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ATMA practice questions

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Question 1Verbal Ability

Choose the word that best completes the sentence: The committee's report was so ______ that even its critics conceded it had covered every relevant point.

  1. exhaustive Correct answer.
  2. exhaustion
  3. exhausting
  4. exhausted

Explanation

The blank needs an adjective describing the report, and the sense required is 'complete, thorough'. 'Exhaustive' means comprehensive and leaving nothing out, which fits the concession that every point was covered. The other forms are a past participle, a present participle and a noun, none of which conveys completeness.

Question 2Verbal Ability

In the sentence 'The auditor, having reviewed the ledgers twice, submitted a terse summary', the phrase 'having reviewed the ledgers twice' functions as which grammatical element?

  1. A noun phrase acting as object
  2. A participial phrase modifying 'The auditor' Correct answer.
  3. An absolute clause with its own subject
  4. A restrictive relative clause

Explanation

A participial phrase built on 'having + past participle' is non-finite and attaches to the subject of the main clause. Here it describes the auditor's prior action, so it modifies 'The auditor'. It contains no subject of its own, no relative pronoun and no noun head, which rules out the other labels.

Question 3Verbal Ability

Select the pair whose words are related in the same way as THRIFTY : EXTRAVAGANCE.

  1. Cautious : recklessness Correct answer.
  2. Wealthy : affluence
  3. Generous : kindness
  4. Timid : shyness

Explanation

The stem pairs a quality with the vice that is its opposite or absence: thrift stands against extravagance. 'Cautious' stands against 'recklessness' in the same oppositional way. The remaining pairs are synonym or near-synonym relations, not contrasts.

Question 4Verbal Ability

Identify the error in the sentence: 'Neither the manager nor the assistants was willing to accept responsibility for the missing files.'

  1. 'missing' should be 'missed'
  2. 'was' should be 'were' Correct answer.
  3. 'Neither' should be 'Either'
  4. 'nor' should be 'or'

Explanation

With a 'neither...nor' construction, the verb agrees with the nearer subject. The nearer subject here is the plural 'assistants', so the verb must be plural: 'were willing'. The conjunction pair and the participle 'missing' are both correctly used.

Question 5Verbal Ability

Choose the option that best restates the sentence without changing its meaning: 'Had the firm disclosed the defect earlier, the recall would have been less costly.'

  1. The recall was costly because the defect was disclosed late. Correct answer.
  2. The firm never disclosed the defect at all.
  3. The recall was costly although the defect was disclosed early.
  4. The firm disclosed the defect early, so the recall cost little.

Explanation

The original is a third conditional with inversion: an earlier disclosure did not happen, and the late disclosure caused greater cost. The correct restatement preserves both the fact of late disclosure and its causal link to high cost. Options that claim early disclosure or no disclosure contradict the premise.

Question 6Verbal Ability

Choose the word that best fits: The witness's account was ______ by the security footage, which showed the same sequence of events.

  1. contradicted
  2. embellished
  3. postponed
  4. corroborated Correct answer.

Explanation

The footage showed the same sequence, so it supports the account. 'Corroborated' means confirmed or backed by additional evidence, which matches the supporting footage. The other verbs either assert conflict or are unrelated to evidential support.

Question 7Verbal Ability

Read the short passage and answer: 'The startup's founders celebrated their funding round, but seasoned investors warned that capital without a clear path to revenue often masks deeper problems.' The investors' attitude toward the founders' celebration is best described as which of the following?

  1. Cautionary Correct answer.
  2. Admiring
  3. Envious
  4. Indifferent

Explanation

The investors warn that money without a revenue plan can hide deeper problems, which is a note of caution rather than praise or hostility. The word 'warned' signals a cautionary stance. Nothing in the passage suggests envy, indifference or admiration.

Question 8Verbal Ability

Which sentence uses the semicolon correctly?

  1. The proposal was ambitious; and it lacked a realistic budget.
  2. The proposal was ambitious; because it lacked a realistic budget.
  3. The proposal was ambitious; however, it lacked a realistic budget. Correct answer.
  4. The proposal was ambitious; lacking a realistic budget.

Explanation

A semicolon may join two independent clauses, and it is also standard before a conjunctive adverb like 'however' that links them. Only the first option places a complete clause on each side with a proper connector. The others attach a conjunction or fragment that the semicolon cannot govern.

Question 9Verbal Ability

Choose the word most nearly opposite in meaning to FRUGAL.

  1. Sparing
  2. Prudent
  3. Wasteful Correct answer.
  4. Economical

Explanation

'Frugal' means careful with money and resources. Its opposite is 'wasteful', which describes careless or excessive spending. The other three options are synonyms or near-synonyms of frugal, so they cannot be antonyms.

Question 10Verbal Ability

In the sentence 'Only after the audit did the board realise the scale of the losses', the inverted auxiliary 'did' appears because of which construction?

  1. A fronted negative-limiting adverbial Correct answer.
  2. An imperative
  3. A direct question
  4. A conditional clause without 'if'

Explanation

When an adverbial beginning with a limiting word like 'only' is placed at the front, subject-auxiliary inversion follows in formal English. 'Only after the audit' triggers 'did the board realise'. The clause is declarative, not a question, conditional or command.

Question 11Verbal Ability

Fill in the blank: The negotiations collapsed because neither side was willing to make any ______.

  1. concession
  2. conceding
  3. concessionary
  4. concessions Correct answer.

Explanation

'Any' before a countable noun in a negative context normally takes a plural, and the sense required is mutual compromises. 'Concessions' fits both the grammar and the meaning of give-and-take in negotiations. The singular, gerund and adjective forms do not fit the noun slot after 'any'.

Question 12Verbal Ability

Which option best captures the logical relationship in this sentence: 'Although the drug showed promise in trials, regulators withheld approval pending further safety data.'

  1. Comparison between two similar drugs
  2. Condition followed by its consequence
  3. Concession followed by an opposing action Correct answer.
  4. Cause followed by its effect

Explanation

'Although' introduces a concessive clause acknowledging a positive point, and the main clause states an action that runs counter to expectation. This is concession plus contrast, not causation, condition or comparison. The promise in trials would normally suggest approval, so the withholding is the opposing outcome.

Question 13Verbal Ability

Choose the correctly formed sentence.

  1. Scarcely had the meeting begun when the fire alarm rang. Correct answer.
  2. Scarcely did the meeting begun when the fire alarm rang.
  3. Scarcely the meeting had begun when the fire alarm rang.
  4. Scarcely had the meeting begun than the fire alarm rang.

Explanation

'Scarcely' at the start of a clause triggers inversion ('had the meeting begun') and pairs with 'when' for the second event. Only the first option shows both the correct inversion and the correct conjunction. The others break the inversion, the pairing or the verb form.

Question 14Verbal Ability

Select the pair whose relationship matches DILIGENT : NEGLIGENT.

  1. Brave : courageous
  2. Honest : truthful
  3. Candid : evasive Correct answer.
  4. Rapid : swift

Explanation

'Diligent' and 'negligent' are opposites: careful versus careless. 'Candid' and 'evasive' are likewise opposites: open versus avoiding disclosure. The other pairs are all synonyms, so they do not match the contrast relation.

Question 15Verbal Ability

Identify the part of the sentence that contains an error: 'The number of applicants (A) have risen sharply (B) since the firm (C) began offering remote work (D).'

  1. Part B: 'have risen sharply' Correct answer.
  2. Part C: 'since the firm'
  3. Part A: 'The number of applicants'
  4. Part D: 'began offering remote work'

Explanation

The subject is 'The number', which is singular, so the verb must be 'has risen', not 'have risen'. The phrase 'of applicants' modifies the subject and does not make it plural. The remaining parts are grammatically sound.

Question 16Verbal Ability

Choose the word that best completes the sentence: The professor's lecture was praised for its ______, moving smoothly from theory to practice without any jarring shifts.

  1. coherent
  2. cohere
  3. coherently
  4. coherence Correct answer.

Explanation

The possessive 'its' requires a noun, and the sense is logical connectedness. 'Coherence' is the noun meaning unity and smooth logical flow, matching the description of smooth transitions. The adjective, adverb and verb forms cannot follow 'its' in this slot.

Question 17Verbal Ability

Read the passage and choose the best inference: 'The city planted thousands of trees along its busiest roads. Three years later, air-quality monitors recorded noticeably lower particulate levels on those same streets.' Which conclusion is best supported?

  1. The tree planting plausibly contributed to the improved air quality. Correct answer.
  2. Tree planting is the only way to reduce particulates.
  3. The monitors were faulty during the earlier readings.
  4. The tree planting definitely caused all of the improvement.

Explanation

The passage reports a correlation between planting and lower particulates on the same streets, which supports a plausible contribution without proving sole causation. The cautious wording matches the evidence given. Assertions of definite total causation or claims about faulty monitors go beyond the text.

Question 18Verbal Ability

Choose the option that best replaces the underlined portion to make the sentence grammatically correct: 'The report, along with its appendices, *were submitted* before the deadline.'

  1. were being submitted
  2. have submitted
  3. was submitted Correct answer.
  4. submit

Explanation

The subject is the singular 'The report'; the phrase 'along with its appendices' is parenthetical and does not change the number. The verb must therefore be singular: 'was submitted'. Plural or active forms misread the subject or the voice.

Question 19Verbal Ability

Select the word most nearly opposite to TRANSPARENT in the context of organisational conduct.

  1. Clear
  2. Obvious
  3. Candid
  4. Secretive Correct answer.

Explanation

In the context of conduct, 'transparent' means open and accountable. Its opposite is 'secretive', meaning inclined to conceal information. The other options all describe openness or clarity and are therefore synonyms rather than antonyms.

Question 20Verbal Ability

In the sentence 'The committee recommended that the policy be reviewed annually', the verb 'be' appears in which form?

  1. The imperative mood
  2. The subjunctive mood Correct answer.
  3. The conditional mood
  4. The indicative mood

Explanation

After verbs of recommendation such as 'recommend that', formal English uses the base form of the verb in a subjunctive clause, here 'be reviewed'. This expresses a desired or required action rather than a stated fact. The indicative would be 'is reviewed', and the clause is not a command or a conditional.

Question 21Verbal Ability

Choose the word that best completes the sentence: The negotiator's tone remained ______ throughout, never rising even when the opposing side made provocative remarks.

  1. equally
  2. equate
  3. equable Correct answer.
  4. equal

Explanation

The blank needs an adjective describing a tone that stays calm and even. 'Equable' means not easily disturbed, which fits a negotiator who never reacts sharply. The other forms are a different adjective sense, an adverb and a verb, none of which fits the slot.

Question 22Verbal Ability

Which option best restates the sentence without changing its meaning: 'No sooner had the results been published than the theory was challenged.'

  1. The results were never published, so the theory stood unchallenged.
  2. The theory was challenged long before the results were published.
  3. The theory was challenged almost immediately after the results were published. Correct answer.
  4. The results were published because the theory had been challenged.

Explanation

'No sooner...than' means one event followed the other almost at once. The correct restatement preserves that near-immediate sequence of publication followed by challenge. The other options reverse the order, invent a causal link or deny publication altogether.

Question 23Verbal Ability

Read the passage and answer: 'Critics of the new curriculum argue that it sacrifices depth for breadth. Supporters counter that students need exposure to many fields before specialising.' The two sides disagree mainly about which of the following?

  1. Whether teachers support the reform
  2. Whether students should specialise at all
  3. Whether the curriculum is affordable
  4. Whether broad coverage is worth the loss of depth Correct answer.

Explanation

The critics object to trading depth for breadth, while supporters defend breadth as preparation for later specialisation. The core dispute is therefore the value of broad coverage relative to depth. Affordability, teacher support and whether specialisation should exist are not the terms of this exchange.

Question 24Verbal Ability

Choose the option that correctly completes the sentence: 'If the team ______ the risks earlier, it would not be scrambling for a solution now.'

  1. has assessed
  2. would assess
  3. had assessed Correct answer.
  4. assessed

Explanation

This is a mixed conditional: a past condition with a present result ('would not be scrambling now'). The condition requires the past perfect 'had assessed'. Present perfect, simple past and 'would' forms do not fit the unreal past condition.

Question 25Verbal Ability

Select the pair whose relationship matches METICULOUS : SLOPPY.

  1. Famous : renowned
  2. Proud : arrogant
  3. Arrogant : humble Correct answer.
  4. Weary : tired

Explanation

'Meticulous' and 'sloppy' are opposites in care and precision. 'Arrogant' and 'humble' are similarly opposed in self-regard. The remaining pairs are synonyms or near-synonyms and so do not match the contrast.

Question 26Verbal Ability

Choose the word that best completes the sentence: The auditor's report was ______, noting every discrepancy no matter how small, and the board praised its thoroughness.

  1. cursory
  2. meticulous Correct answer.
  3. ambiguous
  4. redundant

Explanation

The clause 'noting every discrepancy no matter how small' signals extreme attention to detail, which 'meticulous' precisely denotes. The praise for thoroughness confirms a positive word describing careful, exhaustive work.

Question 27Verbal Ability

Choose the word most nearly opposite in meaning to VERBOSE.

  1. wordy
  2. rambling
  3. terse Correct answer.
  4. florid

Explanation

'Verbose' describes speech or writing that uses more words than necessary. Its antonym must describe economy of expression, and 'terse' means brief and to the point. The other options all describe excessive or ornate language.

Question 28Verbal Ability

In the sentence 'Had the auditors arrived earlier, they would have uncovered the fraud', the opening clause is best described as which grammatical structure?

  1. A relative clause modifying 'auditors'
  2. A participial phrase modifying 'they'
  3. A conditional clause with inversion replacing 'if' Correct answer.
  4. An imperative clause issuing a command

Explanation

The clause 'Had the auditors arrived earlier' is a third conditional in which the auxiliary 'had' moves before the subject, replacing 'if'. It expresses an unreal past condition. No relative pronoun or participle heads the clause, and it is not a command.

Question 29Verbal Ability

Fill in the blank: The two departments worked at ______ purposes, one cutting costs while the other expanded spending, so the project stalled.

  1. cross Correct answer.
  2. parallel
  3. common
  4. joint

Explanation

The idiom 'at cross purposes' means pursuing conflicting aims, which the contrasting clauses about cutting and expanding spending illustrate. The result 'so the project stalled' confirms conflict rather than cooperation.

Question 30Verbal Ability

Read the passage and choose the best inference: 'The library extended its weekend hours for a semester and recorded a forty per cent rise in weekend visits. The following semester it restored the shorter hours, and weekend visits returned to their earlier level.'

  1. Weekend visits rose for reasons unrelated to the library's opening hours.
  2. The extended hours probably contributed to the higher weekend attendance. Correct answer.
  3. Students preferred the shorter hours because they studied more efficiently.
  4. The library's total annual attendance fell during the trial semester.

Explanation

Visits rose when hours were extended and fell back when the extension was withdrawn, a pattern consistent with the hours influencing attendance. Since the only stated change was the schedule, the most reasonable inference is that the extended hours drew more visitors.

Question 31Verbal Ability

Select the pair whose relationship matches the one in ENIGMATIC : CLARITY.

  1. Audacious : caution Correct answer.
  2. Eloquent : fluency
  3. Frugal : thrift
  4. Prudent : foresight

Explanation

Something enigmatic lacks clarity, so the pair links a quality to the attribute it is deficient in. 'Audacious' likewise describes a lack of caution. The other pairs link a positive trait to the quality it displays rather than lacks.

Question 32Verbal Ability

Identify the part of the sentence that contains an error: 'Each of the proposals (A) were reviewed by the panel (B) before a final decision (C) was announced to the staff (D).'

  1. A
  2. C
  3. B Correct answer.
  4. D

Explanation

The subject of the clause is 'Each', a singular pronoun, so the verb must be singular: 'was reviewed'. The phrase 'of the proposals' is a prepositional modifier and does not change the number of the subject. Parts C and D are correctly formed.

Question 33Verbal Ability

Choose the option that best replaces the underlined portion to make the sentence grammatically correct: 'The consultant, together with two junior analysts, ___ scheduled to present the findings.'

  1. was Correct answer.
  2. have been
  3. are
  4. were

Explanation

When a subject is followed by 'together with', the intervening phrase does not affect the verb's number. The true subject is the singular 'consultant', so the singular past 'was' is required. Plural forms would wrongly agree with 'analysts'.

Question 34Verbal Ability

Which option best captures the logical relationship in this sentence: 'The new policy reduced paperwork, yet it increased the time managers spent approving routine requests.'

  1. Addition, since the second clause lists a further benefit
  2. Causation, since the second clause explains why the first occurred
  3. Condition, since the second clause depends on the first being true
  4. Concession, since the second clause limits the benefit claimed in the first Correct answer.

Explanation

The conjunction 'yet' signals contrast: a stated benefit is qualified by an acknowledged drawback. This is the structure of concession, where one point is granted while a counterpoint is introduced. The two clauses are both true and stand in tension rather than in cause or condition.

Question 35Verbal Ability

Choose the correctly formed sentence for a formal written report.

  1. Neither the manager nor the employees were aware of the deadline change. Correct answer.
  2. Neither the manager or the employees were aware of the deadline change.
  3. Neither the manager nor the employees was aware of the deadline change.
  4. Neither the manager nor the employees been aware of the deadline change.

Explanation

With 'neither...nor', the verb agrees with the nearer subject, which here is the plural 'employees', so 'were' is correct. The correlative pair must also be 'neither...nor', not 'neither...or', and a finite verb is required.

Question 36Verbal Ability

Choose the word that best completes the sentence: The committee's findings were ______, resting on a single interview and no documentary evidence.

  1. conclusive
  2. tenuous Correct answer.
  3. exhaustive
  4. robust

Explanation

The clause after the blank describes an extremely thin evidentiary base, so the findings are weakly supported. 'Tenuous' means flimsy or insubstantial, matching that description. The other options imply strength or completeness.

Question 37Verbal Ability

Read the passage and answer: 'Remote work reduced commuting costs for employees, yet many reported longer working hours. Some analysts conclude that the boundary between office and home simply dissolved, leaving workers always available.' Which statement is best supported by the passage?

  1. The analysts argue that commuting costs are irrelevant to employee welfare.
  2. The passage proves that remote work always increases productivity.
  3. The analysts interpret longer hours as evidence that work and home boundaries weakened. Correct answer.
  4. Employees saved money on commuting but worked fewer hours overall.

Explanation

The passage attributes to analysts the claim that the office-home boundary 'simply dissolved', offered as their explanation for longer hours. That is exactly the interpretation the first option restates. The other options either contradict stated facts or introduce claims absent from the text.

Question 38Verbal Ability

In the sentence 'The board insisted that the chief executive resign before the annual meeting', the verb 'resign' appears in which form?

  1. The indicative, stating a fact about the chief executive
  2. The subjunctive, expressing a demanded action Correct answer.
  3. The infinitive, functioning as a noun object
  4. The imperative, issuing a direct command to the reader

Explanation

Verbs of insistence such as 'insist that' take the mandative subjunctive in formal English, where the base form 'resign' is used regardless of subject. The clause expresses a demanded action rather than a stated fact. It is not an infinitive because no 'to' precedes it.

Question 39Verbal Ability

Which option best restates the sentence without changing its meaning: 'Not until the final quarter did the company acknowledge the scale of its losses.'

  1. The company's losses were largest in the final quarter.
  2. The company acknowledged the scale of its losses before the final quarter.
  3. The company acknowledged the scale of its losses only in the final quarter. Correct answer.
  4. The company never acknowledged the scale of its losses.

Explanation

'Not until X did Y' means Y happened only at time X, so the acknowledgment occurred in the final quarter and not before. The first option preserves that timing exactly. The others alter the time, deny the acknowledgment, or confuse losses with acknowledgment.

Question 40Verbal Ability

Choose the option that correctly completes the sentence: 'If the team ______ the risks earlier, it would not be scrambling to revise the plan now.'

  1. would assess
  2. had assessed Correct answer.
  3. assessed
  4. has assessed

Explanation

The main clause uses 'would not be scrambling now', a present consequence of an unreal past condition, so the if-clause requires the past perfect 'had assessed'. This mixed conditional links a past omission to a present problem. Simple past or present perfect would break the time relationship.

Question 41Verbal Ability

Select the pair whose relationship matches the one in EPHEMERAL : DURATION.

  1. Fragile : strength
  2. Redundant : repetition
  3. Infallible : error Correct answer.
  4. Lucid : confusion

Explanation

Something ephemeral is defined by its lack of duration, so the pair links a quality to the attribute it lacks. 'Infallible' similarly denotes the absence of error. The other pairs either affirm the second quality or describe a different kind of deficiency.

Question 42Verbal Ability

Choose the word that best completes the sentence: The spokesperson's answers were so ______ that reporters left without a single usable quotation.

  1. candid
  2. evasive Correct answer.
  3. forthcoming
  4. explicit

Explanation

Reporters leaving with no usable quotation implies the answers dodged the questions. 'Evasive' means deliberately vague or avoiding commitment, which explains the outcome. The other options describe openness and would produce quotable material.

Question 43Verbal Ability

Identify the error in the sentence: 'The report, along with its appendices, were submitted to the regulator after months of delay.'

  1. 'after months of delay' should be 'after months of delays'
  2. 'to the regulator' should be 'for the regulator'
  3. 'were submitted' should be 'was submitted' Correct answer.
  4. 'along with' should be 'along to'

Explanation

The subject is the singular 'report'; the phrase 'along with its appendices' is parenthetical and does not make the subject plural. The verb must therefore be singular: 'was submitted'. The remaining phrases are grammatically acceptable as written.

Question 44Verbal Ability

Read the passage and choose the best inference: 'The museum made entry free on Sundays. Attendance on Sundays doubled, but donations fell by a third, and weekday attendance was unchanged.'

  1. Free entry drew visitors who were less likely to donate than paying visitors. Correct answer.
  2. The museum's overall attendance halved after the policy began.
  3. Sunday visitors donated more per person than paying visitors did.
  4. Free entry caused weekday visitors to stop attending the museum.

Explanation

Sunday attendance doubled while donations dropped by a third, and weekday figures stayed flat, so the new Sunday visitors appear to have given less than the paying visitors they replaced. That is the most economical explanation of the two movements together.

Question 45Verbal Ability

Choose the option that best replaces the underlined portion: 'Having finished the audit, ___'

  1. the findings' presentation to the board was by the team
  2. the findings were presented by the team to the board
  3. the board was presented the findings by the team
  4. the team presented its findings to the board Correct answer.

Explanation

A participial phrase at the start of a sentence must modify the subject of the main clause. The team, not the findings, is what finished the audit, so 'the team' must be the subject. This avoids a dangling modifier.

Question 46Verbal Ability

Choose the word most nearly opposite in meaning to PROFLIGATE in the context of public spending.

  1. thrifty Correct answer.
  2. wasteful
  3. extravagant
  4. lavish

Explanation

'Profligate' spending is reckless and wasteful. Its antonym must describe careful economy, which 'thrifty' supplies. The other three options are near-synonyms of profligate and cannot be opposites.

Question 47Verbal Ability

Which sentence uses the colon correctly in formal prose?

  1. The committee's conclusion was: that the policy could not be implemented as drafted.
  2. The committee reached one conclusion, namely: the policy could not be implemented.
  3. The committee reached: one conclusion that the policy could not be implemented.
  4. The committee reached one conclusion: the policy could not be implemented as drafted. Correct answer.

Explanation

A colon may follow a complete independent clause to introduce an explanation or elaboration. In the first option, 'The committee reached one conclusion' is a full clause and what follows explains it. The other options place the colon between a verb and its object or after a redundant connector.

Question 48Verbal Ability

In the sentence 'The scientist whose paper was retracted declined to comment', the word 'whose' functions as which element?

  1. A subordinating conjunction introducing an adverbial clause
  2. A possessive relative pronoun introducing a clause that modifies 'scientist' Correct answer.
  3. An interrogative pronoun introducing a direct question
  4. A demonstrative adjective pointing to a specific paper

Explanation

'Whose' here is a relative pronoun in the possessive case, linking the clause 'whose paper was retracted' to its antecedent 'scientist'. It marks possession within the relative clause. It asks no question, points to nothing, and introduces no adverbial clause.

Question 49Verbal Ability

Choose the word that best completes the sentence: The editor cut the passage not because it was inaccurate but because it was ______, repeating the same point in four consecutive sentences.

  1. repetitive Correct answer.
  2. ambiguous
  3. novel
  4. concise

Explanation

The clause 'repeating the same point in four consecutive sentences' defines the flaw directly, and 'repetitive' names it. The contrast with 'inaccurate' shows the objection concerns redundancy rather than error. The other options describe virtues or an unrelated fault.

Question 50Verbal Ability

Read the passage and answer: 'Advocates of four-day weeks cite higher morale and lower overheads. Critics reply that the evidence comes largely from small firms in knowledge industries, and that gains may not transfer to hospitals or factories.' Which option best states the critics' central objection?

  1. Four-day weeks always reduce morale in hospitals and factories.
  2. The supporting evidence may not generalise beyond the kinds of firms studied. Correct answer.
  3. Overheads are the only benefit that advocates can demonstrate.
  4. Small firms in knowledge industries never report higher morale.

Explanation

The critics' point is about the limited sample: small knowledge-industry firms may not represent hospitals or factories, so the gains may not transfer. That is a claim about generalisability, not a denial of the reported benefits. The other options overstate or misreport the objection.