Executives of Company G receive high salaries and excellent benefits,

Perfect question to demonstrate the basic reasoning required to solve any assumption question.

Premise

Executive receive high salaries, excellent benefits, stock options, numerous other perks. Numerous shareholders have an objection when these executives travel on company's corporate jets. However, these shareholders believe that these jets should only be used for purposes which increase profits for the company.

Conclusion

Shareholders don't want the executives to use company jets for anything but profit making. [This is not mentioned explicitly and is inferred logically from the premise.]

Assumption

When executives travel in company jets, they don't do it to bring profits to the company. Hence any answer choice supporting this hypothesis would not be wrong. We need to find the answer choice that sufficiently bridges the gap between the premise and the conclusion.

Cheers!

Scrolling without Kudos?

Hey Mittali!

Kindly allow me to explain.

The shareholders' objection to corporate jets is not sufficiently explained by answer choice (E). Moreover one cannot consider this as a "must be true" to explain the gap between the premise and the conclusion. I welcome you to go through my detailed answer.

Cheers!



Click Kudos if this helps!

Technically speaking, this is an Assumption question. Not a "Must be true" question. Kindly change the tag.

Hi,
For choice A, what if the executive uses the jet for business trip that does not increase profit?

Here is how my understanding goes.

As long as the option doesn't clearly state a particular fact, then it is never advisable to assume something. Remember that the more stories you need to spin to make an option your answer, the more it is not your answer.

In Option A, it is clearly given that the purpose behind using the jets is "personal" - Hence it is not safe to assume that it is used for non-profitable business.

Also, the reason why Company G clearly prohibits people from using Corporate Jets is because they don't want the jets to be misused for personal reasons. Hence the answer.

Hope that helps.

Thanks,

Saikiran Dudyala.
Byju's GMAT Verbal Expert

Official Explanation

The shareholders' objection to paying for its executives to travel on Company G's corporate jets is based on the belief that the jets should only be used in ways that relate to increasing the company's profits. However, no information is provided about the purpose of the executives' travel when using the corporate jets. To support the shareholders' objection, it would be necessary to demonstrate that the executives' travel on corporate jets was NOT related to increasing the profits of Company G.

(A) CORRECT. The fact that Company G executives primarily use the corporate jets for personal travel, as opposed to some business purpose, demonstrates that the use of these jets is not related to the profitability of Company G. If this fact were not true, the logic behind the shareholders' objection would not hold.

(B) Information about other perks has no relevance to the shareholders' argument about corporate jet travel. The relative consistency or inconsistency of policies related to executive perks has no impact on the internal logic of the shareholders' argument about one specific perk – the use of corporate jets.

(C) The spending habits of "most companies" are not necessarily relevant to the spending habits of Company G. Even if one were to assume that Company G, like most companies, paid significant amounts of money to lease corporate jets, this provides no information about whether the use of these jets is related to increasing the company's profits.

(D) The policies of "the vast majority of companies" are not necessarily relevant to the policies of Company G. Moreover, this information provides no information about whether the use of Company G's corporate jets is related to increasing the company's profits.

(E) Company G's actual profitability (or lack thereof) has no bearing on the shareholders' argument. Whether the Company is profitable or not, the shareholders' objection is based on the belief that corporate jets should only be used in ways that attempt to increase the company's profits.

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