Comprehension Test Questions and Answers Practice Question and Answer

Q:

Directions: Read the following passage carefully and answer the questions given below it. Certain words/phrases are given in bold to help you locate them while answering some of the questions.

Core competencies and focus are now the mantras of corporate strategists in Western economies. But while managers in the West have dismantled many conglomerates assembled in the 1960s and 1970s, the large, diversified business group remains the dominant form of enterprise throughout most emerging markets. Some groups operate as holding companies with full ownership in many enterprises, others are collections of publicly traded companies, but all have some degree of central control.

As emerging markets open up to global competition, consultants and foreign investors are increasingly pressuring these groups to conform to Western practice by scaling back the scope of their business activities. The conglomerate is the dinosaur of organizational design, they argue, too unwieldy and slow to compete in today's fast-paced markets. Already a number of executives have decided to break up their groups in order to show that they are focusing on only a few core businesses. 

There are reasons to worry about this trend. Focus is good advice in New York or London, but something important gets lost in translation when that advice is given to groups in emerging markets. Western companies take for granted a range of institutions that support their business activities, but many of these institutions are absent in other regions of the world. Without effective securities regulation and venture capital firms, for example, focused companies may be unable to raise adequate financing; and without strong educational institutions, they will struggle to hire skilled employees.

Communicating with customers is difficult when the local infrastructure is poor, and unpredictable government behavior can stymie any operation, although a focused strategy may enable a company to perform a few activities well, companies in emerging markets must take responsibility for a wide range of functions in order to do business effectively. 

In the case of product markets, buyers and sellers usually suffer from a severe dearth of information for three reasons. First, the communications infrastructure in emerging markets is often under-developed. Even as wireless communication spreads throughout the West, vast stretches in countries such as China and India remain without telephones. Power shortages often render the modes of communication that do exist ineffective. The postal service is typically inefficient, slow, or unreliable; and the private sector rarely provides efficient courier services. High rates of illiteracy make it difficult for marketers to communicate effectively with customers. 

Second, even when information about products does get around, there are no mechanisms to corroborate the claims made by sellers. Independent consumer - information organizations are rare, and government watchdog agencies are of little use. The few analysts who rate products are generally less sophisticated than their counterparts in advanced economies. 

Third, consumers have no redress mechanisms if a product does not deliver on its promise. Law enforcement is often capricious and so slow that few who assign any value to time would resort to it. Unlike in advanced markets, there are few extrajudicial arbitration mechanisms to which one can appeal. 

As a result of this lack of information, companies in emerging markets face much higher costs in building credible brands than their counterparts in advanced economies. In turn, established brands wield tremendous power. A conglomerate with a reputation for quality products and services can use its group name to enter new businesses, even if those businesses are completely unrelated to its current lines. Groups also have an advantage when they do try to build up a brand because they can spread the cost of maintaining it across multiple lines of business. Such groups then have a greater incentive not to damage brand quality in anyone business because they will pay the price in their other businesses as well.

What should be the most appropriate title of this passage? 

899 0

  • 1
    Hurdles in Emerging markets
    Correct
    Wrong
  • 2
    What is an Emerging market
    Correct
    Wrong
  • 3
    Lack of Information in Emerging Markets
    Correct
    Wrong
  • 4
    Advanced Markets Eat Emerging Markets
    Correct
    Wrong
  • 5
    None of these
    Correct
    Wrong
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Answer : 1. "Hurdles in Emerging markets "

Q:

Directions: Read the passage given below and answer the questions that follow based on the information given in the passage.

IN GORILLA society, power belongs to silverback males. These splendid creatures have numerous status markers besides their back hair: they are bigger than the rest of their band, strike space-filling postures, produce deeper sounds, thump their chests lustily and, in general, exude an air of physical fitness. Things are not that different in the corporate world. The typical chief executive is more than six feet tall, has a deep voice, a good posture, a touch of grey in his thick, lustrous hair and, for his age, a fit body. Bosses spread themselves out behind their large desks. They stand tall when talking to subordinates. Their conversation is laden with prestige pauses and declarative statements. The big difference between gorillas and humans is, of course, that human society changes rapidly. The past few decades have seen a striking change in the distribution of power—between men and women, the West and the emerging world and geeks and non-geeks.

Women run some of America’s largest firms, such as General Motors (Mary Barra) and IBM (Virginia Rometty). More than half of the world’s biggest 2,500 public companies have their headquarters outside the West. Geeks barely out of short trousers run some of the world’s most dynamic businesses. Peter The, one of Silicon Valley’s leading investors, has introduced a blanket rule: never invest in a CEO who wears a suit. Yet it is remarkable, in this supposed age of diversity, how many bosses still conform to the stereotype. First, they are tall: in research for his 2005 book, “Blink”, Malcolm Gladwell found that 30% of CEOs of Fortune 500 companies are 6 feet 2 inches or taller, compared with 3.9% of the American population. People who “sound right” also have a marked advantage in the race for the top. Quantified Communications, a Texas-based company, asked people to evaluate speeches delivered by 120 executives. They found that voice quality accounted for 23% of listeners’ evaluations and the content of the speech only accounted for 11%.
 Academics from the business schools of the University of California, San Diego and Duke University listened to 792 male CEOs giving presentations to investors and found that those with the deepest voices earned $187,000 a year more than the average.
 Physical fitness seems to matter too: a study published this month, by Peter Limbach of the Karlsruhe Institute of Technology and Florian Sonnenburg of the University of Cologne, found that companies in America’s S&P 1500 index whose CEOs had finished a marathon were worth 5% more on average than those whose bosses had not.

Good posture makes people act like leaders as well as look like them: Amy Cuddy of Harvard Business School notes that the very act of standing tall, with your feet planted solidly and somewhat apart, your chest out and your shoulders back, boosts the supply of testosterone to the blood and lowers the supply of cortisol, a steroid associated with stress. (Unfortunately, this also increases the chance that you will make a risky bet.) Besides relying on all these supposedly positive indicators of fitness to lead, those who choose bosses also rely on some negative stereotypes. Overweight people—women especially—are judged incapable of controlling themselves, let alone others. Those who “uptalk”—habitually ending their statements on a high note as if asking a question—rule themselves out on the grounds that they sound tentative and juvenile.

What can be the suitable title of the passage?

898 0

  • 1
    The look of a leader
    Correct
    Wrong
  • 2
    Age of diversity
    Correct
    Wrong
  • 3
    Gorilla and humans
    Correct
    Wrong
  • 4
    Physical fitness matters
    Correct
    Wrong
  • 5
    CEOs Vs Gorilla
    Correct
    Wrong
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Answer : 1. "The look of a leader"

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Answer : 4. "Expression which is the outflow from the heart of the author."

Q:

Directions: Read the following passage carefully and answer the questions given below it. Certain words/phrases are given in bold to help you locate them while answering some of the questions.

Core competencies and focus are now the mantras of corporate strategists in Western economies. But while managers in the West have dismantled many conglomerates assembled in the 1960s and 1970s, the large, diversified business group remains the dominant form of enterprise throughout most emerging markets. Some groups operate as holding companies with full ownership in many enterprises, others are collections of publicly traded companies, but all have some degree of central control.

As emerging markets open up to global competition, consultants and foreign investors are increasingly pressuring these groups to conform to Western practice by scaling back the scope of their business activities. The conglomerate is the dinosaur of organizational design, they argue, too unwieldy and slow to compete in today's fast-paced markets. Already a number of executives have decided to break up their groups in order to show that they are focusing on only a few core businesses. 

There are reasons to worry about this trend. Focus is good advice in New York or London, but something important gets lost in translation when that advice is given to groups in emerging markets. Western companies take for granted a range of institutions that support their business activities, but many of these institutions are absent in other regions of the world. Without effective securities regulation and venture capital firms, for example, focused companies may be unable to raise adequate financing; and without strong educational institutions, they will struggle to hire skilled employees.

Communicating with customers is difficult when the local infrastructure is poor, and unpredictable government behavior can stymie any operation, although a focused strategy may enable a company to perform a few activities well, companies in emerging markets must take responsibility for a wide range of functions in order to do business effectively. 

In the case of product markets, buyers and sellers usually suffer from a severe dearth of information for three reasons. First, the communications infrastructure in emerging markets is often under-developed. Even as wireless communication spreads throughout the West, vast stretches in countries such as China and India remain without telephones. Power shortages often render the modes of communication that do exist ineffective. The postal service is typically inefficient, slow, or unreliable; and the private sector rarely provides efficient courier services. High rates of illiteracy make it difficult for marketers to communicate effectively with customers. 

Second, even when information about products does get around, there are no mechanisms to corroborate the claims made by sellers. Independent consumer - information organizations are rare, and government watchdog agencies are of little use. The few analysts who rate products are generally less sophisticated than their counterparts in advanced economies. 

Third, consumers have no redress mechanisms if a product does not deliver on its promise. Law enforcement is often capricious and so slow that few who assign any value to time would resort to it. Unlike in advanced markets, there are few extrajudicial arbitration mechanisms to which one can appeal. 

As a result of this lack of information, companies in emerging markets face much higher costs in building credible brands than their counterparts in advanced economies. In turn, established brands wield tremendous power. A conglomerate with a reputation for quality products and services can use its group name to enter new businesses, even if those businesses are completely unrelated to its current lines. Groups also have an advantage when they do try to build up a brand because they can spread the cost of maintaining it across multiple lines of business. Such groups then have a greater incentive not to damage brand quality in anyone business because they will pay the price in their other businesses as well.

What suggestions have been cited by the writer in regard to raising adequate financing and hiring skilled employees ?

896 0

  • 1
    Effective securities regulation
    Correct
    Wrong
  • 2
    Effective securities regulation and venture capital firms
    Correct
    Wrong
  • 3
    Effective securities regulation and venture capital firms and strong educational institutions
    Correct
    Wrong
  • 4
    Both ( 1 ) and ( 3 )
    Correct
    Wrong
  • 5
    None of these
    Correct
    Wrong
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Answer : 3. "Effective securities regulation and venture capital firms and strong educational institutions "

Q:

Directions: In the following questions, you have to passage with 5 questions following each passage. Read the passage carefully and choose the best answer to each question out of the four alternatives.
Some people say that man's desire for war is due to his fight for survival and that war is necessary to preserve his virility. Yet, war nowadays leaves a legacy of the weakest men and stimulates not the noble but the bestial qualities of mankind.
 A venture of some kind is necessary for man; he will inevitably deteriorate physically and mentally if his life is one of ease and luxury lived in an atmosphere of ‘Safety First.’ This is the real reason behind our love of sports in the open air. It is no use being a millionaire if one suffers from chronic in digestion; a tramp with good innards is far happier. Nothing that money can buy is worthwhile without good health. There is no better way to perfect health and physical fitness than to walk over or climb hills and mountains.
 But mountains give us much more than mere physical fitness; they exercise the mental faculties as well. Climbing a high and difficult peak is as much a mental exercise as a physical exercise. It calls for sense and judgement for planning and thinking ahead, for anticipating difficulty and danger, for responsibility towards one's companions, and best of all, it brings the mountaineer into touch with the beauties of the universe. 

War nowadays stimulates 

896 0

  • 1
    noble qualities of mankind
    Correct
    Wrong
  • 2
    man's virility
    Correct
    Wrong
  • 3
    bestial qualities of mankind
    Correct
    Wrong
  • 4
    man's fight for survival
    Correct
    Wrong
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Answer : 3. "bestial qualities of mankind "

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