The classification of sectors into organized and unorganized sectors is based on:

- Organized sector: Includes activities that are regulated by the government and are governed by specific rules and regulations.
- Unorganized sector: Includes activities that are not regulated by the government and are not governed by specific rules and regulations.

- Organized sector: Includes activities that are owned and operated by large-scale enterprises, corporations, or government bodies.
- Unorganized sector: Includes activities that are owned and operated by small-scale enterprises, individuals, or self-employed individuals.

- Organized sector: Provides formal employment with fixed working hours, regular wages, social security benefits, and other employment benefits.
- Unorganized sector: Provides informal employment with flexible working hours, irregular wages, limited or no social security benefits, and other employment benefits.

- Organized sector: Generally has a larger number of workers employed in the enterprise.
- Unorganized sector: Generally has a smaller number of workers employed in the enterprise.
Based on the options given, the correct answer is C. Employment conditions as the basis for classifying sectors into organized and unorganized sectors.

The sectors are classified into organized and unorganized sectors based on the employment conditions.

Employment conditions:
- Employment conditions refer to the terms and conditions under which workers are employed in an enterprise.
- It includes factors such as working hours, wages, benefits, job security, and social security measures.
- In the organized sector, employment conditions are relatively better as compared to the unorganized sector.

Organized sector:
- The organized sector refers to those enterprises or establishments which are registered and regulated by the government.
- These enterprises have a proper structure, follow rules and regulations, and are under the purview of labor laws.
- They provide better employment conditions to the workers, including fixed working hours, regular wages, social security benefits, and job stability.
- Examples of organized sector industries include large manufacturing companies, corporate offices, government departments, and public sector undertakings.

Unorganized sector:
- The unorganized sector refers to those enterprises or establishments that are not registered with the government and do not follow labor laws.
- These enterprises are typically small-scale or informal, employing a small number of workers.
- They operate on a small scale, often in household units or as street vendors, and have limited resources and infrastructure.
- Workers in the unorganized sector often work under poor employment conditions, with long and irregular working hours, low wages, and lack of social security benefits.
- Examples of unorganized sector activities include street vending, small shops, domestic work, agriculture, and construction work.

Reason for classification based on employment conditions:
- The classification of sectors into organized and unorganized sectors based on employment conditions helps in understanding the differences in the working conditions and benefits provided to workers.
- It allows policymakers and labor organizations to focus on improving the working conditions and welfare of workers in the unorganized sector.
- It also helps in formulating policies and regulations to protect the rights of workers in both sectors and bridge the gap between them.

In conclusion, the sectors are classified into organized and unorganized sectors based on employment conditions, with the organized sector providing better working conditions and benefits to workers compared to the unorganized sector.