Question

Identify the relation between Statement I and Statement II. Statement I: The company's sales increased this year. Statement II: The company expanded its distribution network.

• A. I is the cause and II is the effect
• B. II is the cause and I is the effect
• C. Both are independent
• D. No relation

Answer 1

Answer:

B. II is the cause and I is the effect

Analyzing Causal Relationships

• Cause and Effect Reasoning: In logical reasoning exams, questions often ask to determine if statements are independent, related, or causative.
• Identifying the Cause: Statement II, 'The company expanded its distribution network', acts as the Cause. Expanding a distribution network involves establishing new channels, reaching more locations, and making products more accessible to a wider customer base.
• Identifying the Effect: Statement I, 'The company's sales increased this year', is the logical Effect. Increased availability of products directly correlates with higher sales volume, provided market demand exists.
• Logical Connection: Since expanding the distribution network is a deliberate business action that leads to broader market penetration, it naturally results in increased sales revenue. Therefore, Statement II is the cause, and Statement I is the effect.
• Exam Strategy: When evaluating such pairs, look for the 'action' (the cause) that would logically lead to the 'result' (the effect). Often, business growth indicators like increased sales are the result of operational improvements like marketing campaigns, product launches, or distribution expansions.