Critical Reasoning

Federal law prohibits businesses from reimbursing any employees for the cost of owning and operating a private
aircraft that is used for business purposes. Thus, many American companies themselves purchase private aircraft.The vast majority of the business aviation fleet is owned by small and mid-size businesses, and flights 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?
"¢ The Federal law in question costs businesses money.
"¢ Most executives would rather fly on company owned planes than on commercial airlines.
"¢ Large businesses usually have their executives fly first or business class on commercial flights.
"¢ Upper level executives are less often in compliance with the law.
"¢ By not receiving any reimbursement for these flights, the mid-level executives on board are complying with the
law.

"¢ The Federal law in question costs businesses money. - We have no information to believe that reimbursements are any cheaper. What if employees reimburse more than the actual cost of reimbursements.
"¢ Most executives would rather fly on company owned planes than on commercial airlines. - The preference of executives is not stated.
"¢ Large businesses usually have their executives fly first or business class on commercial flights. - OFS. the argument is regarding small and mid sized companies.
"¢ Upper level executives are less often in compliance with the law. - No mention of ULE
"¢ By not receiving any reimbursement for these flights, the mid-level executives on board are complying with the
law. - Correct

I did not understand the reasoning in the second statement. Can any explain it to me in a different way? Thanks.

This type of question, called an inference question, asks us to find a statement that absolutely, positively, 100% must be true based on the text above.

One of the options is: Most executives would rather fly on company owned planes than on commercial airlines.

Do we know that this is true? Is this stated in the text above? No. There is no information in the text above about executives' preferences. We have no way of determining that most executives would rather fly on company-owned planes. Accordingly, this cannot be the credited response.