Small Business And Entrepreneurship(11th Grade > Business Studies ) Questions and answers for exam Preparation

11th Grade > Business Studies

SMALL BUSINESS AND ENTREPRENEURSHIP MCQs

Total Questions : 30 | Page 1 of 3 pages

Question 1.

A period of time during which the government reduces or suspends the collection of tax is known as a/an ___.

Discuss Question

Answer: Option A. ->
:

A period of time during which the government reduces or suspends the collection of tax is known as a tax holiday.

Question 2.

Chandra's textile company, after a few months of operating, started to face a lot of attrition. What can be the reason(s) for this?

Labour
Finance
Technology
Quality of output

Discuss Question

Answer: Option A. -> Labour
:
A and B

Out of the given options, labour and finance are the possible reasons for the attrition. Due to lack of funds, Chandra ends up paying low wages for unskilled labour. The level of satisfaction at work would get very low and lead to attrition.

Question 3.

Development of clusters is in experimentation phase in India whose benefits are yet to be observed.

True
False
Technology
Quality of output

Discuss Question

Answer: Option B. -> False
:
B

Clusters offer multiple advantages such as sharing of common amenities, economies of scale to procure raw material and optimum pricing of output.

Question 4.

The investment limit in fixed assets of plant and machinery excluding land and building for a small scale service and business (industry related) enterprise is ____.

1 lakh
5 lakhs
10 lakhs
25 lakhs

Discuss Question

Answer: Option C. -> 10 lakhs
:
C

The investment limit in fixed assets of plant and machinery excluding land and building for a small scale service and business (industry related) enterprise is 10 lakhs rupees.

Question 5.

Women enterprises are defined as business enterprises whose investment in plant and machinery does not exceed ____.

1 crore
20 lakhs
25 lakhs
Any of the above

Discuss Question

Answer: Option D. -> Any of the above
:
D

There is no set investment limit in plant and machinery for women enterprises.

Question 6.

Which of the following are the objectives of DICs?

Identify and help new entrepreneurs
Grant financial and other facilities to small units
Develop close links with development blocks and specialized institutions providing help to set up industries in rural areas
All of the above

Discuss Question

Answer: Option D. -> All of the above
:
D

All the given options provide the objectives of DICs.

Question 7.

The future of small businesses seems to have a ____.

Challenging yet bright future
Benefit from the development of digital world
Move towards social media, video and mobile
All of the above

Discuss Question

Answer: Option D. -> All of the above
:
D

The future of small businesses seems to have a challenging yet bright future. It would be empowered better with the digital world where small business move toward social media, video, and mobile.

Question 8.

Ramu decided to set up a manufacturing unit of garments in a village in Orissa where people have very less job opportunities labour is available at a low rate. He also thought of employing majority of women. Identify the value-adds that might arrive from his decision.

Poverty alleviation
Women empowerment
Both A and B
Either A or B

Discuss Question

Answer: Option C. -> Both A and B
:
C

Ramu will be aiding in poverty alleviation and women empowerment by setting up a manufacturing unit in the rural area in Orissa.

Question 9.

Shankar food Industries set up beverages processing plant in the rural area of Haryana and opted for labour intensive technique due to easy availability of labour and to provide employment to local people. He decided to invest 50 lakhs to acquire plant & machinery, Rs. 1 crore to buy land, Rs. 20 Lakhs to buy raw material and Rs. 20 lakhs to maintain day to day expenses. To which category does this industry belong to? What is its investment limit?

Small scale industry, 5 crores
Small industry, 1 crore
Tiny industry, 1 lakh
Industry related enterprise, no limit

Discuss Question

Answer: Option A. -> Small scale industry, 5 crores
:
A

The given example belongs to small scale industry whose investment limit in plant and machinery is 5 crores.

Question 10.

Setup of a small business in India involves a simple procedure which saves a lot of time.

True
False
Develop close links with development blocks and specialized institutions providing help to set up industries in rural areas
All of the above

Discuss Question

Answer: Option A. -> True
:
A

Setup of a small business in India involves a simple procedure of filling a one-page form known as 'Udyog Aadhaar Memorandum' (UAM) which needs self-certification and no supporting documents.