Question

Statements: 1. The company’s profits have declined sharply this year. 2. The company faced stiff competition from new market entrants.

Below in each of the questions are given two statements I and
II. These statements may be either independent causes or may be effects of independent causes or a common cause. One of these statements may be the effect of the other statements. Read both the statements and decide which of the following answer choices correctly depicts the relationship between these two statements.
A Statement 1 is the cause, and statement 2 is its effect.
B Statement 2 is the cause, and statement 1 is its effect.
C Both statements 1 and 2 are independent causes.
D Both statements 1 and 2 are effects of a common cause.
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