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Federal Law and flights

Expert replies
by barcebal » Sun Jul 18, 2010 11:11 pm
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?

A. The Federal law in question costs businesses money.

B. Most executives would rather fly on company owned planes than on commercial airlines.

C. Large businesses usually have their executives fly first or business class on commercial flights.

D. Upper level executives are less often in compliance with the law.

E. By not receiving any reimbursement for these flights, the mid-level executives on board are complying with the law.

OA E

Why is E the OA?
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Source: — Critical Reasoning |

by selango » Sun Jul 18, 2010 11:22 pm
Federal Law-Employees should be not reimbursed for their own purposes other tha business.

Most companies purchase own aircraft.

Mid level employess comply with the law and what is best for the business.

The conclusion indicating that mid level employeed comply with the law.It means they are not receiving any reimbusement and comply with the law.

Option E clearly express the conclusion.
--Anand--
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by 4GMAT_Mumbai » Sun Jul 18, 2010 11:23 pm
Hi,

Let us see the issues with others.

A? Not supported. The statement does not mention whether the current option is a costlier or a cheaper option.

B? Not even a word on commercial airlines.

C? Not even a word on large businesses or how they do it.

D? Not even a word on upper level executives. Yes, they have talked about mid level executives - but, they have not used a word like 'In contrast ...' which might remotely suggest high level executives.

E? It may not be a loud and clear inference. On the same vein, one cannot refute this statement either. Moreover, given the other options, E seems to be the best choice.

Hope this helps. Thanks.
Naveenan Ramachandran
4GMAT, Dadar(W) & Ghatkopar(W), Mumbai
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