Question

Given below are two statements:
Statement (I): The problem of enterprise combination will not arise if the enterprises have supplementary relationship.
Statement (II): Decision making regarding the production level of outputs is insignificant if the outputs have joint relationship.

• A. Both Statement (I) and Statement (II) are incorrect.
• B.
• C. Statement (I) is correct but Statement (II) is incorrect.
• D. Both Statement (I) and Statement (II) are correct.

Hint:

Supplementary enterprises: No resource conflict; Joint products: Require output level decisions.

Answer 1

The Correct Option is C

Step 1: A supplementary relationship uses idle or unused resources, so no real combination problem arises, Statement I is true.
Step 2: A joint relationship still requires deciding optimal input and output levels for both products, so Statement II is false.
Step 3: True plus false gives option 3.
Correct option: Statement I is correct but Statement II is incorrect.