Critical Reasoning

gmatmachoman wrote:Transnational cooperation among corporations is experiencing a model renaissance among United States firms,
even though projects undertaken by two or more corporations under a collaborative agreement are less
profitable than projects undertaken by a singly corporation . The advantage of transnational cooperation is that
such joint international projects may allow United States firms to win foreign contracts that they would not
otherwise be able to win.

98. Which of the following statements by a United States corporate officer best fits the situation of United States
firms as described in the passage above?

(A) "We would rather make only a share of the profit and also risk only a share of a possible loss than run the full
risk of a loss."
(B) "We would rather make a share of a relatively modest profit than end up making none of a potentially much
bigger profit."
(C) "We would rather cooperate and build good will than poison the business climate by all-out competition."
(D) "We would rather have foreign corporations join us in American projects than join them in projects in their
home countries."
(E) "We would rather win a contract with a truly competitive bid of our own than get involved in less profitable
collaborative agreements."


Which of the following is information provided by the passage above?

(A) Transnational cooperation involves projects too big for a single corporation to handle.
(B) Transnational cooperation results in a pooling of resources leading to high-quality performance.
(C) Transnational cooperation has in the past been both more common and less common than it is now among
United States firms.
(D) Joint projects between United States and foreign corporation are not profitable enough to be worth
undertaking.
(E) Joint projects between United States and foreign corporations benefit only those who commission the
projects.

gmatmachoman wrote:Transnational cooperation among corporations is experiencing a model renaissance among United States firms,
even though projects undertaken by two or more corporations under a collaborative agreement are less
profitable than projects undertaken by a singly corporation . The advantage of transnational cooperation is that
such joint international projects may allow United States firms to win foreign contracts that they would not
otherwise be able to win.

gmatmachoman wrote:Transnational cooperation among corporations is experiencing a model renaissance among United States firms, even though projects undertaken by two or more corporations under a collaborative agreement are less profitable than projects undertaken by a singly corporation . The advantage of transnational cooperation is that
such joint international projects may allow United States firms to win foreign contracts that they would not otherwise be able to win.

98. Which of the following statements by a United States corporate officer best fits the situation of United States
firms as described in the passage above?

(A) "We would rather make only a share of the profit and also risk only a share of a possible loss than run the full
risk of a loss."
Incorrect : The passage talks about 'less profit' which does not necessarily mean 'loss'. Eliminated.

(B) "We would rather make a share of a relatively modest profit than end up making none of a potentially much
bigger profit."
Correct : This is the paraphrase of the passage...... 'less profit' = modest profit .

(C) "We would rather cooperate and build good will than poison the business climate by all-out competition."
Incorrect : Though the passage talks about cooperation, the phrase 'poison the business' is way too extreme.

(D) "We would rather have foreign corporations join us in American projects than join them in projects in their
home countries."
Incorrect : Nothing in the passage implies 'home countries'. Eliminated.

(E) "We would rather win a contract with a truly competitive bid of our own than get involved in less profitable
collaborative agreements."
Incorrect : This exact opposite of what the passage states. Eliminated.


Which of the following is information provided by the passage above?

(A) Transnational cooperation involves projects too big for a single corporation to handle.
Incorrect : There is certainly no information about 'big' or 'small' projects in the passage.

(B) Transnational cooperation results in a pooling of resources leading to high-quality performance.
Incorrect : No information about 'high'quality performance' is provided in the passage.

(C) Transnational cooperation has in the past been both more common and less common than it is now among United States firms.
Correct : The word 'renaissance' means revival. This is what is implied here. This answer choice looks promising lets keep it on hold.

(D) Joint projects between United States and foreign corporation are not profitable enough to be worth undertaking.
Incorrect : The passage says 'less profit' which definitely does not mean 'no profit'.

(E) Joint projects between United States and foreign corporations benefit only those who commission the projects.
Incorrect : Nowhere in the passage does it say or imply that the project benefits 'only' those who commission the projects.