Question

Which of the following factors favour(s) setting up of an industry?

• A. Availability of cheap raw materials
• B. Availability of capital
• C. Unstable power supply
• D. Far away markets

Answer 1

Answer: (A), (B)

Availability of capital

There should be 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. To sell the finished products with ease, markets should be located close to the industries or transporting the products to the nearest markets should not be expensive.