CUET Entrepreneurship-Chapter-Setting Up a Small Scale

(b)

Exp: The process involves the following steps:

(b)

Exp: Strategic position means that the entrepreneur is able to achieve his goals and objectives and fulfill the purpose of the organization.

(c)

(d)

(c)

(d)

(c)

(a)

(a)

(b)

(a)

(b)

Exp: In an enterprise the human resources consist of the entrepreneur himself, trained manpower, skilled and unskilled labour and other administrative staff.

(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.

(a)

(a)

(b)

(b)

(c)

(c)

(b)

(b)

(a)

(c)

(b)

(a)

(a)

(b)

(c)

(c)

(a)

(d)

Exp: An enterprise process model is progressive by nature. It is a continuous process that indicates the development and the progress. Thus double circle means the continuity of the progress and development.

(b)

(b)

(a)

(b)

(c)

(c)

(d)

(c)

(d)

Exp: After planning human resource requirement in an enterprise, suitable workforce is recruited, developed, coordinated, organised and compensated. This whole process is termed as Personnel management.

(b)

Exp: The government of India, in order to encourage and develop entrepreneurship in the small scale sector provides various incentives to the prospective entrepreneurs and supports them through a vast network of institutions.

(c)

Exp: The Enterprise Process Model is visualised as a cycle, where one factor leads to another and the double circle indicates the developmental and progressive nature of entrepreneurial initiative.

(a)

Exp: Small Industrial Development Organisation, known as the Office of the Development Commissioner (Small Scale Industries), operates under Ministry of Small Scale Industries as the nodal development agency for SMEs. SIDO was established on the basis of the recommendations of the Ford Foundation.

(c)

Exp: Small Industries Development Bank of India (SIDBI) was established through an Act of Indian Parliament as the principal financial institution for promoting, financing and developing industry in the small scale sector.

(c)

Exp: Small Industries Development Bank of India (SIDBI) was established in April 1990 under an Act of Indian Parliament. Since its inception, SIDBI has been assisting the entire spectrum of SSI Sector including the tiny, village and cottage industries through suitable schemes tailored to meet the requirement of setting up of new projects, expansion, diversification, modernisation and rehabilitation of existing units.

(d)

Exp: The government established The Industrial Finance Corporation of India (IFCI) as the first Development Financial Institution in the country to cater to the long-term finance needs of the industrial sector.

(a)

Exp: The government established the Industrial Finance Corporation of India (IFCI) on July 1, 1948. Traditionally, IFCI has been meeting the changing requirements of the clients by endeavoring to devise various schemes and financial products for multiple industry sectors.

(a)

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

(d)

Exp: The National Institute for Entrepreneurship and small Business Development (NIESBUD) was established in 1983 by the Ministry of Small Scale Industries, Govt. of India. The institute aims at promoting, supporting and sustaining entrepreneurship and small businesses through providing training, education, research, consultancy and other interventions.

(b)

Exp: The National Institute for Entrepreneurship and small Business Development (NIESBUD) was established in 1983 by the Ministry of Small Scale Industries, Govt. of India.

(a)

Exp: While setting up a labour intensive manufacturing unit the investment on human resource would be more than the other resources. Since productivity as well as profitability of a labour intensive manufacturing unit depends upon its workforce.

(c)

Exp: An enterprise’s human resource consists of trained man power, skilled and unskilled labour and administrative staff. An entrepreneur himself is a very important human resource as he is both an employer and an employee.

(a)

Exp: An entrepreneur has to choose the most appropriate manufacturing process from the options available to him. He should select the process, which deliver the specified product with in cost parameters.

(a)

Exp: An entrepreneur must prepare a Preliminary Project Report after planning human, material and financial resources. It is a document, which provides details of project cost, means of finance and other financial calculations which would be required to be supplied to different related organizations & agencies.

(d)

Exp: The Enterprise process model is visualised as a cycle as one factor leads to another. It also depicts that there should be continuous process of refining, improving and upgrading the already established enterprise.

(b)

Exp: A large scale unit in heavy industry sector places great importance upon heavy machineries as they are the mainstay of production. The quality and quantity of machinery would determine production quantity as well as profitability of the enterprise.

(a)

Exp: The selected manufacturing process of an enterprise helps an entrepreneur in identification as well as purchase of machinery. It also decides the type and quantity of machinery required in an enterprise. Modern machinery and production processes help an enterprise to maintain low cost of production and thus increase profitability.

(a)

Exp: It is important that the entrepreneur should obtain a provisional registration for the enterprise to avail loans, assistance from the state and central small scale industries department etc. He obtains it from the concerned department of state on the basis of the preliminary project report.

(c)

Exp: An entrepreneur obtains the provisional registration of the enterprise from the District Industries Centre. This registration entitles the entrepreneur to allotment of land, electricity and water connection etc.

(d)

Exp: After obtaining the provisional registration of the enterprise from the District Industries Centre, an entrepreneur is entitled to the allotment of land, electricity, water connection etc.

(c)

Exp: As clearly depicted in the Enterprise Process Model, an entrepreneur, while preparing to set up an enterprise proceeds with the product or service identification after completing the investigation of business ideas.

(b)

Exp: The entrepreneurs are individuals who are completely responsible for starting a business venture, whose ownership lies with them. They operate the business according to their own knowledge and skill. The success or failure of their venture depends upon their business acumen.

(b)

Exp: An entrepreneur scans the environment around him in order to search and gather different business ideas, which he can then turn into business opportunities. Thus, the step immediately succeeding the environment scanning is the gathering of business ideas in the process of setting up an enterprise.

(c)

Exp: An entrepreneur after completing the market research and feasibility study of the selected business idea proceeds with setting up the enterprise as now he is sure of the business potential of his venture.

(a)

Exp: In the Enterprise Process Model the entrepreneurial characteristics of knowledge and skill, strategic positioning and action occupy the centre of the diagram, as they orchestrate the whole process of setting up an enterprise.

(a)

Exp: The most crucial aspect of the process of setting up of an enterprise is the strategic positioning of the selected business idea, achieved by the entrepreneur. This is reflected in the overlapping area of knowledge and skills and market dynamics.

(b)

Exp: The Enterprise Process Model is visualised as a cycle, where one factor leads to another. Thus, it depicts the cycle of ideas maturing into an enterprise which in turn depend upon one another for their appropriate execution.

(c)

Exp: It has been experienced that when there is equilibrium between the two sets of forces, i.e. the forces of knowledge, skill, competency and creativity of the entrepreneur and that of the market then an enterprise comes into existence.

(a)

Exp: Bill Bolton and John Thompson described the process of setting up of an enterprise as a result of an entrepreneur’s conviction and appropriate sense of direction with which they are able to build value. In the complete process their strategies play a very crucial role.

(d)

Exp: Bill Bolton and John Thompson described that successful entrepreneurs have purpose and direction because of which they are able to build value. They accomplish success in their business venture due to their successful strategies which can be described as means to ends.

(d)

Exp: It has been experienced that at the beginning of an organisation’s life, there is likely to be only one or a very limited range of products or services and this expands considerably as the organisation prospers.

(b)

Exp: An entrepreneur should resort to change, flexibility and continuous innovation in order to sustain growth of an already established enterprise. This action would help an enterprise to cope up with market dynamics as well as keep pace with the changing times and consumer preferences.

(a)

Exp: Sound business strategies facilitate an enterprise to gain competitive edge over other competitors in the market, which is very important for an enterprise to grow and sustain its growth in the long term.

(a)

Exp: An enterprise after its initial phases, efforts towards expanding its range of products through diversification so as to increase its reach to customers. This process helps an enterprise to grow as well as sustain its growth in long term.

(a)

Exp: An entrepreneur applies for loans from financial institutions, electricity connection from concerned electricity board and land from the concerned authority on the basis of the prepared preliminary project report.

(d)

Exp: The two phases in the entrepreneurial process are, firstly, spotting an opportunity and secondly, championing a project, which elaborately describes the complete process of setting up an enterprise.

(b)

Exp: It has been observed that many new business enterprises are conceived on ideas and concepts that are repackages of existing ideas, which shows that a little imagination, creativity and innovation is required to add value to the existing business concepts.

(a)

Exp: A business enterprise, whether involved in production of products or services has to necessarily carry out certain operations combining raw materials, processing and assembling, utilising workers, machines, tools and power. such process of changing raw materials into finished products with value addition is called an Operation.

(a)

Exp: In an enterprise, it is the trained man power which constitutes the technological expertise and they are often engaged in selecting the required machinery for the enterprise, its installation and commissioning as well as overall supervision.

(d)

Exp: In an enterprise, the skilled and unskilled labour force are involved in the actual production and in repair as well as maintenance activities carried out on plant and machineries.

(c)

Exp: The administrative staff in an enterprise is assigned the responsibility of providing office support services, which includes book keeping, communication, computer service, typing etc. required for the proper and efficient functioning of the enterprise.

(c)

Exp: At the end of the first stage of the process of setting up of a small scale enterprise, the entrepreneur has applied for loans, electricity connection and land.

(a)

Exp: In India, there are certain statutory requirements governing the compensation and welfare measures for the employees of the enterprises. Factories Act is one of them and they have to be followed by all the enterprises, irrespective of their size.

(b)

Exp: Government of India has laid down statutory requirements, which govern the compensation and welfare measures of the employees. These are stipulated under different Acts. The Payment of Minimum Wages Act lays down directives regarding minimum wages that an enterprise should pay to its workforce.

(a)

Exp: The size of a unit refers to the size of production the enterprise is capable of, which is depicted through its installed capacity. The size in turn depends upon a number of factors such as finance, land, building etc.

(a)

Exp: An enterprise, in order to carry out the process of production requires a suitable source of power which meets its requirements as well as is cost effective. Thus, most of the industrial units in the country utilise electrical power for which a proper permission is obtained from the concerned electricity board.

(d)

Exp: A trial production is initiated after the required machinery is in place and operational and the recruited manpower has been allotted their respective work. It is generally carried out to check whether the final product is as per specifications planned or not. After this, the entrepreneur proceeds with immediate commercial production.

(a)

Exp: The New Industrial Policy was announced in July 1991, with the aim of liberalisation, privatisation and globalisation. It also aimed at maintaining a sustained growth in productivity, gainful employment and international competitiveness.

(a)

Exp: A preliminary project report is a document providing details of project cost, means of finance and other financial calculations to be supplied to different agencies. After preparing this report, the entrepreneur proceeds to obtain provisional registration of the unit from District Industries Centre.

(c)

Exp: A preliminary project report is a document which provides details of project cost, means of finance and other financial calculations to be supplied to different agencies. A project report is a comprehensive version of information provided in the preliminary project report.

(c)

Exp: The NOC stands for No Objection Certificate. It is an official document which provides the permission to set up an enterprise. There are some products which can be produced only after procuring no objection certificate from the govt. of India or from other regulatory authorities of the government.

(d)

Exp: Once the formal sanction of the loan is obtained by the entrepreneur, he can then arrange the seed money, which is the initial capital required to set up the business. This initial capital is arranged by the entrepreneur through the soft loans provided especially by financial institutions at lower rates.

(a)

Exp: Globalisation means increasing global connectivity. It refers to a process by which regional economies, societies and cultures have become integrated through a global network of communication, transportation and trade.

(a)

Exp: While detailing manpower, an entrepreneur recruits work force according to actual requirement. Later when the installation of machinery is completed and they become operational, the manpower is allotted their work and place.

(d)

Exp: Liberalisation refers to a process of relaxation of previous government restrictions, usually in areas of social or economic policy. Most often, the term is used to refer economic liberalisation, especially trade liberalisation or capital market liberalisation.

(b)

Exp: At the stage of detailing manpower, an entrepreneur carries out trial production in order to determine the validity of the specification of the final product. After which if the product is found to be as per planned specifications, then he can go ahead with commercial production.

(a)

Exp: The formal sanction of loan enables an entrepreneur to procure seed money, which is the initial capital required to start the business. He procures it through soft loans from the financial institutions.

(c)

Exp: An entrepreneur prepares a preliminary project report in order to obtain provisional registration with the District Industries Centre, which helps him in applying for loan, electricity, water connection and land. It is an official document, which an entrepreneur needs to present to different agencies. This is a temporary and precise document, which later is converted into a detailed project report.

(a)

Exp: Soft loans are that form of financing which offers flexible or lenient terms for repayment, usually at lower rates than market interest rates. Soft loans are provided customarily by government agencies and not by financial institutions. This is also called concessional funding.

(c)

Exp: As paper based industries come under the category of industries, which are required to obtain a no objection certificate in order to set up an enterprise and start production. They are required to obtain this certificate from the pollution control board.

(d)

Exp: Obtaining NOC is a crucial step before proceeding to set up a tannery. Tannery comes under the category of industries that legally require NOC to start a business. Thus, obtaining NOC is an important stage while setting up a tannery.

(b)

Exp: An entrepreneur applies to the District Industries Centre in order to obtain the permanent registration of his unit. This permanent registration helps an entrepreneur in getting various government incentives, excise clearances and for other regulatory requirements.

(a)

Exp: In an enterprise, the trial production is done to verify whether the final product is as per the planned specifications or not. This process is carried out at detailing manpower stage when an enterprise makes arrangements for starting production.

(a)

Exp: It is important that the entrepreneur should obtain a provisional registration for the enterprise to avail loans, assistance from the state and central small scale industries department etc. He obtains it from the concerned department of state on the basis of the preliminary project report.

(c)

Exp: An entrepreneur obtains the provisional registration of the enterprise from the District Industries Centre. This registration entitles the entrepreneur the allotment of land, electricity and water connection etc.

(d)

Exp: After obtaining the provisional registration of the enterprise from the District Industries Centre, an entrepreneur is entitled to the allotment of land, electricity, water connection etc.

(b)

Exp: In the initial stages of a firm, comparatively small amount of capital is contributed by a firm's founder(s). It is rarely provided by lenders or institutional investors because startup is the riskiest stage in a firm's life cycle with the highest chance of failure; thus, is generally provided by the government agencies. It is also called front end money, front money or startup capital.

(d)

Exp: When an entrepreneur has decided upon a business idea he starts with the process of providing it a physical shape by first preparing a project report. This helps him in analysing the project in detail.

(b)

Exp: An entrepreneur while proceeding with the practical steps for setting up a business works towards obtaining a no objection certificate after preparing a detailed project report.

(c)

Exp: An entrepreneur proceeds to obtain the formal sanction of the loan from bank after obtaining the no objection certificate from the government body or the pollution control board. The formal sanction of loan would enable him to proceed with purchase of land and building, recruit manpower, buy machinery etc. and commence production.

(a)

Exp: The formal sanction of loan enables the entrepreneur to arrange for the seed capital so as to start with the construction of enterprise building or rent premises to start production in the enterprise.

(a)

Exp: The project report, which an entrepreneur prepares to provide details of the project to various agencies, is an extension of the preliminary project. The preliminary project report only focuses on the financial analysis of the project while the project report includes all the necessary components required to set up an enterprise.

(c)

Exp: The project report provides the details of the project and presents the profitability forecasts of the enterprise for the next five years.

(c)

Exp: Enterprises that are engaged in the production of chemical products, mineral products, forest products, tanneries, medicines etc. are required to obtain a no objection certificate from the concerned government body as well as from the pollution control board.

(a)

Exp: An entrepreneur can go for immediate commercial production only after successful completion of production, which is carried out to verify whether the final product is according to the planned specifications or not.

(c)

Exp: Once the enterprise comes into being, it requires careful nurturing by the entrepreneur in order to achieve growth and development. This phase is often termed as the “Building and growing stage”.

(b)

Exp: It is advisable that before installation of the machinery, an entrepreneur should visit the manufacturer of the machinery to inspect the machine and its operation before it is shipped to his unit. This helps in verifying the specifications of the machinery beforehand and saves any wastage of time and other resources later.

(a)

Exp: An entrepreneur should instruct to necessarily carry out a test run of the installed machinery in the presence of the company representatives. This is important to check whether the operations of the machinery are as according to the enterprise’s requirements.

(c)

Exp: The skilled and unskilled labour force would be involved in the actual production process as well as in the repair and maintenance activities in the enterprise; thus, they require proper training in order to operate the machinery.

(a)

Exp: While installing machinery in the enterprise, it is advisable that the machinery should be selected, installed as well as checked by the trained manpower on the various parameters such as quality, cost and capacity.

(c)

Exp: The entrepreneur must establish linkages with different distributors and sellers by showing them the product manufactured in the enterprise. Such marketing network would facilitate the smooth marketing of the product in the market.

(b)

Exp: An entrepreneur takes help from various entrepreneurship development bodies while setting up the enterprise. These agencies help the entrepreneur in completing the required paper work as per the prescribed norms for the purpose of loan, permanent registration, no objection certificate etc.

(c)

Exp: A project report is of a great help for entrepreneur as it is a blue print, which helps him to explain his idea to financiers, clients, government agencies etc. It helps him in the preparation of his business strategies.

(a)

Exp: Entrepreneurs tak