Sufficient AssumptionDiff: Medium
Logic Breakdown
Passage Summary: Since managers should do what shareholders want, they must do what is actually best for those shareholders.
Conclusion: Corporate managers are obligated to act in the best interests of their shareholders.
Reasoning: Managers have a duty to do what the shareholders want them to do.
Analysis: There is a classic gap here between 'what people want' and 'what is in their best interest.' The argument assumes these two things are the same or that the former necessitates the latter. To guarantee the conclusion, we need a premise that says if you do what someone wants, you are necessarily acting in their best interest. Look for an answer that explicitly equates shareholder desires with shareholder best interests.
Conclusion: Corporate managers are obligated to act in the best interests of their shareholders.
Reasoning: Managers have a duty to do what the shareholders want them to do.
Analysis: There is a classic gap here between 'what people want' and 'what is in their best interest.' The argument assumes these two things are the same or that the former necessitates the latter. To guarantee the conclusion, we need a premise that says if you do what someone wants, you are necessarily acting in their best interest. Look for an answer that explicitly equates shareholder desires with shareholder best interests.
Passage Stimulus
Passage Redacted
Unlock Full Passage13.The business ethicist's conclusion follows logically if which one of the following is assumed?
Correct Answer
B
If shareholders would want to be served only in ways that are in their own best interest, then serving shareholders as they would want to be served is the same as acting in their best interest, which makes the conclusion valid.
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