After reading the following passage, read a suggested ‘inference’ that may or may not be reasoned from the passage. Then choose the statement that holds true for the suggested inference. Harper Industries was founded in 1975. (4 points) SUBJECT: MANAGEMENT BY OBJECTIVES Since 1975 Harper Industries has utilized a Management by Objectives (MBO) process to provide effective management. The process includes: 1. The development of individual, team and company-wide objectives. 2. The listing of objectives for achieving objective 3. A timetable 4. A priority system of ranking the objectives. Also, the process serves as a management tool for evaluating performance. Beginning in November each work team begins development of objectives for the following calendar year. These objectives are focused on outcomes that are consistent with company-wide goals. Once the work team has created its objectives for the year, team members begin to shape individual goals which should be consistent with team and company-wide objectives. Periodic reviews of progress toward accomplishment of objectives are made by all supervisors. These reviews are held no less than twice per year in order to monitor and evaluate progress. Adjustments in plans are noted in writing. Final evaluations for the preceding year are made by January 31. Every employee is formally evaluated by his or her supervisor using an evaluation form along with a personnel conference. The annual objectives form the basis of much of the evaluation. (4 points) Responses This inference should not be made. The passage does not imply when the company began This inference should not be made. The passage does not imply when the company began This inference can be made because businesses rarely change their management strategies. Therefore, this business must have been founded in 1975. This inference can be made because businesses rarely change their management strategies. Therefore, this business must have been founded in 1975. Both of the above Both of the above None of the above

Answer 1

The most accurate response based on the passage is:

This inference should not be made. The passage does not imply when the company began.

The information provided in the passage states that Harper Industries has been utilizing a Management by Objectives (MBO) process since 1975, but it does not imply anything about the founding of the company or that businesses rarely change their management strategies. Therefore, the inference regarding the founding year based solely on the management strategy is not justified.