Logical Reasoning - Statement and Assumption - Discussion

In each question below is given a statement followed by three assumptions numbered I, II and III. You have to consider the statement and the following assumptions, decide which of the assumptions is implicit in the statement and choose your answer accordingly.

5. 

Statement: "To make the company commercially viable, there is an urgent need to prune the staff strength and borrow money from the financial institutions." - Opinion of a consultant.

Assumptions:

  1. The financial institutions lend money for such proposals.
  2. The product of the company has a potential market.
  3. The employees of the company are inefficient.

[A]. None is implicit
[B]. All are implicit
[C]. Only I and II are implicit
[D]. Only II and III are implicit
[E]. Only I and III are implicit

Answer: Option C

Explanation:

Since the consultant talks of borrowing money from financial institutions, so I is implicit. That the owners wish to make the company 'commercially viable' makes II implicit. Also, it is mentioned that staff strength is to be reduced to make the company 'commercially viable'. So, III is not implicit.

Trisha said: (Jan 13, 2012)  
Do you agree with the answer ? I don't. Its talking about reducing staff strength wich means dey must not be efficient. Shudnt the answer be B ?

Malik said: (Apr 2, 2013)  
Staff efficiency(cost cutting) is crucial to make company commercially viable.

Hazz said: (Jul 29, 2016)  
"The product of the company has a potential market" - this cannot be implicit. Nothing has been discussed the product in the statement. You can't wildly assume something about the product. The boss wants to make the company viable, may want to make it viable by cutting some employees, which would leave him with some extra money to run the organization viable!

Rubbal said: (Jun 21, 2020)  
E should be the answer.

Ashwin V Naik said: (Jul 23, 2021)  
E should be the Answer.

Because.

Ass1: Consultant talks of borrowing money from financial institutions, So I is implicit.

"The product of the company has a potential market" How can we make this assumption? Nothing of this sot claim is given!

They want to reduce/prune the staff which indicates They are inefficient (However Im 50-50 here since nothing about staff's efficiency is given. They might want to reduce the staff inorder to company commercially, economically viable, But only I is implicit is nt in the options).

So I & III is implicit.

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