Verbal Reasoning - (4) - Fun

Dean   Sun Mar 25, 2007 10:42 pm GMT
RULES:
Read the passage carefully and then, using only the information
given in the passage, for each statement choose whether it is
definitely true (A), definitely untrue (B), or you have insufficient
information to answer (C).

1:
''Globalisation is putting fresh pressure on mid-size firms, with huge companies moving into their markets and ever larger customers dictating prices. This kind of company feels neglected by government. They are too large to qualify for the grants and assistance that small enterprises can count on, but are too small to wield the kind of influence their larger competitors can bring to bear. But despite the squeeze, most mid-size firms still believe that they can deliver steady growth, by playing to their traditional strength - being nimbler and more customer focused than their large rivals.''

Q1.1: Mid-sized firms may have to change their prices according to larger-sized firms.
Q1.2: The larger the company, the larger the grant awarded becomes.
Q1.3: Mid-sized firms are better able to adapt to market changes.

2:
''If society seems obsessed with youth, it is at least partly because companies are. Like it or not, the young increasingly pick the styles and brands that trickle up to the rest of the population. Nike, Abercrombie & Fitch and Timberland first took off with the young, and when that clientele tired of them the companies felt the loss keenly. Now that grown-ups are no longer necessarily expected to act and look grown-up, parents and children can be found listening to exactly the same music, playing the same videogames, watching the same TV shows, and wearing the same brands of clothes and shoes.''

Q2.1: Young customers do not noticeably contribute to Timberland's profits.


3:
''The first problem with financial accounts is that they are in the past; however detailed they just provide a snap shot of the business at one moment in time. There is also a lack of detail in financial statements, giving little use for the running of a business. Financial statements are provided for legal reasons to meet with accounting regulations and are used largely by city analysts who compute share prices and give advice to shareholders. Accounts often have hidden information and may also be inconsistent, it is difficult to compare different companies' accounts, despite there being standards, as there is much leeway in these standards.''

Q3.1 Companies only create financial accounts for legal reasons.

Please give your answer and don't hesitate to say why.

Discussion welcome. Thank you
Lazar   Sun Mar 25, 2007 11:11 pm GMT
Q1.1: A. The way you've put this is a little tricky. ;-) I submit that it's *definitely true* that they *may* have to change their prices. In other words, it's a legitimate possibility that is evident from the passage.

Q1.2: B. The grants are awarded to the smallest companies.

Q1.3: A. I base this choice on the last sentence.

Q2.1: C. The article merely says that young people "tired" of Timberland and that Timberland "felt the loss keenly". This could mean, for example, that young people comprised 60% of Timberland's original clientele, and that a full half of the young people left. This would be a huge loss for the company, yet the 30% contribution of young people would still be noticeable.

Q3.1: C. It says that "financial statements are provided for legal reasons", but it doesn't say that they are *exclusively* provided for legal reasons.
Dean   Sun Mar 25, 2007 11:23 pm GMT
Hi Lazar, You've got Q1.1, Q1.2 and Q1.3 right. :-)
Lazar   Sun Mar 25, 2007 11:28 pm GMT
Again I have to ask; by what authority are *you* able to say what the correct answers are? ;-)
Dean   Sun Mar 25, 2007 11:37 pm GMT
Hi Lazar, I've got this from a reputative website which used this as an example question for such tests. Those tests are known as "critical reasoning". I can't guarteen if the website had given a correct answer. But since the website has been so pupolar and had a very good reference/feedback, let's say it's right for now see what others might want to say. ^^ Thanks Dean

BTW: I'll give out the weblink for the questions later on.
Guest   Mon Mar 26, 2007 4:02 am GMT
Q2.1: Young customers do not noticeably contribute to Timberland's profits.

B) Untrue.
"Nike, Abercrombie & Fitch and Timberland first took off with the young, and when that clientele tired of them the companies felt the loss keenly. "

Q3.1 Companies only create financial accounts for legal reasons.

B) Untrue.
"...and are used largely by city analysts who compute share prices and give advice to shareholders...."
Dean   Mon Mar 26, 2007 9:39 am GMT
Hi,the answers for Q2.1 and Q3.1 both B. how's everyone feel like when doing this kinds of tests? thanks