Question

Given below are two statements, one is labelled as Assertion (A) and the other is labelled as Reason (R).
Assertion (A):Small businesses are considered important to economic development.
Reason (R): Small businesses can be innovators of new products and provide speacialist support to larger companies.
In the light of the above statements, choose the most appropriate answer from the options given below:

• A. Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
• B. Both Assertion (A) and Reason (R) are correct and Reason (R) is not the correct explanation of Assertion (A).
• C. (A) is correct but (R) is not correct.
• D. (A) is not correct but (R) is correct.

Answer 1

The Correct Option is A

Small businesses play a significant role in economic development by fostering innovation, generating employment, and providing niche solutions or support to larger corporations.

The Reason (R) correctly explains why small businesses are vital, as they introduce innovative products and complement larger firms.