Question

Given below are two statements 1 and 2, and two conclusions I and II.

Statement 1: All entrepreneurs are wealthy.
Statement 2: All wealthy are risk seekers.
Conclusion I: All risk seekers are wealthy.
Conclusion II: Only some entrepreneurs are risk seekers.

Based on the above statements and conclusions, which one of the following options is CORRECT?

• A. Only conclusion I is correct
• B. Only conclusion II is correct
• C. Neither conclusion I nor II is correct
• D. Both conclusions I and II are correct

Hint:

In logical reasoning, be careful not to make incorrect generalizations. Carefully analyze each statement and conclusion for contradictions.

Answer 1

The Correct Option is C

- Statement 1 says that all entrepreneurs are wealthy.
- Statement 2 says that all wealthy people are risk seekers.

From Statement 1 and Statement 2, we can infer that all entrepreneurs are risk seekers, but we cannot conclude that all risk seekers are wealthy. Therefore, Conclusion I ("All risk seekers are wealthy") is incorrect.

Conclusion II ("Only some entrepreneurs are risk seekers") is also incorrect, as Statement 2 states that all wealthy people (including all entrepreneurs) are risk seekers. Therefore, all entrepreneurs must be risk seekers. Thus, both conclusions are incorrect, and the correct answer is (C).