Assertion:Many public sector firms incurred huge losses but continued to function in India for long.

Reasoning: It is difficult to close a government undertaking even if it is a drain on the nation’s limited resources.

Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.

Many public sector firms incurred huge losses but continued to function because it is difficult to close a government undertaking even if it is a drain on the nation’s limited resources.