Official Solution:
The Housing law prohibits businesses from reimbursing any employees for the cost of owning and renting a luxurious apartment that is used for business purposes. Thus, many Canadian companies themselves purchase luxurious apartments. The vast majority of the business housing colonies are owned by small and mid-size businesses, and accommodations 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?
A. The Housing law of 1989 in question costs businesses money.
B. Most executives would rather use company owned luxurious apartments than use commercial luxury apartments.
C. Large businesses usually have their executives stay in semi-luxurious or ordinary commercial apartments.
D. Upper level executives are less often in compliance with the law.
E. By not receiving any reimbursement for these luxurious apartments, the mid-level executives on board are complying with the law.
General Approach: The first step to answering inference based questions is to fully understand the information provided in the given statements. The statements should be analysed to identify and understand the main elements and how they relate to each other.
The second step is to evaluate each answer choice by confirming whether it follows logically from the given information. The correct answer choice must be entirely supported by the information in the given statements.
Correct Answer: Answer E: It is mentioned in the passage that the companies are in compliance with the law which prohibits businesses from reimbursing any employees for the cost of owning and renting a luxurious apartment that is used for business purposes. Therefore, it can be concluded that by not receiving any reimbursement for these luxurious apartments, the mid-level executives on board are also complying with the law. This is the only inference which can be derived directly and logically from the information provided in the passage.
Incorrect Answers: Answer A: The Housing law of 1989 in question costs businesses money. This cannot be inferred from the passage as there is no explicit information given about the costs associated with the implementation of the law.
Answer B: Most executives would rather use company owned luxurious apartments than use commercial luxury apartments. This choice cannot be inferred from the passage as it does not provide any information on the preferences of the executives.
Answer C: Large businesses usually have their executives stay in semi-luxurious or ordinary commercial apartments. This cannot be inferred from the passage as it does not discuss the housing arrangements made by large businesses.
Answer D: Upper level executives are less often in compliance with the law. This cannot be inferred from the passage as there is no information given about the housing arrangements made by upper level executives.
Answer: E