Question 116

English Reasoning Analogies Easy

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 makes corporate governance suffer?

(A) Conflicting strategies of executives
(B) Conflicting interests of customers
(C) Conflicting interests of statemen
(D) Conflicting interests of the board of directors
✓ Correct Answer: Option D 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 passage says: "If the board is riven with conflicting interests, corporate governance will suffer."

Answer: (D) Conflicting interests of the board of directors

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