BREAKING: Target Test Prep releases Brand New 2026 On Demand GMAT prep course

Redeem

mgmat

Expert replies
by bryan88 » Mon Apr 09, 2012 11:05 am
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.
Join the discussion
Source: — Critical Reasoning |

by Bill@VeritasPrep » Mon Apr 09, 2012 12:43 pm
A--We don't know how the costs of purchasing aircraft compare to the costs of reimbursing employees for private aircraft use.

B--We don't have enough information to say that a majority of executives would prefer private rather than commercial planes.

C--Large businesses aren't mentioned.

D--We don't have any information about upper-level employees and compliance.

E--Not compelling, but it's true. Employees aren't allowed to be reimbursed for private aircraft use; companies purchase aircraft for employees to use; if these employees aren't reimbursed, they are in compliance.
Join Veritas Prep's 2010 Instructor of the Year, Matt Douglas for GMATT Mondays

Visit the Veritas Prep Blog

Try the FREE Veritas Prep Practice Test
Join the discussion

by klmehta03 » Tue Apr 10, 2012 8:34 am
IMO E , OA pls?
Join the discussion

by bryan88 » Tue Apr 10, 2012 9:14 am
OA is E
Join the discussion