Statement — “KLM has decided to raise resources by issuing a mix of tax-free and taxable bonds.”\nAssumptions:\nI. KLM has already explored other fund-raising sources.\nII. KLM’s products face little competition in the market.

Introduction / Context:
Corporate financing decisions can be justified by many factors (cost, timing, investor appetite). We must test which assumptions are indispensable to the decision announcement.

Given Data / Assumptions:

• Statement: KLM will issue both tax-free and taxable bonds to raise resources.
• Assumption I: KLM already explored other sources.
• Assumption II: KLM’s products have little competition.

Concept / Approach:
The statement merely communicates the chosen vehicle for raising funds. It does not rely on prior exploration of alternatives, nor on product-market competition facts. Financing choice can be made regardless.

Step-by-Step Solution:
1) Identify necessity: Does the choice of bonds require proof that other sources were explored? No.2) Does it require low product competition? No; funding needs are independent of product rivalry.3) Therefore neither assumption is essential.

Verification / Alternative check:
Even if other sources were not explored, a firm may still prefer bonds. Competition intensity does not logically determine the financing instrument in the announcement.

Why Other Options Are Wrong:
Only I or Only II: neither is necessary. Either/Both: overstate what the statement presupposes.

Common Pitfalls:
Reading causal stories into neutral announcements. An assumption must be required for the statement’s sense, not merely plausible.

Final Answer:
Neither I nor II is implicit.