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. 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?

  1. Dunder Inc. would have avoided bankruptcy if it had followed through with the plan to build branch stores during its more prosperous years.
  2. 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.
  3. 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.
  1. The closure of Michael & Sons resulted in a loss of revenue for Dunder Inc.
  1. After Michael & Sons closed, Dunder Inc. was the single largest employer in Beverly Hills.

OA: D

Explanation:

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.


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