Trucks

Which one of the following is an assumption required by the auditor's reasoning?

Auditor: XYZ, a construction company, purchased 20 new trucks 3 years ago, and there is no record of any of those trucks being sold last year. Records indicate, however, that XYZ sold off all of its diesel-powered trucks last year. We can thus conclude that none of the 20 trucks purchased 3 years ago were diesel powered.

Answer: None of the 20 trucks was sold before last year.

Don't Jack It Up

Which one of the following is an assumption on which the argument depends?

From time to time there is public outcry against predatory pricing - where a company deliberately sells its products at prices low enough to drive its competitors out of business. But this practice clearly should be acceptable, because even after its competitors go out of business, the mere threat of renewed competition will prevent the company from raising its prices to unreasonable levels.

Answer: any pricing practice that does not result in unreasonable prices should be acceptable.