Consider the following factors regarding an industry: I. Capital investments II. Business turnover III. Labour force IV. Power consumption. Which of these determine the nature a size of the industry?
- AI, III and IV
- BI, II and IVCorrect
- CII, III and IV
- DII and III
Explanation
The nature and size of an industry are primarily determined by investment levels, scale of production, and infrastructure requirements.
Capital investment is the fundamental criterion used by the government to classify industries into micro, small, medium, or large scale.
Business turnover reflects the volume of production and market reach, which indicates the economic size and capacity of the enterprise.
Power consumption is a direct technical indicator of the scale of operations and the level of mechanization, distinguishing between heavy industries and cottage or small scale industries.
While the labor force is an important component of production, it is no longer a definitive measure of size because modern large scale industries can be highly automated with minimal labor, whereas small scale industries can be labor intensive. Therefore, factors I, II, and IV provide a more accurate measure of the nature and size in a modern economic context.
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