Joanna leads with the claim that if a company emerges from bankruptcy, the only way for it to succeed is by providing the same goods and services as before. Joanna doesn't provide evidence for this claim, but just emphasizes it: it isn't worth it for a company in this situation to try to learn a new business. Ruth responds that Joanna is wrong, and backs up her claim with a specific example: the Kelton Company, a former mining operation that, after emerging from bankruptcy, became successful after pivoting into waste management.

Ruth counters Joanna's position, which is presented without evidence, by providing a specific counterexample that disproves Joanna's claim. If it is true that the Kelton Company, after emerging from bankruptcy, succeeded by providing different services than before, then Joanna's claim that a company can only succeed after bankruptcy by doing the same thing as before cannot be true.