閱讀部分不帶解釋付答案大包preppack1 rc題目版

PREP2012-Pack1-RC-001

Themodernmultinationalcorporationisdescribedashavingoriginatedwhenthe

owner-managersofnineteenth-centuryBritishfirmscarryingoninternationaltradewerereplacedbyteamsofsalariedmanagersorganizedintohierarchies.Increasesinthevolumeoftransactionsinsuchfirmsarecommonlybelievedtohavenecessitatedthisstructuralchange.Nineteenth-centuryinventionsthesteamshipandthetelegraph,byfacilitatingcoordinationofmanagerialactivities,aredescribedaskeyfactors.Sixteenth-andseventeenth-centurycharteredtradingcompanies,despitetheinternationalscopeoftheiractivities,areusuallyconsideredirrelevanttothisdiscussion:thevolumeoftheirtransactionsisassumedtohavebeentoolowandthecommunicationsandtransportoftheir

daytooprimitivetomakecomparisonswithmodernmultinationalsinteresting.

Inreality,however,earlytradingcompaniessuccessfullypurchasedandoutfittedships,builtandoperatedofficesandwarehouses,manufacturedtradegoodsforuseabroad,maintainedtradingpostsandproductionfacilitiesoverseas,procuredgoodsforimport,andsoldthosegoodsbothathomeandinothercountries.Thelargevolumeoftransactionsassociatedwiththeseactivitiesseemstohavenecessitatedhierarchicalmanagementstructureswellbeforetheadventofmoderncommunicationsandtransportation.Forexample,intheHudson'sBayCompany,eachtradingoutpostwasmanagedbyasalariedagent,whocarriedoutthetradewiththeNativeAmericans,managedday-to-dayoperations,andoversawthepost'sworkersandservants.Onechiefagent,answerabletotheCourtofDirectorsinLondonthroughthe

correspondencecommittee,wasappointedwithcontroloveralloftheagentsonthebay.

Theearlytradingcompaniesdiddifferstrikinglyfrommodernmultinationalsinmanyrespects.Theydependedheavilyonthenationalgovernmentsoftheirhomecountriesandthuscharacteristicallyactedabroadtopromotenationalinterests.Theirtopmanagersweretypicallyownerswithasubstantialminorityshare,whereasseniormanagers’holdingsinmodernmultinationalsareusuallyinsignificant.Theyoperatedinapreindustrialworld,graftingasystemofcapitalistinternationaltradeontoapre-modernsystemofartisanandpeasantproduction.Despitethesedifferences,however,earlytradingcompaniesorganizedeffectivelyinremarkablymodernwaysandmeritfurtherstudyasanaloguesofmoremodern

structures.

PREP2012-Pack1-RC-001-01

VRC00009-01

Medium

Theauthor'smainpointisthat

A.

modernmultinationalsoriginatedinthesixteenthandseventeenthcenturieswiththeestablishmentofcharteredtradingcompanies

thesuccessofearlycharteredtradingcompanies,likethatofmodernmultinationals,dependedprimarilyontheirabilitytocarryoutcomplexoperations

earlycharteredtradingcompaniesshouldbemoreseriouslyconsideredbyscholarsstudyingtheoriginsofmodernmultinationals

scholarsarequitemistakenconcerningtheoriginsofmodernmultinationals

themanagementstructuresofearlycharteredtradingcompaniesarefundamentallythesameasthoseofmodernmultinationals

B.

C.

D.

E.

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PREP2012-Pack1-RC-001-02

VRC00009-02

Medium

Itcanbeinferredfromthepassagethattheauthorwouldcharacterizetheactivitiesengaged

inbyearlycharteredtradingcompaniesasbeing

A.

complexenoughinscopetorequireasubstantialamountofplanningandcoordinationonthepartofmanagement

toosimpletobeconsideredsimilartothoseofamodernmultinationalcorporationasintricateasthosecarriedoutbythelargestmultinationalcorporationstoday

oftenunprofitableduetoslowcommunicationsandunreliablemeansoftransportation

hamperedbythepoliticaldemandsimposedonthembythegovernmentsoftheirhomecountries

B.

C.

D.

E.

PREP2012-Pack1-RC-001-03

VRC00009-03

Hard

Theauthorthevariousactivitiesofearlycharteredtradingcompaniesinorderto

A.

analyzethevariouswaysinwhichtheseactivitiescontributedtochangesinmanagementstructureinsuchcompanies

demonstratethatthevolumeofbusinesstransactionsofsuchcompaniesexceededthatofearlierfirms

refutetheviewthatthevolumeofbusinessundertakenbysuchcompanieswasrelativelylow

emphasizetheinternationalscopeofthesecompanies‘operations

supporttheargumentthatsuchfirmscoordinatedsuchactivitiesbyusingavailablemeansofcommunicationandtransport

B.

C.

D.

E.

PREP2012-Pack1-RC-001-04

VRC00009-04

Medium

Withwhichofthefollowinggeneralizationsregardingmanagementstructureswouldthe

authorofthepassagemostprobablyagree?

A.

Hierarchicalmanagementstructuresarethemostefficientmanagementstructurespossibleinamoderncontext.

Firmsthatroutinelyhaveahighvolumeofbusinesstransactionsfinditnecessarytoadopthierarchicalmanagementstructures.

Hierarchicalmanagementstructurescannotbesuccessfullyimplementedwithoutmoderncommunicationsandtransportation.

Modernmultinationalfirmswitharelativelysmallvolumeofbusinesstransactionsusuallydonothavehierarchicallyorganizedmanagementstructures.

Companiesthatadopthierarchicalmanagementstructuresusuallydosoinorderto

facilitateexpansionintoforeigntrade.

B.

C.

D.

E.

PREP2012-Pack1-RC-001-05 VRC00009-05

Medium

2/33

Thepassagesuggeststhatmodernmultinationalsdifferfromearlycharteredtrading

companiesinthat

A.

thetopmanagersofmodernmultinationalsownstockintheirowncompaniesratherthansimplyreceivingasalary

modernmultinationalsdependonasystemofcapitalistinternationaltraderatherthanonlessmoderntradingsystems

modernmultinationalshaveoperationsinanumberofdifferentforeigncountriesratherthanmerelyinoneortwo

theoperationsofmodernmultinationalsarehighlyprofitabledespitethemorestringentenvironmentalandsafetyregulationsofmoderngovernments

theoverseasoperationsofmodernmultinationalsarenotgovernedbythenational

interestsoftheirhomecountries

B.

C.

D.

E.

PREP2012-Pack1-RC-002

Ameteorstreamiscomposedofdustparticlesthathavebeenejectedfromaparentcometatavarietyofvelocities.Theseparticlesfollowthesameorbitastheparentcomet,butduetotheirdifferingvelocitiestheyslowlygainonorfallbehindthedisintegratingcometuntilashroudofdustsurroundstheentirecometaryorbit.Astronomershavehypothesizedthatameteorstreamshouldbroadenwithtimeasthedustparticles’individualorbitsareperturbedbyplanetarygravitationalfields.Arecentcomputer-modelingexperimenttestedthishypothesisbytrackingtheinfluenceofplanetarygravitationoveraprojected5,000-yearperiodonthepositionofagroupofhypotheticaldustparticles.Inthemodel,theparticleswererandomlydistributedthroughoutacomputersimulationoftheorbitofanactualmeteorstream,theGeminid.Theresearcherfound,asexpected,thatthecomputer-modelstreambroadenedwithtime.Conventionaltheories,however,predictedthatthedistributionofparticleswouldbeincreasinglydensetowardthecenterofameteorstream.Surprisingly,the

computer-modelmeteorstreamgraduallycametoresembleathick-walled,hollowpipe.

WhenevertheEarthpassesthroughameteorstream,ameteorshoweroccurs.Movingatover1,500,000milesperdayarounditsorbit,theEarthwouldtake,onaverage,justoveradaytocrossthehollow,computer-modelGeminidstreamifthestreamwere5,000yearsold.Twobriefperiodsofpeakmeteoractivityduringtheshowerwouldbeobserved,oneastheEarthenteredthethick-walled“pipe"andoneasitexited.ThereisnoreasonwhytheEarthshouldalwayspassthroughthestream'sexactcenter,sothetimeintervalbetweenthetwoburstsofactivitywouldvaryfromoneyeartothenext.

Hasthepredictedtwin-peakedactivitybeenobservedfortheactualyearlyGeminidmeteorshower?TheGeminiddatabetween1970and1979showjustsuchabifurcation,asecondaryburstofmeteoractivitybeingclearlyvisibleatanaverageof19hours(1,200,000miles)afterthefirstburst.ThetimeintervalsbetweentheburstssuggesttheactualGeminidstreamis

about3,000yearsold.

PREP2012-Pack1-RC-002-01 VRC07544-01

Hard

3/33

Theauthorstatesthattheresearchdescribedinthefirstparagraphwasundertakeninorder

to

A.

B.

C.

D.

E.

determinetheageofanactualmeteorstream

dentifythevariousstructuralfeaturesofmeteorstreamsexplorethenatureofaparticularlyinterestingmeteorstream

testthehypothesisthatmeteorstreamsbecomebroaderastheyage

showthatacomputermodelcouldhelpinexplainingactualastronomicaldata

PREP2012-Pack1-RC-002-02

VRC07544-02

Hard

Itcanbeinferredfromthepassagethatwhichofthefollowingwouldmostprobablybe

observedduringtheEarth'spassagethroughameteorstreamiftheconventionaltheoriesmentionedinthehighlightedtextwerecorrect?

A.

Meteoractivitywouldgraduallyincreasetoasingle,intensepeak,andthengraduallydecline.

Meteoractivitywouldbesteadythroughouttheperiodofthemeteorshower.

Meteoractivitywouldrisetoapeakatthebeginningandattheendofthemeteorshower.Randomburstsofveryhighmeteoractivitywouldbeinterspersedwithperiodsofveryactivity.

InyearsinwhichtheEarthpassedthroughonlytheouterareasofameteorstream,

meteoractivitywouldbeabsent.

B.

C.

D.

E.

PREP2012-Pack1-RC-002-03

VRC07544-03

Hard

Accordingtothepassage,whydothedustparticlesinameteorstreameventuallysurround

acomet'soriginalorbit?

A.

B.

C.

D.

E.

Theyareejectedbythecometatdifferingvelocities.

Theirorbitsareuncontrolledbyplanetarygravitationalfields.Theybecomepartofthemeteorstreamatdifferenttimes.

Theirvelocityslowsovertime.

Theirejectionvelocityisslowerthanthatofthecomet.

PREP2012-Pack1-RC-002-04

VRC07544-04

Hard

Thepassagesuggeststhatwhichofthefollowingisapredictionconcerningmeteorstreams

thatcanbederivedfromboththeconventionaltheoriesmentionedinthehighlightedtextandthenewcomputerderivedtheory?

Dustparticlesinameteorstreamwillusuallybedistributedevenlythroughoutanycrosssectionofthestream.

TheorbitsofmostmeteorstreamsshouldcrosstheorbitoftheEarthatsomepointand

giverisetoameteorshower.

4/33

C.

Overtimethedistributionofdustinameteorstreamwillusuallybecomedenserattheoutsideedgesofthestreamthanatthecenter.

Meteorshowerscausedbyoldermeteorstreamsshouldbe,onaverage,longerindurationthanthosecausedbyveryyoungmeteorstreams.

Theindividualdustparticlesinoldermeteorstreamsshouldbe,onaverage,smallerthan

thosethatcomposeyoungermeteorstreams.

D.

E.

PREP2012-Pack1-RC-002-05

VRC07544-05

Medium

Whichofthefollowingisanassumptionunderlyingthelastsentenceofthepassage?

A.

Ineachoftheyearsbetween1970and1979,theEarthtookexactly19hourstocrosstheGeminidmeteorstream.

ThecometassociatedwiththeGeminidmeteorstreamhastotallydisintegrated.TheGeminidmeteorstreamshouldcontinuetoexistforatleast5,000years.

TheGeminidmeteorstreamhasnotbroadenedasrapidlyastheconventionaltheorieswouldhavepredicted.

Thecomputer—modelGeminidmeteorstreamprovidesanaccuraterepresentationof

thedevelopmentoftheactualGeminidstream.

B.

C.

D.

E.

PREP2012-Pack1-RC-003

TworecentpublicationsofferdifferentassessmentsofthecareerofthefamousBritishnurseFlorenceNightingale.AbookbyAnneSummersseekstodebunktheidealizationsandpresentarealityatoddswithNightingale'sheroicreputation.AccordingtoSummers,Nightingale'simportanceduringtheCrimeanWarhasbeenexaggerated:notuntilnearthewar'senddidshebecomesupervisorofthefemalenurses.Additionally,Summerswritesthatthecontributionofthenursestothereliefofthewoundedwasatbestmarginal.Theprevailingproblemsofmilitarymedicinewerecausedbyarmyorganizationalpractices,andtheadditionofafewnursestothemedicalstaffcouldbenomorethansymbolic.

Nightingale’splaceinthenationalpantheon,Summersasserts,islargelyduetothe

propagandisticeffortsofcontemporarynewspaperreporters.

Bycontrast,theeditorsofanewvolumeofNightingale'slettersviewNightingaleasapersonwhosignificantlyinfluencednotonlyherownagebutalsosubsequentgenerations.Theyhighlightherongoingeffortstoreformsanitaryconditionsafterthewar.Forexample,whenshelearnedthatpeacetimelivingconditionsinBritishbarracksweresohorriblethatthedeathrateofenlistedmenfarexceededthatofneighboringcivilianpopulations,shesucceededinpersuadingthegovernmenttoestablishaRoyalCommissionontheHealthoftheArmy.Sheusedsumsraisedthroughpubliccontributionstofoundanurses’traininghospitalinLondon.Eveninadministrativematters,theeditorsassert,herpracticalintelligencewasformidable:asrecentlyas1947theBritishArmy'smedicalserviceswerestill

usingthecost-accountingsystemshehaddevisedinthe1860's.

IbelievethattheevidenceofherletterssupportscontinuedrespectforNightingale's

brillianceandcreativity.Whencounselingavillageschoolmastertoencouragechildrentousetheirfacultiesofobservation,shesoundslikeamoderneducator.Herinsistenceon

5/33

classifyingtheproblemsoftheneedyinordertodeviseappropriatetreatmentsissimilartotheapproachofmodernsocialworkers.Insum,althoughNightingalemaynothaveachievedallofhergoalsduringtheCrimeanWar,herbreadthofvisionandabilitytorealizeambitious

projectshaveearnedheraneminentplaceamongtheranksofsocialpioneers.

PREP2012-Pack1-RC-003-01

VRC07619-01

Medium

Thepassageisprimarilyconcernedwithevaluating

A.

B.

C.

D.

E.

theimportanceofFlorenceNightingale'sinnovationsinthefieldofnursingcontrastingapproachestothewritingofhistoricalbiographycontradictoryaccountsofFlorenceNightingale’shistoricalsignificance

thequalityofhealthcareinnineteenthcenturyEngland

theeffectoftheCrimeanWarondevelopmentsinthefieldofhealthcare

PREP2012-Pack1-RC-003-02

VRC07619-02

Hard

Accordingtothepassage,theeditorsofNightingale’sletterscreditherwithcontributingto

whichofthefollowing?

A.

ImprovementofthesurvivalrateforsoldiersinBritishArmyhospitalsduringtheCrimeanWar

Thedevelopmentofanurses’trainingcurriculumthatwasfarinadvanceofitsdayTheincreaseinthenumberofwomendoctorspracticinginBritishArmyhospitalsEstablishmentofthefirstfacilityfortrainingnursesatamajorBritishuniversity

ThecreationofanorganizationformonitoringthepeacetimeIrvingconditionsofBritish

soldiers

B.

C.

D.

E.

PREP2012-Pack1-RC-003-03

VRC07619-03

Easy

ThepassagesuggestswhichofthefollowingaboutNightingale’srelationshipwiththeBritish

publicofherday?

A.

B.

C.

D.

Shewashighlyrespected,herprojectsreceivingpopularandgovernmentalsupport.Sheencounteredresistancebothfromthearmyestablishmentandthegeneralpublic.Shewassupportedbytheworkingclassesandopposedbythewealthierclasses.

Shewassupportedbythemilitaryestablishmentbuthadtofightthegovernmentalbureaucrat.

Afterinitiallybeingreceivedwithenthusiasm,shewasquicklyforgotten.

E.

PREP2012-Pack1-RC-003-04

VRC07619-04

Easy

WithwhichofthefollowingstatementsregardingthedifferinginterpretationsofNightingale’s

importancewouldtheauthormost

6/33

A.

SummersmisunderstoodboththeimportanceofNightingale'sachievementsduringtheCrimeanWarandhersubsequentinfluenceonBritishpolicy.

TheeditorsofNightingale’slettersmadesomevalidpointsaboutherpracticalachievements,buttheystillexaggeratedherinfluenceonsubsequentgenerations.AlthoughSummers’accountofNightingale’sroleintheCrimeanWarmaybeaccurate;sheignoredevidenceofNightingale’ssubsequentachievementthatsuggeststhatherreputationasaneminentsocialreformeriswelldeserved.

TheeditorsofNightingale'slettersmistakenlypropagatedtheoutdatedidealizationofNightingalethatonlyimpedesattemptstoarriveatabalancedassessmentofhertruerole.

TheevidenceofNightingale'sLetterssupportsSummers’conclusionsbothabout

Nightingale’sactivitiesandaboutherinfluence.

B.

C.

D.

E.

PREP2012-Pack1-RC-003-05

VRC07619-05

Medium

Inthelastparagraph,theauthorisprimarilyconcernedwith

A.

B.

C.

D.

E.

summarizingtheargumentsaboutNightingalepresentedinthefirsttwoparagraphsrefutingtheviewofNightingale'scareerpresentedintheprecedingparagraphanalyzingtheweaknessesoftheevidencepresentedelsewhereinthepassage

citingevidencetosupportaviewofNightingale’scareer

correctingafactualerroroccurringinoneoftheworksunderreview

PREP2012-Pack1-RC-004

Customerloyaltyprogramsareattemptstobondcustomerstoacompanyanditsproductsandservicesbyofferingincentives—suchasairlinefrequentflyerprogramsorspecialcreditcardswithvaluablebenefits—t0loyalcustomers.Insupportofloyaltyprograms,companiesofteninvokethe“80/20"principle,whichstatesthatabout80percentofrevenuetypicallycomesfromonlyabout20percentofcustomers.However,thisprofitable20percentarenotnecessarilyloyalbuyers,especiallyinthesenseofexclusiveloyalty.Studieshavedemonstratedthatonlyabout10percentofbuyersformanytypesoffrequentlypurchasedconsumergoodsare100percentloyaltoaparticularbrandoveraone-yearperiod.Moreover,100-percent-loyalbuyerstendtobelightbuyersoftheproductorservice.“Dividedloyalty”betterdescribesactualconsumerbehavior,sincecustomerstypicallyvarythebrandstheybuy.Thereasonsforthisbehaviorarefairlystraightforward:peoplebuydifferentbrandsfordifferentoccasionsorforvariety,orabrandmaybetheonlyoneinstockormayofferbettervaluebecauseofaspecialdeal.Mostbuyerswhochangebrandsarenotlostforever;usually,theyareheavyconsumerswhosimplyprefertobuyanumberofbrands.Suchmultibandloyaltymeansthatonecompany'smostprofitablecustomerswillprobablybeits

competitors’mostprofitablecustomersaswell.

Still,advocatesofloyaltyprogramscontendthatsuchprogramsarebeneficialbecausethe

costsofservinghighlyloyalcustomersarelower,andbecausesuchloyalcustomersareless

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pricesensitivethanothercustomers.Itistruethatwhentherearestart-upcosts,suchascreditchecks,involvedinservinganewcustomer,thecostsexceedthoseofservingarepeatcustomer.However,itisnotatallclearwhythecostsofservingahighlyloyalcustomershouldinprinciplebedifferentfromthoseofservinganyothertypeofrepeatcustomer.Thekeyvariablesdrivingcostaresizeandtypeoforder,specialversusstandardorder,andsoon,nothigh-loyaltyversusdivided-loyaltycustomers.Asforpricesensitivity,highlyloyal

customersmayinfactcometoexpectapricediscountasarewardfortheirloyalty.

PREP2012-Pack1-RC-004-01

VRC000108-01

Medium

Theprimarypurposeofthepassageisto

A.

B.

C.

D.

questionthenotionthatcustomerloyaltyprogramsarebeneficial

examinethereasonswhymanycustomersbuymultiplebrandsofproductsproposesomepossiblealternativestocustomerloyaltyprograms

demonstratethatmostcustomersarenotcompletelyloyaltoanyonebrandofproductorservice

comparethebenefitsofcustomerloyaltyprogramswiththoseofothertypesofpurchase

incentiveprograms

E.

PREP2012-Pack1-RC-004-02

VRC000108-02

Easy

Thepassagementionseachofthefollowingasapotentialreasonforcustomers’divided

loyaltyEXCEPT

A.

B.

C.

D.

E.

aparticularbrandmaybetheonlyoneavailableaparticularbrandmaybeofferedatadiscount

customerswilloftenbuymultiplebrandsoutofadesireforvariety

customerswilloftenbuyanunfamiliarbrandwhenitisnewonthemarketcustomerswilloftenbuycertainbrandsforcertainoccasions

PREP2012-Pack1-RC-004-03

VRC000108-03

Easy

Accordingtothepassage,advocatesofcustomerloyaltyprogramsclaimwhichofthe

followingabouthighlyloyalcustomers?

A.

B.

C.

D.

E.

Theyoftenexpectpricediscountsasarewardfortheirloyaltytoaproduct.

Theycanbeservedatlowerexpensetoacompanythancannonloyalcustomers.Theytendtobelightbutpredictablebuyersoftheproductorserviceinquestion.Theyaretotryoutnewbrandsorproductsthatappearonthemarket.

Theyaredifficulttodifferentiatestatisticallyfromothertypesofrepeatcustomers.

PREP2012-Pack1-RC-004-04

VRC000108-04

Easy

Thepassagesuggeststhatcompaniesthatinvokethe“80/20"principleinsupportof

customerloyaltyprogramswhichofthefollowing

8/33

A.

Awell-designedcustomerloyaltyprogramcanincreasethenumberofacompany'sloyalcustomersbyasmuchas80percent.

About20percentofanygivencompany'smostprofitablecustomersarelikelytobeits

competitors’mostprofitablecustomersaswell.

Itisunreasonabletoexpectmorethan20percentofcustomerstobe100percentloyaltoanyparticularbrandofproduct.

Even“l(fā)oyal”customerscannotreasonablybeexpectedtosticktooneparticularbrandofproductmorethan80percentofthetime.

Arelativelysmallnumberofloyalcustomersisresponsibleforabout80percentofa

company'sprofits.

B.

C.

D.

E.

PREP2012-Pack1-RC-004-05

VRC000108-05

Medium

Thesecondparagraphfunctionsprimarilyto

A.

B.

C.

D.

E.

proposesolutionstocertainproblemsinherentincustomerloyaltyprogramsemphasizecertainrisksinherentincustomerloyaltyprograms

addresscertaincontentionsputforthbyadvocatesofcustomerloyaltyprograms

defendcertainspecificaspectsofcustomerloyaltyprogramsagainstcriticismreconcilecompetingviewpointsregardingtheofcustomerloyaltyprograms

PREP2012-Pack1-RC-004-06

VRC000108-07

Medium

Theauthorofthepassagesuggeststhatwhichofthefollowingismostlikelytobetrueofa

customerwhoisexclusivelyloyaltoaparticularbrandofproduct?

A.

B.

Thecustomerprobablybeganbuyingthatbrandofproductonlywithinthepastyear.Thecustomerisprobablyamongthemostprofitablecustomersforthecompanythatmanufacturesthatbrandofproduct.

Thecustomerisprobablynotaheavyconsumerofthatparticulartypeofproduct.

Thecustomerisprobablyaloyalcustomerwhenpurchasingothertypesofproductsaswell.

Thecustomerprobablysamplednumerousbrandsofthattypeofproductbefore

becomingloyaltoaparticularbrand.

C.

D.

E.

PREP2012-Pack1-RC-005

Manymanagersareinfluencedbydangerousmythsaboutpaythatleadtocounterproductivedecisionsabouthowtheircompaniescompensateemployees.Onesuchmythisthatlaborrates,therateperhourpaidtoworkers,areidenticalwithlaborcosts,themoneyspentonlaborinrelationtotheproductivityofthelaborforce.Thismythleadstotheassumptionthatacompanycansimplyloweritslaborcostsbycuttingwages.Butlaborcostsandlaborratesarenotinfactthesame:onecompanycouldpayitsworkersconsiderablymorethananotherandyethavelowerlaborcostsifthatcompany'sproductivitywerehigherduetothetalentofitsworkforce,theefficiencyofitsworkprocesses,orotherfactors.Theconfusionofcosts

withratespersistspartlybecauselaborratesareaconvenienttargetformanagerswhowant

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tomakeanimpactontheircompany'sbudgets.Becauselaborratesarehighlyvisible,managerscaneasilycomparetheircompany'srateswiththoseofcompetitors.Furthermore,laborratesoftenappeartobeacompany'smostmalleablefinancialvariable:cuttingwagesappearsaneasierwaytocontrolcoststhansuchoptionsasreconfiguringworkprocessesoralteringproductdesign.

Themyththatlaborratesandlaborcostsareequivalentissupportedbybusinessjournalists,whofrequentlyconfoundthetwo.Forexample,prominentbusinessjournalsoftenremarkonthe“high"costofGermanlabor,citingasevidencetheaverageamountpaidtoGermanworkers.Themythisalsoperpetuatedbythecompensationconsultingindustry,whichhasitsownincentivetokeepsuchmythsalive.First,althoughsomeoftheseconsultingfirmshaverecentlybroadenedtheirpracticesbeyondtheareaofcompensation,theirmainstaycontinuestobeadvisingcompaniesonchangingtheircompensationpractices.Suggestingthatacompany'sperformancecanbeimprovedinsomeotherwaythanbyalteringitspaysystemmaybeempiricallycorrectbutcontrarytotheconsultants’interests.Furthermore,changestothecompensationsystemmayappeartobesimplertoimplementthanchangestootheraspectsofanorganization,somanagersaremorelikelytofindsuchadvicefromconsultantspalatable.Finally,totheextentthatchangesincompensationcreatenewproblems,theconsultantswillcontinuetohaveworksolvingtheproblemsthatresultfrom

theiradvice.

PREP2012-Pack1-RC-005-01

VRC000361-01

Medium

Theauthorofthepassagementionsbusinessjournals(seehighlightedtext)primarilyin

orderto

A.

demonstratehowaparticularkindofevidencecanbeusedtosupporttwodifferentconclusions

castdoubtonaparticularviewabouttheaverageamountpaidtoGermanworkerssuggestthatbusinessjournalistsmayhaveavestedinterestinperpetuatingaparticularview

identifyonesourceofsupportforaviewcommonamongbusinessmanagers

indicateawayinwhichaparticularmythcouldbedispelled

B.

C.

D.

E.

PREP2012-Pack1-RC-005-02

VRC000361-02

Easy

Accordingtothepassage,whichofthefollowingistrueaboutchangestoacompany's

compensationsystem?

A.

Theyareoftenimplementedinconjunctionwithacompany'seffortstoreconfigureitsworkprocesses.

Theyhavebeenadvocatedbyprominentbusinessjournalsasthemostdirectwayforacompanytobringaboutchangesinitslaborcosts.

Theyaremorelikelytoresultinanincreaseinlaborcoststhantheyaretobringabout

competitiveadvantagesforthecompany.

B.

C.

10/33

Theysometimesresultinsignificantcostsavingsbutarelikelytocreatelabor-relationsproblemsforthecompany.

Theymayseemtomanagerstoberelativelyeasytoimplementcomparedwithother

kindsofchangesmanagersmightconsider.

PREP2012-Pack1-RC-005-03

VRC000361-04

Easy

Theprimarypurposeofthepassageisto

A.

B.

C.

D.

describeacommonpracticeusedbymanagerstocontrollaborcosts

examinetherelationbetweenlaborcostsandothercostsincurredbybusinessesexplainwhylaborratesareamoresignificantfactorthanlaborcostsformostbusinesses