EA Reading Comprehension 2

Question 1

Passage: 'The governance of multinational corporations presents unique challenges for regulators. When a company operates across dozens of jurisdictions, it can exploit differences in tax codes, environmental standards, and labor laws. International agreements aimed at harmonizing these rules have achieved limited success, as individual nations are reluctant to cede regulatory authority.' What problem does the passage identify?

Accepted Answer

Differences in national rules allow multinationals to avoid uniform oversight

Answer

The passage describes how jurisdictional differences allow companies to exploit regulatory gaps, and notes international efforts to harmonize rules have had limited success.

Question 2

Passage: 'Cognitive load theory suggests that human working memory has a limited capacity. When instructional materials exceed this capacity, learning suffers. Educational designers therefore advocate for chunking information, using visual aids, and reducing extraneous content to optimize the learning experience.' Based on the passage, an instructor who presents too much information at once would most likely:

Accepted Answer

Overload working memory and impair student learning

Answer

According to the passage, when instructional materials exceed working memory capacity, 'learning suffers' — presenting too much at once directly causes this outcome.

Question 3

Passage: 'The term disruptive innovation was popularized by Clayton Christensen to describe how smaller companies with fewer resources can challenge established businesses. Disruptive innovations often begin by targeting overlooked segments of a market, offering simpler or more affordable products before eventually displacing incumbent firms.' The word 'incumbent' as used in the passage most nearly means:

Accepted Answer

Currently holding an established dominant market position

Answer

In business context, 'incumbent firms' refers to established companies currently holding dominant positions that disruptive innovators aim to eventually displace.

Question 4

Passage: 'Climate models predict with high confidence that average global temperatures will continue rising throughout the twenty-first century. The magnitude of warming depends critically on future greenhouse gas emissions, with the most severe projections requiring significant reductions in emissions to avoid. Adaptation strategies will be necessary regardless of mitigation efforts.' Which statement is best supported by the passage?

Accepted Answer

The severity of climate change depends significantly on future human choices about emissions

Answer

The passage states that warming magnitude 'depends critically on future greenhouse gas emissions,' directly establishing that human choices will determine the severity of outcomes.

Question 5

Passage: 'Venture capital funding for technology startups reached record levels in the early 2020s, fueled by low interest rates and investor optimism. When interest rates rose sharply in 2022 and 2023, funding contracted significantly. Many startups that had grown accustomed to plentiful capital were forced to cut costs, raise revenue, or shut down.' The passage implies that the contraction in venture capital funding was primarily caused by:

Accepted Answer

Rising interest rates that altered the investment environment

Answer

The passage uses 'when interest rates rose sharply' immediately before describing the funding contraction, establishing a direct causal link.

EA - Executive Assesment Practice Test

EA - Executive Assesment Practice Test

EA Reading Comprehension 2