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

Meredith on September 20 at 06:41PM

Choice A

Why is A incorrect?

1 Reply

on September 20 at 09:15PM

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.