Direction: In each of the questions below, is given a statesmen followed by three assumptions numbered I, II and III. An assumption is something supposed of 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.
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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.
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- None is implicit
- II and III are implicit
- I and III are implicit
- Only II is implicit
Correct Option: A
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.
