BenCrackVerbal wrote:
Massive layoffs are expected to happen if the VP of Finance is promoted as the CEO of Transcorp. The company is likely to be split if the VP of Operations is promoted to CEO instead. The VP of Finance and the VP of Operations are the only two strong contenders from within Transcorp for the CEO position.
Given the statements in the passage, which one of the following statements must be true?(A) Transcorp will certainly have to face either massive layoffs or a split.
(B) If massive layoffs happen at Transcorp, the VP of Finance would have become its CEO.
(C) If massive layoffs do not happen, then the VP of Operations would have become the CEO of Transcorp.
(D) If both massive layoffs and a split happen, then the CEO of Transcorp would be neither the VP of Finance nor the VP of Operations.
(E) It is possible that Transcorp will neither see massive layoffs nor be split.
Question Type - Inference
Fact 1: VP(F) becomes CEO - Effect 1
Fact 2: VP(O) becomes CEO - Effect 2
Fact 3: CEO Contenders from within the org. are VP(F) and VP(O)
For Inference questions, the answer choice must be true.
(A) Transcorp will certainly have to face either massive layoffs or a split.
Here the author will have to assume that someone from the organization becomes a CEO.
(B) If massive layoffs happen at Transcorp, the VP of Finance would have become its CEO.
If VP(F) becomes CEO -> Layoffs is the effect.
Other way round, is not true.
(C) If massive layoffs do not happen, then the VP of Operations would have become the CEO of Transcorp.
Same as B.
(D) If both massive layoffs and a split happen, then the CEO of Transcorp would be neither the VP of Finance nor the VP of Operations.
Information is not provided to support this.
(E) It is possible that Transcorp will neither see massive layoffs nor be split.
Fact3 supports this option and hence the answer.