Question

When industries are Centralized,the
Cost of Production of all the
Enterprises increases and the
Possibility of loss of Profit increase
जेव्हा उद्योगांचे केंद्रीकरण होते यातूनच सर्व
उद्योग संस्थांचा उत्पादन खर्च वाढत जातो आणि
नफ्याऐवजी तोट्याची शक्यता वाढते यालाच
असे ​

Answer 1

Answer:

when industries are centralized the cost of production of all the enterprises increases and possibility of loss of profit increase

Explanation:

Answer 2

Centralization is a process of acquiring the management under the control of one head

Explanation:

The reasons for centralising an industry can be manifold. Here are few reasons:

• Improper management
• Lack of efficiency
• Fail to meet the expectations
• Diminishing growth is seen

why does the cost of production increase ?

Since management is under the control of one organisation, they need to look into the requirements of all other industries. It requires a larger management team to cater the needs of all other enterprises. There may be chances of mistakes and problems arise. According to Management studies, "It is important to delegate the work to the lower channels to perform the work efficiently". When the cost of production increases, the  prices at which products are sold will also be increased. This will automatically reduce the sales and reflect a loss to the business.