Statement 1: All members of the board of directors own stock in the company.
Statement 2: John owns stock in the company.
What can be validly concluded from the above statements?
Correct: C
The correct answer is C. The first statement means that the set of board members is a subset of stock owners. John being a stock owner means that he is a member of the larger set and it is not possible to determine whether or not he is also a member of the board of directors (smaller set). We can say that some people who own stock in the company are members of the board of directors since statement 1 tells us all board members own stock.