Since the semi-colon is a command separator in Unix, the OS would first execute the ls command, then the rm command, deleting the entire file system.
Also note that this example code is vulnerable to Path Traversal (CWE-22) and Untrusted Search Path (CWE-426) attacks.
The following simple program accepts a filename as a command line argument and displays the contents of the file back to the user. The program is installed setuid root because it is intended for use as a learning tool to allow system administrators in-training to inspect privileged system files without giving them the ability to modify them or damage the system.
(bad code)