CR Challengers 13

In recent years, the number of reported cases of ethical misconduct and out-and-out fraud in the telemarketing of stocks, securities, and other investments has risen dramatically. In answer to the growing demand for regulation of this industry, federal and state agencies are formulating an approach to the problem that would entail close supervision and regular auditing of the activities of the investment houses that use telemarketing. Such government involvement in private industry is, however, antithetical to this country’s belief in free private industry and would surely dampen the spirit of aggressive capitalism that made this country great. Clearly, in order to keep the government out of their business, investment houses should cease the practice of paying telemarketers on commission.
Which one of the following is an assumption on which the argument above is based?

a. Successful capitalism is dependent upon a governmental policy of noninterference and furthered by pro-business regulations.

b. The government’s ability to detect misconduct, even with close supervision, would be minimal, and therefore pointless.

c. If judged by contemporary standards, many of these so-called violations would be considered ethical.

d. Earning a high commission as a telemarketer is not proof of one’s abilities as an investment broker.

e.The incidence of ethical misconduct has a direct relation to the telemarketer’s desire for larger commissions