Step 1: Understanding the assertion.
Speaking ill of a person’s business harms the reputation of that person in the eyes of others. Under the law of torts, such harm to reputation constitutes defamation. Therefore, the assertion that Mr. N’s act amounts to defamation is correct.
Step 2: Understanding the reason.
Slander refers to spoken defamatory statements. In cases where slander directly affects a person’s profession, trade, or business, it is considered actionable per se, meaning that proof of special damage is not required.
Step 3: Linking assertion and reason.
Since Mr. N spoke ill of Mr. O’s business, it falls within the category of slander affecting business reputation. Because such slander is actionable per se, it directly explains why the act amounts to defamation.
Step 4: Evaluation of options.
(A) Incorrect, as both statements are legally correct.
(C) Incorrect, because the reason directly explains the assertion.
(D) Incorrect, since the reason is also true.
Step 5: Conclusion.
Both the assertion and the reason are true, and the reason correctly explains why the assertion amounts to defamation. Hence, option (B) is the correct answer.