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OG_VPR # 7 As the finances of the energy-trading firm began

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OG_VPR # 7 As the finances of the energy-trading firm began [#permalink]  10 Oct 2016, 02:10
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Question Stats:

53% (00:52) correct 46% (01:00) wrong based on 181 sessions
As the finances of the energy-trading firm began unraveling, what eventually became (i) ________ was that the company had been concocting “value” out of thin air, thanks not to the trading strategies it promoted as visionary but to financial (ii) ________ that turned a once-solid entity into the most notorious (iii) ________ in an era of corporate scandals.

 Blank i Blank ii Blank iii a) vindicated d) redemption g) omission b) unmistakable e) responsibilities h) boon c) unverifiable f) games i) debacle

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Question: 7
Page: 125
[Reveal] Spoiler: OA

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Founder
Joined: 18 Apr 2015
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Kudos [?]: 3153 [0], given: 11586

Re: OG_VPR # As the finances of the energy-trading firm began un [#permalink]  10 Oct 2016, 02:17
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Explanation

The characterization of the company’s activities as “concocting ‘value’ out of thin air” strongly suggests that its transactions have been fraudulent. The word that completes Blank (ii) must reflect this financial trickery; “games” does so, whereas both “redemption” and “responsibilities” both reflect more upstanding behavior than the sentence ascribes to the firm. The word that completes Blank (iii) should reflect the company’s fall from respectability and have a sense opposite to the “once-solid entity” with which it is contrasted. “Debacle” does this nicely, while the other two choices lack the necessary pejorative meaning. For Blank (i), “vindicated” suggests that there had been previous warnings about the firm’s practices that were eventually borne out, something indicated nowhere else in the passage. “Unverifiable” is at odds with the sentence’s surety about the firm’s wrongdoing; that assurance is best conveyed by “unmistakable.” Thus the correct answer is unmistakable (Choice B), games (Choice F), and debacle (Choice I).
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Re: OG_VPR # 7 As the finances of the energy-trading firm began [#permalink]  12 Jul 2019, 22:00
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Re: OG_VPR # 7 As the finances of the energy-trading firm began [#permalink]  12 Jul 2019, 22:06
Actually I am not clear about blank i) and ii)
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Re: OG_VPR # 7 As the finances of the energy-trading firm began [#permalink]  13 Jul 2019, 10:38
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1)
As the finances of the energy-trading firm began unraveling,

Here the suggestion from this modifier is that we are going to uncover the financial situation of a firm. Now, usually when something comes up in a similar scenario is something bad about the position or statement of the firm itself. Think about the real business world: IF all is fine: the balance sheet, the auditors have nothing to point out to the firm, then all is fine. Here, something is going on badly for it

2)
what eventually became (i) ________ was that the company had been concocting “value” out of thin air,

the meaning of this portion of the sentence is that, as in the financial gergo, the firm from its conducting it is selling to the stakeholders and shareholders (maybe) is fluff, nothing, fried air. It is carving "value" from nothing concrete. So, what is really clear, as the situation is emerging, is that without a shadow of the doubt, the firm is making a fraud. So B is the clear win word here.

3)
thanks not to the trading strategies it promoted as visionary but to financial (ii) ________ that turned a once-solid entity into the most notorious (iii) ________ in an era of corporate scandals.

The "value" out of thin air is the clear result of a game (think about the Ponzi Scheme for instance) which turned what was a solid and well-established firm into a debacle, a complete failure in an era of corporate scandals.

Hope this helps now
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Re: OG_VPR # 7 As the finances of the energy-trading firm began [#permalink]  26 Jul 2020, 21:44
the company had been concocting “value” out of thin air means?
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Re: OG_VPR # 7 As the finances of the energy-trading firm began [#permalink]  26 Jul 2020, 22:00
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taukir wrote:
the company had been concocting “value” out of thin air means?

The company was showing false values (not real values).
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Re: OG_VPR # 7 As the finances of the energy-trading firm began [#permalink]  27 Jul 2020, 04:39
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Great sukrut
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Re: OG_VPR # 7 As the finances of the energy-trading firm began   [#permalink] 27 Jul 2020, 04:39
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