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Directions: Each of the following questions has a paragraph from which a sentence has been deleted. From the given options, choose the sentence that completes the paragraph in the most appropriate way.
The appeal of the insurgents’ model is partly a result of the growing dissatisfaction with the public company. True, the best public companies are remarkable organizations. They strike a balance between quarterly results (which keep them sharp) and long-term investments (which keep them growing). They produce a stream of talented managers and innovative products. They can mobilize talent and capital. (____________). One reason is that managers tend to put their own interests first. The shareholder-value revolution of the 1980s was supposed to solve this by incentivizing managers to think like owners, but it backfired. Loaded up with stock options, managers acted like hired guns instead, massaging the share price so as to boost their incomes.
Basically even after such a long time, public company continues its dominance in the arena.
The rise of big financial institutions has further weakened the link between the people who nominally own companies and the companies themselves.
Conflicting interests, short-termism, and regulation all impose costs.
But, after a century of utter dominance, the public company is showing signs of wear.
But the most interesting alternative to public companies is a new breed of high-potential start-ups.
Correct Answer is (d). The next sentence after the blank gives a reason for something and the supporting points tells that something negative has been said in the blank (like supposed to solve this.. backfired…). So option D) is best suited
By: Abhishek kumar ProfileResourcesReport error
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