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Home Verbal Reasoning Statement and Assumption See What Others Are Saying!
  • Question
  • Statement
    The company has decided to increase the price of all its product to tackle the precarious financial position.
    Assumptions
    I. The company may be able to wipe out the entire losses incurred earlier by the decision.
    II. The buyer may continue to buy its product even after the increase.
    III. The company has adequate resource to continue production for few more months.


  • Options
  • A. None is implicit
  • B. II and III are implicit
  • C. I and III are implicit
  • D. Only II is implicit

  • Correct Answer
  • None is implicit 

    Explanation

    None of the assumptions is implicit in the statement. 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 not the market for the product. Assumption III is not implicit because we cannot say anything about the quantity of resources of the company.


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