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This section includes 7 InterviewSolutions, each offering curated multiple-choice questions to sharpen your Current Affairs knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
ram kabir and gurupreet are three friends who belong to the same village , tey have completed their MBA education , with this aim they want to lo such a business which will generate more employment and out put mobilise local resures , and contribute to balanced regional development . for this they set up a small - scale industrial unit in their own village. do you think will be able to contriburte to the development of rural , backward areas of the counity ? explain . |
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Answer» yes ram , kabir and gurpreet will be able to contribute of rural , backward areas of the countyy by up a small - scale industrial unit in their own village . the small -scale businesses play a significant role from the socio - economic development point of view of the indian economy , the following points highlight their contribution , especially , backward areas : (i) Generation of employment : - small -scale industries (SSIs) prove employment opporunities in the rural areas , especially for the traditional artisans and the Weaker sections of society. (ii) Output generation : SSIs contribute almost 40 per cent of the gross industrial value added , small indutries in our contry supply an enorger , domestic utensils , leather , plastic and rubber goods , etc, (iii) Rural industriallisation and balanced regional development :- the development ov village and rural industries leads to industrialisation in rural areas SSIs produce simple propucts by using simple technology and local resurces they can be anywhere in the country , thus balanced regional development is possible . (iv) MObilisation of local resources:- small business faclites and mobilsationmobilisation and utillisation of local resources and skills which might otherwise remain unutillised . |
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| 2. |
Highlight the role of the government in promotion small business. |
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Answer» The contribution of small scale industries are remarkable. Thus, Government has provided the following institutional support to solve the problem of finance and marketing in the small scale sector (i) National Bank for Agriculture and Rural Development (NABARD) NABARD was setup in 1982, to promote Integrated rural development. Apart from agriculture, it supports small industries, cottage and village industries, and rural artisans. It provides credit and offers counselling and consultancy services and organises training and development programmes for rural entrepreneurs. (ii) The Rural Small Business Development Centre (RSBDC) it was set up by the world association for small and medium enterprises and is sponsored by NABARD. It works for the benefit of socially and economically disadvantaged individuals and groups. It aims at providing management and technical support to current and prospective micro and small entrepreneurs in rural areas. (iii) National Small Industries Corporation (NSIC) this was set up in 1955 with a view to promote, aid and foster the growth of small business units in the country. Functions of NSIC include (a) Supply of machines on easy hire-purchase terms. (b) Procure, supply and distribute raw materials. (c) Export the products of small business units and develop ex port-worth iness. (d) Mentoring and advisory services. (e) Serve as technology business incubators. (f) Creating awareness on technological upgradation. (g) Developing software technology parks and technologytransfer centres. Scheme of ‘performance and credit rating’ of small businesses is implemented through NSIC to ensure that they score higher rating for their credit requirements as and when they approach the financial institutions for their working capital and investment requirements. (iv) Small industries Development Bank of india (SIOBI) SIDBI was set up as an apex bank to provide direcVindirect financial assistance under different schemes, to meet credit needs of small business organisations and to coordinate the functions of other institutions in similar activities. (v) The National Commission for Enterprises in the Unorganised Sector (NCEUS) The NCEUS was constituted in September, 2004, with the objectives of recommending measures considered necessary for improving the productivity of small enterprises in the informal sector and to enhance the competitiveness of the sector in the emerging global environment by developing linkages of the sector with other institutions in the areas of credit, raw materials, infrastructure, technology upgradation, marketing, etc. (vi) Rural and Women Entrepreneurship Development (RWED) The Rural and Women Entrepreneurship Development programme aims at promoting a conducive business environment and at building institutional and human capacities that will encourage and support the entrepreneurial initiatives of rural people and women by providing training and advisory services. (vii) Scheme of Fund for Regeneration of Traditional Industries (SFURTI) The Central Government set up this fund to make the traditional industries more productive and competitive and to facilitate their sustainable development. The main objectives of SFURTI are to develop clusters of traditional industries in various parts of the country; build innovative and traditional skills, improve technologies and encourage public-private partnerships, develop market intelligence etc. (viii) The District Industries Centres (DIGs) District Industries Centre is the institution at the district level which provides all the services and support facilities to the entrepreneurs for setting up small and village industries including identification of suitable schemes. preparation of feasibility reports. arranging for credit, machinery and equipment, provision of raw materials and other extension services. This was launched on 1st May, 1978. |
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| 3. |
Give full form of NSIC. |
| Answer» National Small Industries Corporation. | |
| 4. |
Decribe the role of following in promotion of small industries in india. (a) National small industries Corporation (NSIC) (B) District industrial centres (DICs) |
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Answer» NSIC : - a. Provide machinery on hire-purchase scheme to small-scale industries. b. Provide equipment leasing facility. c. Help in export marketing of the products of small-scale industries. d. Participate in bulk purchase programme of the Government. e. Develop prototype of machines and equipments to pass on to small-scale industries for commercial production. f. Distribute basic raw material among small-scale industries through raw material depots. g. Help in development and up-gradation of technology and implementation of modernization programmes of small-scale industries. h. Impart training in various industrial trades. i. Set up small-scale industries in other developing countries on turn-key basis .j. Undertake the construction of industrial estates. The DIC’s programme is funded jointly by the concerned state and central government. It took part in various promotional measures In order to bring out the development of small unit sectors in the district level. The DIC’sperforms the following functions mainly: 1. To spot the entrepreneurs:DICs conducting various motivational programmes so that they can find new entrepreneurs throughout the districts.It is done particularly under some schemes and with the association of SIS’s and TCO’s for conductingEntrepreneurial programmes. 2. Purchase of fixed assets:To purchase fixed assets, the DICs suggest loan applications of the prospective entrepreneur to some of theconcerned financial and development institutions like NSIC, SISI etc., DCI’s also recommend commercial banks sothat to meet the working capital requirement of SSI to run operations daily. 3. Offers subsidies and other incentives:DCIs help the rural people to subsidies offered by the government on various schemes. It leads to the betterment inboosting financial capacity of the units and may undergo for further development activities. 4. Guidance of import and export:Government provides various types of incentives for import and export on particular goods and services. The licenseto the importer and exporter is issued on the basis of recommendation of DIC. 5. Entrepreneurial training programmes:DCIs allow a lot of training programmes for the rural entrepreneurs who are new to the business world and alsorecommend other institutions to take part in such training programs. These are intended to give better assistance tothe new entrepreneurs. 6. Provides employment for unemployed educated ones: |
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| 5. |
What measures has the government taken to solve the problem of finance and marketing in the samll-scale sector ? |
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Answer» The small-scale sector has played a major role in employment generation, regional development and export promotion in India. The Government of India has realised that a lot more can be achieved if the two major bottlenecks that affect the further development of SSIs—inadequate funds and inefficient market penetration—are removed. In pursuit of this objective, the government has established the following agencies.(a) National Bank for Agriculture and Rural Development (NABARD): Itwas established in 1982 with the main objective of promoting rural development and integrating the efforts in this direction. This agency is an apex banking body that governs the operations particularly of the rural and ‘gramin’ banks. The main focus of NABARD is to provide cheap and easy credit facility to small, cottage and rural industries. (b) Small Industries Development Bank of India (SIDBI): It was set up to provide direct and indirect financial assistance under different schemes. It caters to the credit and finance requirements of especially small-scale enterprises. (c) World Association for Small and Medium Enterprises (WASME): It is an international non-governmental organisation that addresses the problems of small- and medium-scale enterprises. It has set up an ‘International Committee for Rural Industrialisation’ with the aim of designing a model for the growth and development of rural industries. (d) The National Commission for Enterprises in the Unorganised Sector (NCEUS): It was formed in September 2004 with the objective of improving the efficiency and enhancing the global competitiveness of small-scale industries. It focuses on addressing the problems faced by small enterprises, particularly in the unorganised/informal sector. (e) Various development and employment generation programmes Besides establishing the organisations mentioned above, the government has launched various programmes for rural development. Among the important programmes are the Prime Minister’s Rozgar Yojana (PMRY), Integrated Rural Development Programme (IRDP) and Training of Rural Youth for Self-Employment (TRYSEM). These programmes are aimed at generating greater employment opportunities, developing rural areas and making the rural people self-reliant. |
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| 6. |
What do you mean by small business ? Describe the features of small-scale enterprise. |
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Answer» The government of India defines the small-scale business basically as per their investment in plant and machinery. There are the parameters which can be used to define small industries. It includes :-The number of persons employed in business,Capital invested in the business,The volume of output,Value of output for business.As per MSMED a small manufacturing enterprise is one in which investment in plant and machinery is between Rupees 25 lakhs and 5 crores and in service enterprise investment in equipment is between Rupees 10 lakhs to 2 crores. The following are a few important features of Small Scale Enterprises:. (a) Ownership: These are rural-based industries owned and operated by individuals who invest their private resources in these units. (b) Level of capital and production techniques: The amount of capital is very small, and the production techniques are highly labour-intensive and indigenous. (c) Market share: SSIs make up 95 percent of the industrial units in India. They contribute about 40 percent of the ‘gross industrial value added’ and 45 percent of India’s total exports. (d) Employment generation: SSIs use labour-intensive production techniques, they have a greater employment generation potential than large industries. |
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| 7. |
Describe the role of small business in rural India. |
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Answer» The following are some of the major roles played by small-scale businesses in rural India. (a) They generate employment opportunities: Cottage and rural industries play a significant role in providing employment opportunities, particularly to people in rural areas. This proves to be a boon especially for the economically weaker sections of the rural society. (b) They mitigate disguised unemployment and alleviate poverty: Small-scale businesses use labour-intensive production techniques, and are, therefore, able to provide employment to the excess/surplus rural labour. Thus, small-scale businesses remove disguised unemployment from the agriculture sector and at the same time provide livelihood to the rural people. Hence, they contribute to alleviating rural poverty. (c) They enable equitable income distribution: The capital requirements of small-scale businesses are low, mainly because of their use of labour-intensive production techniques, and this encourages entrepreneurs to start units on a small scale. Small-scale businesses are, therefore, set up all over the country, many of them providing employment opportunities to people in rural areas. This triggers the redistribution of wealth and income, and enables the equitable distribution of income in rural areas. (d) They help accelerate growth: Small-scale businesses have been considered as a major propeller for the acceleration of economic growth and as an employment generator, particularly in the rural and backward areas of India. (e) They facilitate rural development and reduce migration from rural to urban areas: It is well known that a large number of people migrate from rural to urban areas in search of better employment opportunities and improved living standards. Small-scale businesses help reduce this migration by providing employment opportunities to rural people in their own regions. By doing so, small units also help mitigate the excessive pressure on urban infrastructure. |
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| 8. |
Describe the problem of shortage of capital faced by samll business. |
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Answer» Finance: Non-availability of adequate funds in order to cany but business operations is one of the major problems. Due to lack of credit worthiness, many of these units fail to raise funds from the capital market. Banks also hesitate to lend money to these units because many of these units fail to provide adequate collateral security or guarantees. |
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| 9. |
what is the investment limit for SSI ? |
| Answer» Correct Answer - Rs. 10 crore | |
| 10. |
Give any two characteristics of SSI. |
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Answer» (i) Personal touch (ii) Dominance of labour. |
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| 11. |
Since small scale industries (SSI) can be widely spread and the benefits of industrialisation can be reaped by every region. How des this feature of SSI ontribute to the country ? |
| Answer» It contributes to balanced regional development of our country. | |
| 12. |
Why is there more scope for small-scale industries in developing countries like India ? |
| Answer» Dveloping countries face the shortage of finance and there is abundance of labour. Small-scale industries prefer techniques of production which require less finance and more labour. There is more scope for small-scale industries in India because the governmet is also doing lot of favours for small-scale industries. | |
| 13. |
Give any two incentives offered by the government to small scale industries. |
| Answer» (i) About 800 item are reserved exclusively for SSI. ltbr. (ii) Exmption from excise duty upto Rs. 1 crore. | |
| 14. |
which of the following cannot be proected under copyright :A. musicB. DrewingC. Video gamesD. Actors |
| Answer» Correct Answer - A::C::D | |
| 15. |
All small industries are Highly labour - intersive .True /False ? Give Reason . |
| Answer» Correct Answer - False : only traditional small industries ( hand looms ,Handicrafts, etc. ) are highly Labour - intensive while modern small industries ( small-scale industries and Power loom) make use of highly sophisticated Machinery and equipment to produce simple items (e.g., plastic and rubber goods ) as well as sophisticated items (e.,g TV ,calculators). | |
| 16. |
what is the investment limit in equipment for micro serive enterprises ? |
| Answer» Correct Answer - Up to Rs. 10 lakh | |
| 17. |
Investment limit j in plant and machi - nery for small - scale enterproeses is Rs. 5 crore , True /False ? Give reason . |
| Answer» Correct Answer - False: for small -scale manufacturing enterprises -investment above Rs, 25 lakh and up to Rs. 5 crore . For small -scale service enterprises - investment above Rs,10 lakh and up to Rs,2 crore. | |
| 18. |
increntive which is not given by government to industries in backward , tribal and hilly areas , isA. Exemption from GSTB. Power at concessional ratesC. Preferemtial allotment of row materialsD. free advertising in TV and newspapers |
| Answer» Correct Answer - D | |
| 19. |
which of these is a geogrphical indication ?A. Mona Lisa paintingB. IRCTC logoC. Darjeeling teaD. Light bulb |
| Answer» Correct Answer - A::C::D | |
| 20. |
Rajan wants to start a business unit manufacturing Khadhi items His friend who makes craft items, suggests him to start a small - scale industries (a) State any four incentives to small - scale industries . (b) Name two institutions set up byy hte government of india to promote small-scale industries in rural india .Explain their role . |
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Answer» the Government of india provides a number if incentives to the small -scale industries (SSIs) in india for the industrial development of rural , backward areas . (i) availity of land at concessional rates (ii) supply of power at a concessional rate of 50 % (iii) Supply of water on no profit no loss basis or with 50% consession (iv) Loans at consessional rates . ( B) Two instituations set up by the GOvernment of india to promote small-scaleindustries in rural india are : (i) National small industries COrporation (NSIC):- this was set up in 1955 to promote , aid and foster the growth of small business units in india .it supplies indigenous and imported machines and raw materials to SSIs on easy Hire -purchase schemes It exports the products of SSIs . it provides techology to SSIs and creates awareness in technological upgradation . (ii) District Centres (DICs):- they provide and integrated administrative framework at the district level they provide all the services and support facilites to the entrepreneurs for setting up small and village industries. |
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| 21. |
What are the different parameters used to measure the size of business ? |
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Answer» Several parameters used to measure the size of business are : (a) Number of persons employed in business (b) Capital invested in business (c) Volume of output or values of output of business (d) Power consumed for business activities. |
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| 22. |
Give the meaning of Entrepreneurship . State any five characteristics of entrepenurship. |
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Answer» Entrepreneurship : - An entrepreneur is a person who undertakes a venture with some profit potential and involving a considerable amount of risk and therefore, entrepreneurship is the venture undertaken by the entrepreneur. The most obvious example of entrepreneurship is the starting of a new business. 5 Key Characteristics Every Entrepreneur Should Have Passion. A startup founder is often driven by the quest for deeper purpose beyond the sheer mechanics of operating a business. ... Perseverance. Entrepreneurs need to be able to deal with obstacles. ... Resourcefulness. ... Open-Mindedness. ... Spongelike nature. |
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| 23. |
Explain the need for entreprenurship in the process of economic development . |
| Answer» Entrepreneurship is one of the most important input in the economic development of a country. The entrepreneur acts as a trigger head to give spark to economic activities by his entrepreneurial decisions. ... An entrepreneur supplies risk capital as a risk taker, and monitors and controls the business activities. | |
| 24. |
State the features of cottage inductries. |
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Answer» Features of cottage industries are : (i) Qrganised by individuals with private resources (ii) Use family labour and locally available talent (iii) Equipmant used is simple. |
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| 25. |
Discuss the Features of the startup india scheme of the Government of india . |
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Answer» Features of the startup India scheme of the Government of India : - Financial Benefits Income Tax Benefits Registration Benefits Government Tenders Huge Networking Opportunities |
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