CBSE Class 11 Business Studies Small Business and Entrepreneurship MCQs Set 03

Question. Expand EOUs
(a) Essential Operating units
(b) Export Oriented units
(c) Export Order Units
(d) Essential order units

Answer: B

Question. The small scale industry can enjoy the status of _______ unit if it exports more than 50% of its production.
(a) Import oriented units
(b) Export Oriented units
(c) Small scale unit
(d) Domestic unit

Answer: B

Question. In India, the ‘Village and Small Industries’ Sector consists of both traditional and modern small industries. This sector has ___________subgroups.
(a) Eleven
(b) Ten
(c) Five
(d) Eight

Answer: D

Question. SBA stands for:
(a) Small business accountants
(b) Small business administration
(c) Small business adequacy
(d) Small business advisors

Answer: B

Question. ___ is a person responsible for setting up a business.
(a) Entrepreneur
(b) Businessman
(c) Manager
(d) Planner

Answer: A

Question. __________ is defined as one in which the investment in fixed assets of plant and machinery does not exceed rupees one crore.
(a) Small Scale Industry
(b) Limited Companies
(c) Large Scale industry
(d) None of the options

Answer: A

Question. NSIC was setup in
(a) 1982
(b) 1975
(c) 1965
(d) 1955

Answer: D

Question. Which of the following is part of ?Village and Small Industries Sector?
(a) Handicrafts
(b) Sericulture
(c) Handlooms
(d) All of the options

Answer: D

Question. The small scale industry can enjoy the status of ________ if it supplies not less than 50% of its production to another industry, referred to as the parent unit.
(a) Micro Business industry
(b) Export oriented unit
(c) Ancillary small industry
(d) Village industries

Answer: C

Question. Any industry located in a rural area which produces any goods renders any service with or without the use of power is known as ________
(a) City Industry
(b) Town Industry
(c) Village Industry
(d) District Industry

Answer: C

Question. ______ Is defined as risk which can not be insured against and is incalculable.
(a) Unsecured Risk
(b) Uninsured Risk
(c) Incalculable Risk
(d) Uncertainty

Answer: D

Question. Capital is arranged from Internal sources refers to the owner’s own money known as
(a) Profit
(b) Capital
(c) Equity
(d) None of the options

Answer: C

Question. Expand DIC
(a) Directorate of Industry corporation
(b) Directorate of Indian Corporation
(c) District Industries Centers
(d) None of the options

Answer: C

Question. The writing, listening and oral presentations skills possessed by an entrepreneur are more appropriately classified as _______.
(a) Technical Skills
(b) Business Management Skills
(c) Personal Entrepreneurial Skills
(d) None of the options

Answer: A

Question. Which of the following is part of the small-scale sector?
(a) Paper Products and Printing
(b) Food Products
(c) Cotton Textiles
(d) All of the options

Answer: D

Question. An industry located in a rural area which may/may not use power are known as:
(a) District industry
(b) Town industry
(c) City industry
(d) Village Industry

Answer: D

Question. The main objective of setting up DICs was to promote under a single roof all the services & support required by small & village entrepreneurs. This scheme was introduced in May
(a) 1970
(b) 1975
(c) 1978
(d) None of the options

Answer: C

Question. Which of the following comes under the Modern Small Industries?
(a) Coir
(b) Powerlooms
(c) Handicrafts
(d) Khadi

Answer: B

Question. A tiny unit is defined as an industrial or business enterprise whose investment in plant and machinery is not more than ___________
(a) Rs.35 Lakhs
(b) Rs.50 Lakhs
(c) Rs.30 Lakhs
(d) Rs. 25 Lakhs

Answer: D

Question. The small scale industry can enjoy the status of ___________ if it supplies not less than 50% of its production to another industry, referred to as the parent unit.
(a) Village industries
(b) Micro Business industry
(c) Export oriented unit
(d) Ancillary small industry

Answer: D

Question. The entrepreneur distinguished themselves from capital provider in
(a) Middle Ages
(b) 17th Century
(c) 18th Century
(d) 19th Century

Answer: C

Question. Full form of DIC is:
(a) District Industries Centre
(b) Distant Industries Centre
(c) District Inclined Centre
(d) District Industries Conversion

Answer: A

Question. ______ are also known as Rural industries or Traditional industries
(a) Agricultural industry
(b) Food industry
(c) Cottage Industries
(d) None of the options

Answer: C

Question. The purpose of soft loan scheme is to encourage units to undertake _______.
(a) modernization of plant and machinery.
(b) replacement of plant and machinery.
(c) renovation of plant and machinery.
(d) All of the options

Answer: D

Question. _____ is a favorable set of circumstances that creates a need for a new product, service, or business.
(a) A niche
(b) A venture
(c) A trend
(d) An opportunity

Answer: D

Question. Exemption from paying taxes for 5 ot 10 years is known as _________
(a) Tax Deduction
(b) TDS
(c) Value Added Tax
(d) Tax Holiday

Answer: D

Question. Limit of investment in small scale industry is ______
(a) One crore
(b) Ten crore
(c) Two crore
(d) Five crore

Answer: A

Question. Any industry located in a rural area which produces any goods, renders any service with or without the use of power is known as ____
(a) City Industry
(b) Town Industry
(c) Village Industry
(d) District Industry

Answer: C

Question. Expand SIDBI
(a) Society Industrial development bank of India
(b) Small Industries development bank of India
(c) Super Industrial development bank of India
(d) Small Indian Development bank of India

Answer: B

Question. State Industrial corporations engage in the development of__________.
(a) industrial estates.
(b) institutional estates.
(c) individual investors.
(d) agricultural entrepreneurs.

Answer: A

Question. National Alliance of Young Entrepreneurs (NAYE) Sponsored an Entrepreneurial Development scheme with Bank of India in______.
(a) January 1920.
(b) August 1920.
(c) January 1972.
(d) August 1972.

Answer: D

Question. If a manufacturing company invested Rs.24 lakhs and now wants to invest more. What type of small business will it become?
Answer : It will become a small type company of small business.

Question. What are the major things that National Small Industries Corporation NSIC provide?
Answer : The major things that National Small Industries Corporation NSIC provide are.
- To Imported machinery to business in easy and low hire terms
- To procure, supply, and distribute imported machinery and raw materials
- To help small business export their product
- To Supervise and implement advisory service

Question. Give two advantages of small scale industries in trade export in India.
Answer : The two advantages of small scale industries in trade export in India are.
- They are best for customization. They can customize the product according to the taste and preference of the customer.
- These industries have the potential of building and maintaining a personal relationship with both the employees and customers.

Question. Mention five characteristics of cottage industries.
Answer : The five characteristics of cottage industries are.
- This industry is built and organized by individuals and private resources
- They usually focus on employing family and local labour
- The machinery used is local and cheap - No big capital investment is required
- The product proceed is simple and low in price

Question. Mention two problems of small industries.
Answer : The two problems of small industries are.
- Finance-
- They tend to get exploited by the money lenders or investors.
- Most of the time these units have low working capital because of late payment of dues or locking up capital in unsold hares.
- Raw Material-
- Required new materials are expensive or no available so sometimes they have to manage with low-grade raw materials.
- They cannot buy bulk as they don’t have big space to stock up.

Question. Identify the small scale industry according to their capital
(a) The total contribution of raw material and machinery is Rs. 9 lakh
(b) The total contribution of raw material and machinery is Rs. 2 crores
(c) The total contribution of raw material and machinery is Rs. 26,50,000
Answer : (a) The small scale industry that contributes Rs. 9 lakh for raw material and machinery is Micro-Enterprise
(b) The small scale industry that contributes Rs. 7.5 crore for raw material and machinery is Medium Enterprise
(c) The small scale industry that contributes Rs. 26,50,000 for raw material and machinery is small-Enterprise