Comprehension

The questions in this group are based on the content of a passage. After reading the passage, choose the best answer to each question. Answer all questions follow- ing the passage on the basis of what is stated or implied in the passage.
Until recently corporate ideology in the United States has held that bigger is better. This traditional view of the primacy of big, centralized companies is now being challenged as some of the giants of American business are being out formed by a new generation of smaller, streamlined business. If it was the industrial revolutions that spawned the area of massive industrialize companies, then perhaps it is the information revolutions of the 1990s that is spawning the area of the small company.
For most of this century, big companies dominated an American business scene that that seemed to thrive on its own Grandness of scale. The expansion westward, the growth of railroad and steel industries, an almost limitless supply of cheap raw materials, plus a populations boom That provided an ever increasing demand for new products (although not cheap source of labor) all coincided to encourage the growth of large companies.
But rapid developments in the market place have begun to change the accepted rules of business and have under-scored the need for fast reaction times. Small companies without huge overhead and inventory, can respond quickly to a technologically advanced age in which new products and technologies can become outmoded within a year of their being brought to market.
Of course, successful emerging small companies face a potential dilemma in that their very success will tend to turn them into copies of the large corporate dinosaurs they are now sup- planting. To avoid this trap, small companies may look to the example of several CEOs of large corporations who have broken down their sprawling organizations into small semi-independent divisions capable of making their way into the twenty first century.

Question: 1

The primary purpose of the passage is to

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To find the primary purpose, look for the central idea that connects all the paragraphs. Ask yourself, "What is the author trying to explain or argue overall?" The answer should encompass the entire passage, not just one part of it.
Updated On: Sep 30, 2025
  • Present evidence that resolves a contradiction in business theory
  • Discuss reasons why an accepted business pattern is changing
  • Describe a theoretical model and method whereby that model can be tested.
  • Argue that a traditional ideology deserve new attentions
  • Resolve two conflicting explanations for a phenomenon
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The Correct Option is B

Solution and Explanation

Step 1: Understanding the Concept:
This is a Reading Comprehension question asking for the primary purpose of the passage. We need to identify the author's main goal in writing the text.
Step 2: Detailed Explanation:
Let's analyze the structure and content of the passage:

Paragraph 1: Introduces the traditional view ("bigger is better") and states that it is now being "challenged" by smaller businesses. It hypothesizes that the information revolution is driving this change.
Paragraph 2: Describes the historical reasons why the "bigger is better" model (the "accepted business pattern") was dominant for most of the century.
Paragraph 3: Explains the \textit{reasons} for the new shift. It highlights "fast reaction times" and the ability of small companies to "respond quickly" in a technologically advanced age.
Paragraph 4: Discusses a potential future problem for these successful small companies and a possible solution.
The entire passage is focused on explaining a shift: from big companies dominating to small companies having an advantage. It discusses the old pattern, the new pattern, and the reasons for the change.
Let's evaluate the options:

(A) The passage discusses a change, not a "contradiction in business theory."
(B) This is the correct answer. The "accepted business pattern" is the dominance of big companies. The passage's main focus is on discussing the reasons why this pattern is now changing (e.g., technology, need for speed).
(C) The passage describes a trend, not a testable "theoretical model."
(D) The passage argues that the traditional ideology is being challenged and is becoming less relevant, not that it deserves "new attentions."
(E) The passage presents one explanation for the rise of small companies (the information revolution), not two conflicting ones.
Step 3: Final Answer:
The passage identifies an old business pattern (big company dominance) and then spends the majority of the text explaining the reasons (technological change, need for speed) why that pattern is now changing in favor of smaller companies.
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Question: 2

The author's attitude toward emerging small companies is one of the

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To determine the author's attitude, look at the adjectives and verbs used to describe the subject. Words like "streamlined," "respond quickly," and "new generation" convey a positive and optimistic tone, while words like "dinosaurs" for their predecessors convey a critical one.
Updated On: Sep 30, 2025
  • Disappointment
  • Optimism
  • Uncertainty
  • Criticism
  • Elation
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The Correct Option is B

Solution and Explanation

Step 1: Understanding the Concept:
This is a Reading Comprehension question about the author's tone or attitude. We need to analyze the author's word choice and how the subject (small companies) is presented.
Step 2: Detailed Explanation:
The passage describes small companies in a positive light.

They are part of a "new generation."
They are "streamlined."
They "can respond quickly" to a "technologically advanced age."
They are "supplanting" the "large corporate dinosaurs."
While the author points out a "potential dilemma" in the final paragraph, a solution is immediately offered, suggesting that this challenge can be overcome. The overall portrayal is one of hope and positive potential.
Let's evaluate the options:

(A) Disappointment: There is no language to suggest disappointment. The tone is positive.
(B) Optimism: This fits well. The author sees promise and a positive future for these small companies, viewing them as the new leaders in a changing business world.
(C) Uncertainty: While the final paragraph mentions a "potential dilemma," the author's overall tone is confident about the trend, not uncertain.
(D) Criticism: The author is not critical of small companies; they are critical of the old "corporate dinosaurs."
(E) Elation: This word means great happiness or exhilaration. It is too strong. The author's tone is positive and hopeful, but the language is analytical, not ecstatic. "Optimism" is a more fitting description.
Step 3: Final Answer:
The author consistently uses positive language to describe small companies and their ability to succeed in the modern economy. This indicates a hopeful or optimistic attitude toward their emergence.
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Question: 3

Which of the following best describes the organization of the first paragraph of the passage?

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When analyzing a paragraph's organization, identify the function of each sentence. Is it introducing a topic? Providing evidence? Stating a counterargument? Describing a cause? The pattern of these functions will reveal the paragraph's overall structure.
Updated On: Sep 30, 2025
  • A conventional model is described and an alternative is introduced.
  • An assertion is made and general supporting example is given.
  • Two contradictory points of view are presented and evaluated.
  • A historical overview is given to explain a phenomenon.
  • A new theory is described and then qualified.
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The Correct Option is A

Solution and Explanation

Step 1: Understanding the Concept:
This is a Reading Comprehension question about the logical structure or organization of a specific paragraph. We need to break down the paragraph into its component parts and see how they relate to each other.
Step 2: Detailed Explanation:
Let's analyze the first paragraph sentence by sentence:

Sentence 1: "Until recently corporate ideology in the United States has held that bigger is better." - This presents the old, traditional, or "conventional model."
Sentence 2: "This traditional view... is now being challenged as some of the giants of American business are being out formed by a new generation of smaller, streamlined business." - This introduces the challenge to the conventional model, which is the "alternative" (smaller businesses).
Sentence 3 & 4: These sentences offer a hypothesis for the change (industrial revolution vs. information revolution).
The core structure of the paragraph is to state the old way of thinking and then introduce the new way that is challenging it.
Let's evaluate the options:

(A) This perfectly matches our analysis. The "conventional model" is "bigger is better." The "alternative" that is "introduced" is the "new generation of smaller, streamlined business."
(B) The paragraph makes an assertion, but it doesn't provide a "general supporting example"; it introduces a competing model.
(C) It presents two points of view (big vs. small), but it doesn't really "evaluate" them in this paragraph; it simply states that one is challenging the other.
(D) The historical overview (industrial revolution) is part of the paragraph, but it's a hypothesis to explain the phenomenon, not the primary organizational structure. The main structure is the contrast between the old and new models.
(E) It introduces a challenge to an old theory, not a new theory that is then qualified.
Step 3: Final Answer:
The paragraph begins by stating the conventional ideology ("bigger is better") and then immediately introduces the alternative that is challenging this view (the "new generation of smaller" businesses). Option (A) is the most accurate description of this structure.
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