In past decades

[akhp77]

Source: Manhattan GMAT CR 4th Ed, Page: 188

In past decades, private equity investors used to compete for exclusive participation in investments. Now, in response to both the growing scale of investments and increased competition to participate, private equity funds often form syndicates or clubs and jointly take positions in large investment. Clearly, the reason investors do this is to allow them to spread some of the risk and also gain access to a broader range of investments and opportunities.

Which of the following statements by a private equity investor best defines the changing attitude described in the argument above?

A: We would rather beat our competition by working with them in order to find out their strengths and weakness.
B: In order to keep up with our competition, we should investing small and only invest in a very large opportunities.
C: In order to make sure that we can participate in certain investment, we should expect to cooperate with ours competition on occasion.
D: To avoid taking any risks, it is necessary to stop competing with our former competitors.
E: In response to changing market conditions, we should participate only in investment that allow us to take better position that our competitors.

OA: C

I could not understand stimulus clearly and question stem. How to break down it. What should be the approach?

[tim]

Okay, so the stem is telling us that there was a changing attitude on the part of the investors. They kind of told us in the argument what that changing attitude was, and the question is just asking us to restate that changing attitude. So in other words, WHY are the investors changing from a competition to a cooperation mindset? To approach the question, i recommend trying to predict an answer ahead of time, so at least you have some sense of what an acceptable answer might look like. Remember, don't EVER do this in SC, but in CR and RC i find it is frequently helpful..