The logic followed is: The statements suggest that profitable cannot remain a concern for so long without the active co-operation between the proprietor and the employee of the mill. The course of action 1 - The mill should be closed down - This is vague and irrelevant according to the given statements. Taking extreme measures will not make a mill profitable. so, the course of action I doesn't follow. The course of action 2 - The workers should be asked to co-operate with the owners - It directly follows the given statements. So, the course of action II follows. The course of action 3 - The owner should be asked to co-operate with the employees - It directly follows the given statements. So, the course of action III follows. Hence, the correct answer is "Only II and III follows". Additional Information Some rules to solve Statements and Course of action questions must be kept in mind while solving it. Rule 1. Have an unbiased and neutral mind frame. Individual perception must not be used to judge the course of action to be taken. Rule 2. The first step should be to identify the root cause of the problem. Once the problem is solved, a logical mindset should be employed to figure out the course of action. Rule 3. There must be no extremity involved in the course of action. Rule 4. A course of action must be able to solve, reduce, or minimize the problem given in the situation. Rule 5. The course of action can be said to solve/reduce the problem when it is an established fact, when it is logically possible and when it is known from experience.