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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. - Commercial Applications

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प्रश्न

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.

पर्याय

  • 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.

MCQ
विधान आणि तर्क
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उत्तर

Both A and R are true and R explains A.

Explanation:

Private sector enterprises are owned and controlled by private businessmen, and their main objective is earning profits. Profit provides the reward for risk taken and the return on capital invested. Therefore, profit motive is indeed the driving force behind their decisions and operations. This explains why they focus primarily on profit maximization. Therefore, both statements A and R are true, with statement R providing an explanation for statement A.

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पाठ 1: Introduction to Commercial Organisations - EXERCISES [पृष्ठ १९]

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सी. बी. गुप्ता Commercial Applications [English] Class 9 ICSE
पाठ 1 Introduction to Commercial Organisations
EXERCISES | Q I. 18. | पृष्ठ १९
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