PT137.S4.Q13 > Question

SECTION 1 · rc

PASSAGE 1

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

PASSAGE 2

Question 8 Question 9 Question 10 Question 11 Question 12 Question 13 Question 14

PASSAGE 3

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

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

SECTION 3 · lr

SECTION 4 · lr

Managers are obligated to act in shareholders’ best interest, because managers are obligated to serve shareholders as the shareholders want to be served.

The conclusion talks about shareholders’ best interest, but the premise doesn’t address that at all! In order for the conclusion to follow logically, we need to know that the thing the premise says managers are obligated to do (serve shareholders as they would want to be served) is the same thing the conclusion tells us managers are obligated to do (act in the shareholders’ best interest).

We’re only concerned with the nature of managers’ obligation to shareholders, not with how good managers are at identifying or fulfilling that obligation! (A) doesn’t mention the concept of how shareholders want to be served, so it doesn’t connect the premise with the conclusion.

If shareholders only want to be served in ways that are in their own best interest, and managers are obligated to serve shareholders as they’d want to be served, it follows logically that managers are obligated to act in shareholders’ best interest!

The argument isn’t about what managers should do regarding competing obligations. We’re only concerned with the nature of one obligation: that of serving shareholders. (C) doesn’t mention the shareholders’ best interest, so it doesn’t connect the conclusion with the premise!

It doesn’t matter if the managers are the best people to serve the shareholders’ interests—we just want to know that they’re obligated to do so! (D) doesn’t explain how serving shareholders as they’d want to be served relates to acting in their best interest, so it isn’t correct.

This doesn’t mention shareholders’ best interest, so it can’t be right. We need to link the obligation named in the premise with the one named in the conclusion, but (E) doesn’t explain how serving shareholders as they’d want to be served relates to acting in their best interest!

PrepTest 137 - Section 4 - Question 13

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