Question

Directions: Each question has a set of four sequentially ordered statements. Each statement can be classified as one of the following:

• Fact (F): a piece of information that has been heard, seen or read, and which is open to discovery or verification.
• Inference (I): a conclusion drawn about the unknown, on the basis of the known.
• Judgment (J): an opinion that implies approval or disapproval of persons, objects, situations or occurrences in the past, present or future.

Select the answer option that best describes the set of four statements.

1. SEBI has given an 'informal guidance' to Insilco on the buy back of Non Convertible Debentures.
2. This move could serve as a useful guide for other companies who may have similar plans.
3. The debentures are due for redemption in three annual installments.
4. Insilco may go ahead with early redemption since SEBI has clarified the process.

• A. FIII
• B. FJJI
• C. FJFI
• D. JJJI

Hint:

Check each statement against a record for Fact, look for value words like "useful" for Judgment, and watch for a prediction built on a stated fact for Inference.

Answer 1

The Correct Option is C

Step 1: Classify statement 1.
Statement 1 says SEBI gave Insilco an informal guidance on the buyback of Non Convertible Debentures. This is a specific regulatory action that either happened or did not, it can be checked against SEBI's own records or public disclosures. This is a Fact.

Step 2: Classify statement 2.
Statement 2 says this move "could serve as a useful guide" for other companies. The word "useful" signals a value judgment, the statement is praising the move and expressing approval of its wider benefit, rather than stating a checkable fact or drawing a strict logical conclusion. This is a Judgment.

Step 3: Classify statement 3.
Statement 3 says the debentures are due for redemption in three annual installments. This is a concrete, checkable detail about the repayment schedule, the kind of fact that would appear in the debenture's offer document. This is a Fact.

Step 4: Classify statement 4.
Statement 4 says Insilco "may go ahead with early redemption since SEBI has clarified the process." This is not simply repeating known information, it is drawing a conclusion about what Insilco is likely to do next, based on the fact stated in statement 1 (SEBI's guidance). Predicting a future action from a known fact, without it being an opinion about right or wrong, is the definition of an Inference.

Step 5: Combine the four labels and match to the options.
Putting the four classifications in order gives F, J, F, I.

Step 6: Final Answer.
The sequence FJFI matches option (c).
\[ \boxed{\text{FJFI}} \]