Question 114

English Reasoning Analogies Hard

Read the following passage and answer the question based on it.\[\] I do not wish to cast aspersions on the corporate takeover. On the contrary, it is a key facilitator of creative destruction and doubtless the most effective remaining means by which shareholder voices can mold a corporation. But while change in management is often necessary, you cannot effectively run a corporation with differing authoritative voices espousing opposing corporate goals. It has to be one or the other. If the board is riven with conflicting interests, corporate governance will suffer. If directors cannot agree with the CEO’s strategy, they should replace him. Corporate dissonance, of course, is unavoidable in periods of transition. But it is not a value to be pursued for its own sake. A cacophony produces only red ink.\[\] What according to the author facilitates creative destruction?

(A) Corporatism
(B) Modernism
(C) Terrorism
(D) Cosmopolitanism
✓ Correct Answer: Option A Verified Solution

📘 Step-by-Step Solution & Detailed Explanation:

From the passage: the author supports corporate takeovers as "a key facilitator of creative destruction". But he warns that a board riven with conflicting interests harms corporate governance, and that "a cacophony produces only red ink".

The corporate takeover facilitates creative destruction. Of the given options, "corporatism" (the corporate system or corporate takeover) is the one that matches.

Answer: (A) Corporatism

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