Brilliant Verbal Reasoning Tests

32) The passage cites three main reasons for deficits in compa-

nies’ pension funds. (FALSE)

Actually only two reasons are given.These are tumbling share

prices and longer life expectancy . . . So the answer is FALSE.

33) Current legislation allows British businesses to default on

their pension obligations when they restructure. (FALSE)

This is FALSE because the passage states that A company is

currently required to fully cover its pension liabilities when dis-

posing of a division . . .

34) Controversy surrounds the possibility of any relaxation of

pension rules associated with restructuring. (TRUE)

The answer to this question is TRUE. This is because the

passage argues both for and against the relaxation of

pension rules about restructuring. Proponents believe that

the current rule is: obstructive to corporate activity. In theory,

new legislation could allow businesses to transfer their pension lia-

bilities to other divisions. The passage goes on to give the

argument against as follows: However critics believe that this

could give organisations carte blanche to shift their pension obli-

gations to entities likely to become insolvent, thus forcing other

organisations to subsidise their pension commitments.

35) A change in pension legislation will help companies to

reduce the hole in their pension schemes. (CAN’T TELL)

Although at the outset the passage clearly states that many

companies have acute shortfalls in their pension funds the ques-

tion of whether or not the proposed legislation will help

companies to reduce the hole in their pension schemes is

not discussed. Thus the answer to the question must be

CAN’T TELL.

Pill-Tech Pharmaceutical today announced its definitive agreement to

purchase Sosa Labs, a privately owned biotechnology company, for

$195 million. Hans Bitter, CEO of Pill-Tech, stated,‘Sosa Labs has the

expertise – and now the resources – to develop new drugs for Pill-Tech

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