Question

The question below is given a statement followed by two assumptions numbered I and II. An assumption is something supposed or taken for granted. You have to consider the statement and the following assumptions and decide which of the assumption(s) is/are implicit in the statement.

Statement The largest computer manufacturing company slashed the prices of most of the desktop models by about 15% with immediate effect.

Assumptions

1. The company may incur heavy losses due to reduction in prices of the desktop.
2. The sales of desktop manufactured by the company may increase in the near future.

Options

• If only Assumption I is implicit

• If only Assumption II is implicit

• If neither Assumption I nor II is implicit

• If both Assumptions I and II are implicit

Answer 1

If only Assumption II is implicit
Explanation:
Assumption I is invalid because it has no relation to the statement. Assumption II is implicit as prices have been slashed with assumption that sales will increase, thus leading to profit.