L-19 Small Scale Enterprises
A. One Word or One Line Questions
Q. 1. Which are
various categories of small scale enterprises in India?
Ans. Various categories of small scale enterprises in
India are micro, small and medium enterprise.
Q. 2. Under
which act, were small scale enterprises defined in India?
Ans. Small scale enterprises were defined in India
under Micro, Small and Medium Enterprises Development act 2006.
Q. 3. When were
the recent changes made in the definition of MSMEs?
Ans. May and June 2020.
Q. 4. How are
MSMEs being defined in India under the latest revision of their definition?
Ans. As per the revision carried out in May and June
2020, MSMEs are being defined on the basis of investment made and annual
turnover.
Q. 5. How are
micro enterprises defined as present?
Ans. Micro Enterprises: (1) Investment: Less than Rs.1
crore (2) Annual Turnover
Less than
Rs.5 crore.
Q. 6. Define
small enterprises as per the latest definition.
Ans. Small Enterprises:
(1) Investment: More than Rs.1 crore, but less than
Rs.10 crore.
(2) Annual Turnover: More than Rs. 5 crore, but less
than Rs. 50 crore.
Q. 7. What is
the role of MSMEs in employment generation?
Ans. MSMEs generate large number of employment
opportunities.
Q. 8. Name any
two agencies which provide help to small scale business enterprises.
Ans. (1) National Small Industries Corporation (NSIC)
(2) The
District Industries Centres (DICs)
B. Fill in the
blanks
1. Small scale business enterprises refer
to.............
2. In India, MSMEs have been defined under............
Act, 2006.
3. In India, small business enterprises are classified
in ............ categories.
4. In case of manufacturing enterprises MSMEs were
defined on the basis of investment in ............ under the MSMED Act, 2006.
5. As per the latest revision, maximum annual turnover
limit for medium enterprises is Rs............. crore.
6. MSMEs are more suitable to ............ countries.
7. MSMEs used ............ intensive technique.
8. NSIC was established in.............
Ans.
1. MSMEs, 2. MSMED, 3.three, 4.plant and machinery, 5. 250, 6.developing,
7.labour, 8. 1955
C. True or False
1. At present, MSMEs are being defined in India on the
basis of investment made and annual turnover.
2. The contribution of MSMEs in total GDP of India is
negligible.
3. MSMEs play a very vital role in the rural
development in a developing country like India.
4. MSMEs generally use imported technology and
important resources.
5. NSIC has set-up its branches in all the district
headquarters throughout the country.
6. NSIC helps the MSMEs in profitable marketing of
their products.
7. DICs have been providing a wide range of services
to the small scale business enterprises
in India.
Ans.
1. True, 2. False, 3. True, 4. False, 5. False, 6. True, 7. True
D. MCQ
1. Which of the
following is a type of small scale business enterprise in India?
(a) Micro enterprises
(b) Small enterprises
(c) Medium enterprises
(d) All of these
2. Micro, small
and medium enterprises are defined in India under MSMED Act, on the basis of which of the
following criterion.
(a) Investment in plant and machinery in case of
manufacturing enterprises.
(b) Investment in equipment in case of service
enterprises.
(c) Both (a) and (c)
(d) None of these
3. Which of
following is correct about the latest definition of MSMEs in India?
(a) It defines both manufacturing enterprises and
services enterprises on the basis of a composite criteria.
(b) It defines MSMEs on the basis of investment made
and annual turnover.
(c) Both (a) and (b)
(d) None of these
4. Which of the
following is not a benefit of small scale business enterprises?
(a) Adoption of Capital intensive techniques
(b) Adoption of labour intensive techniques
(c) Both (a) and (b)
(d) None of these
5. Which of the
following highlights the role of MSMEs (Small Business) in rural areas?
(a) Generation of employment opportunities
(b) Focus on local area
(c) All of these
(d) All-round rural development
6. The DICs are
set-up in India
(a) At the department level (b) At the district level
(c) Both (a) and (b)
(d) None of these
Ans.
1. (d), 2. (c), 3. (c), 4. (a), 5. (d), 6. (b).
