Direction: A statement is followed by two courses of action numbered I and II. You are supposed to assume everything in the statement to be true and on the basis of the information given in the statement decide which of the suggested courses of action logically follow(s).

Statement: Financial stringency prevented one of the companies from paying salaries to its employees since Lockdown this year.

Course of Action

I. The company should immediately curtail the staff strength at least by 30%.

II. The company should reduce wasteful expenditure and arrange to pay the salaries of its employees.