Federal law prohibits businesses from reimbursing : GMAT Critical Reasoning (CR)
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 It is currently 27 Feb 2017, 08:27

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# Federal law prohibits businesses from reimbursing

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18 Nov 2013, 20:04
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Question Stats:

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

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Re: Federal law prohibits businesses from reimbursing   [#permalink] 27 Jan 2017, 22:23
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