PrepTest 93+, Section 2, Question 24
The more profitable a corporation is, the more valuable its managers' time is. As a result, it is especially costly for highly profitable corporations to have their managers spend time monitoring employees. Such corporations can save money by reducing this monitoring, as long as the employees are given strong incentives to keep working hard. So highly profitable corporations can save money by giving their employees expensive bonuses.
The more profitable a corporation is, the more valuable its managers' time is. As a result, it is especially costly for highly profitable corporations to have their managers spend time monitoring employees. Such corporations can save money by reducing this monitoring, as long as the employees are given strong incentives to keep working hard. So highly profitable corporations can save money by giving their employees expensive bonuses.
The more profitable a corporation is, the more valuable its managers' time is. As a result, it is especially costly for highly profitable corporations to have their managers spend time monitoring employees. Such corporations can save money by reducing this monitoring, as long as the employees are given strong incentives to keep working hard. So highly profitable corporations can save money by giving their employees expensive bonuses.
The more profitable a corporation is, the more valuable its managers' time is. As a result, it is especially costly for highly profitable corporations to have their managers spend time monitoring employees. Such corporations can save money by reducing this monitoring, as long as the employees are given strong incentives to keep working hard. So highly profitable corporations can save money by giving their employees expensive bonuses.
The argument requires the assumption that
only a few corporations give their employees bonuses that provide strong enough incentives for the employees to keep working hard even when they are not being monitored
if a highly profitable corporation could save money by giving its employees expensive bonuses, it is because giving such bonuses would reduce the amount of time its managers must spend monitoring those employees
the more valuable the managers' time is at a corporation, the less likely it is that the corporation will actually have those managers spend time monitoring employees
for people who are employees of highly profitable corporations where monitoring is reduced, expensive bonuses constitute strong incentives to keep working hard
a highly profitable corporation can save money by reducing its managers' monitoring of employees only if its employees are given expensive bonuses
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