WeakenDiff: Medium
Logic Breakdown
Passage Summary: Perry argues that banks shouldn't lend to worker-owned companies because these businesses waste too much time on meetings and don't specialize enough, making them a risky bet.
Conclusion: Financial institutions should avoid providing loans to businesses owned by their employees to minimize risk.
Reasoning: Worker-owned businesses are less efficient due to time spent on management and a lack of specialized labor, which leads to lower profits and higher default risks.
Analysis: Perry assumes that the internal management style of worker-owned businesses is a direct ticket to financial failure. To weaken this, we should look for an answer that suggests these businesses have unique strengths that Perry is ignoring. For instance, if worker-owners are more motivated to keep the business afloat or have lower overhead costs, the 'inefficiencies' he mentions might not actually lead to the high risk he fears.
Conclusion: Financial institutions should avoid providing loans to businesses owned by their employees to minimize risk.
Reasoning: Worker-owned businesses are less efficient due to time spent on management and a lack of specialized labor, which leads to lower profits and higher default risks.
Analysis: Perry assumes that the internal management style of worker-owned businesses is a direct ticket to financial failure. To weaken this, we should look for an answer that suggests these businesses have unique strengths that Perry is ignoring. For instance, if worker-owners are more motivated to keep the business afloat or have lower overhead costs, the 'inefficiencies' he mentions might not actually lead to the high risk he fears.
Passage Stimulus
Passage Redacted
Unlock Full Passage12.Which one of the following, if true, most seriously weakens Perry's argument?
Correct Answer
E
E says most worker-owned businesses compensate by having workers put in longer hours. That directly weakens the link from “inefficiencies” to “low profitability,” undermining the claim that loans to worker-owned businesses are riskier and the recommendation to avoid lending to them.
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