Statement–Courses of Action (cinema hall losses due to home TV preference): Cinema halls are incurring heavy losses as people prefer watching movies at home on TV; assess which action(s) follow—(I) demolish halls to build residential high-rises, (II) convert halls into shopping malls—considering proportionality, alternatives, and direct linkage to the stated issue.

Given data

• Observation: Losses at cinema halls due to audience preference shift to home TV.
• Courses: (I) Demolish for residences; (II) Convert to malls.

Concept / ApproachA following course must be a reasonable, directly connected remedy (pricing, programming, experience upgrade), not a radical repurposing unrelated to the core problem.

Step-by-step evaluationStep 1: The statement mentions losses, not structural unsuitability of the asset.Step 2: Actions like better content curation, dynamic pricing, or multiplex conversion could be explored; outright demolition or conversion to malls is not implied.Step 3: Hence neither I nor II logically follows from the given statement.

Verification / AlternativeBusiness turnarounds normally start with market/operational fixes before asset liquidation or land-use change.

Common pitfalls

• Jumping to extreme redevelopment merely because of temporary losses.

Final AnswerNeither I nor II follows.