The question contains some statements followed by some conclusions. Decide…
2024
The question contains some statements followed by some conclusions. Decide which of the given conclusions logically follow from the given statements, disregarding commonly known facts.
Statements
(a) All shares are debentures.
(b) No debenture is an equity.
Conclusions
I. No equity is a share.
II. Some debentures are shares
- A.
Only I follows
- B.
Only II follows
- C.
Either I or II follows
- D.
All Follows
Attempted by 41 students.
Show answer & explanation
Correct answer: A
Answer: Only the first conclusion follows.
Given statements: All shares are debentures. No debenture is an equity.
Conclusion I: No equity is a share — follows. Reason: All shares are within the set of debentures, and debentures are disjoint from equities; therefore shares cannot be equities.
Conclusion II: Some debentures are shares — does not necessarily follow. Reason: The statement 'All shares are debentures' does not assert that any shares actually exist. Without an existential premise (for example, 'Some shares exist'), we cannot infer that there are debentures that are shares.
Final choice: Only the conclusion that No equity is a share follows.