Statement: Without active cooperation between the proprietor and the employees, the mill cannot remain profitable for long. Courses of Action: I. Close down the mill. II. Ask workers to cooperate with the owners. III. Ask the owner to cooperate with the employees.

Introduction / Context:
The statement asserts mutual cooperation as a prerequisite for sustained profitability. Therefore, the proper actions are those that foster cooperation on both sides rather than precipitating shutdowns.

Given Data / Assumptions:

• Profitability is deteriorating due to strained relations.
• Owners and employees can negotiate productivity-linked improvements.
• Closure is a last resort with high social/economic costs.

Concept / Approach:
Industrial relations improve through two-way engagement: transparent financials, clear productivity metrics, safety and welfare measures, and grievance redressal. One-sided exhortations are inadequate.

Step-by-Step Solution:
1) Establish joint consultative committees to align targets and incentives.2) Implement skill upgradation and lean process improvements.3) Periodic, data-backed reviews to build trust and accountability.

Verification / Alternative check:
Where cooperation improved, mills often recover through higher throughput and lower rework/accidents.

Why Other Options Are Wrong:
I: Closure contradicts the premise that cooperation sustains profitability. “All follow” wrongly includes closure.

Common Pitfalls:
Top-down directives without participative mechanisms; ignoring shop-floor safety.

Final Answer:
Both II and III follow.