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According to the new telecommunications regulations, any internet service provider (ISP) that receives a rural expansion grant must comply with the federal data retention mandate. Complying with this mandate requires the ISP to maintain physical servers within the federal territory. Furthermore, no ISP that maintains physical servers within the federal territory is eligible for the small-business tax exemption. ApexNet is an ISP that receives a rural expansion grant, while Connectia is an ISP that is eligible for the small-business tax exemption.

Based on the information above, which of the following statements must be true? (Select all that apply)

  1. ApexNet is not eligible for the small-business tax exemption.Answer
  2. Connectia does not receive a rural expansion grant.Answer
  3. C
    Any ISP that is not eligible for the small-business tax exemption receives a rural expansion grant.
  4. D
    If an ISP does not receive a rural expansion grant, it is eligible for the small-business tax exemption.
  5. E
    Most ISPs that comply with the federal data retention mandate also receive a rural expansion grant.

Answer

The statements that must be true are: ApexNet is not eligible for the small-business tax exemption, and Connectia does not receive a rural expansion grant.
The correct statements follow directly from valid conditional reasoning. The stimulus establishes a chain: Rural Expansion Grant → Comply with Mandate → Maintain Servers → Not Eligible for Exemption. Because ApexNet triggers the first sufficient condition (it receives the grant), the final necessary condition must follow (it is not eligible for the exemption). Furthermore, the contrapositive of this chain dictates: Eligible for Exemption → Do Not Maintain Servers → Do Not Comply with Mandate → No Rural Expansion Grant. Because Connectia triggers the sufficient condition of this contrapositive chain (it is eligible for the exemption), the final necessary condition must follow (it does not receive the grant).

Step-by-Step Solution

1
Map the conditional statements provided in the stimulus.
Grant → Mandate → Physical Servers → Not Exempt
To establish the primary logical chain of necessary and sufficient conditions.
2
Form the contrapositive of the entire logical chain.
Exempt → No Physical Servers → No Mandate → No Grant
To determine what deductions can be made when the necessary conditions are not met.
3
Apply the established rules to the specific entities mentioned (ApexNet and Connectia).
ApexNet receives the grant, so we follow the positive chain to conclude it is not exempt. Connectia is exempt, so we follow the contrapositive chain to conclude it does not receive the grant.
To identify which answer choices represent guaranteed logical deductions.

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