Salim: The profitability of Firm Y increased after reverting to private ownership 10 years ago....

Salim: The profitability of Firm Y increased after reverting to private ownership 10 years ago. This is clearly proof that a business will always perform better under private ownership rather than public. John: Wrong. A close view at the data shows that Y has been profitable since they assigned a first-class manager, which happened while Y was still in the public domain. Which of the following best identifies the weakness in Salim’s conclusion?
*
5 points
A. The claim Salim cites comes from only observed occurrence, that of Firm Y.
B. The profitability of Firm Y might be only for a while.
C. Salim’s statement is open to the possibility that the cause he cites came after the impact he assigns to it.
D. No mention is made of firms that are partially government owned and partially personally owned.?

1 Answers Available
Asked by Kasba on 6th December, 2025