Classification of an enterprise into public or private sector is based on

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Q: 32 (CDS-I/2014)
Classification of an enterprise into public or private sector is based on

question_subject: 

Science

question_exam: 

CDS-I

stats: 

0,72,12,6,72,3,3

keywords: 

{'enterprise': [0, 0, 0, 1], 'private sector': [0, 0, 2, 9], 'classification': [4, 0, 1, 6], 'employees': [1, 0, 5, 5], 'assets': [0, 1, 1, 9]}

The correct answer for the classification of an enterprise into the public or private sector is option 2, which refers to the ownership of assets of the enterprise. This means that the classification depends on whether the assets of the enterprise are owned by the public or the government (public sector) or by private individuals or organizations (private sector).

Let`s examine the other options to understand why they are not correct:

Option 1 states that the classification is based on the number of employees in the enterprise. However, the number of employees does not determine whether the enterprise is classified as public or private sector.

Option 3 suggests that the classification depends on the employment conditions for workers in the enterprise. While employment conditions may differ between public and private sector enterprises, they do not determine their classification.

Option 4 proposes that the nature of products manufactured by the enterprise is the basis for classification. However, the nature of products does not determine whether the enterprise is public or private sector.

In summary, the ownership of assets is the key factor in determining whether an enterprise is classified as public or private sector.