Question

Consider the given statement and decide which of the given assumptions are implicit in the statement.
Statement: This year most of the retail stores are offering heavy discounts and gifts on their products to customers to meet their targets.
Assumptions:
I) Huge inventories of goods is left unsold in retail stores and sales were not satisfactory.
II) Retail stores have so far earned a lot of profit, so now they have started sharing it with their customers.

• A. Only assumption I is implicit.
• B. Only assumption II is implicit.
• C. Both assumption I and II are implicit.
• D. Neither assumption I nor II is implicit.

Hint:

An assumption is an unstated piece of information that must be true for the statement to make sense. Ask yourself, "Does the author of the statement have to believe this assumption is true for their statement to be logical?"

Answer 1

The Correct Option is A

Step 1: Statement Analysis: Stores employ "heavy discounts and gifts" "to meet their targets." This indicates potential difficulty in achieving sales goals without these incentives.
Step 2: Assumption I Evaluation: This assumption posits stores face unsold stock and poor sales. This logically explains the need for heavy discounts. Stores with low sales and high inventory would likely use such tactics. Thus, this assumption is implicit.
Step 3: Assumption II Evaluation: This assumption suggests high profitability and profit sharing. This contradicts the statement. The discounts are used "to meet their targets," suggesting a need, not profit sharing. Therefore, this assumption is not implicit.