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# Corporate responsibility..

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Intern
Joined: 29 Jan 2017
Posts: 17

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18 Apr 2017, 07:34
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Question Stats:

60% (01:41) correct 40% (01:30) wrong based on 130 sessions

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Corporate Spokesperson: There has been much ado about the lack of global corporate responsibility, but most of the harm done was incidental: corporations were in the historically unprecedented position of having substantial wealth and reach without having any of the obligations of the traditional state. This will soon change, however, as more than 50 international corporations this year enjoyed sales in excess of the GDP of 60% of the world’s countries.

Which of the following, if true, would most weaken the spokesperson’s argument?

Enjoying financial resources equal to or greater than those of the traditional sovereign state does not necessarily entail an acceptance of the obligations traditionally accepted by such a state.
Corporate revenue and influence is expected to increase in the years to come.
Many corporations are among the world’s top employers.
Many corporations are among the world’s top polluters.
Most of the 50 corporations mentioned are expected to see significant decreases in sales as a result of a recent international recession.
[Reveal] Spoiler: OA
Intern
Joined: 29 Jan 2017
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18 Apr 2017, 07:36
Its tough to understand the prompt, please shed some light.
Senior Manager
Joined: 26 Dec 2015
Posts: 286
Location: United States (CA)
Concentration: Finance, Strategy
WE: Investment Banking (Venture Capital)

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25 Apr 2017, 18:23
avi1787 wrote:
Its tough to understand the prompt, please shed some light.

i'll bite.

the idea is that corporate responsibility has not been necessary/needed in the past. why, you ask? b/c it can be inferred that corporations were never in that kind of a position (of heaving enormous wealth and reach w/out any of the responsibilities of a traditional state)

- don't believe me? it's inferred directly in the passage: "corporations were in the historically unprecedented position of having substantial wealth and reach without having any of the obligations of the traditional state."
-- let's pick this apart. "C's were in the HISTORICALLY UNPRECEDENTED (meaning: never happened before in history) POSITION OF HAVING \$ AND RESOURCES. This says that C's NEVER HAD that kind of reach before.

Now, as a twist, the passage says THIS WILL CHANGE. Meaning: C's will be in this position soon. Okay, they'll be in the position, so what? Does this mean C's HAVE TO adopt the same responsibilities traditional states have had to deal with in the past? This is where we get (A)

Manager
Joined: 27 Jan 2016
Posts: 150
Schools: ISB '18
GMAT 1: 700 Q50 V34

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26 Apr 2017, 01:17
LakerFan24 wrote:
avi1787 wrote:
Its tough to understand the prompt, please shed some light.

i'll bite.

the idea is that corporate responsibility has not been necessary/needed in the past. why, you ask? b/c it can be inferred that corporations were never in that kind of a position (of heaving enormous wealth and reach w/out any of the responsibilities of a traditional state)

- don't believe me? it's inferred directly in the passage: "corporations were in the historically unprecedented position of having substantial wealth and reach without having any of the obligations of the traditional state."
-- let's pick this apart. "C's were in the HISTORICALLY UNPRECEDENTED (meaning: never happened before in history) POSITION OF HAVING \$ AND RESOURCES. This says that C's NEVER HAD that kind of reach before.

Now, as a twist, the passage says THIS WILL CHANGE. Meaning: C's will be in this position soon. Okay, they'll be in the position, so what? Does this mean C&#39;s HAVE TO adopt the same responsibilities traditional states have had to deal with in the past? This is where we get (A)

Can you pls explain why E is wrong..??

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Senior Manager
Joined: 26 Dec 2015
Posts: 286
Location: United States (CA)
Concentration: Finance, Strategy
WE: Investment Banking (Venture Capital)

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26 Apr 2017, 06:30
srikanth9502 why does "E" look attractive to you?

Let's break "E" down. It basically says: "(Most of the mentioned companies) are expected to see significant decreases in sales as a result of a recent international recession."

The main point to note here is: this A/C contradicts the argument ("...more than 50 international corporations this year enjoyed sales in excess of the GDP of 60% of the world’s countries."). The passage says companies did well, why is "E" saying otherwise?
- The key thing here is to pay attention to the ebb and flow of the argument. It is clear here that historically, companies are not used to having so many resources, but recently the tide has turned

Intern
Joined: 16 Jul 2013
Posts: 8

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27 Apr 2017, 04:52
Hello Experts,

Please shed some light on this question. I am not able to understand the argument
Corporate responsibility..   [#permalink] 27 Apr 2017, 04:52
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