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Attached is a RC question from MBA.com GMATPrep test. Please post your explanations.

No takers yet ???


Answers with EXPLANATIONS please :)
Kindly summarise the ESSENCE, if somebody can :)
Thanks.

Recent years have brought minority-owned businesses in the United States unprecedented opportunitiesas well as new and significant risks. Civil rights activists have long argued that one of the principal reasons why Blacks, Hispanics, and other minority groups have difficulty establishing themselves in business is that they lack access to the sizable orders and subcontracts that are generated by large companies. Now Congress, in apparent agreement, has required by law that businesses awarded federal contracts of more than $500,000 do their best to find minority subcontractors and record their efforts to do so on forms filed with the government. Indeed, some federal and local agencies have gone so far as to set specific percentage goals for apportioning parts of public works contracts to minority enterprises.
Corporate response appears to have been substantial. According to figures collected in 1977, the total of corporate contracts with minority businesses rose from $77 million in 1972 to $1.1 billion in 1977. The projected total of corporate contracts with minority businesses for the early 1980s is estimated to be over 53 billion per year with no letup anticipated in the next decade. Promising as it is for minority businesses, this increased patronage poses dangers for them, too. First, minority firms risk expanding too fast and overextending themselves financially, since most are small concerns and, unlike large businesses, they often need to make substantial investments in new plants, staff, equipment, and the like in order to perform work subcontracted to them. If, thereafter, their subcontracts are for some reason reduced, such firms can face potentially crippling fixed expenses. The world of corporate purchasing can be frustrating for small entrepreneurs who get requests for elaborate formal estimates and bids. Both consume valuable time and resources, and a small companys efforts must soon result in orders, or both the morale and the financial health of the business will suffer.
A second risk is that White-owned companies may seek to cash in on the increasing apportionments through formation of joint ventures with minority-owned concerns. Of course, in many instances there are legitimate reasons for joint ventures; clearly, White and minority enterprises can team up to acquire business that neither could acquire alone. But civil rights groups and minority business owners have complained to Congress about minorities being set up as fronts with White backing, rather than being accepted as full partners in legitimate joint ventures.
Third, a minority enterprise that secures the business of one large corporate customer often runs the danger of becomingand remainingdependent. Even in the best of circumstances, fierce competition from larger, more established companies makes it difficult for small concerns to broaden their customer bases: when such firms have nearly guaranteed orders from a single corporate benefactor, they may truly have to struggle against complacency arising from their current success.


1.The primary purpose of the passage is to
(A) present a commonplace idea and its inaccuracies
(B) describe a situation and its potential drawbacks
(C) propose a temporary solution to a problem
(D) analyze a frequent source of disagreement
(E) explore the implications of a finding

2.The passage supplies information that would answer which of the following questions?
(A) What federal agencies have set percentage goals for the use of minority-owned businesses in public works contracts?
(B) To which government agencies must businesses awarded federal contracts report their efforts to find minority subcontractors?
(C) How widespread is the use of minority-owned concerns as fronts by White backers seeking to obtain subcontracts?
(D) How many more minority-owned businesses were there in 1977 than in 1972?
(E) What is one set of conditions under which a small business might find itself financially overextended?

3.According to the passage, civil rights activists maintain that one disadvantage under which minority-owned businesses have traditionally had to labor is that they have
(A) been especially vulnerable to governmental mismanagement of the economy
(B) been denied bank loans at rates comparable to those afforded larger competitors
(C) not had sufficient opportunity to secure business created by large corporations
(D) not been able to advertise in those media that reach large numbers of potential customers
(E) not had adequate representation in the centers of government power

4.The passage suggests that the failure of a large business to have its bids for subcontracts result quickly in orders might cause it to
(A) experience frustration but not serious financial harm
(B) face potentially crippling fixed expenses
(C) have to record its efforts on forms filed with the government
(D) increase its spending with minority subcontractors
(E) revise its procedure for making bids for federal contracts and subcontracts

5.The author implies that a minority-owned concern that does the greater part of its business with one large corporate customer should
(A) avoid competition with larger, more established concerns by not expanding
(B) concentrate on securing even more business from that corporation
(C) try to expand its customer base to avoid becoming dependent on the corporation
(D) pass on some of the work to be done for the corporation to other minority-owned concerns
(E) use its influence with the corporation to promote subcontracting with other minority concerns

6.It can be inferred from the passage that, compared with the requirements of law, the percentage goals set by some federal and local agencies (lines 14-15) are
(A) more popular with large corporations
(B) more specific
(C) less controversial
(D) less expensive to enforce
(E) easier to comply with

7.Which of the following, if true, would most weaken the authors assertion that, in the 1970s, corporate response to federal requirements (lines 18-19) was substantial
(A) Corporate contracts with minority-owned businesses totaled $2 billion in 1979.
(B) Between 1970 and 1972, corporate contracts with minority-owned businesses declined by 25 percent.
(C) The figures collected in 1977 underrepresented the extent of corporate contracts with minority-owned businesses.
(D) The estimate of corporate spending with minority-owned businesses in 1980 is approximately $10 million too high.
(E) The $1.1 billion represented the same percentage of total corporate spending in 1977 as did $77 million in 1972.

8.The author would most likely agree with which of the following statements about corporate response to working with minority subcontractors?
(A) Annoyed by the proliferation of front organizations, corporations are likely to reduce their efforts to work with minority-owned subcontractors in the near future.
(B) Although corporations showed considerable interest in working with minority businesses in the 1970s, their aversion to government paperwork made them reluctant to pursue many government contracts.
(C) The significant response of corporations in the 1970s is likely to be sustained and conceivably be increased throughout the 1980s.
(D) Although corporations are eager to cooperate with minority-owned businesses, a shortage of capital in the 1970s made substantial response impossible.

Good tips Mukul...
I feel that GMAT is just the first stop in the journey, not the destination itself.
Therefore, just following a set of steps and rehearsing them for a short period of time isnt really the best thing. Make reading and writing a habit, so that you are prepared for the challenges which pose themselves in days, months or even years ahead.

I am also taking the GMAT in another 3 days....having prepared for almost a month now...

And to make myself comfortable with passages, essays and to be able to focus more, i have resorted to blogging. I do feel that along with reading newspapers, journals, magazines and novels, blogging is an awesome method of improving ones vocabulary, critical reasoning, concentration and patience.

Am also writing few lines about my preparation on my blogpage. Link to it is given below :
Insomnia

No takers???

Answers with EXPLANATIONS please :)
Kindly summarise the ESSENCE, if somebody can :)
Thanks.

Recent years have brought minority-owned businesses in the United States unprecedented opportunitiesas well as new and significant risks. Civil rights activists have long argued that one of the principal reasons why Blacks, Hispanics, and other minority groups have difficulty establishing themselves in business is that they lack access to the sizable orders and subcontracts that are generated by large companies. Now Congress, in apparent agreement, has required by law that businesses awarded federal contracts of more than $500,000 do their best to find minority subcontractors and record their efforts to do so on forms filed with the government. Indeed, some federal and local agencies have gone so far as to set specific percentage goals for apportioning parts of public works contracts to minority enterprises.
Corporate response appears to have been substantial. According to figures collected in 1977, the total of corporate contracts with minority businesses rose from $77 million in 1972 to $1.1 billion in 1977. The projected total of corporate contracts with minority businesses for the early 1980s is estimated to be over 53 billion per year with no letup anticipated in the next decade. Promising as it is for minority businesses, this increased patronage poses dangers for them, too. First, minority firms risk expanding too fast and overextending themselves financially, since most are small concerns and, unlike large businesses, they often need to make substantial investments in new plants, staff, equipment, and the like in order to perform work subcontracted to them. If, thereafter, their subcontracts are for some reason reduced, such firms can face potentially crippling fixed expenses. The world of corporate purchasing can be frustrating for small entrepreneurs who get requests for elaborate formal estimates and bids. Both consume valuable time and resources, and a small companys efforts must soon result in orders, or both the morale and the financial health of the business will suffer.
A second risk is that White-owned companies may seek to cash in on the increasing apportionments through formation of joint ventures with minority-owned concerns. Of course, in many instances there are legitimate reasons for joint ventures; clearly, White and minority enterprises can team up to acquire business that neither could acquire alone. But civil rights groups and minority business owners have complained to Congress about minorities being set up as fronts with White backing, rather than being accepted as full partners in legitimate joint ventures.
Third, a minority enterprise that secures the business of one large corporate customer often runs the danger of becomingand remainingdependent. Even in the best of circumstances, fierce competition from larger, more established companies makes it difficult for small concerns to broaden their customer bases: when such firms have nearly guaranteed orders from a single corporate benefactor, they may truly have to struggle against complacency arising from their current success.


1.The primary purpose of the passage is to
(A) present a commonplace idea and its inaccuracies
(B) describe a situation and its potential drawbacks
(C) propose a temporary solution to a problem
(D) analyze a frequent source of disagreement
(E) explore the implications of a finding

2.The passage supplies information that would answer which of the following questions?
(A) What federal agencies have set percentage goals for the use of minority-owned businesses in public works contracts?
(B) To which government agencies must businesses awarded federal contracts report their efforts to find minority subcontractors?
(C) How widespread is the use of minority-owned concerns as fronts by White backers seeking to obtain subcontracts?
(D) How many more minority-owned businesses were there in 1977 than in 1972?
(E) What is one set of conditions under which a small business might find itself financially overextended?

3.According to the passage, civil rights activists maintain that one disadvantage under which minority-owned businesses have traditionally had to labor is that they have
(A) been especially vulnerable to governmental mismanagement of the economy
(B) been denied bank loans at rates comparable to those afforded larger competitors
(C) not had sufficient opportunity to secure business created by large corporations
(D) not been able to advertise in those media that reach large numbers of potential customers
(E) not had adequate representation in the centers of government power

4.The passage suggests that the failure of a large business to have its bids for subcontracts result quickly in orders might cause it to
(A) experience frustration but not serious financial harm
(B) face potentially crippling fixed expenses
(C) have to record its efforts on forms filed with the government
(D) increase its spending with minority subcontractors
(E) revise its procedure for making bids for federal contracts and subcontracts

5.The author implies that a minority-owned concern that does the greater part of its business with one large corporate customer should
(A) avoid competition with larger, more established concerns by not expanding
(B) concentrate on securing even more business from that corporation
(C) try to expand its customer base to avoid becoming dependent on the corporation
(D) pass on some of the work to be done for the corporation to other minority-owned concerns
(E) use its influence with the corporation to promote subcontracting with other minority concerns

6.It can be inferred from the passage that, compared with the requirements of law, the percentage goals set by some federal and local agencies (lines 14-15) are
(A) more popular with large corporations
(B) more specific
(C) less controversial
(D) less expensive to enforce
(E) easier to comply with

7.Which of the following, if true, would most weaken the authors assertion that, in the 1970s, corporate response to federal requirements (lines 18-19) was substantial
(A) Corporate contracts with minority-owned businesses totaled $2 billion in 1979.
(B) Between 1970 and 1972, corporate contracts with minority-owned businesses declined by 25 percent.
(C) The figures collected in 1977 underrepresented the extent of corporate contracts with minority-owned businesses.
(D) The estimate of corporate spending with minority-owned businesses in 1980 is approximately $10 million too high.
(E) The $1.1 billion represented the same percentage of total corporate spending in 1977 as did $77 million in 1972.

8.The author would most likely agree with which of the following statements about corporate response to working with minority subcontractors?
(A) Annoyed by the proliferation of front organizations, corporations are likely to reduce their efforts to work with minority-owned subcontractors in the near future.
(B) Although corporations showed considerable interest in working with minority businesses in the 1970s, their aversion to government paperwork made them reluctant to pursue many government contracts.
(C) The significant response of corporations in the 1970s is likely to be sustained and conceivably be increased throughout the 1980s.
(D) Although corporations are eager to cooperate with minority-owned businesses, a shortage of capital in the 1970s made substantial response impossible.
Answers with EXPLANATIONS please :)
Kindly summarise the ESSENCE, if somebody can :)
Thanks.

Recent years have brought minority-owned businesses in the United States unprecedented opportunitiesas well as new and significant risks. Civil rights activists have long argued that one of the principal reasons why Blacks, Hispanics, and other minority groups have difficulty establishing themselves in business is that they lack access to the sizable orders and subcontracts that are generated by large companies. Now Congress, in apparent agreement, has required by law that businesses awarded federal contracts of more than $500,000 do their best to find minority subcontractors and record their efforts to do so on forms filed with the government. Indeed, some federal and local agencies have gone so far as to set specific percentage goals for apportioning parts of public works contracts to minority enterprises.
Corporate response appears to have been substantial. According to figures collected in 1977, the total of corporate contracts with minority businesses rose from $77 million in 1972 to $1.1 billion in 1977. The projected total of corporate contracts with minority businesses for the early 1980s is estimated to be over 53 billion per year with no letup anticipated in the next decade. Promising as it is for minority businesses, this increased patronage poses dangers for them, too. First, minority firms risk expanding too fast and overextending themselves financially, since most are small concerns and, unlike large businesses, they often need to make substantial investments in new plants, staff, equipment, and the like in order to perform work subcontracted to them. If, thereafter, their subcontracts are for some reason reduced, such firms can face potentially crippling fixed expenses. The world of corporate purchasing can be frustrating for small entrepreneurs who get requests for elaborate formal estimates and bids. Both consume valuable time and resources, and a small companys efforts must soon result in orders, or both the morale and the financial health of the business will suffer.
A second risk is that White-owned companies may seek to cash in on the increasing apportionments through formation of joint ventures with minority-owned concerns. Of course, in many instances there are legitimate reasons for joint ventures; clearly, White and minority enterprises can team up to acquire business that neither could acquire alone. But civil rights groups and minority business owners have complained to Congress about minorities being set up as fronts with White backing, rather than being accepted as full partners in legitimate joint ventures.
Third, a minority enterprise that secures the business of one large corporate customer often runs the danger of becomingand remainingdependent. Even in the best of circumstances, fierce competition from larger, more established companies makes it difficult for small concerns to broaden their customer bases: when such firms have nearly guaranteed orders from a single corporate benefactor, they may truly have to struggle against complacency arising from their current success.


1.The primary purpose of the passage is to
(A) present a commonplace idea and its inaccuracies
(B) describe a situation and its potential drawbacks
(C) propose a temporary solution to a problem
(D) analyze a frequent source of disagreement
(E) explore the implications of a finding

2.The passage supplies information that would answer which of the following questions?
(A) What federal agencies have set percentage goals for the use of minority-owned businesses in public works contracts?
(B) To which government agencies must businesses awarded federal contracts report their efforts to find minority subcontractors?
(C) How widespread is the use of minority-owned concerns as fronts by White backers seeking to obtain subcontracts?
(D) How many more minority-owned businesses were there in 1977 than in 1972?
(E) What is one set of conditions under which a small business might find itself financially overextended?

3.According to the passage, civil rights activists maintain that one disadvantage under which minority-owned businesses have traditionally had to labor is that they have
(A) been especially vulnerable to governmental mismanagement of the economy
(B) been denied bank loans at rates comparable to those afforded larger competitors
(C) not had sufficient opportunity to secure business created by large corporations
(D) not been able to advertise in those media that reach large numbers of potential customers
(E) not had adequate representation in the centers of government power

4.The passage suggests that the failure of a large business to have its bids for subcontracts result quickly in orders might cause it to
(A) experience frustration but not serious financial harm
(B) face potentially crippling fixed expenses
(C) have to record its efforts on forms filed with the government
(D) increase its spending with minority subcontractors
(E) revise its procedure for making bids for federal contracts and subcontracts

5.The author implies that a minority-owned concern that does the greater part of its business with one large corporate customer should
(A) avoid competition with larger, more established concerns by not expanding
(B) concentrate on securing even more business from that corporation
(C) try to expand its customer base to avoid becoming dependent on the corporation
(D) pass on some of the work to be done for the corporation to other minority-owned concerns
(E) use its influence with the corporation to promote subcontracting with other minority concerns

6.It can be inferred from the passage that, compared with the requirements of law, the percentage goals set by some federal and local agencies (lines 14-15) are
(A) more popular with large corporations
(B) more specific
(C) less controversial
(D) less expensive to enforce
(E) easier to comply with

7.Which of the following, if true, would most weaken the authors assertion that, in the 1970s, corporate response to federal requirements (lines 18-19) was substantial
(A) Corporate contracts with minority-owned businesses totaled $2 billion in 1979.
(B) Between 1970 and 1972, corporate contracts with minority-owned businesses declined by 25 percent.
(C) The figures collected in 1977 underrepresented the extent of corporate contracts with minority-owned businesses.
(D) The estimate of corporate spending with minority-owned businesses in 1980 is approximately $10 million too high.
(E) The $1.1 billion represented the same percentage of total corporate spending in 1977 as did $77 million in 1972.

8.The author would most likely agree with which of the following statements about corporate response to working with minority subcontractors?
(A) Annoyed by the proliferation of front organizations, corporations are likely to reduce their efforts to work with minority-owned subcontractors in the near future.
(B) Although corporations showed considerable interest in working with minority businesses in the 1970s, their aversion to government paperwork made them reluctant to pursue many government contracts.
(C) The significant response of corporations in the 1970s is likely to be sustained and conceivably be increased throughout the 1980s.
(D) Although corporations are eager to cooperate with minority-owned businesses, a shortage of capital in the 1970s made substantial response impossible.
sharma_vaibhav Says
i have been practising Gmat RC from OG and verbal review but my success ratio is less than 50% (can't get more than 2-3 question ryt)...what should i do to improve upon this part....also what should be the average time to complete an RC


Hi sharma_vaibhav,

When are you appearing for GMAT? How much do you read otherwise, I mean are you an avid novel reader, read newspaper throughly or if needed only work related stuff ?

If you have time on your side , I would suggest you start reading some novels that interest you and then move on to some dense ones. Some classic novels(such as The fountain head, Atlas shrugged) are pretty good read for GMAT.

For a decent size passage (mean 3-4 paragraph each 4 sentences ) I used to take upto 2-3 minutes to read and then 1-2 min per question after that.

Hope that helps.

Regards

One easy way that I use for timing RC questions is: Total Time for 1 passage = number of questions * 2 mins.
I think I read this in the manhattan guide. There can be more fine-grained planning about how to divide the time between reading the passage and reading the questions... Hope this helps.

i have been practising Gmat RC from OG and verbal review but my success ratio is less than 50% (can't get more than 2-3 question ryt)...what should i do to improve upon this part....also what should be the average time to complete an RC

Try the below RC:



At the end of the nineteenth century, a rising interest in Native American customs and an increasing desire to understand Native American culture prompted ethnologists to begin recording the life stories of Native American. Ethnologists had a distinct reason for wanting to hear the stories: they were



OA for the above RC..Sorry for the delay.

1.D
2.C
3.A
4.E
5.C
6.B
7.C
8.A


-Deepak.

Hi All,

Can anyone tell me whether Kaplan premier 2010-11 with CD is useful? I'm looking for tough CR & RC questions for better practice. Will this book be helpful? Does it have 700-800 type questions in verbal? I found 1000 RC & 1000 CR quite easy.

Also,I've given a couple of Manhattan GMAT tests and wanted to know how easy/difficult its verbal is from actual GMAT tests. I've scored 670 & 710 in these tests and with 35 & 40 in verbal respectively. I know that its quant is tough, so 47 & 48 in quant is manageable.But verbal is a concern. Can anyone give his/her inputs?

Thanks in advance,
rish

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