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800orDie
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I agree with you, thank you for sharing this problem. When shareholders invest money in a company, they want to get as much profit as possible from it. Therefore, this statement is correct. Unfortunately, I am not rich enough to buy shares in companies, but I hope that this will happen in the future. In the meantime, I've decided to engage in retail arbitrage on Amazon (yourmoneygeek.com) and I hope that I will succeed. And then I will be able to implement all my plans and become one of the shareholders of a reliable company.
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Corporations should not give money to charities because these donations are the excess funds not owned by the corporations themselves. The reasoning quite straight forward.

But what if these the shareholders won't be getting enough money as expected by them if the charities were not made?
I believe such a situation won't let us conclude that corporations should not donate funds to charities.

Looking at options :

A) We have to focus on what corporations should be doing and not on what are the managers being trained about or for. Even if managers are trained in such good values, there is no point of being aware of such an information because we don't know if these managers will work for these corporations, or in fact, they will be doing as trained. This option has no impact on the conclusion. Incorrect choice.

B) Even if some large corporations are major donors, does that mean all corporations should follow them in the same way? I don't think this option answers this question, so this option has no bearing on the conclusion. Incorrect choice.

C) Again, our focus is being diverted to what the shareholders tend to do. Does this option in any way hint that these shareholders want the same to be done by the corporations. We have no idea. Hence incorrect choice.

D) This option tells us about which entities most corporations prefer to donate to . But our question is "should they be making charities with the extra funds they have? " The option does not answer this or provides us a link or hint towards it. Incorrect choice.

E) If the profits received by making charities are so good, why shouldn't corporations make charities ?
This will only benefit the shareholders as the goal of making money for them will be fulfilled by the corporations. This option hints that corporations should be diverting funds to charities and hence weakens our conclusion. Should be the correct choice.
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Hello from the GMAT Club VerbalBot!

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