Correct Answer: Both assertions and reasons are correct, and the reason is the correct explanation of the assertion.

Solution : The correct option is (a) Both assertions and reasons are correct, and the reason is the correct explanation of the assertion.

The assertion states that Fayol's principles of management are applicable to all types of organizations, irrespective of their size. This is true because Fayol's principles are general guidelines for managing organizations and can be adapted and applied to various types and sizes of organizations.

The reason provided is that these principles are based on fundamental management practices. This is also true. Fayol's principles are derived from his extensive observations and experience in the field of management, capturing fundamental practices that are relevant and applicable across different organizational contexts. Therefore, the reason correctly explains why the assertion is true.