PT131.S2.Q2

SECTION 1 · lr

Question 1 Question 2 Question 3 Question 4 Question 5 Question 6 Question 7 Question 8 Question 9 Question 10 Question 11 Question 12 Question 13 Question 14 Question 15 Question 16 Question 17 Question 18 Question 19 Question 20 Question 21 Question 22 Question 23 Question 24 Question 25

SECTION 2 · lr

Question 1 Question 2 Question 3 Question 4 Question 5 Question 6 Question 7 Question 8 Question 9 Question 10 Question 11 Question 12 Question 13 Question 14 Question 15 Question 16 Question 17 Question 18 Question 19 Question 20 Question 21 Question 22 Question 23 Question 24 Question 25 Question 26

SECTION 3 · lr

Question 1 Question 2 Question 3 Question 4 Question 5 Question 6 Question 7 Question 8 Question 9 Question 10 Question 11 Question 12 Question 13 Question 14 Question 15 Question 16 Question 17 Question 18 Question 19 Question 20 Question 21 Question 22 Question 23 Question 24 Question 25

SECTION 4 · rc

PASSAGE 1
Question 1 Question 2 Question 3 Question 4 Question 5 Question 6 Question 7 Question 8

PASSAGE 2
Question 9 Question 10 Question 11 Question 12 Question 13 Question 14 Question 15

PASSAGE 3
Question 16 Question 17 Question 18 Question 19 Question 20 Question 21 Question 22

PASSAGE 4
Question 23 Question 24 Question 25 Question 26 Question 27

PrepTest 131 - Section 2 - Question 2

Question

Explanation

Analytics

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Price: Conclusion A corporation's primary responsibility is to its shareholders. ████ ███ ███ ████ █████████ ████████████ ███████ ████ ████ ███ ████████ ██████ ██ ███ ███████████ ████ █████████ ████ ████ █████ ███████████

█████████ ████████████ █████████ ████ ███████████ ██████████ ███████████ ███ ██████████ ████████ ███ ██████████ ██ ███ ███████████ ███ █████ ████ ████ ██████ ██ ████ ██████████ █████ ████ ███████████ ███ █████████████ ███████ ██████████████ ██████ ██ ██ █████

Speaker 1 Summary

Price says that a corporation’s primary responsibility is to its shareholders. Why? Because shareholders take the biggest risks. And what risks are those? Well, if the company goes under, the shareholders lose their investment.

Speaker 2 Summary

Albrecht says that a corporation’s primary responsibility should instead be to its employees. Why? Firstly, shareholders usually have many investments (meaning their risk in a single company isn’t all that great). Secondly, an employee’s entire livelihood is at risk if the company goes bankrupt. This implies that employees actually take a greater risk, making them a more important responsibility.

Objective

We need to find a disagreement between Price and Albrecht. They disagree about whether shareholders or employees take the greatest risks, and should therefore be a company’s primary responsibility.

Analysis by AlexandraNash

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On the basis of their ███████████ █████ ███ ████████ ███ █████████ ██ ███████████ █████ ███████

corporations have a ██████████████ ██ █████ ████████████

Price definitely agrees with this, but Albrecht never disagrees. Albrecht thinks that shareholders shouldn’t be the primary responsibility of a corporation, but that doesn’t mean the corporation has no responsibility at all towards shareholders.

corporations are responsible ███ ███ ███████ ██ █████ █████████

Albrecht agrees with this, but Price doesn’t express disagreement. Price doesn’t think that employees are the primary responsibility of a corporation, but that doesn’t mean that corporations have no responsibility towards employees at all.

means should be ████████ ███ █ █████████████ █████████ ██ ██████ █████ ██████ ██ ███ ███████████ ████ ████████

Neither speaker talks about contingency measures in the case a corporation goes bankrupt. Price and Albrecht’s discussion is about who has the most to lose in a company’s bankruptcy, not what measures could help lower that risk.

a corporation's shareholders ████ ████ ██ █████ ████ ██████ ████ ████ ██ ███ █████████████ ███████ ██ ███████

Price agrees with this but Albrecht disagrees, so this is the point of disagreement. Price claims that shareholders’ investments make them the group with the most to lose in bankruptcy. Albrecht, however, thinks employees risk more with the possible loss of their livelihoods.

the livelihood of ████ ██ ███ ████████████ ███████ ██ ███ █████████████ ███████

Neither speaker makes this claim. This is compatible with both Price’s and Albrecht’s arguments, but neither of them discusses one way or another if any shareholders’ livelihoods depend on a company’s success.

Difficulty

Question

91% of people who answer get this correct

This is a moderately difficult question.

CURVE

Score of students with a 50% chance of getting this right

25% 135

143

75% 151

Analysis

Question Stem Tags

Point at issue: disagree

Stimulus Tags

Value judgment

Answer Popularity

Popularity Avg. score

155

153

91%

165

158

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