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Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?
Assertion (A): A labour-intensive organisation requires higher investment in plant and machinery.
Reason (R): Those manufacturing enterprises which make use of modern and automatic machines need large amount of fixed capital.
  • a)
    Both A and R are true and R is the correct explanation of A
  • b)
    Both A and R are true, but R is not the correct explanation of A
  • c)
    A is true, but R is false
  • d)
    A is false, but R is true
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
Direction: In the questions given below are two statements labelled a...
Companies using capital intensive techniques require more fixed capital whereas companies using labour-intensive techniques require less capital because capital intensive techniques make use of plant and machinery and company needs more fixed capital to buy plants and machinery.
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Most Upvoted Answer
Direction: In the questions given below are two statements labelled a...
Assertion (A): A labour-intensive organisation requires higher investment in plant and machinery.


Reason (R): Those manufacturing enterprises which make use of modern and automatic machines need large amount of fixed capital.

The correct answer is option D: A is false, but R is true.

Explanation:


A labour-intensive organization refers to a company or industry that relies heavily on manual labor rather than automation or machinery. Such organizations require a significant amount of labor to carry out their operations, which can often result in a higher demand for investment in plant and machinery. The assertion states that a labor-intensive organization requires higher investment in plant and machinery, which may seem logical at first glance.

However, the reason provided states that manufacturing enterprises that make use of modern and automatic machines need a large amount of fixed capital. This reason is not an accurate explanation for the assertion.

The reason is generally true, as modern and automatic machines do require a substantial investment in fixed capital. These machines are often expensive and require significant financial resources to purchase, install, and maintain. Therefore, manufacturing enterprises that rely on modern and automatic machines need a large amount of fixed capital to fund these investments.

On the other hand, the assertion does not hold true in all cases. Labor-intensive organizations may not necessarily require higher investment in plant and machinery. In fact, they may require more investment in hiring and training labor, rather than investing in expensive machinery. These organizations prioritize human resources over capital investments in machinery.

Hence, while the reason is correct and provides a valid explanation, the assertion itself is false. Therefore, option D is the correct answer.
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Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): A labour-intensive organisation requires higher investment in plant and machinery.Reason (R): Those manufacturing enterprises which make use of modern and automatic machines need large amount of fixed capital.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'D'. Can you explain this answer?
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Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): A labour-intensive organisation requires higher investment in plant and machinery.Reason (R): Those manufacturing enterprises which make use of modern and automatic machines need large amount of fixed capital.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'D'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): A labour-intensive organisation requires higher investment in plant and machinery.Reason (R): Those manufacturing enterprises which make use of modern and automatic machines need large amount of fixed capital.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): A labour-intensive organisation requires higher investment in plant and machinery.Reason (R): Those manufacturing enterprises which make use of modern and automatic machines need large amount of fixed capital.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'D'. Can you explain this answer?.
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