Theres one reliable indicator to demonstrate that a startup information technology company is successful. When one of the global IT giants, a Microsoft or an Intel, for instance buys a major stake in the company, you can bet that its business focus and products are on target.Which of the conclusions can be best drawn from the passage above?a)Microsoft and Intel invest in startups only after extensive research.b)A startup cannot be taken seriously unless some reputed company buys a major stake in it.c)Investment by a major IT company proves that the fundamentals are on target for a startup.d)Other venture capitalists invest in startups only after a reputed firm has invested first.e)Business focus and products must be on target for a big IT firm to invest in a startupCorrect answer is option 'E'. Can you explain this answer?

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There's one reliable indicator to demonstrate that a startup information technology company is successful. When one of the global IT giants, a Microsoft or an Intel, for instance buys a major stake in the company, you can bet that its business focus and products are on target.

Which of the conclusions can be best drawn from the passage above?

a)
Microsoft and Intel invest in startups only after extensive research.
b)
A startup cannot be taken seriously unless some reputed company buys a major stake in it.
c)
Investment by a major IT company proves that the fundamentals are on target for a startup.
d)
Other venture capitalists invest in startups only after a reputed firm has invested first.
e)
Business focus and products must be on target for a big IT firm to invest in a startup

Correct answer is option 'E'. Can you explain this answer?

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Theres one reliable indicator to demonstrate that a startup informatio...

(A) Nothing is mentioned about the thoroughness of research conducted by big companies before they invest in startups.

(B) The passage does not necessarily imply that a startup cannot be taken seriously unless some reputed company has stake in it. In formal logic terms, "All A is B" does not necessarily mean "Only A is B".

(C) This is again an implicit statement that cannot be concluded directly from the passage. All fundamentals do not necessarily need to be perfect for big companies to invest in smaller ones. The passage mentions only two precise aspects of such decision-making.

(D) The passage mentions only a single example meaning this generalization cannot be logically drawn from the passage.

(E) Correct. This answer follows clearly and directly from the first two lines of the passage; if investment by a big IT firm means that business focus and products are on target then it must follow that these are requisite attributes for a big IT company to invest in a startup

Answered by Talent Skill Learning · View profile

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Theres one reliable indicator to demonstrate that a startup information technology company is successful. When one of the global IT giants, a Microsoft or an Intel, for instance buys a major stake in the company, you can bet that its business focus and products are on target.Which of the conclusions can be best drawn from the passage above?a)Microsoft and Intel invest in startups only after extensive research.b)A startup cannot be taken seriously unless some reputed company buys a major stake in it.c)Investment by a major IT company proves that the fundamentals are on target for a startup.d)Other venture capitalists invest in startups only after a reputed firm has invested first.e)Business focus and products must be on target for a big IT firm to invest in a startupCorrect answer is option 'E'. Can you explain this answer?

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