16. ______Units provide inputs to other industries.
Export
Small
Ancillary
None of these
Answer.3. Ancillary
Explanation:
An ancillary activity is a supporting activity undertaken within an enterprise in order to create the conditions within which the principal or secondary activities can be carried out
Ancillary activities generally produce services that are commonly found as inputs into almost any kind of productive activity.
All the inputs consumed by an ancillary activity – materials, labor, consumption of fixed capital, etc. are treated as inputs into the principal or secondary activity which it supports.
17. ______ Registration helps the entrepreneur to take the necessary steps to bring industrial units into existence.
Provisional
Permanent
Both of these
None of these
Answer.1. Provisional
Explanation:
Entrepreneurs can obtain Provisional Registration Certificate (PRC) during the entity’s pre-establishment period. This helps proprietors to get a provisional proof of existence to raise loans/ purchase assets or hire. PRC is valid for 5 years.
18. The MSME Development Act came into force in _______
2005
2006
2010
2001
Answer.2. 2006
Explanation:
MSME stands for Micro, Small, and Medium Enterprises. It was introduced by the Government of India in agreement with the MSMED (Micro, Small, and Medium Enterprises Development) Act of 2006.
19. Capital investment subsidy was introduced in _______
1973
1971
1972
1970
Answer.2. 1971
Explanation:
The capital subsidy is given to the industrial units in the selected backward areas under the scheme of Central Investment Subsidy.
(CIS) launched in 1971 amounting to 10 percent of the fixed capital investment. From 1973 the rate of subsidy was enhanced to 15 percent. The rate has been further enhanced to 25 percent in 1984 for category “A” backward areas.
20. ______ is the financial and promotional assistance provided by the Govt to the industries for boosting up industrial development in all regions particularly in backward areas
Seed capital
Incentive
Subsidy
None of these
Answer.2. Incentive
Explanation:
The incentive is the financial and promotional assistance provided by the government to the industries for boosting up industrial development in all regions, particularly in backward areas. Incentives include concessions, subsidies, and bounties.
21. _______ is the place where the required facilities and factory accommodation are provided by the government to the entrepreneurs to establish their industries there
Industry
Industrial estate
Company
None of these
Answer.2. Industrial estate
Explanation:
An industrial estate is a place where the required facilities and factory accommodation are provided by the government to the entrepreneurs to establish their industries there.
In India, industrial estates have been utilized as an effective tool for the promotion and growth of small-scale industries.
22. The initial capital that is required to obtain loans from the financial institutions is called _______
Seed capital
Incentive
Subsidy
None of these
Answer.1. Seed capital
Explanation:
Seed capital is the initial amount of money an entrepreneur uses to start a business. Often, this money comes from family, friends, early shareholders, or angel investors.
Seed capital is typically used to support the planning of a business up to the point when the company starts selling a product or service.
23. Under the single roof of the _______ all the services and support required by small and village entrepreneurs are provided.
KSIDC
KITCO
DIC
KINFRA
Answer.3. DIC
Explanation:
The District Industries Centers (DICS) DICs came into existence in the year 1978.
Under the single roof of DIC, all the services and support required by small and village entrepreneurs will be provided.
These will include economic investigation of the district raw materials and other resources, supply of machinery and equipment, provision of raw materials, arrangement for credit facilities, an effective step for marketing, and a cell for quality control, research, and extension.
24. KITCO was set up in_______
1973
1971
1972
1970
Answer.3. 1972
Explanation:
KITCO (formerly Kerala Industrial and Technical Consultancy Organization Ltd.) KITCO Ltd was established in 1972 as the first Technical Consultancy Organisation (TCO) in India
25. ______ offers comprehensive consultancy services to MSMEs in Kerala.
KSIDC
KITCO
DIC
KINFRA
Answer.2. KITCO
Explanation:
KITCO (formerly Kerala Industrial and Technical Consultancy Organization Ltd.) KITCO Ltd was established in 1972 as the first Technical Consultancy Organisation (TCO) in India.
KITCO offers comprehensive consultancy services to MSMEs in Kerala.
26. The investment in plant and machinery in ancillary units should not exceed ______
25 lakhs
2 crores
5 crores
10 crores
Answer.3. 5 crores
Explanation:
In the case of ancillary units, the investment in plant and machinery (original cost) should also not exceed Rs. 1 crore to be classified under small-scale industry.
The investment limit in plant & machinery of Rs.1 crore for classification as SSI has been enhanced to Rs.5 crore in respect of certain specified items under hosiery, hand tools, drugs & pharmaceuticals, stationery items and sports goods by the Government of India.
27. A single lump sum that is given by a govt to an entrepreneur to cover the cost is known as……
Subsidy
Concession
Bounties
None of these
Answer.1. Subsidy
Explanation:
Subsidies are a one-time lump sum amount given to the entrepreneur by the government. It is financial help to cover the cost.
Bounty is a financial help provided to an industry so that it can compete with other units of the country as well as any foreign industry in the same business.
28. A bonus or financial aid which is given by a govt to industry to help it compete with other units in the home market or in a foreign market is known as ______
Subsidy
Concession
Bounties
None of these
Answer.3. Bounties
Explanation:
Bounty is a financial help provided to an industry so that it can compete with other units of the country as well as any foreign industry in the same business.
Subsidies are a one-time lump sum amount given to the entrepreneur by the government. It is financial help to cover the cost.
29. Single window scheme is instituted through ______
IDBI
SIDCO
KF
DIC
Answer.4. DIC
Explanation:
District Industries Centers (DICS)s came into existence in the year 1978.
The realization of the need to make the district a focal point of industrial planning and development crystallized in the establishment of DICs.
The DICs are considered as an institutional innovation to assist small-scale industrial units at three important stages viz., pre-investment, investment, and post-investment stages.
They are also considered as a single-window of clearance for industrial units.
30. The advance given to cover the finance requirement during the time lag between the sanctioning and disbursement of term loans by financial institutions is known as…………
Soft loan
Seed capital
Capital subsidy
Bridge loan
Answer.4. Bridge loan
Explanation:
A bridge loan is a financial arrangement where the borrower can get access to Short Term Loan to meet short-term liquidity requirements.
It is an advance given to cover the finance requirement during the time lag between the sanctioning and disbursement of term loans by financial institutions.
It is also called ‘Swing loan’, ‘Interim financing’ or ‘gap financing’.
The bridge loan is taken for a period of 2 to 3 weeks. The loan extends for a period of 12 months.
