Statement: Due to recession, Company X has fired its 200 employees.…
2025
Statement: Due to recession, Company X has fired its 200 employees.
Conclusion:
1. Company X is well known for firing people.
2. All other competitors of Company X are also affected because of recession.
- A.
Conclusion 1 follows
- B.
Conclusion 2 follows
- C.
Both follow
- D.
Neither 1 nor 2 follows
Show answer & explanation
Correct answer: D
Concept: In statement-and-conclusion reasoning, a conclusion is valid only if it can be derived strictly from the facts given in the statement — never from outside assumptions, generalizations about habitual behaviour, or information about parties the statement does not mention.
Application: The statement records one recession-triggered layoff by Company X. It gives no information about Company X's past conduct and no information about any other company.
"Company X is well known for firing people" generalises a single recession-driven event into an established reputation — a jump the statement does not support.
"All other competitors of Company X are also affected because of recession" brings in the competitors' situation, about which the statement says nothing.
Conclusion: Since neither conclusion can be traced back to the statement alone, "Neither 1 nor 2 follows" is the answer.