Question

Given below are two statements : One is labelled as Assertion (A) and the other is labelled as Reason (R).
Assertion (A) : 'The management of technological innovation' is usually required under circumstances with increased vagueness, uncertainty and risk and companies are giving importance to it.
Reasons (R) : Given that technological innovation is for many companies a primary way of competition in the twenty-first century, it's management is an activity of vital importance.
In the light of the above statements, choose the most appropriate answer from the options given below :

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

Hint:

Read the Assertion, add the word "because" at the end, and then read the Reason. If the full sentence flows logically, then (R) is the correct explanation of (A).

Answer 1

The Correct Option is A

Step 1: Understanding the Concept:
Assertion-Reason questions test the logical link between two true statements. The Assertion (A) makes a claim about a business practice, and the Reason (R) provides the underlying justification for that claim.
Step 2: Detailed Explanation:
1. Evaluation of Assertion (A): Managing innovation is indeed difficult because the outcomes of new technology are often unpredictable (vagueness/uncertainty) and involve financial stakes (risk). Because of the potential high rewards, modern companies prioritize this management. So, (A) is correct.
2. Evaluation of Reason (R): In the current century, being "faster" or "better" at tech is the main way firms survive and beat competitors. This high-stakes environment makes the management of that innovation vital. So, (R) is correct.
3. Evaluation of the Link: The Reason explains why companies are giving such high importance to managing technological innovation (as stated in A): it is because it has become their primary tool for competition in the 21st century.
Step 3: Final Answer:
Both statements are true, and (R) provides the logical "because" for (A).