Question

Assertion (A): Finance is the life blood of business.

Reason (R): Finance is essential for smooth running of the business.

Options

• Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A).

• Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A).

• Assertion (A) is True but Reason (R) is False.

• Assertion (A) is False but Reason (R) is True.

Answer 1

Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A).

Explanation:

• Assertion (A): Finance is the lifeblood of business → True
• Reason (R): Finance is essential for the smooth running of business → True
• Reason (R) explains Assertion (A): because businesses cannot function smoothly without adequate finance, just like a body cannot function without blood.