Question

The author suggests that which of the following is a true statement about people who typify the “old style capitalist” referred to in the line marked with **?

• A. They now rely on outdated management techniques.
• B. They seldom engaged in short-term trading of the stock they owned.
• C. They did not influence the investment policies of the corporations in which they invested.
• D. They now play a much smaller role in the stock market as a result of anti-trust legislation.
• E. They were primarily concerned with maximizing the short-term profitability of the corporations in which they owned stock.

Answer 1

The correct option is B

They seldom engaged in short-term trading of the stock they owned.

To answer this question, use information contained in the passage to infer something about the "old-style capitalist" referred to.
The best answer is 'They seldom engaged in short-term trading of the stock they owned'.
According to the lines of the passage, the individual capitalists of the past, referred to later in the passage as "old-style" capitalists, could not "sell out for a quick profit" because to do so would depress the value of the stocks. From this statement, it can be inferred that someone who typifies the "old-style capitalist" would be unlikely to engage in short-term stock trading.