Passage Reading and English Comprehension
(a) production of too much merchandise
(b) inaccurate forecasting of buyers’ preferences
(c) unrealistic pricing policies
(d) products’ rapid obsolescence
935. The passage suggests that which of the following is a kind of product that a liquidator who sells to discount stores would be unlikely to wish to acquire?
(c) Kitchen equipment
(d) Baby-care products
936. The passage provides information that supports which of the following statements?
(a) Excess inventory results most often from insufficient market analysis by the manufacturer
(b) Products with slight manufacturing defects may contribute to excess inventory
(c) Few manufacturers have taken advantage of the changes in the federal tax laws
(d) Most products available in discount stores have come from manufacturers’ excess-inventory stock
937. The author cites the examples most probably in order to illustrate
(a) the fiscal irresponsibility of dumping as a policy for dealing with excess inventory
(b) the waste-management problems that dumping new products creates
(c) the advantages to the manufacturer of dumping as a policy
(d) alternatives to dumping explored by different companies
938. By asserting that manufacturers “are simply unaware”, the author suggests which of the following?
(a) Manufacturers might donate excess inventory to charity rather than dump it if they knew about the provision in the federal tax code
(b) The federal government has failed to provide sufficient encouragement to manufacturers to make use of advantageous tax policies
(c) Manufacturers who choose to dump excess inventory are not aware of the possible effects on their reputation of media coverage of such dumping
(d) The manufacturers of products disposed of by dumping are unaware of the needs of those people who would find the products useful.
939. The information in the passage suggests that which of the following, if true, would make donating excess inventory to charity less attractive to manufacturers than dumping?
(a) The costs of getting the inventory to the charitable destination are greater than the above-cost tax deduction
(b) The news media give manufacturers’ charitable contributions the same amount of coverage that they give dumping
(c) No straight-cost tax benefit can be claimed for items that are dumped
(d) The fair-market value of an item in excess inventory is 5 times its cost.
940. Information in the passage suggests that one reason manufacturers might take advantage of the tax provision mentioned in the last paragraph is that
(a) there are many kinds of products that cannot be legally dumped in a landfill
(b) liquidators often refuse to handle products with slight imperfections
(c) the law allows a deduction in excess of the cost of manufacturing the product
(d) media coverage of contributions of excess-inventory products to charity is widespread and favorable
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