CBSE Questions for Class 11 Commerce Business Studies Small Business And Entrepreneurship Quiz 4 - MCQExams.com

The entrepreneur who is committed to the entrepreneurial effort because it makes good business sense is classed a/an _________.
  • Inventor
  • Opportunist
  • Hacker
  • Craftsman
Which parameter is used by Government of India to describe small industries?
  • Number of persons employed in business
  • Volume of output
  • Investment in plant and machinery
  • None of the above
Which of the following is a major problem for small ancillary units?
  • Delayed payments
  • Uncertainty of getting orders from the parent units
  • Frequent changes in production processes
  • All of the above
Small industries whose thrust is on export promotion and modernization, investment ceiling is at ____________.
  • Rs. 5 cr on working capital
  • Rs 5 cr in plant and machinery
  • Rs 5 cr total investment
  • Rs 1 cr total investment
___________ are those whose investment in plant and machinery does not exceed rupees one lakh.
  • Tiny industrial units
  • Small scale industry
  • Micro enterprises
  • None of the above
The problems of _________include remote location with less developed infrastructural facilities, lack of managerial talent, poor quality,traditional technology and inadequate availability of finance.
  • Exporting small scale units
  • Traditional small scale units
  • Small ancillary units
  • None of the above
Which of the following is NOT included in large scale industries?
  • Petroleum
  • Mining
  • Handicrafts
  • Banking
Which of the following is true in relation to role of small business in rural areas?
  • Cottage and rural industries play an important role in providing employment opportunities in the rural areas
  • Development of rural and village industries can also prevent migration of rural population to urban areas in search of employment
  • These industries contribute amply to other socio-economic aspects, such as reduction in income inequalities, dispersed development of industries and linkage with other sectors of the economy
  • All of the above
A small scale industrial undertaking is defined as one in which ______________________.
  • the investment in fixed assets of plant and machinery does not exceed rupees one crore
  • the investment in working capital does not exceed rupees one crore
  • the investment in fixed assets of plant and machinery does not exceed rupees ten crores
  • total investment in fixed assets and working capital does not exceed rupees two crores
Which of the following is not true ?
  • Small industries are the second largest employers of human resources, after agriculture.
  • Small industries in India account for 95 per cent of the industrial units in the country.
  • They contribute almost 40 per cent of the gross industrial value added and 45 per cent of the total exports (direct and indirect exports) from India.
  • They generate lesser number of employment opportunities per unit of capital invested compared to large industries.
Which of the following is not a type of small business?
  • Micro business enterprises
  • Tiny industrial units
  • Village industries
  • Mini Industries
Small industries in India account for ______ of the industrial units in the country.
  • 80%
  • 75%
  • 95%
  • 90%
Which of the following is true in relation to role of small business in India?
  • Small industries in India account for 95 per cent of the industrial units in the country.
  • They contribute almost 40 per cent of the gross industrial value added.
  • They contribute 45 per cent of the total exports (direct and indirect exports) from India.
  • All of the above
How is finance a problem for small business?
  • Many units lack the credit worthiness required to raise as capital from the capital markets and thus, depend on exploitative local financial resources
  • The units frequently suffer from lack of adequate working capital, either due to delayed payment of dues or locking up of capital in unsold stocks.
  • Banks do not lend money without adequate collateral, guarantees or margin money, which they are not in a position to provide
  • All of the above
Which of the following is true?
  • Due to lack of marketing skills or lack of demand, many small business firms have to operate below full capacity
  • Small businesses are able to use the latest technology
  • Small business is generally promoted and operated by a single person, who possesses all the managerial skills required to run the business.
  • None of the above
Which of the following is not true in relation to labour as a problem for small businesses?
  • Small business firms cannot afford to pay higher salaries to the employees, which affects employee willingness to work hard and produce more
  • Productivity per employee is relatively high and employee turn over is generally low
  • Attracting talented people is a major problem in small business organisations
  • Unlike large organisations, division of labour cannot be practiced, which results in lack of specialization and concentration
What is the primary motivation of one to be a entrepreneur?
  • Power
  • Status in society
  • Achievement
  • Money making
Why is 'managerial skills ' a problem for small business?
  • Small business is generally promoted and operated by a single person, who may not possess all the managerial skills required to run the business.
  • Many of the small business entrepreneurs possess sound technical knowledge but are less successful in marketing the output.
  • They are not in a position to afford professional managers
  • All of the above
What are the areas where small businesses feel threatened with the onslaught of global competition brought in by the LPG policy?
  • Competition is not only from medium and large industries, but also from multinational companies which are

    giants in terms of their size and business volumes
  • It is difficult to withstand the quality standards, technological skills, financial creditworthiness, managerial and

    marketing capabilities of the large industries
  • There is limited access to markets of developed countries due to the stringent requirements of quality certification like ISO 9000
  • All of the above
Which of the following is not an external cause of sickness of small businesses?
  • Lack of skilled and trained labour
  • Delayed payment
  • Shortage of working capital
  • Inadequate loans
Which of the following is not true?
  • Many small business organisations do not adhere to desired standards of quality
  • Many of the small business entrepreneurs possess sound technical knowledge and are successful in marketing the output
  • Due to lack of marketing skills or lack of demand,many small business firms have to operate below full capacity
  • None of the above
How is marketing a weaker area of small organisations?
  • They have to depend excessively on middlemen, who at times exploit them by paying low price and delayed payments
  • Direct marketing may not be feasible for small business firms as they lack the necessary infrastructure
  • Both A and B
  • None of the above
Which of the following is an internal cause of sickness of small businesses?
  • lack of skilled and trained labour
  • lack of managerial and marketing skills
  • shortage of working capital
  • delayed payment
What does NSIC stand for?
  • National Small Industries Corporation
  • National Small Industries Centre
  • Nominal Small Industries Corporation
  • None of the above
What does RSBDC stand for?
  • Rural Small Business Development Corporation
  • Regional Small Business Development Corporation
  • Rural Small Business Development Centre
  • None of the above
SIDBI stands for ____________.
  • Small Industries Development Bank of India
  • Small Industrial Development Bank of India
  • Indian Small Industries Development bank
  • None of the above
NABARD was set up in __________.
  • 1984
  • 1980
  • 1982
  • 1981
A new scheme of performance and credit rating of small businesses is implemented through National Small Industries Corporation (NSIC) with the twin objectives of ______________.
  • sensitizing the small industries about the need for credit rating
  • encouraging the small business units to maintain good financial track record
  • Both A and B
  • None of the above
Government assistance for the development of rural industries insist on __________.
  • utilisation of local resources
  • utilisation of raw materials
  • utilisation of locally available manpower
  • All of the above
When was the NSIC set up?
  • 1982
  • 1955
  • 1980
  • 1956
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