Question:
Directions: Read the following caselet and answer the question that follows.
According to recent reports, CEOs of large organisations are paid more than CEOs of small organisations. It does not seem fair that just because a CEO is heading a big organisation, he or she should be paid more. A CEO's salary should be tied to performance, especially growth in sales and profits. Big organisations are of course more complex to run than small ones, but every CEO puts in a large amount of energy and time managing the organisation. There is no proof that CEOs of big organisations face more stress than CEOs of small organisations. All CEOs should be paid according to their performance.
Which of the following, if true, would strengthen the speaker's argument?
Directions: Read the following caselet and answer the question that follows.
According to recent reports, CEOs of large organisations are paid more than CEOs of small organisations. It does not seem fair that just because a CEO is heading a big organisation, he or she should be paid more. A CEO's salary should be tied to performance, especially growth in sales and profits. Big organisations are of course more complex to run than small ones, but every CEO puts in a large amount of energy and time managing the organisation. There is no proof that CEOs of big organisations face more stress than CEOs of small organisations. All CEOs should be paid according to their performance.
Which of the following, if true, would strengthen the speaker's argument?
According to recent reports, CEOs of large organisations are paid more than CEOs of small organisations. It does not seem fair that just because a CEO is heading a big organisation, he or she should be paid more. A CEO's salary should be tied to performance, especially growth in sales and profits. Big organisations are of course more complex to run than small ones, but every CEO puts in a large amount of energy and time managing the organisation. There is no proof that CEOs of big organisations face more stress than CEOs of small organisations. All CEOs should be paid according to their performance.
Which of the following, if true, would strengthen the speaker's argument?
Show Hint
Look for the option that explains the pay gap through something other than the size of the company, such as scarcity of the right candidate.
Updated On: Jul 10, 2026
- CEOs of small organisations come from good educational backgrounds.
- CEOs of big organisations are very difficult to hire.
- A few big family businesses have CEOs from within the family.
- Big organisations contribute more towards the moral development of society.
Show Solution
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The Correct Option is B
Solution and Explanation
The speaker's stand is that CEO pay should depend on performance and effort, not on the size of the organisation being run. To strengthen this stand, an option must give a reason for the pay difference that has nothing to do with size itself, or must remove a common justification people give for a size-based gap.
- CEOs of small organisations come from good educational backgrounds: if CEOs on both sides are similarly well qualified, this option does not explain the pay gap at all, and since it can apply to small and big organisations equally, it does not clearly support the speaker.
- CEOs of big organisations are very difficult to hire: this gives a reason for higher pay that has nothing to do with the size of the company. If suitable candidates for big companies are scarce, the higher pay is explained by the scarcity of the right person, exactly the kind of capability-linked reason the speaker wants, and not by size on its own. This backs the speaker's stand.
- A few big family businesses have CEOs from within the family: family ownership is a separate reason for high pay that has nothing to do with performance, so this weakens rather than strengthens the speaker's case.
- Big organisations contribute more towards the moral development of society: this gives a completely different justification, social contribution, for paying big-company CEOs more, which works against the speaker's claim that pay should track performance alone.
Between the four, only "CEOs of big organisations are very difficult to hire" ties the pay gap to something other than size, namely the scarcity of the right candidate, which supports the speaker's core claim that performance and capability, not size, should decide pay.
Let's summarize:
- To strengthen, look for a reason for the pay gap that does not depend on organisation size.
- Family ownership and "moral contribution" both give size-linked or unrelated justifications for high pay, so they weaken the speaker instead.
So the correct option is "CEOs of big organisations are very difficult to hire."
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