Small Business

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.