In the following questions, two statements are given followed by two conclusions (I) and (II). You have to consider the statements to be true even if they seem to be at variance from commonly known facts. You are to decide which of the given conclusions, if any, follow from the given statements. Indicate your answer.
Statements: Although we have rating agencies like NASA WADA, there is demand to have a separate rating agency for IT and nuclear companies to protect investors.
Conclusions:
I. Assessment of financial worth of IT and nuclear companies calls for a separate set of skills, insight and competencies.
II. Now, the investors investing in IT and nuclear companies will get protection of their investment.

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  1. Only conclusion I follows
  2. Only conclusion II follows
  3. Either conclusion I or II follows
  4. Neither conclusion I nor II follows

Answer (Detailed Solution Below)

Option 1 : Only conclusion I follows
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Detailed Solution

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Given statements: Although we have rating agencies like NASA WADA, there is demand to have a separate rating agency for IT and nuclear companies to protect investors.

Conclusions:

I. Assessment of financial worth of IT and nuclear companies calls for a separate set of skills, insight and competencies. → Follow

If a separate rating agency is being demanded, it implies that existing agencies may not be well-equipped for assessing these sectors. Thus the conclusion is reasonably derived from the statement, as it explains the underlying decision reason for demanding a separate agency.

II. Now, the investors investing in IT and nuclear companies will get protection of their investment. → Does not follow

The word 'Now' implies that such protection is already in place, but the statement only says there is demand for a separate agency, not that it already exists.

Thus, Only conclusion I follows.

Hence, "Option 1" is the correct answer.

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