A sick industrial unit is one ___________.

wich borrows money from bank for its fixed assets

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which is unable to make profits more than 10 per cent of its capital employed

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which is unable to perform its normal functions and activities of production of goods and services at a reasonable profit on a sustained basis

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where most of the employees are sick

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Solution

The correct option is C which is unable to perform its normal functions and activities of production of goods and services at a reasonable profit on a sustained basis
A sick industrial unit is one which is unable to perform its normal functions and activities of production of goods and services at a reasonable profit on a sustained basis.
It can be also defined as the industry unit which had existed for 5 years and had incurred loses equal to or more than its net worth.

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