61 + Interview Questions in SMALL BUSINESS IN GENERAL AWARENESS Page 2 InterviewSolution

51.	Name the institution which was set up in 1982 to promote integrated rural development.
Answer» National Bank for Agriculture and Rural Development

Discussion

52.	Which one of the following actions by an entrepreneur is most likely to contribute to creative destruction? A) Development of a new product B) Take-over of a competitor C) Issuing shares D) Reducing prices
Answer» A) Development of a new product

Discussion

53.	An advantage of the small firm in the innovation process? A) Ability to carry out R&DB) Ability to raise finance. C) Ability of the entrepreneur to cany out multiple tasks D) Ability of the entrepreneur to act on new ideas or product development.
Answer» D) Ability of the entrepreneur to act on new ideas or product development

Discussion

54.	Innovative entrepreneurs may have to pay high insurance premiums due to the: A) The need to protect patients B) Greater employee liability C) Greater customer liability D) Greater trading risks
Answer» A) The need to protect patients

Discussion

55.	Firms located on science parks compared to those located off science parks are: A) More innovative B) Less innovative C) No more or less innovative D) More growth orientated
Answer» C) No more or less innovative

Discussion

56.	Schumpeter considered that innovative entrepreneurs would: A) Thrive B) Disappear. C) Be absorbed within large innovative firms D) Be absorbed within non-innovative firms
Answer» C) Be absorbed within large innovative firms

Discussion

57.	Innovative small firms are more likely in: A) Knowledge-based sectors B) Biotechnology C) Automobile manufacture D) Aerospace manufacture
Answer» A) Knowledge-based sectors

Discussion

58.	Explain the role of small business in India.
Answer» The role of small business in India are as follows: Industrial units: In an economy so enormous as India, 95% of the industrial units in the country consist of small business and 40% of total industrial output is contributed by these small industries. Again, small businesses bag around 45% of the total exports from India. Low cost of production : The cost of production in these industries is very low. Because of low overhead expenses, both -establishment and running costs are low. Quick decisions : Small size of the organisations enables the business firms to take quick and timely decisions and to capture new business opportunities at the right time. Good personal relations : Inherent strengths like adaptability and personal touch enables the small scale industries to maintain good personal relations with both the customers and the employees. Simple and flexible production techniques : Simple and flexible production techniques are used by these enterprises which make them very much suitable for customized production, which means designing a product according to the tastes, preferences and requirements of the customers. Second largest employment provider : After agriculture, these industries are the second largest provider of employment in India. As compared to large industries, they generate more number of employment opportunities per unit of capital invested. Hence, these industries are a boon for an overpopulated country like India.

58.

Explain the role of small business in India.

Answer»

The role of small business in India are as follows:

Industrial units: In an economy so enormous as India, 95% of the industrial units in the country consist of small business and 40% of total industrial output is contributed by these small industries. Again, small businesses bag around 45% of the total exports from India.

Low cost of production : The cost of production in these industries is very low. Because of low overhead expenses, both -establishment and running costs are low.

Quick decisions : Small size of the organisations enables the business firms to take quick and timely decisions and to capture new business opportunities at the right time.

Good personal relations : Inherent strengths like adaptability and personal touch enables the small scale industries to maintain good personal relations with both the customers and the employees.

Simple and flexible production techniques : Simple and flexible production techniques are used by these enterprises which make them very much suitable for customized production, which means designing a product according to the tastes, preferences and requirements of the customers.

Second largest employment provider : After agriculture, these industries are the second largest provider of employment in India. As compared to large industries, they generate more number of employment opportunities per unit of capital invested. Hence, these industries are a boon for an overpopulated country like India.

Discussion

59.	What are the different parameters used to measure the size of business?
Answer» Following parameters may be used to measure the size of business: (a) Number of workers employed (b) Size of plant and machinery (c) Total output (d) Inventory size

59.

What are the different parameters used to measure the size of business?

Answer»

Following parameters may be used to measure the size of business:

(a) Number of workers employed

(b) Size of plant and machinery

(c) Total output

(d) Inventory size

Discussion

60.	What is the definition used by Government of India for small scale industries?
Answer» The Government of India defines the small scale industries as per their investment in plant and machinery. In India the capital is scarce and labour is abundant this measure asks to keep in view the socio-economic environment.

Discussion

61.	What are the different parameters used to measure the size of business?
Answer» Several parameters can be used to measure the size of business units. These include the number of persons employed in business, capital invested in business, volume of output or value of output of business and power consumed for business activities. Appropriate parameter may be used depending on the need and advantages or limitations of various measures.

Discussion

Explore topic-wise InterviewSolutions in .

Name the institution which was set up in 1982 to promote integrated rural development.

Which one of the following actions by an entrepreneur is most likely to contribute to creative destruction? A) Development of a new product B) Take-over of a competitor C) Issuing shares D) Reducing prices

An advantage of the small firm in the innovation process? A) Ability to carry out R&amp;DB) Ability to raise finance. C) Ability of the entrepreneur to cany out multiple tasks D) Ability of the entrepreneur to act on new ideas or product development.

Innovative entrepreneurs may have to pay high insurance premiums due to the: A) The need to protect patients B) Greater employee liability C) Greater customer liability D) Greater trading risks

Firms located on science parks compared to those located off science parks are: A) More innovative B) Less innovative C) No more or less innovative D) More growth orientated

Schumpeter considered that innovative entrepreneurs would: A) Thrive B) Disappear. C) Be absorbed within large innovative firms D) Be absorbed within non-innovative firms

Innovative small firms are more likely in: A) Knowledge-based sectors B) Biotechnology C) Automobile manufacture D) Aerospace manufacture

Explain the role of small business in India.

What are the different parameters used to measure the size of business?

What is the definition used by Government of India for small scale industries?

What are the different parameters used to measure the size of business?

An advantage of the small firm in the innovation process? A) Ability to carry out R&DB) Ability to raise finance. C) Ability of the entrepreneur to cany out multiple tasks D) Ability of the entrepreneur to act on new ideas or product development.