Question

In the case of a plant, the limiting factor may be __________.

• A. Insufficient capacity
• B. Shortage of experienced salesmen
• C. General shortage of power
• D. Shortage of materials

Answer 1

The correct option is A Insufficient capacity

Any factor which limits the activity of the business is called a limiting factor. This may be shortage of raw material or labor etc. In case of plant, insufficient capacity may be a limiting factor. Which means the factory or plant is not capable of increasing its production capacity if demand of their product increases.