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Q.Which one of the following features is correct about large scale industries ? (A) Raw material is procured locally. (B) Large number of unskilled workers work in them. (C) They do not require advanced technology. (D) They require large amount of capital investment.

CBSECBSE Class XII Board 2023MCQ· 1mImportance★★★★★
✓ Free question

Large-scale industries are characterized by their extensive operations and high output, which inherently demand significant financial resources. The correct feature is that they require a large amount of capital investment.

Large-scale industries are distinct from small-scale industries primarily due to their size of operation, production volume, and the resources they employ. Understanding these fundamental differences helps in identifying their key characteristics. These industries typically involve complex production processes, cater to wider markets, and have a substantial impact on the economy.

Let's evaluate each option to determine the correct feature:

  1. Analyze Option (A): Raw material is procured locally.

    Large-scale industries often require vast quantities of raw materials, or highly specialized raw materials. While some industries, like cement or sugar, might be located close to their raw material sources to minimize transport costs, many others procure raw materials from diverse, sometimes global, locations. For example, an automobile manufacturer might source components from various countries. Therefore, local procurement is not a universal or defining feature of all large-scale industries.

  2. Analyze Option (B): Large number of unskilled workers work in them.

    Large-scale industries do employ a significant workforce due to their extensive operations. However, modern large-scale industries, especially those involving advanced manufacturing, often rely heavily on automation and sophisticated machinery. This necessitates a workforce that includes a substantial number of skilled and semi-skilled workers to operate, maintain, and manage these complex systems. While unskilled labor might be present, it's not the sole or defining characteristic of their workforce, and the proportion can vary greatly.

  3. Analyze Option (C): They do not require advanced technology.

    This statement is incorrect. Large-scale production is almost invariably associated with the use of advanced technology, machinery, and sophisticated production techniques. This is essential for achieving high efficiency, maintaining quality standards, reducing per-unit costs, and producing goods on a massive scale. Without advanced technology, it would be challenging to manage complex processes and compete effectively in large markets.

  4. Analyze Option (D): They require large amount of capital investment.

    This is a core defining characteristic of large-scale industries. Setting up a large factory, purchasing heavy machinery, establishing extensive infrastructure (like power plants, transportation networks within the facility), acquiring large quantities of raw materials, and managing a substantial workforce all demand significant financial outlay. The scale of operations directly translates to a need for substantial capital investment, both initially and for ongoing operations.

    Important

    The sheer scale of operations, high production capacity, and use of advanced machinery in large-scale industries inherently necessitate a substantial financial commitment. This makes "large amount of capital investment" a fundamental and distinguishing feature.

✓Final answer

The correct feature about large-scale industries is that (D) They require large amount of capital investment.

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