CBSE Class 11 Business Studies HOTs Small Business and Entrepreneurship

Question. While starting a business which industry use local and family labour?
Answer : While starting a business the industry that uses local and family labour is the cottage industry.

Question. Small Scale Industries is threatened by global enterprises in which areas?
Answer :  The areas are a technological skill, financial creditworthiness, marketing & managerial skills, and quality standard.

Question. Explain the different parameters taken into consideration to measure the size of a company.
Answer :  The different parameters taken into consideration to measure the size of a company are.
• Microbusiness- The investment in facilities does not exceed more than ten lakhs
• Small business- The investment in facilities is more than ten lakhs but does not exceed more than two crores
• Medium business- The investment in facilities is more than two crores but not more than five crores

Question. What are the goals of marketing assistance scheme?
Answer : The goals of marketing assistance scheme are.
• To encourage marketing competitiveness of the MSMEs
• To upgrade the MSMEs with the current market scenario and its influence on MSMEs
• To provides a platform for MSMEs and get an opportunity to interact with big buyers
• To promote government schemes
• To encourage small, medium, and micro-entrepreneurs

Question. Give two characteristics of NABARD 
Answer : The two characteristics of NABARD are.
• It provides aid to small scale, cottage, and village industries, and rural artisans using both credit and non-credit approach.
• It provides professional counseling and consultancy services, arranges training, development programme for rural entrepreneurs.

Question. Explain the role of small business in the below-mentioned areas.
(a) Diversity of products
(b) Customization
Answer : (a) Diversity of products- In India, small business produce enormous and different [products which include readymade garments, stationery items, detergents & soaps, handloom & handicrafts, and domestic utensils, etc.
(b) Customization – The small business or industries has the flexibility to customize the product according to the taste and requirement of the clients.