PSAT Writing and Language Practice Test 53: Risk

Questions 1-11 refer to the following information.

Risk

I remember the class well. 1 We seniors understood academic principles and knew the roles that we would play when we moved into management jobs after graduation 2 since we felt well-prepared for the profession we were about to enter. Most programs had a capstone course that pulled all of our coursework together, and this was no different. Our guide for this course was an experienced executive and not the normal academic 3 who walked these halls. "What is the basic job of a general manager?" he asked. Hands shot up. "Maximize shareholder equity!" "Maximize profit." "Develop a strategic vision!" "Increase market share." To these responses and others, he said a simple "no." Finally, he told us what we would be doing as managers 4 for the field. "Your job is to take risk. When analysis will not provide an answer, you have to make a decision and move the ball forward. 5 Your decision-making performance will determine your worth to the enterprise."

Taking risk involves the understanding that various outcomes can arise when you make a choice. 6 Some outcomes may spell disaster for your company, others may create exceptional financial returns for the shareholders. But hiding behind every one of these possible futures is the uncertainty of which one or some hybrid of several will actually occur. An 7 affective manager has the confidence to face these outcomes and the inherent unknowns.

[1] Let's take a simple example. [2] How much inventory of a certain item should you hold so that you can provide exceptional customer service and not run out of product? [3] What affects the success of a chosen number of items to put on the shelf? [4] The other is the lead time that it takes to replenish the inventory when it begins to run low. [5] The tricky part is that both the demand for the product and the lead time to replenish are typically not known with certainty. [6] 8 Books are going the way of the record player—technology has made mobile electronics far more preferable. [7] The publisher may tell you that the standard lead time is 8 weeks, but this can change due to other business it may be running in the printing factory. [8] And if you are at Amazon.com, there are millions of these decisions that are made, and 9 the success of the business will be driven by how well you manage these variations. [9] If you don't have the item, the customer will simply click on a competitor's website and make the purchase. [10] If you put too much on the shelf, the investment cost of this 10 moving slowly inventory can consume the working capital of the business. 11

11 questions 9 minutesAll test questions

A. NO CHANGE

B. Us

C. That

D. This

2. The author is considering deleting the underlined portion. Should this selection be removed?

A. Yes, because it digresses from the main idea of the sentence.

B. Yes, because it repeats ideas already implied in the sentence.

C. No, because it provides relevant details in support of a claim.

D. No, because it provides a needed contrast.

A. NO CHANGE

B. whom walked

C. who walking

D. whom walking

A. NO CHANGE

B. fielding.

C. out in the field.

D. with a field.

5. Which of the following provides the most logical and relevant conclusion to the paragraph?

A. NO CHANGE

B. Significant wealth will inevitably follow.

C. Be sure you incorporate thorough analysis before you decide on your course of action.

D. Remember these words of advice when you go back to school.

A. NO CHANGE

B. Some outcomes, may spell disaster for your company: others may create exceptional financial returns for the shareholders.

C. Some outcomes—may spell disaster for your company—others may create exceptional financial returns for the shareholders.

D. Some outcomes may spell disaster for your company; others may create exceptional financial returns for the shareholders.

A. NO CHANGE

B. affecting

C. effective

D. effecting

8. Which of the following would provide the most specific example in support of the claim made in the previous sentence?

A. NO CHANGE

B. If Oprah selects a given book for her monthly review, copies will run off of the shelves and backorders will occur.

C. The definition of “lead time” varies a great deal depending on the business professor to whom you speak.

D. Publishers try to increase demand for profitable books, using methods like online advertising and public relations firms.

A. NO CHANGE

B. the success of the business, will be driven by how well you manage these variations.

C. the success, of the business will be driven, by how well you manage these variations.

D. the success of the business will be driven by how well, you manage these variations.

10.

A. NO CHANGE

B. slow inventory with respect to moving

C. slowly moving inventory

D. inventory, which is slowly moving at times,

11. The author wishes to place the following sentence into the previous paragraph:

“One factor is the demand that you expect over a given time period, such as a month or quarter.”

Where would it most logically be placed?

A. Before sentence 2

B. Before sentence 4

C. Before sentence 9

D. Before sentence 10

PSAT Writing and Language Practice Test 53: Risk

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