CAT Model Paper 9 Questions and Answers with Explanation Part 5

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Group Question:

Recent year have brought minority-owned businesses in the United States unprecedented opportunities – as well as new and significant risks. Civil right activists have long argued that one of the principal reasons why Blacks, Hispanics, and other minority group have difficulty establishing themselves in business is that they lack access to the sizable orders and subcontracts that are generated by large companies. Now Congress, in apparent agreement, has required by law that businesses awarded federal contracts of more than $5, 00,000 do their best to find minority subcontractors and record their efforts to do so on forms filed with the government. Indeed, some federal and local agencies have gone so far as to set specific percentage goal for apportioning parts of public word contract to minority enterprises.

Corporate response appears to have been substantial. According to figures collected in 1977, the total of corporate contracts with minority businesses rose from $77 million in 1972 to $1.1billion in 1977 The projected total of corporate contracts with minority businesses for the early 1980’s is estimated to be over 53 billion per year with no letup anticipated in the next decade. Promising as it is for minority businesses, this increased patronage poses dangers for them, too. First, minority firms risk expanding too fast and overextending the selves financially, since most are small concerns and, unlike large businesses, they often need to make substantial investments in new plants, staff, equipment, and the like in order to perform work subcontracted to them. If, thereafter, their subcontract is for some reason reduced, such firms can face potentially crippling fixed expenses. The world of corporate purchasing can be frustrating for small entrepreneurs who get requests for elaborate formal estimates and bids. Both consune valuable time and resources, and a small company’s efforts must soon result in orders. Or both the morale and the financial health of the business will suffer.

A second risk is that white-owned companies may seek to cash in on the increasing apportionments throught formation of joint venture with minority-owned concerns. Of course, in many instance there are legitimate reasons for joint ventures; clearly, White and minority enterprises can team up to acquire business that neither could acquire alone. But civil right group and minority business owners have complained to Congress about minorities being set up as “fronts” with White backing rather than being accepted as full partners in legitirnate joint ventures.

Third, a minority enterprise that secures the business of one large corporate customer often runs the danger of becoming – and remaining – dependent. Even in the best of circumstances, fierce competition from larger, more established companies makes it difficult for small condemns to broaden their customer bases: when such firms have nearly guaranteed orders from a single corporate benefactor, they may truly have to struggle against complacency arising from their current success.

Geography of the Passage:

Para 1: Recent years have brought minority-owned businesses in the US unprecedented opportunities.

Also brought new and significant risks.

Minority groups have difficulty in establishing themselves in businesses due to lack of access to lack of access to sizeable orders and subcontracts generated by large companies.

Congree has required by law that businesses awarded federal contract of more than $5,00,000 do their best to find minority.

Para 2: Corporate response appears to have been substantig.

This increased patronage poses dangers for the minority-owned businesses too. Minority firms risk expanding too fast and overextending themselves financially.

Para 3: White-owned companies may seek to cash in on the increasing apportionments through formation of joint ventures with minority-owned concerns.

Congress getting complaints about Minorities being set up as “fronts” with White backing, rather than being accepted as full partners in legitimate joint ventures.

Para 4: A minority enterprise that secures the business of one large corporate customer often runs the danger of becorning—and remaining—dependent

Question:

The primary, purpose of the passage is to

42. The passage supplies information that would answer which of the following questions?

Choices:

(A) What federal agencatt2cies have set percentage goals for the use of minority-owned businesses in public works contracts?

(B) To which government agencies must businesses awarded federal contracts report their efforts to find minority subcontractors?

(C) How widespread is the use of minority-owned concerns as “fronts” by White backers seeking to obtain subcontracts?

(D) What is one set of conditions under which a small business might find itself financially overextended?

Option (d)

We can gauge from the Geography of the passage that the second paragraph talks about the risk faced by minority froms in expanding too fast and overextending themselves Financially. One condition wherein any small business tnight face such a risk is also mentioned, thus making answer option (e) the correct answer choice.

43. According to the, sage, civil rights activists maintain that one disadvantage under which minority-owned businesses have traditiotlally had to laboris that they have

Choices:

(A) Been especially vuhierable to governmental tnismanagement of the economy

(B) Been detued bank loans at rates comparable to those afforded larger competitors E

(C) Not had sufficient opportunity to secure business created by large corporations

(D) Not been able to advertise in those media that reach large numbers of potential customers

Answer: C

Solution:

Option (c)

The second sentence of the first paragraph very clearly states that “Civil rights activists have long argued that one of the principal reasons why Blacks, Hispatucs, and other minority groups have difficulty establislung themselves in business is that they lack access to the sizable orders and subcontracts that are generated by large companies.” Thus, it is evident that answer option (c) is the correct answer choice.

44. The pass, suggests that the failure of a large business to have its bids for subcontracts result quickly in orders might cause it to

Choices:

(A) Eperience frustration but not serious financial harm

(B) Face potentially crippling fixed expenses

(C) Have to record its efforts on forms filed with the government

(D)Increase its spending with minority subcontractors

Answer: A

Solution

Option (a)

The last line of the second paragraph states that “The world of corporate purchasing can be frustrating for small entrepreneurs who get requests for elaborate formal estimates and bids. Both consume valuable time and resources, and a small company’s efforts must soon result in orders, or both the morale and the financial health of the business will suffer.” Since, the question talks about bids for subcontracts not resulting “quickly” in orders, it tnight result in testation. Serious financial harm shall not be caused as these bids might result into orders sometime later. Thus, answer option (a) is the correct answer choice.

45. According to the traditional view of the (night of the ocean basins, which of the following is sufficient to move the continental plates?

Choices:

(A) Increases in sedirnentation on ocean floors

(B) Spreading of ocean trenches

(C) Movement of mid-ocean ridges

(D) Differences in temperature under oceans and continents

Option (d)

The first paragraph very clearly states that “... differences in temperature under oceans and continents are sufficient to produce convection in the mantle of the earth with rising convection currents under the mid-oce. Ridges and sinking currents under the continents.” This makes it evident that the difference in temperature under oceans and continents is sufficient to move the continental plates.

Group Question:

No very satisfactory account of the mechanism that caused the formation of the ocean basins has yet been given. The traditional view supposes that the upper mantle of the earth behaves as a liquid when it is subjected to small forces for long periods and that differences in temperature under oceans and continents are sufficient to produce convection in the mantle of the earth with rising convection currents under the mid-ocean ridges and sinking currents under the continents. Theoretically, this convection would carry the continental plates along as though they were on a conveyor belt and would provide the forces needed to produce the split that occurs along the ridge. This view may be correct: it has the advantage that the currents are driven by temperature differences those themselves depend on the position of the continents. Such a back coupling in which the position of the moving plate has an impact on the forces that move it, could produce complicated and varying motions.

On the other hand, the theory is implausible because convection does not normally occur along lines, and it certainly does not occur along lines broken by frequent offsets (an abrupt bend in an object by which one p. is turned aside out of line) or changes in direction, as the ridge is. Also it is difficult to see how the theory applies to the plate between the Mid-Atlantic Ridge and the ridge in the Indian Ocean. This plate is growing on both sides, and since there is no intermediate trench, the two ridges must be moving apart. It would be odd if the rising convection currents kept exact pace with them. An alternative theory is that the sinking p. of the plate, which is denser than the hotter surrounding mantle, pulls the rest of the plate after it. Again it is difficult to see how this applies to the ridge in the South Atlantic, where neither the African nor the American plate has a sinking part.

Another possibility is that the sinking plate cools the neighboring mantle and produces convection currents that move the plates. This last theory is attractive because it gives some hope of explaining the enclosed seas, such as the Sea of Japan. These seas have a typical oceanic floor, except that the floor is overlaid by several kilometers of sediment. Their floors have probably been sinking for long periods. It seems possible that a sinking current of cooled mantle material on the upper side of the plate might be the cause of such deep basins. The enclosed seas are an important feature of the earth’s surface, and seriously require explanation because, in addition to the enclosed seas that are developing at present behind island arcs, there are a number of older ones of possibly similar origin, such as the Gulf of Mexico, the Black Sea, and perhaps the No. Sea.

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