What is the difference between small scale enterprise and cottage… - Vidyadip

Question

What is the difference between small scale enterprise and cottage industry?

✓

Answer

"Small Scale Industries are located in urban centers and produce goods with partially or wholly mechanised equipment employing outside labour, small in size, having little capital resources and a small labour force. "Cottage Industries are mainly rural in character and are generally associated with agriculture involving operations mostly by hands and are carried on in the home either as a whole time or as a part time occupation, primarily with the help of members of the family." Difference between the Small-Scale Industries and Cottage Industries:The differences between the small scale and cottage industries are basically two:

While small-scale industries are mainly located in urban centres as separate establishments, the cottage industries are generally associated with agriculture and provide subsidiary employment in rural areas.
While small-scale industries produce goods with mechanised equipment employing outside labour, the cottage industries involve operations mostly by hand which are carried on primarily with the help of the members of the family.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "4 Marks Question" from Small Business→Small Business — all question types→Business Studies STD 11 Commerce question papers→CBSE Board STD 11 Commerce question papers→CBSE Board question paper generator→

Similar questions

"Risk is the element which makes the business different from other economic activities." Do you agree? Justify your answer.

Explain the services of a wholesaler to a retailer, consumer and general services.

Write the disadvantages of departmental stores.

Gupta Brothers inherited some ancestral property. They decided to form a Hindu Undivided Family Family (HUF) consisting of four male members and invested the ancestral property into the business. The family is headed by Shyam Sunder Gupta. The business took a loan of ₹10 lakh from Syndicate Bank for a term of three years. Due to poor financial position of the business, the family members were unable to repay the loan. The bank filed a suit for the recovery of loan. Shyam Sunder Gupta pleaded the court that as the entire loan was taken for the purpose of business, all members of the business were liable for the repayment of the loan. The court gave a decision and stated that all the members except Shyam Sunder Gupta, are liable for repayment of the loan only to the extent of their share of co-parcenary property of business. However, Shyam Sunder Gupta had to pay the balance amount from his personal property.
On the basis of the given information, answer the following questions:
(a) Why did the Court hold Shyam Sunder Gupta responsible for paying the business liabilities out of his personal assets?
(b) Explain any three disadvantage of a Hindu Undivided Family Business (HUF) not discussed above.

What are the various types of industries?

Explain the need for entrepreneurship development?

List sources of raising long-term and short-term finance.

Preet food Industries set up food and 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. Board of director decided to invest 50 lakhs to acquire plant & machinery, Rs. 1 crore to buy land, Rs. 20 Lakhs to buy raw material and Rs. 20lakhs to maintain day to day expenses.

(a) Name the Act of Industries which is applicable to the above industry.

(b) which category of part (a) will the above industry came ?

(c) State the investment limit in this category.

(d) what value have been followed by the above company.

[Hints:-MSMED Act, 2006, Small Scale Industry, Rs. 5 crores, Employment Generation, Balanced Regional Development, concern for social.]

Preference shares are preferred by company but not by investors. Why?

Discuss the benefits of international business.