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Reasoning - Logical Reasoning:

Logical Reasoning

MCQ - 99-8051

Kirkland’s theory of corporate structure can be represented by a truncated pyramid. There are workers, middle management, and executive management, but no head of the corporation. Instead, all major decisions are made by committee. As a consequence, in Kirkland’s structure, risky, cutting-edge technologies cannot be developed.

Question:

Kirkland’s theory of corporate structure can be represented by a truncated pyramid. There are workers, middle management, and executive management, but no head of the corporation. Instead, all major decisions are made by committee. As a consequence, in Kirkland’s structure, risky, cutting-edge technologies cannot be developed.

Which one of the following is an assumption on which the argument depends?

  1. Cutting-edge technologies are typically developed by entrepreneurs, not by big corporations.
  2. Only single individuals will make risky decisions
  3. An individual is more likely to take a gamble on his own than in a group.
  4. Only single individuals will make risky decisions
  5. All cutting-edge technologies involve some risk.

Correct Answer: B

Explanation:

The link that allows the conclusion to be drawn is the assumption that only individuals make risky decisions. The answer is (B). Both (A) and (C) are close second-best choices (a double-detractor pair). Both are supported by the passage, but each understates the scope of the suppressed premise. The argument states that in Kirkland’s model of corporate structure cutting-edge technologies cannot be developed, not that they are less likely to be developed.

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