Given below are two statements:
Statement I: An enterprise that has no hired worker for the major part of its period of operation in a year is not an establishment.
Statement II: Self-employed persons who do not have any hired workers are a part of the informal sector.
In the light of the above statements, choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Both Statement I and Statement II are true.
Statement I: An enterprise that has no hired worker for the major part of its period of operation in a year is not an establishment. — True. An establishment is an enterprise with at least one hired worker for most of the year. Without one, it stays only an enterprise.
Statement II: Self-employed persons who do not have any hired workers are a part of the informal sector. — True. They work in units outside the formal sector, which needs 10 or more hired workers.
NCERT (2026-27): Glossary: “Establishment – An enterprise which has got at least one hired worker for major part of the period of operation in a year.” Glossary: “Enterprise – An undertaking owned and operated by an individual or by group of individuals to produce and/or distribute goods and/or services mainly for the purpose of sale, whether fully or partly.” “6.7 Informalisation of Indian Workforce … All other enterprises and workers working in those enterprises form the informal sector. Thus, informal sector includes millions of farmers, agricultural labourers, owners of small enterprises and people working in those enterprises as also the self-employed who do not have any hired workers. …” |