based on direct cause & effect Practice Questions Answers Test with Solutions & More Shortcuts

Question : 21

Effect : Majority of the employees of the ailing organisation opted for voluntary retirement scheme and left the organisation with all their retirement benefits within a fortnight of launching the scheme.
Which of the following can be a probable cause of the above effect ?

a) The company has been making huge losses for the past five years and is unable to pay salary to its employees in time.

b) The management of the company made huge personal gains through unlawful activities.

c) One of the competitors of the company went bankrupt last year.

d) The company owns large tracts of land in the state which will fetch huge sum to its owners.

e) None of these

Answer: (a)

The effect is a win-win solution to this cause.

Question : 22

Cause: The cement manufacturing companies have increased the price of cement by about fifteen per cent with immediate effect.
Which of the following is/are possible effect(s) of the above cause?


  1. Govt will direct the cement manufacturing companies to reduce the price increase to five per cent.
  2. The prices of residential flats and commercial companies will see an upward trend.
  3. The construction companies may stop all ongoing construction projects with immediate effect.

a) Only (B)

b) Only (A)

c) Only (C)

d) Only (B) and (C)

e) None of these

Answer: (a)

Question : 23

Cause: A severe cyclonic storm swept away most part of the state during the last two days.
Which of the following cannot be a possible effect of the above cause ?

a) Heavy rainfall was reported in most part of the state during the last two days.

b) Many people were rendered homeless as their houses were flown away.

c) The communication system of the state was severely affected and continues to be out of gear.

d) Govt has ordered that all the offices and schools should be kept open.

e) All are possible effects.

Answer: (d)

In such a cataclysmic scenario, the govt is likely to order the closure of offices and schools.

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