In this question, two statements I and II have been given. These statements may be independent causes or effects of independent causes or a common cause. One of the statements may be the effect of the other statement. Read both statements and select the correct answer.
I. Over the last two years 22% of Company P’s manpower was laid off.
II. Over the past two years Company P has sold off many of their major assets.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. Both I and II are effects of a common cause.
I. Over the last two years 22% of Company P’s manpower was laid off.
II. Over the past two years Company P has sold off many of their major assets.
From both statements, it is clear that the company might have faced a loss, so, it would have decided to lay off some employees and sell off major assets to prevent the company from being shut down. We can say that both are the effects of a common cause.