Directions: In the following question, a statement is followed by two assumptions I and II. You are to consider the statement and the assumptions that follow and decide which of the assumptions is/are implicit in the statement. Mark your answer as:

(1) if only assumption II is implicit. (2) if only assumption I is implicit. (3) if either assumption I or II is implicit. (4) if neither assumption I nor II is implicit.

Statement: The KLM company has decided to go for tax-free and taxable bonds to raise its resources. Assumptions: I. The KLM company has already explored other sources to raise money. II. The products of KLM company have little competition in the market.