Discussion Forum : Statement & Assumptions
Question - Statement:
The Govt has decided to auction construction of highways to private entities in several blocks across the country on build-operate-transfer basis.
Assumptions :
(A) An adequate number of private entities may not respond to the Government’s auction notification.
(B) Many private entities in the country are capable of constructing highways within a reasonable time.
(C) The Govt’s proposal of build-operate-transfer may financially benefit the private entities.
Which of the following assumptions is/are implicit in the above statement?
Options:
A .  Only (A) and (B) are implicit
B .  Only (B) and (C) are implicit
C .  Only (B) is implicit
D .  Only (A) and (C) are implicit
E .  None of these
Answer: Option B
Answer: (b)The decision to auction assumes response to it. Hence (A) is not implicit. Unless the private entities are capable, the decision would make no sense. Hence (B) is implicit. (C) is implicit as without financial benefit, private entities would not turn up for the auction.

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