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Statement and Assumption

Directions to SolveIn each question below is given a statement followed by three assumptions numbered I, II and III. You have to consider the statement and the following assumptions, decide which of the assumptions is implicit in the statement and choose your answer accordingly.

Q1: Statement: "To make the company commercially viable, there is an urgent need to prune the staff strength and borrow money from the financial institutions." - Opinion of a consultant. Assumptions:
  1. The financial institutions lend money for such proposals.
  2. The product of the company has a potential market.
  3. The employees of the company are inefficient.

A None is implicit

B All are implicit

C Only I and II are implicit

D Only II and III are implicit

E Only I and III are implicit

ANS:C - Only I and II are implicit

Explanation: Since the consultant talks of borrowing money from financial institutions, so I is implicit. That the owners wish to make the company 'commercially viable' makes II implicit. Also, it is mentioned that staff strength is to be reduced to make the company 'commercially viable'. So, III is not implicit.



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