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Fines !!

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by sumitkhurana » Mon Feb 09, 2009 6:39 am
Fines levied against those responsible for
certain environmentally damaging accidents
are now so high that it costs a company
responsible for such an accident more to pay
the fine than it would have cost to adopt
measures that would have prevented the
accident. Therefore, since businesses value
their profits, those that might have such
accidents will now install adequate
environmental safeguards.
Which of the following, if true, most
seriously weakens the argument?
�� Businesses generally greatly
underestimate the risk of future
accidents.
�� Businesses are as concerned with longterm
as they are with short-term
strategies for maximizing profits.
�� Businesses generally do the
environmentally “right” thing only if
doing so makes good business sense.
�� Businesses treat fines that are levied
against them as ordinary business
expenses.
�� Businesses are learning to exploit the
public’s environmental awareness in
promoting themselves.
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by raghu_g_p » Mon Feb 09, 2009 9:10 am
A for me
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by Bidisha800 » Mon Feb 09, 2009 8:00 pm
(A)
business underestimates future risks and adopt short term solutions ....
Drill baby drill !

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by Shivani Varma » Tue Feb 10, 2009 12:31 am
IMO D. What is the OA??
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by naaga » Tue Feb 10, 2009 1:05 am
IMO its D
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by mjjking » Tue Feb 10, 2009 8:06 am
IMO D.

If a company treats fines as ordinary expenses, it means that they expect to pay fines once in a while. Hence, they won't absolutely do anything to change their way, as their losses for fines are already budgeted.
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by Nightwish » Tue Feb 10, 2009 8:52 am
What is the OA?
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by dendude » Tue Feb 10, 2009 1:10 pm
I think its A
Here's my argument,

D actually strengthens the argument by saying that fines are expenses. So inorder to increase profits (by cutting expenses) the businesses would install the environmental safeguards. The "ordinary" is misleading

A on the other hand says that businesses underestimate risks.
So they would not think that they would run into such accidents and hence do not do the install.
This is derived from the conclusion which says those that might have such accidents
If they understimate, they would not think they would have such accidents.
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by sumitkhurana » Mon Feb 16, 2009 6:56 am
Thanks for the replies and sorry for the delay. OA is D.
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by nervesofsteel » Mon Feb 16, 2009 11:46 am
�� Businesses generally greatly
underestimate the risk of future
accidents. <- if businesses knows that they under estimate future risks... they will certainly go for preventive measures next time

&#65533;&#65533; Businesses treat fines that are levied
against them as ordinary business
expenses. <- if they already calculate profits keeping all ordinary expenses in account.. then they will never feel that fines are causing their profits to go down and will not take measures...
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by dendude » Mon Feb 16, 2009 12:51 pm
nervesofsteel wrote:&#65533;&#65533; Businesses generally greatly
underestimate the risk of future
accidents. <- if businesses knows that they under estimate future risks... they will certainly go for preventive measures next time

&#65533;&#65533; Businesses treat fines that are levied
against them as ordinary business
expenses. <- if they already calculate profits keeping all ordinary expenses in account.. then they will never feel that fines are causing their profits to go down and will not take measures...
Well I dont think that there's any indication (from the ques and the ans choices) that the businesses know that they underestimate future risks.

But if the OA says D then D it is. :?
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by mason77 » Sat May 14, 2016 12:44 am
D seems to be the best choice
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