📊 GMAT Exam Prep

Many small businesses struggle to retain employees due to limited resources for competitive salaries and benefits. However, a recent study found that businesses offering flexible work arrangements reported significantly higher employee retention rates, even without a substantial increase in compensation. **This suggests that factors beyond financial incentives play a crucial role in employee loyalty.** Therefore, small businesses should prioritize implementing flexible work policies to improve retention.

A It states the main conclusion of the argument.
B It provides a premise that supports the main conclusion.
C It introduces a counter-argument that the argument then refutes.
D It offers an alternative solution to the problem discussed.

✓ Correct Answer: Option B

The bolded sentence synthesizes the study's finding into a general principle, asserting the importance of non-financial factors. This principle then acts as a key premise to support the argument's final conclusion.

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