With reference to the passage on corporate capitalism, the following assumptions have been made:

Question

With reference to the passage on corporate capitalism, the following assumptions have been made:

I. Corporate capitalism promotes the growth of labour force and provides more employment opportunities.

II. Poor and marginalized sections of population are benefited by corporate capitalism due to trickle-down effect.

Which of the above assumptions is/are valid?

1. A. I only
2. B. II only
3. C. Both I and II (Correct answer)
4. D. Neither I nor II

Correct Answer

Option C — Both I and II

Detailed Solution & Explanation

The correct answer is Both I and II.

Key Points

• Assumption I: Corporate capitalism promotes labour force growth and employment — directly supported ("generates jobs"). I is valid.
• Assumption II: Poor and marginalized benefit through trickle-down — the passage says corporate taxes provide revenues "which in turn can be used for welfare," implying benefit to marginalized through State redistribution. II is valid. Answer: Both I and II.