Question

Statement : Should Government close down loss-making public sector enterprises ?
Arguments :
I. No. All employees will lose their jobs, security and earning, what would they do?
II. Yes. In a competitive world the rule is 'survival of the fittest'.

• A. Only argument I is strong
• B. Only argument II is strong
• C. Either I or II is strong
• D. Neither I nor II is strong
• E. Both I and II are strong

Answer 1

Answer: (A)

Only argument I is strong

Closing down public-sector enterprises will definitely throw the engaged persons out of employment. So, argument I holds. Also, closing down is no solution for a loss-making enterprise. Rather, its causes of failure should be studied, analyzed and the essential reforms implemented. Even, if this does not work out, the enterprise may be privatized. So, argument II is vague.