Question

Directions: One statement is given followed by two conclusions, I and II. You have to consider the statement to be true, even if it seems to be at variance from commonly known facts. You are to decide which of the given conclusions can definitely be drawn from the given statement.

Statement:

Due to the recession, Company X has fired its 300 employees.

Conclusions: 

I) Company X is well known for firing people.
II) All other competitors of Company X are also affected because of the recession.

• A. Only Conclusion I follows.
• B. Only Conclusion II follows.
• C. Both the Conclusions I and II follows.
• D. Neither Conclusion I nor II follows.

Answer 1

Answer:

D. Neither Conclusion I nor II follows.

Solution: Only Conclusion D follows. Neither I nor II follows. Company X has fired its employees because of the current recession. Nothing is mentioned about the history of the company X. So, the conclusion I is false. The competitors may or may not be affected because of the recession. We are not aware of that fact. So, Conclusion II is also false.