Question

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> Select the factors which reduces the cost of setting up an industry from the following.

• A. Availability of cheap raw materials
• B. Availability of capital and financing services to cover hefty costs
• C. Unstable power supply
• D. Nearby markets with transportation difficulties

Answer 1

Answer: (A), (B)

Availability of capital and financing services to cover hefty costs

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> There should be an easy cost-effective access to raw materials for industries. They also need adequate capital and financing services to help them cover hefty costs like buying expensive equipment when setting up an industry. Most of the industries require a large amount of stable power for smooth functioning.