Question : Assertion: Entrepreneurship development leads to increased competition and market efficiency.
Reason: New businesses entering the market create choices for consumers and encourage existing firms to improve.
Option 1: Both assertion and reason are true, and the reason correctly explains the assertion.
Option 2: Both assertion and reason are true, but the reason does not correctly explain 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: Both assertion and reason are true, and the reason correctly explains the assertion.
Solution : The correct answer is (a) Both assertion and reason are true, and the reason correctly explains the assertion.
The assertion is true. Entrepreneurship development involves the creation and growth of businesses, which, in turn, contributes to economic growth. Entrepreneurs drive innovation, create job opportunities, and contribute to overall economic development.
The reason is also true. Successful entrepreneurs often reinvest their profits into new ventures or industries. This reinvestment can lead to the expansion of existing businesses or the creation of new ones, further contributing to economic growth.
Therefore, both the assertion and the reason are true, and the reason correctly explains the assertion.
Question : Statement 1: Entrepreneurship development leads to increased competition and market efficiency.
Statement 2: New businesses entering the market create choices for consumers and encourage existing firms to improve.
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