LR Question 3 Explanation
QUESTION TEXT: Chairperson: The board of directors of our corporation should not…
QUESTION TYPE: Principle – Must be True
CONCLUSION: We shouldn’t expand into those two countries just because there are incentives. We need to consider the matter further.
REASONING: There is an opportunity to profit but the countries are also unstable.
ANALYSIS: The chairperson was pretty precise. They didn’t say “don’t expand.” They said: “don’t expand until you consider the matter further.”
Expanding might be a good idea, or it might not. We just need to think it over first.
___________
- This goes too far. The chairperson might be interested in expansion if the matter were considered further.
- This goes against the chairperson’s argument that they shouldn’t expand yet, even though they could get profits.
- This goes a bit too far too. It wouldn’t be good to expand into a politically stable country that offered no profits.
- CORRECT. Before acting, the board should carefully consider the matter. That’s all.
- The chairperson didn’t say that. They just said the matter had to be further considered.
More Resources for Principle Questions
- Intro Course lesson: This intro course lesson covers Principle questions.
- Mastery Seminar lesson: This LR Mastery seminar lesson covers principle questions.
Why is answer choice D coorect? It goes to far by saying “ALWAYS be cautious.”
The question just says “most closely”. It doesn’t have to be an exact match. “Always be cautious” is certainly a principle that would tell a country not to take this particular risk.
Note: This is an old comment but I wanted to clarify the point.