Logical Reasoning

PT157 · S2 · Q24 The more profitable a corporation

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The more profitable a corporation is, the more valuable its managers’ time is.

Conclusion (so)

Highly profitable corporations can save money by giving their employees expensive bonuses.

Evidence

Highly profitable corporations can save money by reducing the monitoring done by managers, as long as the employees are given strong incentives to keep working hard.

It's very costly for highly profitable companies to have their managers spending time monitoring employees.

Evaluate

This has a Plan / Goal type conclusion, and it also has a New Concept in the Conclusion (the Plan: expensive bonuses).

We can spell out the how the Plan is supposed to take us to the Goal: giving expensive bonuses will provide employees with strong incentives to keep working hard (so that managers don't have to spend time monitoring them), so that the corporation can save money.

We can also try to think through potential objections, by asking ourselves,

How could we give our employees expensive bonuses, but they don't have a strong incentive to keep working hard / or they still need just as much monitoring from managers?

- maybe if the bonus feels guaranteed (rather than merit-based), then it doesn't really provide any incentive to work harder.

- maybe employees start competing with each other so much to win the biggest bonus, that they fight more and thus need more supervision from managers to moderate the disputes.

Goal

Let's look for a Missing Link, connecting "expensive bonuses" to "strong incentives to work hard".

Or let's look for a Defender style answer, ruling out a potential objection to the Plan's success.

24.

The argument requires the assumption that

  1. only a few corporations give

    No Impact

    The argument is about what highly profitable corporations could do to save money, not about what corporations currently do. Whether many or few corporations already use effective bonuses does not affect whether the strategy would work if implemented. If you were trying to convince a room that "People can lose weight by exercising more and eating less", you don't need to assume that almost no one is currently doing that. Even if most people are already doing that, your position is still valid.

    1% picked this

  2. if a highly profitable corporation

    Reversal

    This feels tempting since all parts of the answer match up with stuff we said in the argument. However, we never want to see, "If [conclusion]". If we're going to pick a conditional answer choice, it should flow from evidence to conclusion, not start from the conclusion. Suppose we said, "Brad has a great physique. Thus he's attractive." We aren't assuming, "If someone is attractive, it's because they have a great physique." The original argument was acting like a great physique would be sufficient to be attractive, but that assumption is acting like a great physique is necessary to be attractive. This answer is doing the same thing. Our author is assuming that, "if expensive bonuses would reduce the time mgrs spend monitoring employees, then a highly profitable corp could save money by giving expensive bonuses".

    18% picked this

  3. the more valuable the managers’

    Opposite (if anything)

    These Volume Dial expressions are incredibly strong. The author doesn't need there to be a permanent connection between value of managers time and likelihood of managers' spending time monitoring employees. Like (A), this is an answer about what corporations are currently doing, whereas the argument is about a hypothetical plan of action. The author is trying to scheme a way where managers whose time is valuable can spend less time monitoring employees. She doesn't need to assume that's already happening. In fact, if it were already happening, it would kind of weaken. At highly profitable corporations (where managers' time is most valuable), this suggests monitoring is already minimal. If monitoring is already low, there is little monitoring to reduce, which means less potential savings from the bonus strategy.

    4% picked this

  4. Correct

    for people who are employees

    Why this is right

    This just provides the missing link that makes the Plan (offer expensive bonuses) plausibly connected to the Goal (provide a strong incentive for less-monitored employees to keep working hard). If we negated this, it would be saying, "expensive bonuses do not constitute a strong incentive to keep working hard", which would ruin the whole Plan.

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

    70% picked this

  5. a highly profitable corporation can

    Too Strong

    This answer makes the author's suggested Plan sound like a Required Solution. The conclusion is saying "they can save money by giving expensive bonuses", not "in order to save money they must give expensive bonuses". The argument does not need to assume bonuses are the exclusive solution; it only needs to assume they are an effective one. If other solutions also work, that doesn't weaken the idea that this Plan would work.

    6% picked this

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