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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.

1. I is the cause and II is the effect
2. II is the cause and I is the effect
3. Both are independent
4. No relation

Correct answer: II is the cause and I is the effect

Solution

Expanding the distribution network can increase market reach and availability of products, which can lead to higher sales. Therefore, Statement II is the cause and Statement I is the effect.

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