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Recording Managerial Commission

Statement: Th...

Question

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

Assumptions:

I. The company may be able to wipe out the entire losses incurred earlier by this decision.

II. The buyers may continue to buy its products even after the increase.

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

A

I and III are implicit

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B

Only II is implicit`

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C

II and III are implicit

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D

None is implicit

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Solution

The correct option is A
I and III are implicit

It is mentioned that the company has taken the decision to make up for the financial deficit. So, assumption I is implicit. The response of the buyers to the increased prices cannot be deduced from the statement. So, assumption II is not implicit. Since the company seeks to improve its financial position by increasing the prices of its products, so assumption III is also implicit.

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