Get Ready to Rumble: GMAT RC Start to Finish - Part 2
Were continuing on with our full review of a GMATPrep RC passage and all of its associated questions! (Click here to read part 1.)
Last time, we deconstructed the entire passage and answered an Authors Purpose, or Why, question. Today, were going to take a look at two General, or big picture, questions. Next time, well dive into Inference.
Pull up Part 1 so that you have the passage text in front of you.Ready?Heres your first problem (give yourself about 1 minute to answer):
The authors main point is that:(A) modern multinationals originated in the sixteenth and seventeenth centuries with the establishment of chartered trading companies
(B) the success of early chartered trading companies, like that of modern multinationals, depended primarily on their ability to carry out complex operations
(C) early chartered trading companies should be more seriously considered by scholars studying the origins of modern multinationals
(D) scholars are quite mistaken concerning the origins of modern multinationals
(E) the management structures of early chartered trading companies are fundamentally the same as those of modern multinationals
The question is a Main Idea question.So its important to take into account the overall message of the passage. Before reading the answers, try to formulate a response for yourself. Use your Passage Map to do so.
Here is the Map from the read-through of the passage (in part 1):
P1: MMC: 19c Brit intl became hierarch b/c of volume
(old view?)
16, 17c = irrel (old?)
P2: earlier coms already hierarch
ex: Hudson
P3: early com diff from MMC
govt
owners
but still mod in ways
Lets see. The prevailing view is that MMCs didnt originate until the 19th century, when companies began to be organized into hierarchies because of the really high volume of trade going on.
But the author argues that earlier companies were already engaging in very high volumes of transactions and had some hierarchical structures. So, even though there are differences, the older companies were more like MMCs than the prevailing view allows. Hes arguing that we should consider these older companies as precursors to MMCs.
Check the answers; what goes along with that idea?
(A) modern multinationals originated in the sixteenth and seventeenth centuries with the establishment of chartered trading companies
The author doesnt say that the earlier companies can be called MMCs, just that they had some similarities; this choice takes it too far. In fact, the beginning of the third paragraph says that the early companies did differ strikingly from MMCs. Eliminate (A).
(B) the success of early chartered trading companies, like that of modern multinationals, depended primarily on their ability to carry out complex operations
This might sound good in the real world, but the author doesnt go so far as to say their success depended on this. Rather, the author says only that the complex operation piece shows a similarity between MMCs and early trading companies. Eliminate (B).
(C) early chartered trading companies should be more seriously considered by scholars studying the origins of modern multinationals
This sounds good, but Im worried about that specific point about the scholars. Does the author take it that far? Yes! The last sentence of the passage says that these companies merit further study. This might be it.
(D) scholars are quite mistaken concerning the origins of modern multinationals
Hmm. The author is advocating a change in the way that we view the origins of MMCs, but this language seems kind of strong. That last sentence says only that this idea merits further study, not that the author is definitely right and the current views are definitely wrong. Eliminate (D).
(E) the management structures of early chartered trading companies are fundamentally the same as those of modern multinationals
No, definitely not. When I was looking at choice (A), I noted that the third paragraph states that the early companies did differ strikingly from MMCs. This choice is directly contradicted by the passage. Eliminate (E).
The correct answer is (C).
Try the next one; give yourself about 1 to 1.5 minutes.
With which of the following generalizations regarding management structures would the author of the passage most probably agree?(A) Hierarchical management structures are the most efficient management structures possible in a modern context.
(B) Firms that routinely have a high volume of business transactions find it necessary to adopt hierarchical management structures.
(C) Hierarchical management structures cannot be successfully implemented without modern communications and transportation.
(D) Modern multinational firms with a relatively small volume of business transactions usually do not have hierarchically organized management structures.
(E) Companies that adopt hierarchical management structures usually do so in order to facilitate expansion into foreign trade.
This problem is tougher than the first one because it does get more into the specifics and because the question stem does not give any great clues about where to look in the passage.
In this case, start by reading through the answers to get rid of any definite no choices, then check whatevers left against the passage.
(A) Hierarchical management structures are the most efficient management structures possible in a modern context."
The passage doesnt discuss or even mention different types of management structures, so it seems impossible to conclude this from the passage. Eliminate (A).
(B) Firms that routinely have a high volume of business transactions find it necessary to adopt hierarchical management structures."
The passage does discuss this general idea, though Im not sure that the word necessary can be justified by the passage. Ill come back to this one.
(C) Hierarchical management structures cannot be successfully implemented without modern communications and transportation."
The authors whole point was that the earlier companies did have hierarchical structures. This choice is contradicted by the passage. Eliminate (C).
(D) Modern multinational firms with a relatively small volume of business transactions usually do not have hierarchically organized management structures."
The passage doesn't discuss MMCs with small volume. Eliminate (D).
(E) Companies that adopt hierarchical management structures usually do so in order to facilitate expansion into foreign trade.
The passage does also discuss this general idea, though again, Im not sure that they adopt hierarchies in order to expand into foreign trade. Ill have to check this one, too.
In the first paragraph, the author states that Increases in the volume of transactions in such firms are commonly believed to have necessitated this structural change [hierarchies]. Commonly believeddoes the author believe it? What does he say about this with respect to the earlier trading companies?
Bingo! In paragraph two, he says The large volume of transactions associated with these activities seems to have necessitated hierarchical management structures. He agrees with the theory that the volume of transactions drives the hierarchical management structure.
If youre completely confident in your reasoning, you can select (B) and move on. If you have the time and mental bandwidth, though, its a good idea to check (E). The author discusses companies that were already engaging in international trade and then developed hierarchies in order to handle the high volume of transactions. Answer (E) has the sequence backwards.
The correct answer is (B).
Join me next time, when well tackle Inference questions!
Key Takeaways for General Questions
(1) Most general questions will ask about the main idea of the entire passage or about the purpose of a particular paragraph. In these cases, articulate that idea or purpose to yourself first, then try to find a match in the answer choices.
(2) On occasion, a question will straddle the general / specific line. The question stem will ask about some specific information that still needs to support the main idea generally, and it wont be clear exactly where to look in your Map or in the passage in order to answer the question. In this case, first cross off any answers that contradict the main idea(s) of the passage. Then, check any remaining answers. (Dont check all five answers carefully against the passage; that will take forever!)
* GMATPrep questions courtesy of the Graduate Management Admissions Council. Usage of this question does not imply endorsement by GMAC.