Question

Executives of Company G receive high salaries and excellent benefits, in addition to stock options and numerous other perks. However, a majority of shareholders of Company G have objected to paying for its executives to travel on Company G's corporate jets. These shareholders believe that these jets should only be used for purposes related to increasing the profits of Company G.
Which of the following must be true to support the reasoning behind the shareholders' objection?


A. Company G executives primarily use the corporate jets for personal travel.

B. Other perks provided to the executives of Company G are not directly related to the profitability of Company G.

C. Most companies pay significant amounts of money to lease corporate jets.

D. Executives of the vast majority of companies must pay for their own travel costs on corporate jets.

E. Company G has not been profitable for the past 3 years.

Answer 1

Answer: Option (A) is correct.

Explanation:

Here, it's given that the shareholders believe jets be utilized for purposes which are in accordance with increasing the profits of Company G.

From the given comprehension the following must be true in order to support  the reason behind shareholders' objection: Company G executives usually utilize corporate jets for personal travel.

Since utilizing organizations's corporate jet for private use won't increase it's profit. This explains why the shareholders had an objection to executives' use of the corporate jets.