It can be inferred from the passage that which of the following is true of majority shareholders in a corporation?
It can be inferred from the passage that which of the following is true of majority shareholders in a corporation?
The correct option is C They cannot make quick profits by selling their stock in the corporation.
This question asks you to decide what the passage implies, rather than states directly, about majority shareholders in a corporation.
The best answer is C. According to the passage, those individual capitalists who were once majority shareholders in a corporation would not be able to make a quick profit by selling a large amount of stock because such a sale would depress the stock’s value. It can be inferred from the passage that this would be true of any majority shareholders.
Choice A is not the correct answer. The passage suggests, that majority shareholders can actively influence a company’s decision-making, but it does not suggest that this influence is equal to the absolute authority suggested by the language of this answer choice. The passage also does not discuss the “operational management decisions” of corporations.
Choice B is not correct. The passage does not specify what percent of a corporation’s stock any one shareholder is allowed to own.
Choice D is not the correct answer. The author does not imply that majority shareholders are more interested in profits than in productivity. In fact, the author argues the opposite, stating that majority shareholders such as the old-style capitalists concentrated more on long-term productivity than on quick profits.
This question asks you to decide what the passage implies, rather than states directly, about majority shareholders in a corporation.
The best answer is C. According to the passage, those individual capitalists who were once majority shareholders in a corporation would not be able to make a quick profit by selling a large amount of stock because such a sale would depress the stock’s value. It can be inferred from the passage that this would be true of any majority shareholders.
Choice A is not the correct answer. The passage suggests, that majority shareholders can actively influence a company’s decision-making, but it does not suggest that this influence is equal to the absolute authority suggested by the language of this answer choice. The passage also does not discuss the “operational management decisions” of corporations.
Choice B is not correct. The passage does not specify what percent of a corporation’s stock any one shareholder is allowed to own.
Choice D is not the correct answer. The author does not imply that majority shareholders are more interested in profits than in productivity. In fact, the author argues the opposite, stating that majority shareholders such as the old-style capitalists concentrated more on long-term productivity than on quick profits.
