Question 74

From the given options, choose the sentence that completes the paragraph in the most appropriate way.

Age has a curvilinear relationship with the exploitation of opportunity. Initially, age will increase the likelihood that a person will exploit an entrepreneurial opportunity because people gather much of the knowledge necessary to exploit opportunities over the course of their lives, and because age provides credibility in transmitting that information to others. However, as people become older, their willingness to bear risks declines, their opportunity costs rise, and they become less receptive to new information.

[CAT 2006]

Solution

The para talks about the relationship between age and entrepreneurial spirit. When people are young, they tend to believe that age brings in more credibility in transmitting information to others. However, as people age, they become less receptive to information and their opportunity costs rise. Hence, it is very likely that they become reluctant to exploit entrepreneurial opportunities as they age. Statement D, therefore, is the best concluding statement.


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