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CSEET · Business Communication · Essentials of Good English

Read the passage: "Rohan's firm lost two major clients last year, yet its profits rose because it cut costs sharply and renegotiated supplier contracts." Which inference is best supported by the passage?

The best-supported inference is that cost control helped the firm's profits even though it lost clients. The passage directly links the profit increase to sharp cost cutting and renegotiated supplier contracts, while the other options assume facts the passage never states.

  1. AThe firm's revenue must have risen despite losing the clients
  2. BCost control helped the firm's profits even though it lost clientsCorrect
  3. CSuppliers were unhappy with the firm and stopped dealing with it
  4. DThe firm will certainly win back the two clients this year

Explanation

The passage states profits rose because of cost cuts and renegotiated contracts, so cost control helped profits. Nothing says revenue rose, suppliers were unhappy or clients will return; those are unsupported assumptions.

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