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Q.

Choose the given statement as true/false:

Sectors are classified on the basis of employment conditions.

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a

True

b

False

answer is A.

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Detailed Solution

The above statement is true.
Based on several workers in an enterprise, the firms are divided into two categories, namely, formal and informal sectors. A firm with ten or more employees is known as a formal sector enterprise, whereas a firm with less than ten workers is said to be a part of the informal sector. In India, most of the population indulged in the informal sector, while very few of the workforce belonged to the formal sector. However, the formal sector offers its employees job security, regular wages, and some legal support.

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