PrepTest 52, Section 2, Question 12
Perry: Worker-owned businesses require workers to spend time on management decision-making and investment strategy, tasks that are not directly productive. Also, such businesses have less extensive divisions of labor than do investor-owned businesses. Such inefficiencies can lead to low profitability, and thus increase the risk for lenders. Therefore, lenders seeking to reduce their risk should not make loans to worker-owned businesses.
Perry: Worker-owned businesses require workers to spend time on management decision-making and investment strategy, tasks that are not directly productive. Also, such businesses have less extensive divisions of labor than do investor-owned businesses. Such inefficiencies can lead to low profitability, and thus increase the risk for lenders. Therefore, lenders seeking to reduce their risk should not make loans to worker-owned businesses.
Perry: Worker-owned businesses require workers to spend time on management decision-making and investment strategy, tasks that are not directly productive. Also, such businesses have less extensive divisions of labor than do investor-owned businesses. Such inefficiencies can lead to low profitability, and thus increase the risk for lenders. Therefore, lenders seeking to reduce their risk should not make loans to worker-owned businesses.
Perry: Worker-owned businesses require workers to spend time on management decision-making and investment strategy, tasks that are not directly productive. Also, such businesses have less extensive divisions of labor than do investor-owned businesses. Such inefficiencies can lead to low profitability, and thus increase the risk for lenders. Therefore, lenders seeking to reduce their risk should not make loans to worker-owned businesses.
Which one of the following, if true, most seriously weakens Perry's argument?
Businesses with the most extensive divisions of labor sometimes fail to make the fullest use of their most versatile employees' potential.
Lenders who specialize in high-risk loans are the largest source of loans for worker-owned businesses.
Investor-owned businesses are more likely than worker-owned businesses are to receive start-up loans.
Worker-owned businesses have traditionally obtained loans from cooperative lending institutions established by coalitions of worker-owned businesses.
In most worker-owned businesses, workers compensate for inefficiencies by working longer hours than do workers in investor-owned businesses.
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