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Statement and Conclusion - Verbal and Reasoning

Directions to SolveIn each question below is given a statement followed by two conclusions numbered I and II. You have to assume everything in the statement to be true, then consider the two conclusions together and decide which of them logically follows beyond a reasonable doubt from the information given in the statement.Give answer:
  • (A) If only conclusion I follows
  • (B) If only conclusion II follows
  • (C) If either I or II follows
  • (D) If neither I nor II follows and
  • (E) If both I and II follow.
Q1:

Statements: Although we have rating agencies like Crisil, ICRA, there is demand to have a separate rating agency for IT companies to protect investors. Conclusions:
  1. Assessment of financial worth of IT companies calls for separate set of skills, insight and competencies.
  2. Now the investors investing in IT companies will get protection of their investment.

A Only conclusion I follows

B Only conclusion II follows

C Either I or II follows

D Neither I nor II follows

E Both I and II follow

ANS:A - Only conclusion I follows

Explanation: The need for separate rating agency for IT companies clearly indicates that such assessment requires a separate set of skills. So, I follows. However, the statement indicates only the need or demand and neither the future course of action nor its after-effects can be judged. So, II does not follow.