Which of the Following Arguments Opposes the Idea of High

question 39

Multiple Choice

Which of the following arguments opposes the idea of high executive pay?

• A) High salaries provide an incentive for innovation and risk taking.
• B) Not many individuals are capable of running today's large, complex organizations.
• C) Top athletes and entertainers make a lot of money, so top executives should, too.
• D) High salaries divert resources that could be used to invest in the business.

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Definitions:

Reference Group

A group to which an individual or another group is compared, serving as a model for behaviour or beliefs.