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: Analyze the statement. The statement says that stores are using "heavy discounts and gifts" as a strategy specifically "to meet their targets". This implies that without these special offers, they are struggling or would struggle to reach their sales goals.
Step 2: Evaluate Assumption I. Assumption I suggests that stores have large amounts of unsold stock and poor sales. This provides a direct and logical reason for why they would need to take drastic measures like offering heavy discounts to meet their targets. A store that is struggling with sales and high inventory would indeed resort to such tactics. Therefore, this assumption is implicit.
Step 3: Evaluate Assumption II. Assumption II suggests that stores are very profitable and are sharing their profits. This contradicts the information in the statement. The statement says the discounts are a tool "to meet their targets," which implies a need or a struggle, not an act of generosity born from excess profit. A company sharing profits would be described differently. Therefore, this assumption is not implicit.