Statement: In order to reduce the gap between income and expenditure, the company has decided to increase the price of its product from next month.
Assumptions:
I. The rate will remain more or less same after the increase.
II. The expenditure will more or less remain the same in near future.
III. The rival companies will also increase the price of the similar product.

Only I and II are implicit

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Only II and III are implicit

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Only III is implicit

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All are implicit

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None of these

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Solution

The correct option is D None of these
Clearly, the company intends to reduce the gap between income and expenditure by increasing the price of its product i.e. by keeping the expenditure unaltered and increasing the income only. So, II is implicit while I is not. However, the rival companies may or may not follow the same pursuit. So, III is not implicit.

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Similar questions

Statement: The company has decided to increase the price of all its products to tackle the precarious financial position.

Assumptions:

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III. The company has adequate resources to continue production for few more months.

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[0.80 marks]

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