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Most managers in the financial industry work for several different

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Most managers in the financial industry work for several different [#permalink]

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New post Updated on: 14 May 2018, 02:50
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Question Stats:

85% (01:06) correct 15% (01:06) wrong based on 87 sessions

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Most managers in the financial industry work for several different companies over the course of their careers, seeking new employment in response to market pressures and changing corporate policies. Paxton Investment Group, however, is renowned in the financial sector for its exceptionally low managerial turnover. Paxton attributes its ability to retain managers to its extremely generous managerial salaries.

Which of the following, if true, would provide the strongest support for Paxton Investment Group’s statement regarding its managers’ reluctance to change companies?

(A) Many managers in the financial sector have spouses that also work in finance.

(B) The majority of managers at Paxton Investment Group had previously worked at several other companies before working at Paxton.

(C) Managers in the financial industry consistently list “income” as the greatest motivator for seeking employment with a new firm.

(D) Investment firms with lower managerial salaries than those at Paxton often compensate by offering their managers performance based bonuses.

(E) Other investment firms provide their managers with salaries similar to those at Paxton Investment Group.

Source: PS Bible

Originally posted by csaluja on 06 Aug 2017, 15:54.
Last edited by Bunuel on 14 May 2018, 02:50, edited 2 times in total.
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Re: Most managers in the financial industry work for several different [#permalink]

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New post 14 May 2018, 05:21
(A) Many managers in the financial sector have spouses that also work in finance. - irrelevant. Out.

(B) The majority of managers at Paxton Investment Group had previously worked at several other companies before working at Paxton.
- irrelevant. This does not give any information that why do more managers stay back.

(C) Managers in the financial industry consistently list “income” as the greatest motivator for seeking employment with a new firm.
- This statement tells us about the motivating factor for the managers working in the financial industry as income and the argument also says that flexible and higher salary compared to the firms in the rest of the industry, is the major reason. So HOLD.

(D) Investment firms with lower managerial salaries than those at Paxton often compensate by offering their managers performance based bonuses. - might sound tempting but the key is "performance bonus". This means that it is not fixed while in Paxton it is fixed. Thus, better motivating factor for people at Paxton. Trap. Eliminate.

(E) Other investment firms provide their managers with salaries similar to those at Paxton Investment Group.
- against the premise. And even f similar, it does not strengthen the argument, instead weakens.

Thus, C is the best. IMO C.

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Re: Most managers in the financial industry work for several different [#permalink]

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New post 14 May 2018, 19:20
Which of the following, if true, would provide the strongest support for Paxton Investment Group’s statement regarding its managers’ reluctance to change companies?

(A) Many managers in the financial sector have spouses that also work in finance. Incorrect as Out of Scope. Spouses of managers working in financial sector does not provides us any reason for managers holding to work in Paxton

(B) The majority of managers at Paxton Investment Group had previously worked at several other companies before working at Paxton. Out of Scope as this does not gives us any reason as to why managers would continue to work at Paxton

(C) Managers in the financial industry consistently list “income” as the greatest motivator for seeking employment with a new firm. CORRECT since income is consistently listed as the major motivator for seeking employment with a new investment firm and Paxton is extremely generous and is offering high managerial salaries to its employees, employees shall continue to work here rather than looking for better opportunities elsewhere.

(D) Investment firms with lower managerial salaries than those at Paxton often compensate by offering their managers performance based bonuses. Incorrect as performance higher bonus is a variable component which may be more or less than what is given by Patron, whereas Paxton is offering them higher fixed portion as compared to other investment firms.

(E) Other investment firms provide their managers with salaries similar to those at Paxton Investment Group.- Incorrect as this is a weakener. If the salaries provided in other investment firms are similar then the person would be more keen to switch to other investment firms where the offerings would be higher
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Re: Most managers in the financial industry work for several different   [#permalink] 14 May 2018, 19:20
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