Statement: "The company expects its profits to rise next quarter."Assumptions:1️⃣ Market demand will remain strong.2️⃣ The company’s costs will remain stable.Which assumption(s) is/are implicit?

easy Q11 of 15

Reasoning Ability - Statement & Assumption

Statement: "The company expects its profits to rise next quarter."
Assumptions:
1️⃣ Market demand will remain strong.
2️⃣ The company’s costs will remain stable.
Which assumption(s) is/are implicit?

AOnly 2

BBoth 1 and 2

COnly 1

DNeither 1 nor 2

Step-by-Step Solution

Step 1: Identify prediction
The statement forecasts higher profits in the near future.
Step 2: Analyze assumptions
Assumption 1 — profit growth relies on strong demand — implicit. Assumption 2 — stable costs are needed for profit growth — implicit. Both conditions together justify the expectation.
Final Answer:
Both 1 and 2 are implicit. → Option B
Quick Check:
If either demand dropped or costs rose, profit growth would fail ✅

Quick Trick: Profit predictions depend on both demand strength and cost stability.

Common Mistakes:

Ignoring that a profit forecast assumes multiple stable variables.

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Statement: "The company expects its profits to rise next quarter."Assumptions:1️⃣ Market demand will remain strong.2️⃣ The company’s costs will remain stable.Which assumption(s) is/are implicit?

Step 1: Identify prediction

Step 2: Analyze assumptions

Final Answer:

Quick Check:

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