Statements: The Income Tax authorities carried out raids at three different business houses in the city last week. Which of the following can be a possible effect of the above statement?
Correct answer: D. Other business houses took immediate action to clear off all their income tax dues in order to avoid a raid on their establishments.
- A. The three business houses are regular defaulters in payment of their income tax.
- B. The Income Tax department had received a tip off about the illegal activities going on in the three business houses.
- C. The Government decided to look into the matter and has appointed an inquiry committee.
- D. Other business houses took immediate action to clear off all their income tax dues in order to avoid a raid on their establishments.
- E. None of these
Explanation
It is clear that option D is the effect of the given statement.
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About Cause and Effect
Cause and effect questions examine whether one event produces another, whether both arise from a common factor, or whether their connection is only coincidental. They involve identifying preceding and resulting events, separating correlation from causation, and judging whether the stated evidence supports a direct, possible or unlikely relationship.
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