There has been no democracy that has grown economically without corporate capitalism. It helps in modernizing the economy and enabling the transition from rural to urban, and agriculture to industry and services, which are inevitable with growth. It generates jobs — and there is no other way to fix a country's unemployment challenge without a further impetus to private business. Big companies can operate on a large scale and become competitive both domestically and externally. A vibrant corporate capitalist base also leads to additional revenues for the State — which in turn, can be used for greater welfare for the marginalized and creating a more level playing field in terms of opportunities.

Which one of the following statements best reflects the critical message conveyed by the author of the passage?

Question

There has been no democracy that has grown economically without corporate capitalism. It helps in modernizing the economy and enabling the transition from rural to urban, and agriculture to industry and services, which are inevitable with growth. It generates jobs — and there is no other way to fix a country's unemployment challenge without a further impetus to private business. Big companies can operate on a large scale and become competitive both domestically and externally. A vibrant corporate capitalist base also leads to additional revenues for the State — which in turn, can be used for greater welfare for the marginalized and creating a more level playing field in terms of opportunities.

Which one of the following statements best reflects the critical message conveyed by the author of the passage?

Accepted Answer

Corporate capitalism is important for economic growth of a State and also for democracy.. The passage opens by linking democracy's economic growth to corporate capitalism and goes on to enumerate the benefits — modernization, job creation, competitiveness, revenue generation, welfare and level playing field. The emphasis is dual: corporate capitalism is critical for economic growth AND it operates within and benefits democratic states. Option (a) captures this dual emphasis on economic growth of a State and democracy. Option (b) limits it to political objectives, which the passage does not focus on. Option (c) overstates by saying 'no State can ensure its economic survival', whereas the passage talks about growth, not survival. Option (d) suggests mutual dependence for existence, which is stronger than what the passage argues — it talks about growth, not the very existence of democracy depending on capitalism.

Explanation

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