Federal law prohibits businesses from reimbursing : GMAT Critical Reasoning (CR)
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# Federal law prohibits businesses from reimbursing

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Intern
Joined: 19 Jun 2012
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Kudos [?]: 72 [3] , given: 3

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18 Nov 2013, 20:04
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35% (medium)

Question Stats:

71% (02:38) correct 29% (02:11) wrong based on 172 sessions

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Federal law prohibits businesses from reimbursing any employees for the cost of owning and operating a private aircraft that is used for business purposes. Thus, many American companies themselves purchase private aircraft. The vast majority of the business aviation fleet is owned by small and mid-size businesses, and flights are strictly for business purposes, with mostly mid-level employees on board. These companies and their boards of directors are in full compliance with the law and with what is best for their businesses. Which of the following can be most properly inferred from the statements above?
• The Federal law in question costs businesses money.
• Most executives would rather fly on company owned planes than on commercial airlines.
• Large businesses usually have their executives fly first or business class on commercial flights.
• Upper level executives are less often in compliance with the law.
• By not receiving any reimbursement for these flights, the mid-level executives on board are complying with the law.
[Reveal] Spoiler: OA

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20 Nov 2013, 18:09
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This inference question combines two of the premises in the stimulus. The first is sentence one: "Federal law prohibits businesses from reimbursing any employees for the cost of owning and operating a private aircraft that is used for business purposes." The second is the last sentence: "These companies and their boards of directors are in full compliance with the law and with what is best for their businesses."

If these employees are in full compliance with the law, and law prohibits employees from being reimbursed, then these employees must not be being reimbursed. This is answer choice E.

I hope this helps!!!
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Re: Federal law prohibits businesses from reimbursing   [#permalink] 20 Nov 2013, 18:09
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