Chapter 1

Verbal Comprehension

Master's entrance past exam questions

Past questions and answers

9 questions set from this chapter. Most repeated first.

KUSOM Information Bulletin for Admission Test and Sample Test Questions

A computer equipped with signature-recognition software, which restricts access to a computer those people whose signature are on file, identifies a person's signature by analyzing not only the form of the signature but also such characteristics as pen pressure and signing speed. Even the most adept forgers cannot duplicate all of the characteristics the program analyzes.
Which of the following can be logically concluded from the passage above?
(a) The time it takes to record and analyze a signature makes the software impractical for everyday use. (b) Computers equipped with the software will soon be installed in most banks (c) Nobody can gain access to a computer equipped with the software solely by virtue of skill at forging signature. (d) Signature-recognition software has taken many years to develop and perfect. (e) In many cases even authorized users are denied legitimate access to computers equipped with the software.

Answer

(c) Nobody can gain access to a computer equipped with the software solely by virtue of skill at forging signatures.

The software checks pen pressure and signing speed as well as form, and even the best forgers cannot duplicate all of these. So skill at forgery alone cannot get anyone in. The other options (practicality, bank installation, development time, wrongful denials) are not supported by the passage.

Answer checked by Claude Sonnet · Oct 21, 2026

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KUSOM Information Bulletin for Admission Test and Sample Test Questions

Read the passage and answer the question.
Excess inventory, a massive problem for many business, has several causes, some of which are unavoidable. Overstocks may accumulate through production overruns or errors. Certain styles and colors prove unpopular. With some products --- computers and software, toys, and books – last year's models are difficult to move even at huge discounts. Occasionally the competition introduces a better product. But in many cases the public's buying tastes simply change, leaving a manufacturer or distributor with thousands (or millions) of items that the fickle public no longer wants.
One common way to dispose of this merchandise is to see it to a liquidator, who buys as cheaply as possible and then resells the merchandise through catalogs, discount store, and other outlet. However liquidators may pay less for the merchandise than it cost to make it. Another way to dispose of excess inventory is to dump it. The corporation takes a straight cost write-off on its taxes and hauls the merchandise to a landfill. Although it is hard to believe, there is a sort of convoluted logic to this approach. It is perfectly legal, requires little time or preparation on the company's part, and solve the problem quickly. The drawback is the remote possibility of getting caught by the news media. Dumping perfectly useful products can turn into a public relation nightmare. Children living in poverty are freezing and XYZ Company has just sent 500 new snowsuits to the local dump. Parents of young children are barely getting by and QRX Company dumps 1,000 cases of disposable diapers because they have slight imperfection. The managers of these companies are not deliberately wasteful; they are simply unaware of all their alternatives. In 1976 the Internal Revenue Service provided a tangible incentive for business to contribute their products to charity. The new tax law allowed corporation to deduct the cost of the product donate plus half the difference between cost and fair market selling price, with the proviso that deduction cannot exceed twice cost. Thus, the federal government sanctions – indeed encourages --- and above cost federal tax deduction for companies that donate inventory to charity.
The author mention each of the following as a cause of excess inventory EXCEPT
(a) Production of too much merchandise. (b) Inaccurate forecasting of buyers' preference. (c) Unrealistic pricing policies. (d) Products' rapid obsolescence. (e) Availability of a better product.

Answer

(c) Unrealistic pricing policies.

The passage names production overruns or errors (a), changing buyer tastes (b), last year's models going out of date (d) and a competitor's better product (e). It never says that pricing policy causes excess inventory.

Answer checked by Claude Sonnet · Oct 21, 2026

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KUSOM Information Bulletin for Admission Test and Sample Test Questions

Read the passage and answer the question.
Excess inventory, a massive problem for many business, has several causes, some of which are unavoidable. Overstocks may accumulate through production overruns or errors. Certain styles and colors prove unpopular. With some products --- computers and software, toys, and books – last year's models are difficult to move even at huge discounts. Occasionally the competition introduces a better product. But in many cases the public's buying tastes simply change, leaving a manufacturer or distributor with thousands (or millions) of items that the fickle public no longer wants.
One common way to dispose of this merchandise is to see it to a liquidator, who buys as cheaply as possible and then resells the merchandise through catalogs, discount store, and other outlet. However liquidators may pay less for the merchandise than it cost to make it. Another way to dispose of excess inventory is to dump it. The corporation takes a straight cost write-off on its taxes and hauls the merchandise to a landfill. Although it is hard to believe, there is a sort of convoluted logic to this approach. It is perfectly legal, requires little time or preparation on the company's part, and solve the problem quickly. The drawback is the remote possibility of getting caught by the news media. Dumping perfectly useful products can turn into a public relation nightmare. Children living in poverty are freezing and XYZ Company has just sent 500 new snowsuits to the local dump. Parents of young children are barely getting by and QRX Company dumps 1,000 cases of disposable diapers because they have slight imperfection. The managers of these companies are not deliberately wasteful; they are simply unaware of all their alternatives. In 1976 the Internal Revenue Service provided a tangible incentive for business to contribute their products to charity. The new tax law allowed corporation to deduct the cost of the product donate plus half the difference between cost and fair market selling price, with the proviso that deduction cannot exceed twice cost. Thus, the federal government sanctions – indeed encourages --- and above cost federal tax deduction for companies that donate inventory to charity.
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?
(a) Furniture. (b) Computers. (c) Kitchen equipment (d) Baby-care products. (e) Children's clothing

Answer

(b) Computers.

The passage says last year's models of computers and software are hard to move even at huge discounts. A liquidator who resells through discount stores would therefore be reluctant to buy them. Furniture, kitchen equipment, baby-care products and children's clothing are not described as hard to sell.

Answer checked by Claude Sonnet · Oct 21, 2026

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KUSOM Information Bulletin for Admission Test and Sample Test Questions

Read the passage and answer the question.
Excess inventory, a massive problem for many business, has several causes, some of which are unavoidable. Overstocks may accumulate through production overruns or errors. Certain styles and colors prove unpopular. With some products --- computers and software, toys, and books – last year's models are difficult to move even at huge discounts. Occasionally the competition introduces a better product. But in many cases the public's buying tastes simply change, leaving a manufacturer or distributor with thousands (or millions) of items that the fickle public no longer wants.
One common way to dispose of this merchandise is to see it to a liquidator, who buys as cheaply as possible and then resells the merchandise through catalogs, discount store, and other outlet. However liquidators may pay less for the merchandise than it cost to make it. Another way to dispose of excess inventory is to dump it. The corporation takes a straight cost write-off on its taxes and hauls the merchandise to a landfill. Although it is hard to believe, there is a sort of convoluted logic to this approach. It is perfectly legal, requires little time or preparation on the company's part, and solve the problem quickly. The drawback is the remote possibility of getting caught by the news media. Dumping perfectly useful products can turn into a public relation nightmare. Children living in poverty are freezing and XYZ Company has just sent 500 new snowsuits to the local dump. Parents of young children are barely getting by and QRX Company dumps 1,000 cases of disposable diapers because they have slight imperfection. The managers of these companies are not deliberately wasteful; they are simply unaware of all their alternatives. In 1976 the Internal Revenue Service provided a tangible incentive for business to contribute their products to charity. The new tax law allowed corporation to deduct the cost of the product donate plus half the difference between cost and fair market selling price, with the proviso that deduction cannot exceed twice cost. Thus, the federal government sanctions – indeed encourages --- and above cost federal tax deduction for companies that donate inventory to charity.
The passage provides information that supports which of the following statements?
(a) Excess inventory result 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) Manufacturers who dump their excess inventory are often caught and exposed by the news media. (e) Most products available in discount stores have come from manufacturer's excess-inventory stock.

Answer

(b) Products with slight manufacturing defects may contribute to excess inventory.

The passage gives the example of a company dumping 1,000 cases of disposable diapers because of slight imperfections. The other statements go beyond the passage: it does not say most excess inventory comes from poor market analysis, that few firms use the tax law, that dumpers are often caught (it calls this a remote possibility), or that most discount-store goods are excess stock.

Answer checked by Claude Sonnet · Oct 21, 2026

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KUSOM Information Bulletin for Admission Test and Sample Test Questions

Read the passage and answer the question.
Excess inventory, a massive problem for many business, has several causes, some of which are unavoidable. Overstocks may accumulate through production overruns or errors. Certain styles and colors prove unpopular. With some products --- computers and software, toys, and books – last year's models are difficult to move even at huge discounts. Occasionally the competition introduces a better product. But in many cases the public's buying tastes simply change, leaving a manufacturer or distributor with thousands (or millions) of items that the fickle public no longer wants.
One common way to dispose of this merchandise is to see it to a liquidator, who buys as cheaply as possible and then resells the merchandise through catalogs, discount store, and other outlet. However liquidators may pay less for the merchandise than it cost to make it. Another way to dispose of excess inventory is to dump it. The corporation takes a straight cost write-off on its taxes and hauls the merchandise to a landfill. Although it is hard to believe, there is a sort of convoluted logic to this approach. It is perfectly legal, requires little time or preparation on the company's part, and solve the problem quickly. The drawback is the remote possibility of getting caught by the news media. Dumping perfectly useful products can turn into a public relation nightmare. Children living in poverty are freezing and XYZ Company has just sent 500 new snowsuits to the local dump. Parents of young children are barely getting by and QRX Company dumps 1,000 cases of disposable diapers because they have slight imperfection. The managers of these companies are not deliberately wasteful; they are simply unaware of all their alternatives. In 1976 the Internal Revenue Service provided a tangible incentive for business to contribute their products to charity. The new tax law allowed corporation to deduct the cost of the product donate plus half the difference between cost and fair market selling price, with the proviso that deduction cannot exceed twice cost. Thus, the federal government sanctions – indeed encourages --- and above cost federal tax deduction for companies that donate inventory to charity.
The author cites the examples in second paragraph 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) Alternative to dumping explored by different companies. (e) How the news media could portray dumping to the detriment of the manufacturer's reputation.

Answer

(e) How the news media could portray dumping to the detriment of the manufacturer's reputation.

The snowsuit and diaper examples come right after the statement that dumping useful products can become a public relations nightmare. They show how such stories would look in the media and hurt the companies.

Answer checked by Claude Sonnet · Oct 21, 2026

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KUSOM Information Bulletin for Admission Test and Sample Test Questions

Read the passage and answer the question.
Excess inventory, a massive problem for many business, has several causes, some of which are unavoidable. Overstocks may accumulate through production overruns or errors. Certain styles and colors prove unpopular. With some products --- computers and software, toys, and books – last year's models are difficult to move even at huge discounts. Occasionally the competition introduces a better product. But in many cases the public's buying tastes simply change, leaving a manufacturer or distributor with thousands (or millions) of items that the fickle public no longer wants.
One common way to dispose of this merchandise is to see it to a liquidator, who buys as cheaply as possible and then resells the merchandise through catalogs, discount store, and other outlet. However liquidators may pay less for the merchandise than it cost to make it. Another way to dispose of excess inventory is to dump it. The corporation takes a straight cost write-off on its taxes and hauls the merchandise to a landfill. Although it is hard to believe, there is a sort of convoluted logic to this approach. It is perfectly legal, requires little time or preparation on the company's part, and solve the problem quickly. The drawback is the remote possibility of getting caught by the news media. Dumping perfectly useful products can turn into a public relation nightmare. Children living in poverty are freezing and XYZ Company has just sent 500 new snowsuits to the local dump. Parents of young children are barely getting by and QRX Company dumps 1,000 cases of disposable diapers because they have slight imperfection. The managers of these companies are not deliberately wasteful; they are simply unaware of all their alternatives. In 1976 the Internal Revenue Service provided a tangible incentive for business to contribute their products to charity. The new tax law allowed corporation to deduct the cost of the product donate plus half the difference between cost and fair market selling price, with the proviso that deduction cannot exceed twice cost. Thus, the federal government sanctions – indeed encourages --- and above cost federal tax deduction for companies that donate inventory to charity.
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 contribution 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 1.5 times its costs. (e) Items end up as excess inventory because of a change in the public's preferences.

Answer

(a) The costs of getting the inventory to the charitable destination are greater than the above-cost tax deduction.

Dumping is quick, cheap and legal. If transport and handling costs for a donation exceed the extra tax benefit, donating costs the company more than dumping, so dumping becomes the more attractive option. The other options either do not change the comparison or favour donation.

Answer checked by Claude Sonnet · Oct 21, 2026

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KUSOM Information Bulletin for Admission Test and Sample Test Questions

Read the passage and answer the question.
Excess inventory, a massive problem for many business, has several causes, some of which are unavoidable. Overstocks may accumulate through production overruns or errors. Certain styles and colors prove unpopular. With some products --- computers and software, toys, and books – last year's models are difficult to move even at huge discounts. Occasionally the competition introduces a better product. But in many cases the public's buying tastes simply change, leaving a manufacturer or distributor with thousands (or millions) of items that the fickle public no longer wants.
One common way to dispose of this merchandise is to see it to a liquidator, who buys as cheaply as possible and then resells the merchandise through catalogs, discount store, and other outlet. However liquidators may pay less for the merchandise than it cost to make it. Another way to dispose of excess inventory is to dump it. The corporation takes a straight cost write-off on its taxes and hauls the merchandise to a landfill. Although it is hard to believe, there is a sort of convoluted logic to this approach. It is perfectly legal, requires little time or preparation on the company's part, and solve the problem quickly. The drawback is the remote possibility of getting caught by the news media. Dumping perfectly useful products can turn into a public relation nightmare. Children living in poverty are freezing and XYZ Company has just sent 500 new snowsuits to the local dump. Parents of young children are barely getting by and QRX Company dumps 1,000 cases of disposable diapers because they have slight imperfection. The managers of these companies are not deliberately wasteful; they are simply unaware of all their alternatives. In 1976 the Internal Revenue Service provided a tangible incentive for business to contribute their products to charity. The new tax law allowed corporation to deduct the cost of the product donate plus half the difference between cost and fair market selling price, with the proviso that deduction cannot exceed twice cost. Thus, the federal government sanctions – indeed encourages --- and above cost federal tax deduction for companies that donate inventory to charity.
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 imperfections. (c) The law allows a deduction in excess of the cost of manufacturing the products. (d) Media coverage of contribution of excess inventory products to charity is widespread and favorable. (e) No tax deduction is available for products dumped or sold to a liquidator.

Answer

(c) The law allows a deduction in excess of the cost of manufacturing the products.

The last paragraph says the deduction equals cost plus half the difference between cost and fair market price, so it is above cost. That gives manufacturers a real financial reason to donate. Option (e) is wrong because dumped goods do get a straight-cost write-off.

Answer checked by Claude Sonnet · Oct 21, 2026

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KUSOM Information Bulletin for Admission Test and Sample Test Questions

Choose the best version of the underlined part (A repeats the original).
The black hole has entered the popular imagination as an object <u>too massive that neither light nor matter can escape its</u> gravitational pull.
(a) too massive that neither light nor matter can escape its (b) too massive for either allowing light or matter to escape its (c) massive enough that either light or matter cannot escape their (d) so massive that neither light nor matter could escape their (e) so massive that neither light nor mater can escape its

Answer

(e) so massive that neither light nor matter can escape its

"So ... that" is the correct pattern for a result, whereas "too massive that" is faulty. "Neither ... nor" is used correctly, and the singular "its" agrees with "object". Option (e) is the only choice that meets all three, reading "mater" as a typo for "matter". Options (c) and (d) use the plural "their", and (d) also wrongly uses "could".

Answer checked by Claude Sonnet · Oct 21, 2026

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KUSOM Information Bulletin for Admission Test and Sample Test Questions

Choose the best version of the underlined sentence (A repeats the original).
<u>After crude oil, natural gas is the United States' second biggest fuel source and supplied almost exclusively from reserves in North America.</u>
(a) After crude oil, natural gas is the United States' second biggest fuel source and supplied almost exclusively from reserves in North America. (b) Natural gas, after crude oil the United States' second biggest fuel source, supplied almost exclusively from reserves in North America. (c) Being supplied almost exclusively from reserves in North America, natural gas, the United States' second biggest fuel source after crude oil. (d) Natural gas, the United States' second biggest fuel source after crude oil, is supplied almost exclusively from reserves in North America. (e) Natural gas is supplied almost exclusively from reserves in North America, being the United States' second biggest fuel source after crude oil.

Answer

(d) Natural gas, the United States' second biggest fuel source after crude oil, is supplied almost exclusively from reserves in North America.

This version has a complete sentence with a subject (natural gas), an appositive phrase and the main verb "is supplied". The other versions lack a main verb or have awkward modifiers.

Answer checked by Claude Sonnet · Oct 21, 2026

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Questions from KUSOM Information Bulletin for Admission Test and Sample Test Questions (KUMAT model question set) (Official KU School of Management model question set for KUMAT (MBA entrance); figure-based items omitted). Answers are written for this site; check them against your class notes.