- RC forms an important part of the verbal ability section. This section mainly focuses on to check the ability to understand the language and the underlying concept of the passage. The main focus should be to have a good command over the language as well as time management.
- Make sure you attempt these passage on a regular basis and with complete seriousness.
- Read the passage below and then answer the questions that follow.
- Once you are finished, click the ‘Get Results’ button below. Any items you have not completed will be marked incorrect.
Read the passage given below and solve the questions based on the passage
How quickly things change in the technology business! A decade ago, IBM was the awesome and undisputed king of the computer trade, universally feared and respected. A decade ago, two little companies called Intel and Microsoft were mere blips on the radar screen of the industry, upstart start-ups that had signed on to make the chips and software for IBM’s new line of personal computers. Though their products soon became industry standards, the two companies remained protected children of the market leader.
What has happened since is a startling reversal of fortune. IBM is being ravaged by the worst crisis in the company’s 79-year history. It is undergoing its fifth restructuring in the past seven years well as seemingly endless rounds of job cuts and firings that have eliminated 100,000 jobs since 1985. Last week, IBM announced to its shell-shocked investors that it lost $4.97 billion last year-the biggest loss in American corporate history.
And just when IBM is losing ground in one market after another, Intel and Microsoft have emerged as the computer industry’s most fearsome pair of competitors. The numbers on Wall Street tell a stunning story. Ten years ago, the market value of the stock of Intel and Microsoft combined amounted to about a tenth of IBM’s. Last week, with IBM’s stock at an 11-years low, Microsoft’s value surpassed its old mentor’s value for the very first time ($26.76 billion to $26.48 billion) and Intel ($ 24.3 billion) is not far behind. While IBM is posting losses, Intel’s profits jumped 30%, and Microsoft’s rose 44%.
Both Intel, the world’s largest supplier of computer chips, and Microsoft, the world’s largest supplier of computer software, have assumed the role long played by Big Blue as the industry’s pacesetter. What is taking place is a generational shift unprecedented in the information age-one recalls a transition in the US auto industry 70 years ago, when Alfred Solan’s upstart General Motors surpassed Ford Motor as America’s No. 1 car maker. The transition also reflects the decline of computer manufacturers like IBM, Wang and Unisys, and the rise of companies like Microsoft, Intel and A T & T that create the chips and software to make the computers work. Just like Dr. Frankenstein, IBM is in danger of being trampled by the creations it unleashed.
Although Intel and Microsoft still have close relationship with Big Blue, there is little love lost between IBM and its potent progeny. IBM had an ugly falling-out with former partner Microsoft over the future of personal-computer software. Microsoft developed the now famous disk operating system for IBM-PC-called DOS and later created the operation software for the next generation of IBM personal computers the Personal System/2. When PS/2 and its operating system OS/2, failed to catch on, a feud erupted over how the two companies would upgrade the system. Although they publicly patched things up, the partnership was tattered. IBM developed its own version of OS/2, which has so far failed to capture the industry’s imagination. Microsoft’s competing version dubbed New Technology, or NT, offered several programmes at once. Window NT, however, will offer more new features, such as the ability to link many computers together in a network and to safeguard them against unauthorized use.
IBM and Intel have also parted company. After relying almost exclusively on the Santa Clara, California company for the silicon chips that serve as computer brains, IBM has moved to reduce its dependence on Intel by turning to competing vendors. In Europe, IBM last year began selling a low – cost line of PC’s called Ambra, which runs on chips made by Intel rival Advanced Micro Devices. IBM also demonstrated a sample PC using a chip made by another Intel enemy, Cyrix. And last October IBM said it would begin selling the company’s own chips to outsiders in direct competition with Intel.
IBM clearly feels threatened. And the wounded giant still poses the biggest threat to any further dominance by Intel and Microsoft. Last year it teamed up with both companies most bitter rivals-Apple Computers and Motorola, IBM bypassed its long-time partners. Just as Microsoft’s standard operating system runs only on computers built around Intel’s computer chips, Apples’ software runs only on Motorola’s chips. Although IBM has pledged that the new system will eventually run out of a variety of machines, it will initially run only computer programs written for Apple’s Machintosh or IBM’s Os/2. Its competitive juice now flowing, IBM last week announced that it and Apple Computer will deliver the operating system in 1994-a year ahead of schedule.
RC (Level-2): Passage-4
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some computer companies are expanding while others are contracting.
employment in the industry is going down.
the industry is becoming more monopolised.
the share value of IBM is going up relative to that of Intel and Microsoft.
From these lines, we can conclude option A as the correct answer.
Option B is incorrect as there in no mention of employment going down in the IT industry. There is only a mention of IBM job cuts.
Option C is incorrect as it states the opposite of what is implied in the passage. The author implies that the industry is becoming competitive with Microsoft, Intel, Apple, Motorola and IBM all involved in a highly competitive market in their respective capacities. Monopoly means dominance by one company and this is clearly invalid in the given context.
Option D is the easiest option to reject in the given passage. It goes against the stated fact in the passage: with IBM’s stock at an 11-years low, Microsoft’s value surpassed its old mentor’s for the very first time ($26.76 billion to $26.48 billion) and Intel ($ 24.3 billion) is not far behind.
General Motors broke away from Ford Motor.
A new company went ahead of an established market leader.
Like Dr. Frankenstein, Ford Motor created a monster in General Motors.
Microsoft, Intel and A T & T where originally created by IBM.
In the given case, the author of the passage cites the example of the US auto industry to showcase how change took place in that industry and how a new company surpassed an old one. He wants to draw a parallel with the current situation and therefore, uses this example. Keeping this sentiment in mind, we find that option B is the correct answer in the given case.
AT & T
The two companies’ development of competing software.
Microsoft and Intel teamed up against IBM.
IBM begun to purchase microchips from Intel instead of Microsoft.
IBM made losses while Microsoft made profits.
Option A can be derived from the lines above. It is essentially what is implied by the lines above.
Options B, C and Dfind no relation to the passage and are incorrect statements.
The makers of microchips and software are becoming leaders in the computer industry.
Wang and Unisys are primarily manufacturers of computers.
IBM laying off workers is the biggest job cut in American corporate history.
Intel is based in California.
Option B can be derived from the lines: The transition also reflects the decline of computer manufacturers like IBM, Wang and Unisys, and the rise of companies like Microsoft, Intel and A T & T that create the chips and software to make the computers work.
Option D can be derived from the lines: After relying almost exclusively on the Santa Clara, California company for the silicon chips that serve as computer brains, IBM has moved to reduce its dependence on Intel by turning to competing vendors.
Option C does not find a mention in the passage. Also, the passage mentions that the biggest failure in US history was the loss of USD 4.97 by IBM and the job cut by IBM is not referred to as the biggest job cut in American corporate history.
IBM plans to introduce a new system that will run on a variety of machines.
IBM’s new generation desktop computers will run only on Motorola’s chip.
IBM is going to sell its own chips to Apple and Motorola.
IBM is going to sell its own chips to Apple and Microsoft.
We can directly identify option A as the correct answer.
Option B can be rejected as the passage clearly states that IBM is turning to competing vendors and it not tying up with Motorola alone. Options C and D are incorrect. Refer to the lines: And last October IBM said it would begin selling the company’s own chips to outsiders in direct competition with Intel.
There is no mention of who IBM is going to sell these chips too and therefore, options C and D are rejected.
None of the above.
share prices are not a good indicator of a company’s performance.
firing workers restores a company’s health.
companies can ultimately regret being a Dr. Frankenstein to some other company.
consumers gain as a result of competition among producers.
Option B is again rejected as the author does not portray job cuts as positive in the passage. Refer to the lines: IBM is being ravaged by the worst crisis in the company’s 79-year history. It is undergoing its fifth restructuring in the past seven years well as seemingly endless rounds of job cuts and firings that have eliminated 100,000 jobs since 1985.
Option D does not find a direct mention in the passage. In fact, there is no mention of consumers in the passage.
Option C can be derived from the line: Just like Dr. Frankenstein, IBM is in danger of being trampled by the creations it unleashed.
We can clearly see that that option C implies how companies can end up being Dr. Frankenstein and end up creating other companies that hurt their business interests.