5.
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.
6.
The passage suggests that modern multinationals
differ from early chartered trading companies in that
A.
The top managers
of modern multinationals own stock in their own companies rather than simply receiving
a salary
B.
Modern multinationals depend on a system of
capitalist international trade rather than on less modern trading systems
C.
Modern multinationals have operations in a
number of different foreign countries rather than merely in one or two
D.
The overseas operations of modern multinationals
are not governed by the national interests of their home countries
7.
The author mentions the artisan and peasant
productions systems of early chartered trading companies as an example of
A.
An area of operations of these companies that
was unhampered by rudimentary systems of communications and transport
B.
A similarity that allows fruitful comparison of
these companies with modern multinationals
C.
A positive achievement of these companies in the
face of various difficulties
D.
A characteristic that distinguishes these
companies from modern multinationals
8.
The passage suggests that one of the reasons
that early chartered trading companies deserve comparison with early modern
multinationals is
A.
The degree to which they both depended on new
technology
B.
The similar nature of their management
structures.
C.
Similarities in their top managements ‘ degree
of ownership in the company
D.
Their
common dependence on political stability abroad in order to carry on
foreign operations
Answer:
5.
B Consider what the author says about
hierarchical management structures in the second paragraph in order to find a
statement (independent of the passage) with which the author would agree. After
listing activities of the early trading companies, the author says: The large
volume of transactions associated with these activities seems to have
necessitated hierarchical management structures. Thus, it is likely that the
author would agree that, in general, firms with large volumes of transactions
must have hierarchical management structures.
6.
D since
the question asks about differences, focus on the third paragraph, where differences
are described. The first sentence is a general statement, indicating that the
early trading companies did differ strikingly from modern multinationals in
many respects. Because the author sets up this first general statement as a
contrast between the early and modern companies, the examples that follow it
imply that whatever is true of the early trading companies is not true of
modern multinationals. Thus, when the author says the early companies depended
heavily on their national governments, the implication is that modern companies
do not.
7.
D To
answer this question, examine how the author uses this reference. It occurs as
the last of three examples that show the differences between early trading
companies and modern multinational companies. The trading companies operated in
a preindustrial world, dependent on a pre- modern system of artisan and peasant
production. With this example, the author is showing one of the differences
between early and modern companies.
8.
B the
author begins by nothing that the modern multinational corporation is usually
said to have begun when the owner- manager’s nineteenth – century firms were replaced by teams of salaried mangers
organized into hierarchies. The author thus associates a hierarchical
management structure with modern multinational corporations. In the second
paragraph, the author show that the many transaction of early trading companies
required hierarchical management structures to oversee
them. Both early and modern companies share similar management structures.
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