CBSE · Class 11 · Business Studies · Small Business and EnterprisesWhich of the following problems is most commonly faced by small business enterprises in India?
Step-by-Step Solution
Finance is a major problem for small businesses due to lack of adequate collateral and formal credit history, leading to credit starvation.
Detailed Options Breakdown
Option : Excessive surplus capital
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Small Business and Enterprises.
Option 1: Shortage of finance (Correct Answer)
Correct choice. Refer to the step-by-step verified solution guidelines above for details.
Option 2: Overstaffing of management
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Small Business and Enterprises.
Option 3: Absence of labor
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Small Business and Enterprises.
💡 Study Guide: This question tests core syllabus concepts from Small Business and Enterprises. For formulas, key summaries, and mock exam reference guides, read the full Small Business and Enterprises Revision Notes.