Logical Reasoning

PT137 · S4 · Q13 Business ethicist: Managers of corporations

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Business ethicist: Managers of corporations have an obligation to serve shareholders as the shareholders would want to be served.

Evidence

Managers of corporations SW have an obligation to serve shareholders as the shareholders would want to be served.

Conclusion

Therefore, corporate SBI managers have an obligation to act in the shareholders’ best interest.

Evaluate

The argument assumes SW → SBI that the way shareholders want to be served is in their best interest.

13.

The business ethicist's conclusion follows logically if which one of the following is assumed?

  1. Corporate managers are always able

    Too Weak

    This makes it possible for corporate managers to act in the shareholders’ best interest, but does not provide an obligation to do so.

    6% picked this

  2. Correct

    Shareholders would want to be

    Why this is right

    This bridges the gap SW ? SBI between the ways shareholders want to be served and those that are in the shareholders best interests.

    Skill tested: Sufficient Assumption · how this choice captures the argument's function is the move to repeat next time.

    83% picked this

  3. A corporate manager's obligations to

    Too Weak

    This defends the argument from corporate managers having other overriding obligations, but it does not ensure an obligation to act in the shareholders’ best interest.

    4% picked this

  4. The shareholders have interests that

    Too Weak

    This does support the view that corporate managers should play a role, but it does not go far enough and ensure that corporate managers not only play a role, but are obligated to do so in a specific way.

    6% picked this

  5. All shareholders want to be

    Out of Scope

    Whether shareholders want to be served in identical ways is not relevant to whether corporate managers are obligated to act in ways that best serve shareholder interests.

    1% picked this

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