Two statements are followed by two conclusions, I and II.
Statements:
I. All papers are mills.
II. All mills are factories.
Conclusions:
I. All mills are papers.
II. All papers are factories.
Select the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Only conclusion II follows
Draw the statements as circles: “All papers are mills” puts the papers circle inside the mills circle, and “All mills are factories” puts the mills circle inside the factories circle. A conclusion follows only if it is true in every diagram that fits the statements.

Conclusion I (All mills are papers) does not follow: the statements put papers inside mills, not mills inside papers, so some mills need not be papers.
Conclusion II (All papers are factories) follows: papers lie inside mills and mills lie inside factories, so every paper lies inside the factories circle.