Dunder Inc. is a luxury store in Beverly Hills. For many years, Dunder Inc. earnt significant gains and was considering branching out in nearby states. Michael & Sons, for many years the only largest employer in Beverly Hills and the neighboring area, abruptly shut its unit last year, causing extensive unemployment. Only a fraction of the former Michael & Sons workers have found new jobs, and many of these at much lower salaries. Early this year, Dunder Inc. declared bankruptcy, citing the shutting down of Michael & Sons as one of the major causes.
Which of the following inferences is best supported by the passage?
- Dunder Inc. would have avoided bankruptcy if it had followed through with the plan to build branch stores during its more prosperous years.
- Michael & Sons’ management team had a corporate account with Dunder Inc., and ordered several luxury items used in business meetings and to entertain prospective clients.
- Dunder Inc.’s direct competitors, in Beverly Hills and in the neighboring area, are much larger than Dunder Inc., and therefore benefited substantially from the conditions that arose after Michael & Sons closed.
- The closure of Michael & Sons resulted in a loss of revenue for Dunder Inc.
- After Michael & Sons closed, Dunder Inc. was the single largest employer in Beverly Hills.
No other answer choice is 100% true, except for answer option D. “Early this year, Dunder Inc. has declared bankruptcy, citing the shutting down of Michael & Sons as one of the major causes” this clearly supports that.