generate a competitive advantage for a company does not mean that every attempt at improving service will create such an advantage. Investments in service, like those in production and distribution, must be balanced against other types of investments on the basis of direct, tangible benefits such as cost reduction and increased revenues. If a company is already effectively on a par with its competitors because it provides service that avoids a damaging reputation and keeps customers from leaving at an unacceptable rate, then investment in higher service levels may be wasted, since service is a deciding factor for customers only in extreme situations. This truth was not apparent to managers of one regional bank, which failed to improve its competitive position despite its investment in reducing the time a customer had to wait for a teller. The bank managers did not recognize the level of customer inertia in the consumer banking industry that arises from the inconvenience of switching banks. Nor did they analyze their service improvement to determine whether it would attract new customers by producing a new standard of service that would excite customers or by proving difficult for competitors to copy. The only merit of the improvement was that it could easily be described to customers.

 

  1. It enabled the bank to retain customers at an acceptable rate.

  2. It threatened to weaken the bank's competitive position with respect to other regional banks.

  3. It had already been improved after having caused damage to the bank's reputation in the past.

  4. It was slightly superior to that of the bank's regional competitors.

  5. It needed to be improved to attain parity with the service provided by competing banks.


Correct Option: A

According to the passage, consumers began to develop a preference for VCR's in the VHS format because they believed which of the following?

Directions: This question is based on the following reading passage. Choose the best answer to the  question on the basis of what is stated or implied in the passage.

Traditionally, the first firm to commercialize a new technology has benefited from the unique opportunity to shape product definitions, forcing followers to adapt to a standard or invest in an unproven alternative. Today, however, the largest payoffs may go to companies that lead in developing integrated approaches for successful mass production and distribution.
Producers of the Beta format for videocassette recorders (VCR's), for example, were first to develop the VCR commercially in 1975, but producers of the rival VHS (Video Home System) format proved to be more successful at forming strategic alliances with other producers and distributors to manufacture and market their VCR format. Seeking to maintain exclusive control over VCR distribution, Beta producers were reluctant to form such alliances and eventually lost ground to VHS in the competition for the global VCR market.
Despite Beta's substantial technological head start and the fact that VHS was neither technically better nor cheaper than Beta, developers of VHS quickly turned a slight early lead in sales into a dominant position. Strategic alignments with producers of prerecorded tapes reinforced the VHS advantage. The perception among consumers that prerecorded tapes were more available in VHS format further expanded VHS's share of the market. By the end of the 1980's, Beta was no longer in production.

  1. VCR's in the VHS format were technically better than competing-format VCR's.

  2. VCR's in the VHS format were less expensive than competing-format VCR's.

  3. VHS was the first standard format for VCR's.

  4. VHS prerecorded videotapes were more available than Beta-format tapes.


Correct Option: D

According to the passage, investments in service are comparable to investments in production and distribution in terms of the

Directions: This question is based on the following reading passage. Choose the best answer to the  question on the basis of what is stated or implied in the passage.

The fact that superior service can generate a competitive advantage for a company does not mean that every attempt at improving service will create such an advantage. Investments in service, like those in production and distribution, must be balanced against other types of investments on the basis of direct, tangible benefits such as cost reduction and increased revenues. If a company is already effectively on a par with its competitors because it provides service that avoids a damaging reputation and keeps customers from leaving at an unacceptable rate, then investment in higher service levels may be wasted, since service is a deciding factor for customers only in extreme situations. This truth was not apparent to managers of one regional bank, which failed to improve its competitive position despite its investment in reducing the time a customer had to wait for a teller. The bank managers did not recognize the level of customer inertia in the consumer banking industry that arises from the inconvenience of switching banks. Nor did they analyze their service improvement to determine whether it would attract new customers by producing a new standard of service that would excite customers or by proving difficult for competitors to copy. The only merit of the improvement was that it could easily be described to customers.

 

  1. tangibility of the benefits that they tend to confer

  2. increased revenues that they ultimately produce

  3. basis on which they need to be weighed

  4. insufficient analysis that managers devote to them

  5. degree of competitive advantage that they are likely to provide


Correct Option: C

The discussion of the regional bank serves which of the following functions within the passage as a whole?

Directions: This question is based on the following reading passage. Choose the best answer to the  question on the basis of what is stated or implied in the passage.

The fact that superior service can generate a competitive advantage for a company does not mean that every attempt at improving service will create such an advantage. Investments in service, like those in production and distribution, must be balanced against other types of investments on the basis of direct, tangible benefits such as cost reduction and increased revenues. If a company is already effectively on a par with its competitors because it provides service that avoids a damaging reputation and keeps customers from leaving at an unacceptable rate, then investment in higher service levels may be wasted, since service is a deciding factor for customers only in extreme situations. This truth was not apparent to managers of one regional bank, which failed to improve its competitive position despite its investment in reducing the time a customer had to wait for a teller. The bank managers did not recognize the level of customer inertia in the consumer banking industry that arises from the inconvenience of switching banks. Nor did they analyze their service improvement to determine whether it would attract new customers by producing a new standard of service that would excite customers or by proving difficult for competitors to copy. The only merit of the improvement was that it could easily be described to customers.

 

  1. It describes an exceptional case in which investment in service actually failed to produce a competitive advantage.

  2. It illustrates the pitfalls of choosing to invest in service at a time when investment is needed more urgently in another area.

  3. It demonstrates the kind of analysis that managers apply when they choose one kind of service investment over another.

  4. It supports the argument that investments in certain aspects of service are more advantageous than investments in other aspects of service.

  5. It provides an example of the point about investment in service made in the first paragraph.


Correct Option: E
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