Directions: In the following questions, a statement of assertion (A) ...
Small scale industries depended upon the business’s capital and labour. This definition is still used to demarcate between small, medium and large-scale industries.
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Directions: In the following questions, a statement of assertion (A) ...
Assertion (A): The small scale industries generate more employment than the large scale industries.
Reason (R): Small scale industries are more capital intensive industries, therefore, generate more employment.
Explanation:
Small scale industries refer to businesses that are characterized by their small investment, limited scale of operations, and low barriers to entry. On the other hand, large scale industries are characterized by their significant investment, extensive operations, and higher barriers to entry.
1. Small scale industries generate more employment than large scale industries (Assertion A):
Small scale industries are known for their labor-intensive nature. Due to their limited scale of operations and lower capital requirements, these industries tend to employ a larger number of workers compared to large scale industries. The smaller size of these businesses allows for more direct and hands-on involvement of the owners, resulting in a higher number of jobs being created to meet the operational needs.
2. Small scale industries are more capital intensive industries, therefore, generate more employment (Reason R):
This reason is incorrect. Small scale industries are actually less capital intensive compared to large scale industries. Capital intensity refers to the ratio of capital investment to labor input. Small scale industries typically have lower capital requirements and rely more on manual labor. Therefore, they are considered less capital intensive than large scale industries.
Conclusion:
Based on the explanation above, it can be concluded that Assertion (A) is true as small scale industries do generate more employment than large scale industries. However, Reason (R) is false as small scale industries are not more capital intensive industries. Therefore, the correct answer is option 'C' - Assertion (A) is true but Reason (R) is false.
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