The correct answer is: Only II is implicit.
The statement says that the company has decided to increase the price of all its products to tackle the precarious financial position. This means that the company is currently in a financial crisis and is trying to improve its situation by increasing its prices. However, this does not mean that the company will be able to wipe out its losses or that buyers will continue to buy its products even after the price increase. It is possible that the company will not be able to increase its prices enough to cover its losses, or that buyers will stop buying its products because of the price increase. Therefore, only assumption II is implicit in the statement.
Assumption I is not implicit because the statement does not say anything about the company’s ability to wipe out its losses. Assumption III is not implicit because the statement does not say anything about the company’s resources.
Here is a more detailed explanation of each assumption:
- Assumption I: The company may be able to wipe out the entire losses incurred earlier by this decision.
This assumption is not implicit because the statement does not say anything about the company’s ability to wipe out its losses. The statement only says that the company has decided to increase the price of its products to tackle its precarious financial position. It does not say anything about whether or not the company will be able to increase its prices enough to cover its losses.
- Assumption II: The buyers may continue to buy its products even after the increase.
This assumption is implicit because the statement says that the company is trying to improve its financial situation by increasing its prices. This means that the company believes that buyers will continue to buy its products even after the price increase.
- Assumption III: The company has adequate resources to continue production for few more months.
This assumption is not implicit because the statement does not say anything about the company’s resources. The statement only says that the company has decided to increase the price of its products to tackle its precarious financial position. It does not say anything about whether or not the company has adequate resources to continue production for few more months.