Question

Which of the following is a major problem for small ancillary units?

• A. Delayed payments
• B. Uncertainty of getting orders from the parent units
• C. Frequent changes in production processes
• D. All of the above

Answer 1

The correct option is D All of the above

Ancillary means subordinate to something. Ancillary industries manufacture components that are used by the big industries so that the final manufacturing of a product can be done. Automobiles, repair shops, etc. are examples of small ancillary units. Various problems are faced by these small ancillary units like delay in getting payments and order from their parent company, lack of capital investment, frequent and rapid change in the process of production, variation in demand and supply, etc.