An enterprise which has at least one hired worker for the major part of its period of operation in a year is called a/an:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Establishment
An enterprise becomes an establishment when it has at least one hired worker for most of the year.
Option (1) Employer — Incorrect. An employer is a self-employed worker who runs the enterprise by hiring labourers. It is a person, not an enterprise.
Option (2) Formal sector establishment — Incorrect. A private establishment is formal only with 10 or more hired workers. One hired worker is not enough.
Option (3) Establishment — Correct. One hired worker for the major part of the year is the only condition.
Option (4) Public sector establishment — Incorrect. This is an establishment owned and run by the government. The question says nothing about ownership.
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: “Employers – Those self-employed workers who by and large, run their enterprises by hiring labourers.” Glossary: “Formal Sector Establishments – All the public sector establishments and those private sector establishments which employ 10 or more hired workers.” |