22. The author suggests that which of the following is a true statement
about people who typify the “old –style capitalist”?
25. The primary function of the second paragraph of the passage is to
A.
They now rely on outdated management techniques.
B.
They seldom engaged in short term trading of the
stock they owned.
C.
They did not influence the investment policies
of the corporations in which they invested.
D.
They now play a very small role in the stock
market as a result of antitrust legislation.
23. It can be inferred that the
author makes which of the following assumptions about the businesses once
controlled by individual capitalists?
A.
These businesses were less profitable that are
businesses today.
B.
Improving long-term productivity led to
increased profits.
C.
Each business had only a few stockholders.
D.
There was no short- term trading in the stock of
these businesses.
24. The author suggests that the role of
large institutions as stockholders differs from that of the “old –style”
capitalist “in part because large institutions.
A.
Invest in the stock of so many companies that
they cannot focus attention on the affairs of any single corporation
B.
Are prohibited by law form owning a
majority of a corporation’s stock
C.
Are influenced by brokers who advise against
long- term ownership of stocks
D.
Are able to put large amounts of stock on the
market without depressing the stock’s values
A.
Identify problems
B.
Warm of consequences
C.
Explain effects
D.
Recommend actions
Answer:
22. B Old- style capitalist refers back to where
there is a fuller description of the former environment, from which it is
reasonable to infer what may be said to typify these investors. Such
capitalists owned enough stock to dominate the board of detectors and dictate
company policy. Since putting a lot of their stock on the market would only
depress its value, these capitalists could not sell out for a quick profit and
instead had to concentrate on improving the long- term productivity of their
companies.
23. B the author argues that current shareholders
and managers should follow the practice of old- style capitalists in seeking to
enhance long-term productivity (and hence long- term profitability) of the
companies in which they invest. Since the productivity and profitability are
explicitly linked in current times, the author must assume that the companies
controlled by the old-style capitalists were profitable.
24 B this question involves
looking at the contrast the author draws between individual capitalists, who
once owned enough stock to dominate the board of directors, and institutions,
which have prohibited by antitrust laws from owning a majority of company’s
stock.
25. D In
order to determine the purpose of the second paragraph, look at the whole
passage and follow the structure of the author’s argument. The author
identifies a problem in the first paragraph, warning of the consequences if the
problem is allowed to continue. The author then turns to a possible solution,
making specific recommendations. The language the author uses is a call to
action: legal limits … should be removed; institutions should be encouraged,;
any institution … should be forced.
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