Logical ReasoningDifficulty: Easy

PT147 S4 Q2 Explanation

Acme's bank loan must be

A free, expert breakdown of this official LSAT Logical Reasoning question.

TopicsNecessary Assumption

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Stimulus

Acme's bank loan must be immediately repaid in full if Acme's earnings fall below $1 million per year. If Acme has to repay the entire loan immediately, it will have to declare bankruptcy. Acme had seemed safe from bankruptcy, having reported annual earnings of well over $1 million in each year it its earnings for last year, so it will have to declare bankruptcy.

What this question is testing

Necessary Assumption

Your task

Find the assumption the argument requires in order for its conclusion to hold.

Common trap

Answers that would help the argument but aren't strictly required (sufficient, not necessary).

Winning move

Negate each choice — the right one breaks the argument when negated.

Reading along? Open the full official question in LawHub — we show a fragment here and keep the reasoning in our own words.

The question
2.

The argument requires the assumption

Answer choices

  1. Correct92% picked this

    Acme's earnings for last year, when accurately stated, are below

    Why this is right

    Answer A is correct.

    Skill tested: Necessary Assumption · how this choice captures the argument's function is the move to repeat next time.

  2. Trap0% picked this

    Acme has other debts besides the

  3. Trap1% picked this

    last year is not the only year for which Acme

  4. Trap5% picked this

    Acme's earnings for the current year will fall below

  5. Trap2% picked this

    Acme would be able to avoid bankruptcy if it did not have to repay

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