Question
Directions: In each of the questions below, is given a statement followed by three assumptions numbered I, II and III. An assumption is something supposed or taken for granted, you have to consider the statement and the assumptions and decide which of the assumption(s) is/are implicit in the statement.
- Statement:
- The company has decided to increase the price of all its products to tackle the precarious financial position.
- Assumptions:
- I. The company may be able to wipe out the entire losses incurred earlier by this decision.
- II. The buyer may continue to buy its products even after the increase.
- III. The company has adequate resources to continue production for a few more months.
Answer: Option A
Answer: (a)
None of the assumptions is implicit in the statement.
The assumption I is not implicit because the word 'entire' makes the assumption doubtful.
Assumption II is not implicit because neither we know the quality of the product nor the market for this product.
Assumption III is not implicit because we cannot say anything about the number of resources of the company.
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Answer: (a)
None of the assumptions is implicit in the statement.
The assumption I is not implicit because the word 'entire' makes the assumption doubtful.
Assumption II is not implicit because neither we know the quality of the product nor the market for this product.
Assumption III is not implicit because we cannot say anything about the number of resources of the company.
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