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Statement and Assumption - Verbal and Reasoning

Directions to SolveIn each question below is given a statement followed by two assumptions numbered I and II. You have to consider the statement and the following assumptions and decide which of the assumptions is implicit in the statement.Give answer
  • (A) If only assumption I is implicit
  • (B) If only assumption II is implicit
  • (C) If either I or II is implicit
  • (D) If neither I nor II is implicit
  • (E) If both I and II are implicit.
Q1:

Statement: No regular funds have been provided for welfare activities in this year's budget of the factory. Assumptions:
  1. The factory does not desire to carry out welfare this year.
  2. Budgetary provision is necessary for carrying put welfare activities.

A Only assumption I is implicit

B Only assumption II is implicit

C Either I or II is implicit

D Neither I nor II is implicit

E Both I and II are implicit

ANS:E - Both I and II are implicit

Explanation: The non-provision of funds for welfare activities in the budget clearly indicates the factory's intention to not carry out such activities in the current year. So, I is implicit. Also, welfare activities cannot be carried out in organisations without the allocation of funds for the same in the budget. So, II is also implicit.