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    • Question

      Read the passage below and determine which combination

      of the given statements can be correctly inferred from the text. Passage: SpaceX, established in 2002, was originally perceived as an ambitious niche enterprise attempting to launch small, specialized payloads into orbit. Over the following decades, however, it fundamentally disrupted the global aerospace industry by transitioning to mass-market commercial satellite deployments, pioneered by its reusable Falcon 9 fleet. Despite ongoing skepticism from traditional defense contractors regarding its immediate profit margins, SpaceX's valuation has skyrocketed, making it one of the most highly valued aerospace firms globally, largely due to investor confidence in its long-term vision of establishing human multi-planetary life. Additionally, the company has aggressively deployed its Starlink satellite broadband division, though this global internet network currently requires heavy capital expenditure and remains less profitable than its core commercial rocket launch services. Statements: 1.SpaceX's massive market valuation is rooted more heavily in its projected future capabilities than its immediate cash-flow profitability. 2. The Starlink satellite broadband division is currently the primary financial engine driving SpaceX's overall revenue. 3. Investors possess strong conviction in SpaceX’s overarching aerospace ambitions beyond basic commercial payload transport.
      A Only 1 and 2 Correct Answer Incorrect Answer
      B Only 2 Correct Answer Incorrect Answer
      C Only 1 and 3 Correct Answer Incorrect Answer
      D Only 2 and 3 Correct Answer Incorrect Answer
      E All 1, 2, and 3 Correct Answer Incorrect Answer

      Solution

      Statement 1 can be inferred. The text notes that despite "skepticism... regarding its immediate profit margins," the company's valuation has skyrocketed due to "investor confidence in its long-term vision." This directly indicates that the company is valued primarily for its future potential and strategic trajectory rather than its current baseline profits. Thus, Statement 1 is a valid inference. Statement 2 cannot be inferred. The passage explicitly states that the Starlink broadband network "requires heavy capital expenditure and remains less profitable than its core commercial rocket launch services." Therefore, claiming it is the primary driver of revenue is a direct contradiction of the text's emphasis on the core launch sector's superior profitability. Thus, Statement 2 is incorrect. Statement 3 can be inferred. The passage notes that investors back the firm due to a belief in a "long-term vision of establishing human multi-planetary life." Because this interplanetary objective extends far past simply running standard cargo operations, it proves investors have confidence in an overarching mission that goes beyond basic commercial transport. Thus, Statement 3 is a valid inference.

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