Price: A corporation's primary responsibility is to its shareholders. They are its most important constituency becau...

Meredith on September 20, 2019

Choice A

Why is A incorrect?

2 Replies

on September 20, 2019

Hello @Meredith,

There is a difference between a company's responsibility and a company's primary responsibility. A company can have numerous responsibilities, but Price and Albrecht are arguing about which party is the company's first priority. Price claims it is the shareholders, Albrecht claims it is the employees.

Albrecht is not arguing that the company has no duty to its shareholders. He is only saying that the employees should be the first priority. This is why A is incorrect.

The nature of the argument is represented by answer choice D. Price claims that the shareholders have more at stake, because their investments are at risk. Albrecht rejects this, saying that the shareholders diversified portfolios. Rather, the employees have more at stake because their job with the company is their very livelihood.

on August 3 at 09:47PM

Is one reason A and B are both incorrect because they are both saying the same thing, one is just talking about employees and the other is talking about shareholders, so if one is correct, the other has to be correct too but that cannot be the case because there is one right answer?