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ExamsIBPS POGeneral Awareness

Statement: Google, which dominates much of life on the Internet, has been trying to expand beyond computers and telephones to living rooms, cars, and bodies. It made its way a bit further into people's homes when it agreed to pay $3.2 billion in cash for Nest Labs, which makes Internet-connected devices like thermostats and smoke alarms. But it has agreed that Nest's privacy policies are going to be well-respected. For Google, gaining visibility into people's habits beyond computers and phones — whether watching television using Chromecast, taking a walk wearing Google Glass, or managing their homes using Nest products — will provide a fuller picture of users. Question: Which of the following arguments would most weaken Nest's beliefs?

  1. Google products can easily be integrated into Nest.
  2. Unlike many of Silicon Valley's most popular companies that make software that costs very little to build, Nest is capital-intensive because it builds hardware.
  3. To follow the terms and conditions, Google must make some changes in Nest's privacy policies.
  4. The deal between the two companies has not yet closed.

Correct answer: To follow the terms and conditions, Google must make some changes in Nest's privacy policies.

Solution

Nest's belief depends on the assumption that its privacy policies will remain respected after the deal. If Google must change those privacy policies to comply with terms and conditions, that directly weakens the belief. The other options do not challenge the privacy assumption as strongly.

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