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Corporations exist to make money for their shareholders

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Joined: 31 Aug 2015
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Corporations exist to make money for their shareholders [#permalink]

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New post 30 Sep 2015, 20:57
5
00:00
A
B
C
D
E

Difficulty:

  15% (low)

Question Stats:

80% (01:04) correct 20% (01:27) wrong based on 185 sessions

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Corporations exist to make money for their shareholders. Corporations have no money to give away because any excess funds belong to the shareholders. Therefore, corporations should not contribute to charities.

Which of the following most seriously weakens the reasoning in the argument above?

(A) Managers are being trained to consider the ethical, moral and social effects of their decisions in addition to the economic factors.
(B) Some of the largest corporations in the country are known to be major contributors to philanthropic organizations.
(C) Shareholders tend to make larger individual donations to charities than do people who hold no shares in corporations.
(D) Most corporations contribute solely to large, well-known, and highly organized charitable organizations rather than to individuals in need.
(E) The favorable publicity and tax advantages gained by corporate charity often result in an increase in profits greater than the actual costs of making the donations.
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Corporations exist to make money for their shareholders [#permalink]

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New post 01 Oct 2015, 03:15
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Under what condition, the corporation that gives away the excess money shall in some other way be conducive to generating more money.

If we find that, the argument shall be weakened.

Option E does that.


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Re: Corporations exist to make money for their shareholders [#permalink]

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New post 24 Mar 2018, 11:10
800orDie wrote:
Corporations exist to make money for their shareholders. Corporations have no money to give away because any excess funds belong to the shareholders. Therefore, corporations should not contribute to charities.

Which of the following most seriously weakens the reasoning in the argument above?

(A) Managers are being trained to consider the ethical, moral and social effects of their decisions in addition to the economic factors.
(B) Some of the largest corporations in the country are known to be major contributors to philanthropic organizations.
(C) Shareholders tend to make larger individual donations to charities than do people who hold no shares in corporations.
(D) Most corporations contribute solely to large, well-known, and highly organized charitable organizations rather than to individuals in need.
(E) The favorable publicity and tax advantages gained by corporate charity often result in an increase in profits greater than the actual costs of making the donations.


We need to find an alternate cause that shows charities are also profitable. E says exact the same. Sometimes it is better to go from E to A for POE.
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Re: Corporations exist to make money for their shareholders   [#permalink] 24 Mar 2018, 11:10
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