Question : Assertion: Command economy is characterized by central planning and government control over resources.
Reason: Command economies allow for individual decision-making and private ownership of businesses.
Option 1: Both the assertion and reason are true, and the reason is a correct explanation of the assertion.
Option 2: Both the assertion and reason are true, but the reason is not a correct explanation of the assertion.
Option 3: The assertion is true, but the reason is false.
Option 4: The assertion is false, but the reason is true.
Correct Answer: The assertion is true, but the reason is false.
Solution : The correct answer is (c) The assertion is true, but the reason is false.
The assertion is true. In a command economy, economic decisions are primarily made by a central authority or government, which exercises significant control over resource allocation, production, and distribution. Central planning is used to determine production levels, set prices, and allocate resources according to predetermined targets and goals.
However, the reason provided, is false. In a command economy, individual decision-making is typically limited, and private ownership of businesses is heavily restricted or absent altogether. The government exercises control over major industries and resources, and economic activities are coordinated and directed by central planning authorities.
Therefore, the correct answer is assertion is true, but the reason is false.
Question : Assertion-Reason Questions: Chapter - Sources of Business Finance
Questions : Equity Shares and Preference Shares
Assertion: Equity shareholders have ownership rights but limited voting power.
Reason: Equity shareholders are entitled to receive fixed dividends every year.
Option 1: Both assertion and reason are true, and the reason is the correct explanation of the assertion.
Option 2: Both assertion and reason are true, but the reason is not the correct explanation of the assertion.
Option 3: Assertion is true, but the reason is false.
Option 4: Both assertion and reason are false.
Question : Which of the following statement is correct? Statement 1: Marketing focus is on achieving maximum satisfaction of the customers needs. Statement 2: The main focus of the selling is to transfer of ownership of the product from the seller to the buyer.
Option 1: Both are true
Option 2: Both are false
Option 3: Statement 1 is true and statement 2 is false.
Option 4: Statement 1 is false and statement 2 is true.
Question : Which of the following statement is correct? Statement 1: Channel of distribution includes mainly agents,wholesaler and retailers. Statement 2: Channel distribution refers to that path through which the ownership as well as possession of goods transfer to the consumer from the producer.
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