PT134.S2.Q4 > Question

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

SECTION 3 · lr

SECTION 4 · rc

PASSAGE 1

Question 1 Question 2 Question 3 Question 4 Question 5 Question 6

PASSAGE 2

Question 7 Question 8 Question 9 Question 10 Question 11 Question 12

PASSAGE 3

Question 13 Question 14 Question 15 Question 16 Question 17 Question 18 Question 19

PASSAGE 4

Question 20 Question 21 Question 22 Question 23 Question 24 Question 25 Question 26 Question 27

The editorialist concludes that the president of a corporation has a duty to keep profits high because their role involves promoting the shareholders’ key interests.

The editorialist assumes that high profits are a key interest of shareholders and that by keeping profits high, the president of a corporation is at least partially promoting shareholders’ key interests.

This doesn’t help to establish that high profits are a key interest of shareholders. The editorialist doesn’t mention whether the dividends paid to shareholders should be high or not.

Even if the president shares this responsibility with the board, it doesn’t change the fact that the president promotes shareholders’ interests. And (B) doesn’t help to establish that high profits are one of those interests.

This suggests that high profits are a key interest of shareholders. If keeping profits high is likely to promote shareholders’ key interests and the president’s role involves promoting their interests, this suggests that the president does have a duty to keep profits high.

Even if shareholders are interested in more than just profit, we still need to know whether high profits are among their key interests.

It doesn't matter how many other functions the president has. Since one function is to promote shareholders' interests, we still need to determine if high profit is one of those interests.

PrepTest 134 - Section 2 - Question 4

Difficulty

Analysis

Answer Popularity

Question history

Confirm action