Statement & Assumption — “The consumer is the focal point of liberalisation, globalisation, and reforms. Any manufacturing activity or service must satisfy the consumer to succeed.” Which assumptions are implicit? I. Very few companies care about consumer satisfaction. II. Consumer satisfaction is the best investment in a competitive economy.

Introduction / Context:
The statement positions consumer satisfaction as a prerequisite for success under liberalisation and competition. The task is to identify which background belief must be true for the claim to make sense.

Given Data / Assumptions:

• Liberalised markets intensify competition.
• Firms must satisfy consumers to succeed.

Concept / Approach:
Assumption II—consumer satisfaction being the most reliable “investment” in competitive settings—is embedded in the statement’s logic: without placing consumer satisfaction at the centre of firm strategy, the assertion “must satisfy to succeed” loses bite. Assumption I (few firms care) is neither stated nor necessary; even if many firms pursue satisfaction, the prescription still holds at the firm level.

Step-by-Step Solution:
Test I: Irrelevant to the argument’s necessity; prevalence across firms does not matter.Test II: If consumer satisfaction were not crucial in competition, the statement’s claim would fail. Hence II is implicit.

Verification / Alternative check:
In competitive markets, buyer choice disciplines suppliers; strategies that maximise satisfaction tend to drive retention and growth.

Why Other Options Are Wrong:
“Either” or “neither” misreads the normative logic; I alone is off-target.

Common Pitfalls:
Reading sector-wide prevalence (I) as a required premise for a normative prescription.

Final Answer:
Only Assumption II is implicit.