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
Graduate and managerial level verbal reasoning tests 237
M10_WILL4537_01_SE_C10.QXP:M10_WILL4537_01_SE_C10 16/11/09 11:34 Page 237

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