**Two statements about Company P:**

1. Over the last two years 22% of the Company P’s manpower was laid off.
2. Over the past two years Company P has sold off many of their major assets.

**Question:**

These statements may represent causes or effects. Choose the correct relationship:

1. Both I and II are effects of a common cause.
2. I is the cause and II is its possible effect.
3. II is the cause and I is its possible effect.
4. Both I and II are independent causes.

Question

**Two statements about Company P:**

1. Over the last two years 22% of the Company P’s manpower was laid off.
2. Over the past two years Company P has sold off many of their major assets.

**Question:**

These statements may represent causes or effects. Choose the correct relationship:

1. Both I and II are effects of a common cause.
2. I is the cause and II is its possible effect.
3. II is the cause and I is its possible effect.
4. Both I and II are independent causes.

Accepted Answer

**Solution:**

1. Statement I says 22% of the workforce was laid off.
2. Statement II says major assets were sold off.

Both actions are typical responses to financial difficulties faced by a company:

- Laying off employees reduces operational costs.
- Selling major assets generates cash.

These actions are usually not causes of each other but rather effects of a common underlying cause, such as poor financial performance or economic distress.

Hence, the correct relationship is that both statements are effects of a common cause.

**Answer:** Both I and II are effects of a common cause.

Answer

Answer

Answer