Question

Name the factors which help in the smooth running of an industry.

Answer 1

For the smooth running of an industry, various factors are required. Following are some of the factors which can help in smooth running of an industry:-

1. Location: It plays a very important role in smooth running of an industry. Proper and right choice of location is instrumental in future success of the business. Location should be near to the place where raw materials are easily available. It should be near the market. Climatic conditions of the location are also important for the well-being of an industry.
   
2. Availability of labour: Labour cost is one of the main constituents of the total cost of production. It influences the total cost of production. Both skilled and unskilled workers are required for different types of activities. Availability of skilled and efficient labour is mainly responsible for the development of various industries.
   
3. Availability of Power and Fuel: Availability of cheap power and fuel supply sources is another essential factor in smooth running of an industry. There should be proper availability of electricity and fuel.
   
4. Finance: It is the most important factor for proper running of an industry. Finance is required for acquiring every facility which makes sure to the development of industry. So, it is very necessary to get loans at low interest rates.