PrincipleDiff: Easy

Logic Breakdown

Passage Summary: A chairperson warns the board not to be blinded by cash incentives to move abroad, arguing that the political mess in those countries is a major red flag that requires more thought.

Conclusion: The corporation should delay expanding operations into the two foreign countries until the issue is considered further.

Reasoning: Despite the financial incentives and potential for increased profit, the political instability in those countries makes the expansion risky.

Analysis: The chairperson is weighing a certain benefit (profit incentives) against a significant risk (political instability). The reasoning suggests that a potential gain does not automatically justify taking on a high level of risk. When looking for the underlying principle, seek a rule that prioritizes safety or stability over immediate financial rewards, or one that mandates caution when specific types of risks are present.

Passage Stimulus

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3.

The chairperson's reasoning most closely conforms to which one of the following principles?

Correct Answer
D
D matches the cautionary stance: corporations should always be cautious about expanding into politically unstable countries. That aligns with “should not allow incentives to entice us … without further consideration,” given the instability noted.
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