CUET Entrepreneurship-Chapter-Mobilising Resources

(b)

Exp: SISI stands for Small Industries Service Institute. It is a state level organisation introduced to help and encourage potential entrepreneurs. It helps in the selection of a project as well as in providing required training.

(a)

Exp: Indian Investment Centre (IIC) is a state level organisation providing financial assistance to the entrepreneurs for acquiring machinery, land, building etc. Besides this, there are various banks and financial institutions for providing funds to the promising entrepreneurs.

(a)

Exp: State bank of India is a national bank providing loans to the entrepreneurs, who are in need of finance to start as well as run their enterprise. IIC, IDC and SFC are the state level sources.

(a)

Exp: There are various Acts for the welfare of human resources such as Factories Act, Provident Fund Act, Payment of Minimum Wages Act etc. As the name suggests, this act is related to the remuneration to the employees of an enterprise to prevent their exploitation by the employers.

(c)

Exp: In order to develop a good human resource, an enterprise should take steps like recruitment of competent personnel, training of the personnel, scope for development, retraining etc. It should also provide ample scope for the development.

(c)

Exp: The Central Institute of Plastic & Engineering Tools (CIPET) provides technical support to the enterprises by helping in testing equipments, maintaining quality standards, purchase of machinery, equipments etc.

(b)

Exp: The functions performed by trained manpower include technological tasks, selection of the machinery, installation and supervision of machinery etc. Other functions are performed by administrative staff.

(b)

Exp: A state level coordinating agency, Industrial Extension Bureau (IEB) provides assistance to the entrepreneurs by providing information regarding types of machinery, brand suppliers, price etc. SBI, SFC and ICICI are the national level sources for providing financial assistance.

(d)

Exp: Indian institute of Foreign Trade (IIFT) is a national level source for providing technical and marketing assistance to the promising entrepreneurs. It was set up in 1963 by the Government of India as an autonomous organisation to help the country's foreign trade management and to increase exports by developing human resources, generating, analysing and disseminating data and conducting research.

(a)

Exp: The administrative staff performs the various tasks such book keeping, communication, office support, filing the documents, keeping the record of the tasks done, typing, computer work etc.

(d)

Exp: The Mineral and Metal Trading Corporation (MMTC) provides information regarding types of materials available, its sources of supply etc. It was established in 1963. With its comprehensive infrastructural expertise to handle minerals, the Corporation provides full logistic support from procurement and quality control to guaranteed timely delivery of minerals from different ports through a wide network of regional and port offices in India.

(a)

Exp: There are various Acts related to human resources such as Factories Acts, Provident Fund Act and Payment of Minimum Wages Act etc. The Provident Fund Act focuses on the financial assistance to the retired employees.

(d)

Exp: CCIE, CECD and ISI are the national level sources for providing assistance to the entrepreneurs in the registration as well as licensing activities. Small Industries Corporation (SIC) is the state level organisation providing assistance to the entrepreneurs in this area.

(d)

Exp: SFC and SBI are the sources for provision of financial assistance to the entrepreneurs. State Bank of India is a national level source, while the State Financial Corporation is the state level institution.

(a)

Exp: A manufacturing unit is a labour intensive unit; thus, the investment on the human resources is higher in such an enterprise in comparison to other resources.

(b)

Exp: The size of a unit refers to its installed capacity, which means the size of production it is capable of. Availability of land is crucial for the size of the unit.

(b)

Exp: The factors like land, building, finance etc. determine the size of the unit. These factors are crucial for an enterprise as they play a decisive role while determining the size of the start up unit.

(c)

Exp: The institutions like the Rural Industries & Marketing Corporation help the entrepreneurs in establishing market linkages. Such linkage ensures the complete information about the market to the entrepreneurs.

(c)

Exp: Directorate for Drug Control Administration (DDCA) is a state level institution for providing technological assistance, raw materials, machinery, equipments etc.

(c)

Exp: GMD stands for Geology and Mining Department, which is a state level organisation involved in provision of assistance in registration and licensing activities as well as for technical support to the entrepreneurs.

(c)

Exp: IFCI is a financial institution for industries. The government established the Industrial Finance Corporation of India (IFCI) on July 1, 1948, as the first Development Financial Institution in the country to cater to the long-term finance needs of the industrial sector.

(a)

Exp: The National Institute of Small Industry Extension Training (NISIET), National Institute of Entrepreneurship and Small Business Development (NIESBUD), Entrepreneurship Development Institute of India (EDI) etc. help the entrepreneurs by providing training and information related to it. It informs the entrepreneurs regarding types of training as well as sources of training.

(c)

Exp: Invention Promotion Board (IPB) is a national level organisation for product standardisation, inventions, quality marks etc. It encourages research and development among entrepreneurs.

(d)

Exp: These organisations help an entrepreneur in obtaining infra-structural facilities, which are needed to set up an enterprise. This includes facilities such as land or building on rent, required electricity/power/fuel, required transport and communication etc.

(a)

Exp: Design, layout, training, skills development, technical know-how, quality control systems etc. are various technical resources. An entrepreneur should be conscious of the quality control systems, so that, he is able to ensure the quality of the product.

(b)

Exp: Capital, funds, money required, loans, grant etc. are the examples of financial resources. Financial resources are required for creation and sustenance of the enterprise.

(c)

Exp: Dealers and agents are the important part of an entrepreneur’s marketing resources. They are a crucial market link, important for the proper distribution as well as marketing of the product.

(b)

Exp: Human resource of an enterprise consists of managerial and the non-managerial, skilled, semi-skilled and unskilled labour force, marketing and other field personnel.

(d)

Exp: Collateral security refers to the fixed assets such as building, land etc. that is accepted in the name of the entrepreneur to release the loan. Bank release secured loans to the entrepreneurs against a collateral security, which can be forfeited by bank if the entrepreneur is unable to pay back.

(d)

Exp: District Industries Centre is a government body set up to promote and encourage entrepreneurship at regional levels. It provides the required assistance to the budding entrepreneurs at different stages of setting up of an enterprise.

(a)

Exp: It is crucial for an enterprise to maintain the quality of its products as it helps in sustaining growth in the long run. To achieve this objective, enterprise needs to possess technological expertise.

(b)

Exp: Trained manpower ensures higher production. As the name suggests, they are equipped with required techniques. In an enterprise, the trained manpower constitutes the technological expertise and are often engaged in selecting required machinery, its installation, commissioning and supervision.

(c)

Exp: Small Industries Development Bank of India (SIDBI) was established in April 1990 under an Act of Indian Parliament as the principal financial institution for promotion, financing, development of industry in the small scale sector and coordinating the functions of other institutions engaged in similar activities.

(d)

Exp: The National Institute for Entrepreneurship and small Business Development(NIESBD) was established in the year 1983 as an apex body established by Govt. of India for coordinating, training and overseeing the activities of various institutions/ agencies engaged in entrepreneurship development particularly in the area of small industry and small business.

(c)

Exp: The National Institute for Entrepreneurship and Small Business Development(NIESBD) was established in the year 1983 as an apex body established by the Ministry of small scale industries for the promotion and development of small scale industries in the country.

(c)

Exp: DGSD, The Director General of Supplies & Disposal is a national level institution set up for providing the necessary market related information to the entrepreneurs.

(c)

Exp: CECD, the Central Excise and Customs Department is a national level institution providing assistance to the entrepreneurs in the area of registration and licenses. It helps them by providing the procedural information as well as required application forms.

(a)

Exp: Indian Investment Centre is a national level institution for providing technical support to the entrepreneurs as well as helping them in the process of selection of project.

(b)

Exp: IC stands for Industries Commissioner, who is a state level source for providing assistance to entrepreneurs in various activities such as procurement of plant and machinery, product standardisation, inventions, quality marks, registration and licensing, project selection etc.

(c)

Exp: SBI, CB and CIPET are the national level sources for the provision of training facilities to the entrepreneurs while the EDPs, i.e., the Entrepreneurship Development Programmes are organised at the state level and form an important source for the provision of different types of training as well as related information.

(a)

Exp: ICICI stands for Industrial Credit and Investment Corporation of India Ltd. It is a financial institution providing financial support to the entrepreneurs to purchase machinery, land, building etc. as well as for working capital requirements etc.

(d)

Exp: CSIR stands for Council of Scientific and Industrial Research. It is a research institute and a national source for assisting entrepreneurs in the process of selection of appropriate project as well as in technological issues.

(d)

Exp: IIFT stands for Indian Institute of Foreign Trade. It is a national level source for providing technical support to the entrepreneurs. It helps them by providing information regarding machinery and equipments, testing equipments and quality standards.

(c)

Exp: Companies issue equity shares to raise funds required for business through equity source. These equity funds are obtained by selling a part of the business and allowing investors to hold shares in proportion to their funds.

(c)

Exp: Cost on machinery, interest on loan and cost of land are the items covered under long-term costs of an enterprise as these are borne by the enterprise for a much longer duration, while the cost of raw materials are considered short term because they are incurred from time to time.

(b)

Exp: The functions performed by trained manpower include technological tasks, selection of the machinery, installation and supervision of machinery.

(d)

Exp: Cost of raw material, cost of power and the wages are the items covered under short-term costs.

(b)

Exp: Physical resources include land, building, raw materials, tools and equipment. These resources help in determination of short term cost, long term cost, quantity, utility, durability etc.

(d)

Exp: The land and premises where the enterprise is going to be established is an important concern for the entrepreneur. They determine issues like capital costs, access, communicability, transportation etc.

(c)

Exp: The success of any enterprise depends on the capacity of the entrepreneur to mobilise the resources for the enterprise and managing them successfully. Thus, he should be able to sense the need for the resources, identify the type of resources, be able to locate the resources etc.

(d)

Exp: Wages, cost of raw materials and cost of power fall under short-term cost of an enterprise. They are termed as short term because investments done on these items are for shorter duration and are repeated intermittently.

(c)

Exp: The administrative staff performs the various tasks such book keeping, communication, office support, filing the documents, keeping the record of the tasks to be done, typing, computer work etc.

(a)

Exp: An entrepreneur obtains financial resources from institutions such as Industrial Development Bank of India, Industrial Credit & Investment Corporation of India etc. There are various state level institutions providing finance such as banks, SIC, District Industries Centre etc.

(d)

Exp: Collateral security refers to the fixed assets such as building, land etc against which the bank releases the loan. Collateral is the property or asset of the borrower, which he forfeits, if he defaults on the loan.

(a)

Exp: Insurance, depreciation, rent etc. fall under fixed cost.

(b)

Exp: The creditworthiness of an entrepreneur plays an important role in obtaining the unsecured loans as these loans are not given against any collateral.

(c)

Exp: Design, layout, training, skills development, know-how and techniques are various technical resources while land and building are physical resources of an enterprise. The financial resources include loans, grants, equity funds etc.

(c)

Exp: The long term finance is raised by an entrepreneur to purchase fixed assets such as land, building, vehicles etc. The common sources of long term finance are issue of debentures, loans from banks, retained earnings, loans from financial institutions etc.

(b)

Exp: An entrepreneur generally raises short term loans for buying current assets, i.e., inventory, raw materials, payments of wages, salaries etc. The common sources of short term financing are trade credit, factoring etc.

(a)

Exp: Insurance, depreciation, rent etc. fall under fixed cost of an enterprise. These are the costs that an enterprise has to bear in order to run the enterprise. These are the costs that remain static or constant irrespective of the changes in the output.

(c)

Exp: An entrepreneur usually borrows long term funds for procuring land, machines etc. Long term loans have a longer duration of repayment. They are usually repaid only after the commencement of production.

(b)

Exp: Technical resources are important to ensure quality of products and to increase the productivity. An enterprise’s technical resources include technical know how, prototypes, designs, production process etc.

(d)

Exp: The District Industries Centre or DIC is a state level institution set up to help the entrepreneurs in the area of product standardisation, inventions, quality marks etc.

(d)

Exp: The administrative staff performs the various tasks such book keeping, communication, office support, filing the documents, keeping the record of the tasks to be done, typing, computer work etc.

(c)

Exp: WPCB stands for Water Pollution Control Board, which is a state level organisation and authority to assist entrepreneurs in the process of obtaining registration and licenses required for running the enterprise.

(c)

Exp: To maximise production and to grow and expand an entrepreneur shall never buy outdated machines and should always go for current and latest input, so that, quality products can be manufactured, which helps in increasing sales.

(c)

Exp: An entrepreneur should focus on activities like man power planning, recruitment and selection of competent persons, placement and orientations etc. in order to maintain efficient human resource in an enterprise.

(a)

Exp: The administrative staff performs the various tasks such book keeping, communication, office support, filing the documents, keeping the record of the tasks to be done, typing, computer work etc.

(b)

Exp: There are various Acts related to human resources such as Factories Acts, Provident Fund Act, and Payment of Minimum Wages Act etc. This act aims at protecting the employees of an enterprise against any exploitation by their employers such as payment of low wages or salaries, irregularity in wages or salary payments etc.

(d)

Exp: The human resources are the most important resources of an organisation because the efficient use of all other resources of an enterprise completely depends upon the efficiency of its human resources as they manage and utilise these resources.

(d)

Exp: Collateral security refers to the fixed assets such as building, land etc., which a bank takes from the borrowers while releasing a secured loan. These secured loans are issued against some collateral security only.

(b)

Exp: Secured loans are the loans that are given against collateral only. Collateral security is the asset of the borrower; in case the borrower fails to repay the loan, then the asset is forfeited or ceased by the bank in their favour.

(d)

Exp: NRDC stands for National Research & Development Corporation. It is a national level institution for providing technical assistance such as raw materials and quality information, machinery and equipments etc. to the entrepreneurs.

(d)

Exp: While setting up an enterprise, an entrepreneur should most importantly estimate the required amount of resources needed to start as well as run the enterprise. Assessment of profit margin, sales figure or future demand levels are secondary and are done while selecting an appropriate project and conducting the feasibility study.

(c)

Exp: Mobilisation of resources means making the products available at the right time and then managing them in the most efficient manner. It refers to the availability of resources at the right time and making their right use.

(b)

Exp: In an enterprise, an entrepreneur should estimate the quality and quantity of resources, which are required in the organisation in order to mobilise the resources.

(c)

Exp: An enterprise raises long term finance to buy fixed assets such as land, building, vehicles etc. The common sources of long term finances includes issue of equity shares, preference shares, issue of debentures etc.

(d)

Exp: The National Institute of Small Industry Extension Training is a national level source for providing training assistance to entrepreneurs. It provides information regarding types of training available for entrepreneurs as well as regarding institutions providing it.

(c)

Exp: Trade credit is a source of short term finance. An enterprise is required to raise short term finance in order to buy current assets, i.e., inventory, raw materials, payments of wages etc.

(b)

Exp: Technical resources are important to ensure quality of products and to increase the productivity. One of the actions which the entrepreneur must undertake in order to arrange the available technical resources of the enterprise is to update these resources at regular intervals.