MCQ Based Questions on Class 11 Business studies for chapter-9 Small Business
Find below MCQ Based Questions on Class 11 Business studies for chapter-9 Small Business all the MCQ questions are explained with correct answers and explanations. To check the correct answer click on the answer.
Find MCQ questions for class 11 Business studies-9 Small Business
Business Studies - MCQ on Small Business
Class XI
Q. 1 Small business Consists Of
I. Traditional small industry
II. Modern small industry
III. Both
IV. None
Answer:
.: III.Both
Explanation : A small business may be defined in terms of size and amount invested. Both traditional and modern industries co-exist
Q. 2. Power looms comes under:
I. Small Industry
II. Big Industry
III. Traditional industry
IV. E-business
Answer:
I.Small Industry
Explanation: Power looms does not require much investment so it is categorized under small industry
Q. 3. What are the parameters can be used to measure the size of business units
I. Number of persons employed in business,
II. capital invested in business,
III. volume of output
IV. All
Answer:
IV.ALL
Explanation The capital invested the workers in the business and the volume of output is the parameter which measures the size of business.
Q. 4. The Government of India describe small Industries is based on the number of
I. Persons employed in business,
II. Investment in plant and machinery
III. Volume of output
IV. Area where it is established
Answer:
II.Investment in plant and machinery
Explanation: In India amount of capital is used to identify the small scale enterprises
Q. 5. What is the investment amount decided to recognize small scale industries
I. Exceed rupees one crore.
II. Exceed rupees fifty lakh.
III. Exceed rupees two crore.
IV. Exceed rupees 10 lakh.
Answer:
I. Exceed rupees one crore.
Explanation Those industries which invest upto one crore comes under small scale industry.
Q. 6. Ancillary small industrial unit produces
I. Final goods
II. Intermediate goods
III. Services
IV. Support system to services
Answer:
II. Intermediate goods
Explanation: These units produce goods which can be reused and they are used for final consumption.
Q. 7. How much percentage does a small industry should have to become an export unit?
I. More than 20%
II. More than 50%
III. More than 70%
IV. More than 40%
Answer:
:II. More than 50%
Explanation: The goods and services which should be exported more than 50% of production then only it is known as export unit
Q. 8. Small scale industries owned and managed by women entrepreneurs
I. Special concessions offered by the government,
II. low interest rates on loans
III. More than 51 % of shares
IV. All
Answer:
IV.All
Explanation: These are those industries which gets loans on low interest, special concessions by the government
Q. 9. Micro business enterprises is a form of
I. Large Business
II. Small scale services
III. Tiny business
IV. Small Business
Answer:
. II.Small Business
Explanation: Within the tiny and small business sector, micro enterprises are those whose investment in plant and machinery does not exceed rupees one lakh.
Q. 10.Cottage industries are also known as
I. Rural industry
II. Modern industry small industry
III. Tiny industry
IV. Small scale services
Answer:
I.Rural industry
Explanation: Village industry has been defined as industry located in rural areas which produces any goods renders any service having investment of 50,000
Q. 11. Indigenous technology is used in
I. Large Business
II. Small scale services
III. Tiny business
IV. Small Business
Answer:
II.Small Business
Explanation The production in cottage industry is done by using indigenous technology
Q. 12. Who designs policies, programmers, and schemes for the promotion and growth of SSIs?
I. The Ministry of Small Scale Industries
II. The Ministry of Agro industries
III. The Ministry of Rural Industries
IV. The Ministry of Small Business
Answer:
I. The Ministry of Small Scale Industries
Explanation The ministry is responsible for designing the policies, programme, schemes for the promotion and growth of SSI
Q. 13.Which of the following is not a problem of small industries?
I. Inadequate finance
II. Lack of trained personnel
III. Old technology
IV. Local demand
Answer:
.IV.Local Demand
Explanation Local demand in the markets not a problem in small scale industries.
Q. 14.Measures taken by the government to support small industries include
I. Protective Measures
II. Incentives
III. Institutional measures
IV. All
Answer:
IV.All
Explanation: The government has taken these measures to protect small industries and encourage for rural development..
Q. 15.What are the parameters to measure the size of business?
I. Number of persons employed
II. Capital invested in business
III. Value of Output
IV. All
Answer:
IV.All
Explanation: The parameters to measure the size of business are number of workers, capital investment and value of output
Q. 16.Large scale units are
I. Labour intensive
II. Capital intensive
III. Machinery intensive
IV. None
Answer:
II.Capital Intensive
Explanation: Large scale units need a huge amount of capital investment
Q. 17.Cottage Industries use
I. Trained labour
II. Family labour
III. Educated people
IV. Skilled labour
Answer:
II.Family labour
Explanation Cottage industries use family labour and locally available talent and produce simple goods
Q. 18.Institution for credit facilities is a support to
I. Cottage Industry
II. Larger scale industry
III. Medium scale industry
IV. Rural Industry
Answer:
I.Cottage Industry
Explanation: The forms of support to small industries by the government Institution for credit facilities like Provision for training facilities, Supply of machinery on hire purchase, Technical assistance, Financial assistance, Technological up gradation
Q. 19.Small business in rural areas reduces
I. Standard of living
II. Local resources
III. Inequality of income
IV. Employment opportunities
Answer:
III.Inequality of income
Explanation: Small business in rural areas reduces the inequality of income between rural and urban areas.
Q. 20.What is the Area of operations for business
I. National market
II. Local market
III. International Market
IV. None
Answer:
II.Local Market
Explanation : Small business firms generally has local area of operations.
Q. 21. Small Scale industries are generally
I. Partnership
II. company
III. Sole proprietary
IV. None
Answer:
III.Sole proprietary
Explanation : Small scale industries are generally sole proprietary concerns hence their capacity to raise finance is limited. They do not get cheaper credit facilities so they depend upon their private resources.
Q. 22.Equity support is provided for
I. Old projects
II. Expansion
III. New projects
IV. Development
Answer:
III.New Projects
Explanation: For new projects and rehabilitating sick units under national equity fund. Working capital loans and term loans under single window schemes.
Q. 23.The National Small Industries Corporations was set up in
I. 1960
II. 1958
III. 1955
IV. 1957
Answer:
III.1955
Explanation: The National Small Industries Corporations was set up in 1955 which helps small scale units securing from director general of supplies and disposals.
Q. 24.Village and khadi industries are developed by
I. Ministry of Small Scale Industry
II. Ministry of Agricultural and rural industry
III. Ministry of village development
IV. Ministry of Industries
Answer:
II.Ministry of Agricultural and rural industry
Explanation: The ministry of Agricultural and rural industry coordinates and develops village and khadi industries, tiny and micro enterprises in both rural and urban areas.
Q. 25.What is NABARD
I. National Agriculture bank assisting in rural development
II. National Agriculture Board for rural development
III. National assistance from Board and rural development
IV. National Bank of Agriculture and rural development
Answer:
IV.National Bank of Agriculture and rural development
Explanation: It supports small and rural industries by offering credit facilities, counseling and consultancy services and organizing training programs.
Q. 26. Major Industry Groups in the Small Scale Sector
I. Food Products
II. Chemical and Chemical Products
III. Basic Metal Industries
IV. All
Answer:
:IV.All
Explanation: All these industry groups come under small scale sector
Q. 27. Development of rural and village industries can also prevent
I. Migration of rural population to urban areas
II. Immigration
III. Pollution in the environment
IV. Poverty and unemployment
Answer:
I.Migration of rural population to urban areas
Explanation: The migration of rural population to urban population is very high so development of villages may prevent migration
Q. 28. What are the twin objectives by the government?
I. Accelerated industrial
II. Growth and creating additional
III. Productive employment
IV. Poverty and unemployment
Answer:
. IV.Poverty and unemployment
Explanation: These are the major objectives of the government ie Poverty and unemployment.
Q. 29. Rural development and increase in Income results to
I. accelerates industrial development
II. growth and create additional oppurtunities
III. productive employment
IV. All
Answer:
IV.All
Explanation: When the rural areas are developed and income is increased then industrial growth is accelerated ,opportunities are created and employment level increases
Q. 30 .Which organization is supporting women
I. NCEUS
II. NEUCS
III. NUECS
IV. NCUES
Answer:
I. NCEUS
Explanation: National Commission for enterprises in the unorganized sector
It helps in improving the productivity of small enterprises, to enhance the competitiveness and to provide facilities in the areas of credit technology and raw material
Q. 30. Which organization helps the district level trade?
I. DCI
II. DIC
III. DAC
IV. DCA
Answer:
II.DIC
Explanation :District industry Centers It provides integrated administrative framework at district level. It provides all the services and support facilities to the entrepreneurs for setting up small industries.
Q. 31.Who coordinates central assistance for the promotion and development of small scale
I. Ministry of Small Scale Industry
II. Ministry of Agricultural and rural industry
III. Ministry of village development
IV. Ministry of Industries
Answer:
I.Ministry of Small Scale Industry
Explanation : It formulates policies and coordinates central assistance for the promotion and development of small scale industries in India.
Q. 32.In case of tiny units what is the minimum investment
I. 10 Lakh
II. 20 Lakh
III. 25 Lakh
IV. 50 Lakh
Answer:
III.25 Lakh
Explanation :The tiny units have the investment of 25 lakhs. A tiny unit does its business on its own
Q. 33 .unutilized __________of people in remote areas.
I. Investment
II. Saving
III. Capital
IV. Caliber
Answer:
II.Saving
Explanation :Small scale industries use entrepreneurial abilities and unutilized savings of people in remote areas.
Q. 34.the problems of small scale industries are
I. Raw Materials
II. Finance
III. Managerial skills
IV. All
Answer:
IV.All
Explanation : Small scale industries do not get the raw materials at reasonable price. Small scale industries are generally sole proprietary concerns hence their capacity to raise finance is limited.The owners of small business do not possess managerial skills.
Q. 35.The overhead cost in small business is
I. High
II. Low
III. Reasonable
IV. Affordable
Answer:
II.Low
Explanation : The overhead cost in the small business comparatively loew from large business
Q. 36.SIDBI stands for
I. Small Industries Development bank of India
II. Small industry direct board of India
III. Special Industries Development bank of India
IV. Small Industries Development board of India
Answer:
I. Small Industries Development bank of India
Explanation : It provides direct and indirect assistance to meet credit needs of small business organizations
Q. 37.Which one is the financial institution which supports rural development
I. RSBDC
II. IFCI
III. III
IV. HSBC
Answer:
I.RSBDC
Explanation : Rural Small Business DevelopmentIt provides management and technical support to small entrepreneurs in rural areas.
Q. 38.How do small scale industries contribute to socio economic development of India?
I. Provide employment
II. Facilitate regional balanced development
III. Support to large scale industries
IV. ALL
Answer:
IV. ALL
Explanation :Small scale industries are labour intensive and provide employment ,regional balanced development and support big industries to large number of people in rural areas
Q. 39.Fiscal concessions are exemptions from
I. Property
II. Investment
III. Income tax
IV. Excise duty
Answer:
IV.Excise duty
Explanation : Fiscal concessions like exemption from excise duty, subsidy, and tax holidays are made available to the small firms.
Q. 40.Who are more flexible?
I. Small Scale Industries
II. Large Scale Industries
III. Companies
IV. MNC
Answer:
I.Small Scale Industries
Explanation :Theflexibility level is quite high in the small scale industries.