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:
Assessment of financial worth of IT companies calls for separate set of skills, insight and competencies.
Now the investors investing in IT companies will get protection of their investment.
Options
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
Correct Answer
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.
Statement and Conclusion problems
Search Results
1. Statements: Quality has a price tag. India is allocating lots of funds to education.
According to the statement, funding is necessary to improve quality and India is allocating funds to education. This means that quality of education will improve in India. So, I follows. But funding alone is sufficient to enhance quality, is not true. So, II does not follow.
2. Statements: Company X has marketed the product. Go ahead; purchase it if price and quality are your considerations.
It is mentioned in the statement that one who considers price and quality before buying a product should buy the product of company X. So, both I and II follow.
3. Statements: Players who break various records in a fair way get special prizes. Player X broke the world record but was found to be under the influence of a prohibited drug.
Clearly, X will not get the special prize because although he broke the world record, he was found to use unfair means. So, II follows while I does not.
4. Statements: The percentage of the national income shared by the top 10 per cent of households in India is 35.
Conclusions:
When an economy grows fast, concentration of wealth in certain pockets of population takes place.
The national income is unevenly distributed in India.
Nothing about the growth of economy is mentioned in the statement. So, I does not follow. Also, it is given that 35 per cent of national income is shared by 10 per cent of households. This indicates unequal distribution. So, II follows.
5. Statements: No country is absolutely self-dependent these days.
Conclusions:
It is impossible to grow and produce all that a country needs.
Clearly, the solution to the problem is not to close down the Municipal and Zila Parishad-run schools but to strive to improve the standard of education of these schools. So, only I follows while II does not.
7. Statements: All the organised persons find time for rest. Sunita, in spite of her very busy schedule, finds time for rest.
Sunita has a very busy schedule. This means that she is industrious. But still she finds time for rest. This means that she is an organised person. So, both I and II follow.
8. Statements: Domestic demand has been increasing faster than the production of indigenous crude oil.
The statement mentions that demand for oil is increasing faster than the production. So, either the demand must be reduced or oil must be imported to cope with the increasing demand. Thus, either I or II follows.
9. Statements: He stressed the need to stop the present examination system and its replacement by other methods which would measure the real merit of the students.
Conclusions:
Examinations should be abolished.
The present examination system does not measure the real merit of the students.