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Sentence Rearrangement - Industry Competition

CAT 1992 Slot 1 · Verbal Ability & Reading Comprehension · Medium · Para Jumbles

This is a medium Verbal Ability & Reading Comprehension question from the CAT 1992 Slot 1 paper. It tests Para Jumbles. The full answer key and a step-by-step explanation are below — try it yourself first, then reveal the solution.

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Arrange the sentences A, B, C and D to form a logical sequence between sentences 1 and 6.

  1. Intensity of competition in an industry is neither a matter of coincidence nor bad luck. A. The collective strength of these forces determines the ultimate profit potential in the industry where profit potential is measured in terms of long run returns on invested capital. B. Rather, competition in an industry is rooted in its underlying economic structure and goes well beyond the behavior of current competitors. C. Not all industries have the same potential. D. The state of competition in an industry depends on five basic competitive forces.
  2. They differ fundamentally in their ultimate profit potential as the collective strength of the forces differ.
  1. A.

    CDBA

  2. B.

    DCAB

  3. C.

    BDAC

  4. D.

    ABDC

Answer

C

Explanation

The use of word 'rather' in B indicates that it should follow 1. D states that the competition depends on five basic competitive forces, A continues with the same idea. C states that not all industries have the same potential and this is elaborated in 6.

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