Read the below statements marked as Assertion (A) and Reason (R). Mark the correct options: Assertion (A): Global Ease of Doing Business (EoDB) indicators excluded informal sectors. Reason (R): Informal enterprises are difficult to measure consistently across nations.
Both A and R are true, and R is the correct explanation of A.
The World Bank's Ease of Doing Business (EoDB) indicators (now succeeded by the B-READY framework) focused on formally registered businesses in major commercial cities and did not include informal-sector enterprises. So Assertion A is true.
The reason for this exclusion is that informal enterprises operate without formal registration, do not file standardised regulatory documents, and vary widely in nature across countries — making consistent cross-country measurement very difficult. So Reason R is true.
Moreover, R correctly explains A — informal sectors were excluded precisely because they could not be measured consistently across nations.
Hence both A and R are true, and R is the correct explanation of A. The correct answer is option 1).
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