Real GMAT RC

[CBS]

Firms traditionally claim that they

downsize (i.e., make permanent

personnel cuts) for economic reasons,

Line laying off supposedly unnecessary staff

(5) in an attempt to become more efficient

and competitive. Organization theory

would explain this reasoning as an

example of the “economic rationality”

that it assumes underlies all organi-

(10) zational activities. There is evidence

that firms believe they are behaving

rationally whenever they downsize; yet

recent research has shown that the

actual economic effects of downsizing

(15) are often negative for firms. Thus,

organization theory cannot adequately

explain downsizing; non-economic

factors must also be considered.

One such factor is the evolution of

(20) downsizing into a powerful business

myth: managers simply believe that

downsizing is efficacious. Moreover,

downsizing nowadays is greeted

favorably by the business press; the

(25) press often refers to soaring stock

prices of downsizing firms (even though

research shows that stocks usually

rise only briefly after downsizing and

then suffer a prolonged decline).

(30) Once viewed as a sign of desperation,

downsizing is now viewed as a signal

that firms are serious about competing
in the global marketplace; such signals

are received positively by key actors—

(35) financial analysts, consultants,

shareholders—who supply firms with

vital organizing resources. Thus, even

if downsizers do not become economi-

cally more efficient, downsizing’s mythic

(40) properties give them added prestige

in the business community, enhancing

their survival prospects.

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Q34:

The primary purpose of the passage is to

1. criticize firms for engaging in the practice of downsizing
2. analyze the negative economic impact of downsizing on firms
3. offer an alternative to a traditional explanation for the occurrence of downsizing
4. chronicle how perceptions of downsizing have changed over time
5. provide evidence disputing the prevalence of downsizing

Answer:

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Q35:

The passage suggests that downsizing’s mythic properties can be beneficial to a downsizing firm because these properties

1. allow the firm to achieve significant operating efficiencies
2. provide the firm with access to important organizing resources
3. encourage a long-term increase in the firm’s stock price
4. make the firm less reliant on external figures such as financial analysts and consultants
5. discourage the firm’s competitors from entering the global marketplace

Answer:

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Q36:

The passage suggests which of the following about the claim that a firm will become more efficient and competitive by downsizing?

1. Few firms actually believe this claim to be true.
2. Fewer firms have been making this claim in recent years.
3. This claim contradicts the basic assumption of organization theory.
4. This claim is called into question by certain recent research.
5. This claim is often treated with skepticism by the business press.

Answer:

[Brasileiro]

CBS these are my answers with the related part of the passage, please provide feedback about OA. Thanks

Q34 C offer an alternative to a traditional explanation for the occurrence of downsizing
"organization theory cannot adequately explain downsizing; non-economic factors must also be considered.One such factor is the evolution of downsizing into a powerful business myth: managers simply believe that downsizing is efficacious. Moreover, downsizing nowadays is greeted favorably by the business press;"


Q35 B provide the firm with access to important organizing resources
"downsizing is now viewed as a signal that firms are serious about competing in the global marketplace; such signals are received positively by key actors—financial analysts, consultants,shareholders—who supply firms with vital organizing resources"


Q36 D "This claim is called into question by certain recent research."
"yet recent research has shown that the actual economic effects of downsizing are often negative for firms"

[password]

These are my answers
Q34 : D - Once viewed as a sign of desperation,downsizing is now viewed as a signal that firms are serious about competing in the global marketplace; such signals are received positively by key actors

Q35 : B - same as above
Q36 : D - POE
Please correct them if they are wrong

[Psyzygy]

34 - D
35 - B
(for the same reasons as the poster above)
36 - D (not really sure about this one -- although it seems right by POE)

[DEVIKA]

same as psyzygy

[araspee]

d, b, d

[sleek04]

Answers are D B D.
Time Taken 4 mins.

[ymahajan]

my answers are
34. C (this is only one where we are forced to choose between C & D. I think the author chronicles how perceptions of downsizing have changed over time but that is not intented to be the primary purpose. C looks like the better choice)
35.B
36. D

What are the correct answers?

[Ultimate Warrior]

Originally Posted by ymahajan

my answers are
34. C (this is only one where we are forced to choose between C & D. I think the author chronicles how perceptions of downsizing have changed over time but that is not intented to be the primary purpose. C looks like the better choice)
35.B
36. D

What are the correct answers?

I'll go with

D, B and D.

What is the OA ?

[Mercedes2004]

My choices are:
34) C (I think that managers, press, financial analysts, consultants, shareholders didn't change their minds about downsizing; so it doesn't show that perceptions of downsizing have changed over time; only some researchs do percept it: that's why I didn't choose D. But C says that "offer an alternative to a traditional explanation for the occurrence of downsizing", I think that an alternative explanation is shown here.
35) B
36) D
Please, CBS, do you have official answers?
Thanks
Mercedes