Hi everyone,
Got 4/5 correct in 11 minutes.
------------------------------------------------------------------------------------------P1In paragraph one we are given that many people criticize corporations not only for the possible illegal actions but also for being committed to maximize profit, a practice that according to these people is detrimental to society. Economists on the other hand claim that ethical reasoning cannot be applied to economical reasoning.
Brief summary: Corporations are detrimental to the public good according to many but economists disagree
P2In paragraph 2 we are given that corporations are made of people to whom is delegated responsibility. Corporations can be run by a single owner or by a syndicate of people among whom the CEO is the most important figure.
Brief summary: Corporations' structure
P3Economists think that the CEO must respond only to the owners of the company and in most cases the owners are interested in maximizing profits. Plus even when the company is a charitable organization, economists still think that the CEO's objective should be to maximize profits
Brief summary: Economists' view on the role of CEO
P4In paragraph 4 we are given how the economists' view is flawed. The reason is that there is no guarantee that maximizing profits will result in something morally good. Examples such as forests decimation or polluting a lake are made in support of this idea. Last we know that a CEO is not excused to act without a moral just because the owners are just interested in maximizing the profits
Brief summary: The economists' view is flawed
Main pointThe main point of this passage is to prove that the economists' view is biased ------------------------------------------------------------------------------------------1. Which one of the following most accurately states the main point of the passage?
Pre-thinking
Main point question
Refer to main point and summaries above
(A) Although CEOs may be legally obligated to maximize their corporations’ profits, this obligation does not free them from the moral responsibility of considering the implications of the corporations’ actions for the public good.
Not in line with our pre-thought main point. Note that there might be 2 categories of main point: general and specific. Our pre-thought main point is general while this one is specific. So, the figure of the CEO is mentioned all across the passage; hence this choice is both correct and broad enough to be the main point
(B) Although morality is not easily ascribed to nonhuman entities, corporations can be said to have an obligation to act morally in the sense that they are made up of individuals who must act morally.
Partial scope with reference to P2
(C) Although economists argue that maximizing a corporation’s profits is likely to turn out best for the public, a CEO’s true obligation is still to seek a profit for the corporation’s owners.
This contrast does not make sense
(D) Although some people criticize corporations for making unethical decisions, economists argue that such criticisms are unfounded because ethical considerations cannot be applied to economics.
Partial scope with reference to P1
(E) Although critics of corporations argue that CEOs ought to consider the public good when making financial decisions, the results of such decisions in fact always benefit the public.
Wrong
------------------------------------------------------------------------------------------2. The discussion of the paper mill in lines 42–46 is intended primarily to
Pre-thinking
Purpose question
"there is no guarantee—either theoretically or in
practice—that a given CEO will benefit the public by
maximizing corporate profit."
The purpose is to support the above lines
(A) offer an actual case of unethical corporate behavior
The idea is to support the fact that maximizing profits does not always turn out good for the public
(B) refute the contention that maximization of profits necessarily benefits the public
In line with pre-thinking
(C) illustrate that ethical restrictions on corporations would be difficult to enforce
out of scope
(D) demonstrate that corporations are responsible for many social ills
out of scope
(E) deny that corporations are capable of acting morally
out of scope
------------------------------------------------------------------------------------------3. With which one of the following would the economists mentioned in the passage be most likely to agree?
Pre-thinking
Inference question
Let's evaluate the answer choice while keeping in mind that per the economists maximizing profits is always good
(A) Even CEOs of charitable organizations are obligated to maximize profits.
the passage uses "should"
(B) CEOs of owner-operated noncharitable corporations should make decisions based primarily on maximizing profits.
In line with pre-thinking
(C) Owner-operated noncharitable corporations are less likely to be profitable than other corporations.
cannot be inferred
(D) It is highly unlikely that the actions of any particular CEO will benefit the public.
cannot be inferred
(E) CEOs should attempt to maximize profits unless such attempts result in harm to the environment.
probably opposite
------------------------------------------------------------------------------------------4. The conception of morality that underlies the author’s argument in the passage is best expressed by which one of the following principles?
Pre-thinking
inference question
It seems that per the author morality has something to do with benefitting the public.
(A) What makes actions morally right is their contribution to the public good.
In line with pre-thinking
(B) An action is morally right if it carries the risk of personal penalty.
cannot be inferred
(C) Actions are morally right if they are not fraudulent or illegal.
cannot be inferred
(D) It is morally wrong to try to maximize one’s personal benefit.
cannot be inferred
(E) Actions are not morally wrong unless they harm others.
This option is not true in all the cases. Let's say that a company in order to make a profit pollutes a lake in the middle of nowhere. Per the author such action is morally wrong but it does nor harm others by itself
------------------------------------------------------------------------------------------5. The primary purpose of the passage is to
Pre-thinking
Main point question
[b]Refer to main point above
[/b]
(A) illustrate a paradox
No paradox presented
(B) argue for legal reform
the author does not argue for legal reform
(C) refute a claim
the author throughout the passage works for weakening the claim of economists. Correct
(D) explain a decision
No decision explained
(E) define a concept
no concept defined
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