Commercial Applications
Assertion (A): Private sector enterprises focus primarily on profit maximization.
Reasoning (R): Profit motive is the driving force behind the decisions and operations of private businesses.
- A is true but R is false
- A is false but R is true
- Both A and R are true and R explains A
- Both A and R are true but R does not explain A
Commercial Orgs Intro
3 Likes
Answer
Both A and R are true and R explains A
Reason — Both A and R are true. Private sector enterprises focus on profit maximisation because their owners (private businessmen) invest capital to earn returns. The profit motive is the main objective of private sector undertakings — profits provide the reward for the risk assumed and the required return on capital. Hence R correctly explains why private enterprises focus on profit.
Answered By
3 Likes
Related Questions
What is the meaning of Public Accountability?
- Money invested in public enterprises is public money and public sector enterprises are answerable to the public through the Parliament.
- Ultimate control of a public sector undertaking lies with the government.
- Public sector undertakings are fully owned by government or some public authority.
- None of these
Assertion (A): The agricultural sector is a primary industry.
Reasoning (R): It involves the extraction and production of raw materials directly from natural resources.
- A is true but R is false
- A is false but R is true
- Both A and R are true and R explains A
- Both A and R are true but R does not explain A
Statement I: A retailer delaying the purchase of seasonal goods for sale is addressing the hindrance of time in commerce.
Statement II: Warehousing solves the problem of storing goods until they are sold.
- Both I and II are correct
- Both I and II are wrong
- Only I is correct
- Only II is correct
Which of the following correctly distinguishes between commerce and trade?
- Commerce involves production, while trade deals with distribution.
- Commerce involves distribution and auxiliary services, while trade focuses on buying and selling goods.
- Trade creates time utility, while commerce creates form utility.
- Commerce is a subset of trade.