Question 1

Which of the following criteria is generally used in India to measure the size of a business?

Accepted Answer

Investment in plant and machinery or equipment is the primary criterion used in India under the MSMED Act to classify and measure the size of manufacturing and service enterprises.

Question 2

According to the MSMED Act, 2006, enterprises are classified into two broad categories namely:

Accepted Answer

Manufacturing enterprises and Service enterprises are the two broad categories defined under the MSMED Act to distinguish businesses based on their primary operations.

Question 3

Which institutions set up by the government provide raw material, machinery, and financial assistance to small businesses?

Accepted Answer

Institutional support agencies like NSIC (National Small Industries Corporation) provide various forms of assistance including machinery on hire-purchase and raw materials.

Question 4

What does District Industries Centre (DIC) primarily aim to provide?

Accepted Answer

District Industries Centre (DIC) aims to provide an integrated administrative framework at the district level to promote small and village industries.

Question 5

Which of the following is a characteristic feature of small scale industries?

Accepted Answer

Small scale industries are typically labor-intensive, meaning they use more labor compared to capital, helping generate high employment.

Small Business and Enterprises