There has been no democracy that has grown economically without corporate capitalism. It helps in modernizing the economy and enabling the transition from rural to urban, and agriculture to industry and services, which are inevitable with growth. It generates jobs — and there is no other way to fix a country's unemployment challenge without a further impetus to private business. Big companies can operate on a large scale and become competitive both domestically and externally. A vibrant corporate capitalist base also leads to additional revenues for the State — which in turn, can be used for greater welfare for the marginalized and creating a more level playing field in terms of opportunities.
With reference to the above passage, 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?
A.I only
B.II only
C.Both I and II✓ Correct
D.Neither I nor II
Explanation
Assumption I is valid because the passage explicitly states corporate capitalism 'generates jobs' and that there is no other way to fix unemployment without impetus to private business, implying growth in employment opportunities. Assumption II is also valid because the passage states that additional revenues from corporate capitalism can be used for 'greater welfare for the marginalized and creating a more level playing field in terms of opportunities' — this is essentially the trickle-down assumption. Hence both assumptions are valid and option (c) is correct.
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