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Difficulty:
25%
(medium)
Question Stats:
77% (01:37) correct
23%
(01:56)
wrong
based on 81
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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.
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.
mialanknox
Joined: 15 May 2019
Last visit: 19 Oct 2025
Posts: 141
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Location: Switzerland
Concentration: Finance, General Management
Schools: Wharton '26 CBS '26 Kellogg '26 Booth '26
GPA: 4
WE:Investment Banking (Finance: Investment Banking)
12 Mar 2024, 23:29
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mrfrantic
Let's examine each option in the context of the question, which seeks the strongest support for Paxton Investment Group's claim that its ability to retain managers is due to its extremely generous managerial salaries.
A) Many managers in the financial sector have spouses that also work in finance.
- This option provides information about the personal lives of managers in the financial sector, suggesting that their spouses also have careers in finance. However, it doesn't directly relate to why Paxton's managers would be more likely to stay due to the company's salary structure. The fact about spouses working in finance doesn't inherently support the claim about Paxton's retention being due to salaries.
B) The majority of managers at Paxton Investment Group had previously worked at several other companies before working at Paxton.
- This option tells us that managers at Paxton have experience working at other companies, which suggests they have had opportunities to compare different workplaces. While this might imply they have chosen to stay at Paxton due to its better conditions (including salary), it doesn't directly link their reluctance to change companies to the generous salaries at Paxton. It merely establishes a background of the managers without directly supporting the claim about why they choose to stay.
C) Managers in the financial industry consistently list “income” as the greatest motivator for seeking employment with a new firm.
- This option directly supports Paxton's statement by identifying income as the primary motivator for managers in the industry to change jobs. If income is the greatest motivator and Paxton offers exceptionally generous salaries, it logically follows that Paxton managers would be less motivated to leave for another company, directly supporting Paxton's claim about the reason for its low managerial turnover.
D) Investment firms with lower managerial salaries than those at Paxton often compensate by offering their managers performance-based bonuses.
- While this option provides a comparison between Paxton's salary structure and those of other firms, it suggests an alternative compensation strategy (performance-based bonuses) rather than directly supporting the claim about salaries being the key factor in retention. It offers context about how other firms might try to compensate for lower salaries, but doesn't directly explain why Paxton's approach (high salaries) is particularly effective in retaining managers.
E) Other investment firms provide their managers with salaries similar to those at Paxton Investment Group.
- This option suggests that Paxton's salary levels are not unique in the industry, which could undermine rather than support Paxton's claim. If other firms offer similar salaries, this option fails to explain why Paxton's managerial turnover would be exceptionally low as a result of its salary policy. In fact, by indicating that Paxton's salaries are not exceptional in the context of the industry, it might suggest that other factors are at play in Paxton's ability to retain managers.
Conclusion:
C provides the strongest direct support for Paxton's claim by linking the industry-wide motivation for job change (income) to Paxton's specific strategy (offering extremely generous salaries), thus explaining its low managerial turnover. The other options either provide indirect or unrelated information or could potentially undermine Paxton's claim.
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