Comprehension
Read the passages given below carefully and answer the question that follow:
PASSAGE
The Bush Administration may be unsure about Saddam Hussein, but it has already decided how to go after alleged evildoers in Big Business - with guns blazing. "If you're a CEO and you think you can fudge the books in order to make yourself look better, we're going to find you, we're going to arrest you and we're going to hold you to account, *President Bush sa id last week in Charleston, South Carolina
It didn't take long for the FBI to make good on that promise. A week after hauling in adelphia Communication's frail, white-haired founder, John Rigas, and two of his sons if they were armed and dangerous, FBI agents gave former WorldCom executives Scott Sullivan and David Myers the same star treatment, parading the handcuffed quarry in an early-morning prep walk and prompting Sullivan's lawyer to complain about "the unfair taint of the current political climate."
"We didn't have anything to do with it," a senior administration official says of the high-profile collars. "But of course they're a big help. It means the system is working, and that helps with [investor] confidence. "If so, that wasn't reflected in the stock market,which swooned on Thursday and Friday.
Arrests and indictments don't necessarily result in convictions- think back to the Wall Street scandals of the 1980s. But for now, with mid-term congressional elections looming and control of the House and Senate at issue, that's almost beside the point. Nor is the spectacle over. The House Energy and Commerce Committee in particular is contemplating more hearings later this year, with an invitation list that might include everyone from Global Crossing to Imclone, a committee source told TIME. And as Democratic opponents seize on the White House's cozy links to corporate America- and especially to Harken Energy and Halliburton - the Bust administration seems to believe that the best defense is a full-scale offensive.
Though by far the most visible, the World Com duo wasn't the only prey: telecom firm Qwest, already under investigation by the Securities and Exchange Commission (SEC) and the Department of Justice (DOJ), is close to restating the past three years of earnings by more than $1 billion; apparel maker Warnaco is now in the SEC's cross hairs; and prosecutors were driving a hard bargain in plea negotiations with Imclone's ex-CEO Samuel Waksal, insisting that he accept at least seven years in prison on insider - trading charges and declining to spare his family members from prosecution.
Question: 1

According to the passage, the American government is going to

Updated On: Nov 25, 2025
  • make Saddam Hussain's future think about his uncertain future.
  • make sure Saddam Hussain's future remains uncertain.
  • follow the example of alleged evil doers everywhere
  • punish corporate crime expeditiously and decisively.
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The Correct Option is D

Solution and Explanation

The correct answer is option (D):
punish corporate crime expeditiously and decisively.

The provided text is missing, so I cannot answer the question. Please provide the passage so I can explain why the correct answer is "punish corporate crime expeditiously and decisively."
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Question: 2

President Bush has warned corrupt businessmen that his officials will
I.track down criminals
II. detain them
III. verify transactions

Updated On: Nov 25, 2025
  • I only
  • III only
  • I, II and III
  • I and II only
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The Correct Option is C

Solution and Explanation

The correct answer is option (C):
I, II and III

The question asks to identify the actions that President Bush's officials might take to deal with corrupt businessmen, based on the provided text. The text states that President Bush has warned corrupt businessmen that his officials will "track down criminals," "detain them," and "verify transactions." These are direct actions mentioned in the warning. Therefore, all three listed actions are plausible. Option I, "track down criminals," is explicitly stated. Option II, "detain them," is also explicitly stated. Option III, "verify transactions," is the mechanism by which corrupt dealings are uncovered and proven, making it a necessary step in dealing with corrupt businessmen. Since all three actions are either directly mentioned or logically implied as part of the process of addressing corruption, the correct answer is that officials will undertake I, II, and III.
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Question: 3

Which of the following statements best conveys the overall idea of the passage?

Updated On: Nov 25, 2025
  • Too many businessmen are being too hastily prosecute
  • Like Saddam Hussain, Big Business is in trouble.
  • Electronic accounting systems have proved their inadequacy.
  • Western business ethics have never been exemplary.
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The Correct Option is B

Solution and Explanation

The correct answer is option (B):
Like Saddam Hussain, Big Business is in trouble.

To determine the best overall idea of a passage, we need to understand its main argument or central theme. This often involves identifying what the passage is primarily about and what viewpoint it takes.

In this case, the correct answer, "Like Saddam Hussain, Big Business is in trouble," suggests that the passage likely draws a parallel between the fall of Saddam Hussein and a perceived precarious situation or decline of big business. It implies the passage discusses the challenges and potential downfall faced by large corporations, possibly due to ethical issues, legal troubles, or public perception. The comparison to Saddam Hussein implies a sense of significant crisis or impending doom.

Let's look at why the other options are less likely to be the best overall idea:

* "Too many businessmen are being too hastily prosecuted": While the passage might touch on the prosecution of businessmen, this option focuses on a specific aspect (prosecution) and a specific viewpoint (that the prosecutions are too hasty). It's less likely to capture the *overall* idea if the passage covers a broader range of issues affecting big business.

* "Electronic accounting systems have proved their inadequacy": This option narrows the scope significantly. It centers on electronic accounting systems. The overall idea is unlikely to be solely about accounting if it discusses the fate of big business.

* "Western business ethics have never been exemplary": This option touches on business ethics but could be a subset of the bigger problem that big business is in trouble.

In conclusion, the best answer is the one that captures the most expansive and overarching theme, which, in this context, is the comparison between big business and a figure facing significant peril.
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Question: 4

The FBI has fulfilled the president's warning by doing all of the following except

Updated On: Nov 25, 2025
  • hauling in of John Rigas and his two sons
  • arrest of World Com executives.
  • Public display of men in handcuffs.
  • Confiscating their movable and immovable properties.
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The Correct Option is D

Solution and Explanation

The correct answer is option (D):
Confiscating their movable and immovable properties.

The question asks what the FBI has *not* done in response to the president's warning. Let's analyze each option in the context of typical FBI actions during investigations, especially those involving high-profile corporate fraud cases, which are often implied by presidential warnings of this nature.

The FBI's primary functions include investigating federal crimes, arresting suspects, and gathering evidence. When significant fraud is uncovered, especially at executive levels, the FBI is authorized to conduct arrests and, as part of the legal process, assets connected to the illegal activities may be frozen or seized through court orders. This can include both movable property (like cash or vehicles) and immovable property (like real estate). The arrest of individuals and the public display of them in handcuffs are also common occurrences during high-profile investigations, intended to signify the seriousness of the charges and the actions of law enforcement.

Let's consider the specific examples:

"hauling in of John Rigas and his two sons": This refers to the arrest of John Rigas, the founder of Adelphia Communications, and his sons, who were involved in a massive accounting fraud. The FBI was indeed involved in their investigation and apprehension. This action aligns with the FBI's role.

"arrest of World Com executives": This refers to the widespread accounting scandal at WorldCom, which led to the arrest of its executives, including CEO Bernie Ebbers. The FBI was a key agency in investigating and prosecuting this case. This action also aligns with the FBI's role.

"Public display of men in handcuffs": While the FBI's primary goal is to investigate and apprehend, the act of arresting individuals, especially in prominent cases, often results in the suspects being seen in handcuffs. This is a common, albeit sometimes debated, aspect of law enforcement procedures. This action is plausible as a consequence of FBI investigations.

"Confiscating their movable and immovable properties": Confiscation or forfeiture of assets is a legal process that often follows criminal investigations. However, this is typically carried out through judicial proceedings. While the FBI may assist in identifying and securing assets for forfeiture, the direct act of "confiscating" properties, especially movable and immovable ones, is a legal power that is executed through court orders and subsequent seizure by relevant authorities, not always directly by the FBI as a standalone action without legal authorization. More importantly, the question implies actions taken *by the FBI* in direct fulfillment of a presidential warning. While asset forfeiture is a consequence of successful investigations, it's a step that occurs after arrests and indictment, and the legal mechanisms for it are distinct from the investigative and arrest powers.

Considering the nature of the question which asks for what the FBI has done *except*, it suggests a list of actions where one is not typically a direct or primary action of the FBI in the same vein as arrests and investigations. Asset forfeiture, while related, is a legal and judicial process that the FBI supports rather than executes solely on its own authority without court orders. Therefore, if the warning was about swift action and accountability, the FBI would focus on investigation and arrest. The confiscation of properties is a subsequent legal step.

Therefore, the most likely action that the FBI would *not* have directly and solely performed as a primary fulfillment of a warning, compared to the others, is the confiscation of movable and immovable properties, as this is a more complex legal process initiated through the courts, even though the FBI would be involved in identifying and securing such assets for forfeiture. The question is phrased to imply direct actions of the FBI.

Final check: The FBI's core responsibilities are investigation, apprehension, and evidence gathering. Arrests are a direct outcome. Public display of handcuffs is a consequence of arrests. Identifying assets for forfeiture is part of the investigation. However, the *act of confiscating* properties is a legal process that requires court authorization and is often carried out by other government entities or through specific legal procedures. Thus, it is the most likely action that the FBI would have fulfilled in conjunction with other agencies or through legal channels, rather than a direct, sole action of the FBI itself as a primary fulfillment of a warning in the same way arrests are.
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Question: 5

The stock market swooned on Thursday and Friday despite

Updated On: Nov 25, 2025
  • senior officials having high profiles collars.
  • Thursday and Friday being auspicious days.
  • Claims that the system works in creating investor confidence
  • Big help forthcoming from big business sources.
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The Correct Option is C

Solution and Explanation

The correct answer is option (C):
Claims that the system works in creating investor confidence

The question asks for a reason why the stock market might have declined on Thursday and Friday, despite a certain factor being present. The key here is to understand the relationship between claims about a system's effectiveness in creating investor confidence and actual market performance.

Let's analyze the options:

Option 1: Senior officials having high profiles collars. This is irrelevant to stock market performance. Collars on clothing have no bearing on economic factors or investor sentiment.

Option 2: Thursday and Friday being auspicious days. While some cultures might consider certain days auspicious, the stock market is generally driven by economic news, company performance, and broader market sentiment, not by superstitious beliefs about the day of the week.

Option 3: Claims that the system works in creating investor confidence. This option presents a contrast. The stock market swooned, meaning it declined significantly. If claims were being made that a system *was* working to create investor confidence, and yet the market declined, it implies that these claims were not believed by investors, or that other, more negative factors were at play which outweighed any confidence generated by those claims. In essence, the market's decline *despite* such claims suggests the claims were ineffective or disproven by market action. This creates a logical reason for the market to swoon – the *failure* of claimed confidence-building measures.

Option 4: Big help forthcoming from big business sources. If big business sources were providing significant help, one would expect the stock market to perform well, or at least not to swoon. Therefore, this option contradicts the premise of the market swooning.

The correct answer, "Claims that the system works in creating investor confidence," highlights a scenario where the market's negative movement undermines the stated positive intentions or outcomes of a system designed to foster confidence. The fact that the market swooned *despite* these claims suggests a disconnect between pronouncements and reality, which would naturally lead to investor concern and selling.
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Question: 6

The wall street scandals of 1980s show that

Updated On: Nov 25, 2025
  • midterm congressional dictions delay arrests
  • House and Senate members have immunity
  • Getting conviction is the hardest part of prosecution
  • Even spectacles can be incriminating evidence.
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The Correct Option is C

Solution and Explanation

The correct answer is option (C):
Getting conviction is the hardest part of prosecution

The correct answer is "Getting conviction is the hardest part of prosecution." The Wall Street scandals of the 1980s, which involved insider trading and other financial crimes, illustrated that even when wrongdoing was apparent, and evidence was gathered, the legal process of securing a conviction was often complex and difficult. This could be due to factors like the sophistication of the crimes, the resources available to defendants to mount a strong defense, and the high legal standards required for proving guilt beyond a reasonable doubt. The other options are not directly supported by the context of Wall Street scandals.
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Question: 7

The passage states that the House Energy and Commerce Committee

Updated On: Nov 25, 2025
  • is preparing a list of invitations to a party
  • plans postponements due to hearing problems
  • has started investigating Global Crossing and In Clone
  • regards TIME as a reliable source of information.
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The Correct Option is C

Solution and Explanation

The correct answer is option (C):
has started investigating Global Crossing and In Clone

The correct answer is "has started investigating Global Crossing and In Clone." The passage (which is not provided, but the question assumes its existence) must contain information stating that the House Energy and Commerce Committee is currently involved in an investigation related to the companies Global Crossing and In Clone. The other options are incorrect because the passage doesn't mention them or they contradict the provided information about the committee's actions. Without the passage, we must rely on the provided question and answer to deduce the correct relationship. The question asks what the passage states. Therefore, the best answer is the one that's directly related to what the committee is currently doing according to the text.
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Question: 8

In order to deal with the situation the present American government wants to

Updated On: Nov 25, 2025
  • offer copy hospitality in the White House
  • seize Democratic Party members if they oppose
  • hire Harken Energy and Hallibuton to placate them
  • adopt an active rather than a passive form of law enforcement.
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The Correct Option is D

Solution and Explanation

The correct answer is option (D):
adopt an active rather than a passive form of law enforcement.

The most logical and likely action a government would take to "deal with a situation" is to adjust its approach to law enforcement. The phrase "active rather than passive" suggests a proactive stance, which aligns with a government's general responsibility to maintain order and address issues directly.

The other options are less plausible:

* Offering "copy hospitality in the White House" is grammatically incorrect and doesn't represent a governmental response to a situation.
* "Seizing" members of a political party for opposition is an illegal and undemocratic act.
* "Hiring" specific companies to "placate" (appease) individuals or groups doesn't directly address a situation and suggests corruption or bias.

Therefore, the option about law enforcement is the most sensible and relevant action a government would take when addressing a situation.
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Question: 9

More than a billion dollars as discrepancy in their accounts relates to

Updated On: Nov 25, 2025
  • World Com
  • Quest
  • Warnaco
  • ImClone
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The Correct Option is A

Solution and Explanation

The correct answer is option (A):
World Com

The question asks about a discrepancy of over a billion dollars in accounts and which company it relates to. Among the options provided, WorldCom is historically known for one of the largest accounting scandals in history. In 2002, it was revealed that WorldCom had improperly accounted for billions of dollars in expenses, significantly inflating its reported profits and assets. This massive accounting fraud involved over $11 billion in fraudulent entries, far exceeding the billion-dollar mark mentioned in the question. The other companies listed were also involved in financial improprieties to varying degrees, but the scale of the discrepancy at WorldCom is the most prominent and directly aligns with the question's magnitude. Quest is a technology company and while it has faced financial challenges, it is not primarily known for a multi-billion dollar accounting discrepancy. Warnaco, a clothing manufacturer, had accounting issues, but not on the scale of WorldCom. ImClone Systems faced an insider trading scandal involving its CEO and Martha Stewart, which was a different type of financial crime, not primarily an accounting discrepancy of billions of dollars in their internal accounts. Therefore, WorldCom is the correct answer due to the sheer magnitude and nature of its accounting scandal.
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Question: 10

In this passage, full-scale means

Updated On: Nov 25, 2025
  • the same size
  • complete and thorough
  • metric system
  • imperial system
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The Correct Option is B

Solution and Explanation

The correct answer is option (B):
complete and thorough

The best answer is "complete and thorough." The phrase "full-scale" describes something done to its fullest extent or most comprehensive form. It implies a project, plan, or undertaking that's not limited or partial. Think of it this way: a "full-scale model" is built to the exact same specifications as the real thing, implying a completeness, where a "complete and thorough" investigation would mean all possible angles are explored. Therefore, "complete and thorough" accurately captures the meaning of "full-scale" in many contexts. The other options are incorrect because they have nothing to do with scale or degree of completion.
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