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Discussion

Statements: Although we have rating agencies like Crisil, ICRA, there is demand to have a separate rating agency for IT companies to protect investors.

Conclusions:

1. Assessment of financial worth of IT companies calls for separate set of skills, insight and competencies.

2. Now the investors investing in IT companies will get protection of their investment.

  • A.Only conclusion I follows
  • B.Only conclusion II follows
  • C.Either I or II follows
  • D.Neither I nor II follows
  • E.Both I and II follow

Answer: A

The need for separate rating agency for IT companies clearly indicates that such assessment requires a separate set of skills. So, I follows. However, the statement indicates only the need or demand and neither the future course of action nor its after-effects can be judged. So, II does not follow

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