PrepTest 32, Section 2, Question 3
Chairperson: The board of directors of our corporation should not allow the incentives being offered by two foreign governments to entice us to expand our operations into their countries without further consideration of the issue. Although there is an opportunity to increase our profits by expanding our operations there, neither of these countries is politically stable.
Chairperson: The board of directors of our corporation should not allow the incentives being offered by two foreign governments to entice us to expand our operations into their countries without further consideration of the issue. Although there is an opportunity to increase our profits by expanding our operations there, neither of these countries is politically stable.
Chairperson: The board of directors of our corporation should not allow the incentives being offered by two foreign governments to entice us to expand our operations into their countries without further consideration of the issue. Although there is an opportunity to increase our profits by expanding our operations there, neither of these countries is politically stable.
Chairperson: The board of directors of our corporation should not allow the incentives being offered by two foreign governments to entice us to expand our operations into their countries without further consideration of the issue. Although there is an opportunity to increase our profits by expanding our operations there, neither of these countries is politically stable.
The chairperson's reasoning most closely conforms to which one of the following principles?
A corporation should never expand operations into countries that are politically unstable.
Corporations should expand operations into countries when there is a chance of increasing profits.
Political stability is the most important consideration in deciding whether to expand operations into a country.
Corporations should always be cautious about expanding operations into politically unstable countries.
Boards of directors should always disregard governmental incentives when considering where to expand corporate operations.
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