PrepTest 108, Section 1, Question 21

Purpose of ClaimDifficulty2 of 5
Passage 3Corporate profit and moral responsibility
The questionFull text in your LawHub copy of PrepTest 108

Many people complain about corporations, but there are(441 more words not shown)

The primary purpose of the(3 more words not shown)

Reading the passage

We're challenging the economists: they say CEOs should focus on profit, and the author explains why that leaves out a moral responsibility. For this purpose question, keep that broad movement in view. We don't need a new theory about what the discussion is doing.

Working the answers

  • A

    No paradox needs resolving. A disagreement about CEOs' responsibilities isn't itself an apparent contradiction.

  • B

    The author wants CEOs to act morally, but doesn't propose changing the law. A moral obligation and a legal reform are different things.

  • C
    Correct

    The final paragraph announces that closer examination exposes weaknesses in the economists’ position, then gives reasons to reject it (paragraph 4). Maximizing profit doesn't guarantee public benefit, and duties to owners aren't the highest moral priority. That's a refutation of their claim.

  • D

    There is no particular decision being explained. The possible paper mill and CEO response help challenge the economists' view.

  • E

    We discuss morality and responsibility, but the goal isn't to define those terms. It's to show why the economists' account of what CEOs should do is inadequate.

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