Federal law prohibits businesses from reimbursing : GMAT Critical Reasoning (CR)
Check GMAT Club Decision Tracker for the Latest School Decision Releases https://gmatclub.com/AppTrack

It is currently 27 Feb 2017, 08:27
GMAT Club Tests

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Federal law prohibits businesses from reimbursing

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

3 KUDOS received
Intern
Intern
avatar
Joined: 19 Jun 2012
Posts: 17
Followers: 0

Kudos [?]: 75 [3] , given: 3

Federal law prohibits businesses from reimbursing [#permalink]

Show Tags

New post 18 Nov 2013, 20:04
3
This post received
KUDOS
3
This post was
BOOKMARKED
00:00
A
B
C
D
E

Difficulty:

  35% (medium)

Question Stats:

70% (02:32) correct 30% (02:04) wrong based on 227 sessions

HideShow timer Statistics

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

_________________

If questions jerk in your mind, then give me a KUDOS

Request Expert Reply
If you have any questions
you can ask an expert
New!
Expert Post
1 KUDOS received
Veritas Prep GMAT Instructor
User avatar
Joined: 23 Oct 2013
Posts: 144
Followers: 27

Kudos [?]: 204 [1] , given: 9

Re: Federal law prohibits businesses from reimbursing [#permalink]

Show Tags

New post 20 Nov 2013, 18:09
1
This post received
KUDOS
Expert's post
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!!!
_________________

Brandon
Veritas Prep | GMAT Instructor

If you found this post helpful, please give me kudos!!! :)

Save $100 on Veritas Prep GMAT Courses And Admissions Consulting
Enroll now. Pay later. Take advantage of Veritas Prep's flexible payment plan options.

Veritas Prep Reviews

Math Forum Moderator
User avatar
G
Status: Greatness begins beyond your comfort zone
Joined: 08 Dec 2013
Posts: 1059
Location: India
Concentration: General Management, Strategy
GPA: 3.2
WE: Information Technology (Consulting)
Followers: 46

Kudos [?]: 422 [0], given: 59

GMAT ToolKit User Reviews Badge CAT Tests
Re: Federal law prohibits businesses from reimbursing [#permalink]

Show Tags

New post 27 Jan 2017, 22:23
According to the statements, the companies that own private aircraft for business use are fully in compliance with the relevant law, which is summarized. A correct
inference will be a statement that must follow from at least part of the premises given.
(A) It does not have to be true that the law costs the businesses money, as no evidence about the relative costs is given.
(B) This choice is an irrelevant comparison, as the preferences of the executives are not the concern of the statements.
(C) This choice does not have to follow, as there is no information given about the travel arrangements made by large companies. The statements only indicate
that the majority of private planes are not owned by large companies.
(D) There is no information given about the travel arrangements of upper level executives and no reason to believe that those with the companies discussed do not comply with their companies’ policies.
(E) If, as the statements indicate, the companies are in full compliance with this law, it must be true that the executives following their guidelines also are. - Correct

Answer E
_________________

When everything seems to be going against you, remember that the airplane takes off against the wind, not with it. - Henry Ford
The Moment You Think About Giving Up, Think Of The Reason Why You Held On So Long
+1 Kudos if you find this post helpful

Re: Federal law prohibits businesses from reimbursing   [#permalink] 27 Jan 2017, 22:23
    Similar topics Author Replies Last post
Similar
Topics:
Opponents of the laws prohibiting nonprescription narcotic drugs argue vikasp99 3 08 Feb 2017, 05:21
2 Experts publish their posts in the topic When the state of Tennessee passed a law prohibiting the teaching of t SajjadAhmad 3 14 Jan 2017, 02:34
1 Experts publish their posts in the topic The Housing law prohibits businesses from reimbursing any Vercules 11 14 Mar 2013, 20:17
12 Federal law prohibits businesses from reimbursing any tingle15 18 29 Jun 2010, 09:32
It has been against the law for federal agencies and federal eyunni 0 18 Nov 2007, 04:41
Display posts from previous: Sort by

Federal law prohibits businesses from reimbursing

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.