Business Studies 1 Marks Question

In Women enterprises, women's share capital is not less than 51 percent.

Investment in plant and machinery is used by the government to identify small unit.

These units have the advantage of a certain level of constant demand from the parent unit.

The head office of NSIC is situated in New Delhi.

A unit is known as ‘micro-business enterprise', if its investment in plant and machinery does not exceed ₹ 25 lakh for manufacturing industries and ₹ 10 lakh for service industries.

National Bank for Agriculture and Rural Development.

In village industry, fixed capital investment per head does not exceed ₹ 50,000.

A small scale industrial enterprise is one in which the investment in plant and machinery is more than ₹ 25 lakh but does not exceed ₹ 5 crore.

Small scale industries are more labour intensive and less capital intensive.

It promotes, provides aid and fosters the growth of small business units in the country. This focuses on the commercial aspects of these functions.

District Industries Centers programme was launched on May 1, 1978 with a view to providing an integrated administrative framework at the district level which looks at the problem of industrialisation in the district.

Start-up India is an initiative that talks about new start-ups which must be working towards innovation, development of new product or services.

NABARD was set up in 1982 to promote integrated rural development.

Small scale industries promote decentralised development and help in removing regional disparities in industrialisation.

Small Industries Development Bank of India.

Small scale industries are generally managed by the owner, who generally does not possess the skills required for the efficient management of the enterprise.

SIDBI was established in April, 1990, as a wholly owned subsidiary of IDBI, under the Small Industries Development Bank of India Act, 1990.

Scheme of Fund for Regeneration of Traditional Industries.

An industry is a micro enterprise if investment in equipment does not exceed ₹ 10 lakhs. An industry is a small enterprise if investment in equipment is more than ₹ 10 lakhs but does not exceed ₹ 2 crore. An industry is a medium enterprise if investment in equipment is more than ₹ 2 crore but does not exceed ₹ 5 crore.

₹ One crore (₹5 crore for specified 71 products)

National Bank for Agriculture and Rural Development.

Export oriented units and Ancillary units.

Business can be classified on the basis of activity, size and ownership.

A unit is said to be a 'medium-scale enterprise' when investment in its plant and machinery exceeds ₹ 5 crore but is less than ₹ 10 crore for manufacturing industries and for service industries, the investment exceeds ₹ 2 crore but is less then ₹ 5 crore.

1. They are run as sole proprietorship or partnership.
2. Normally they use labour intensive methods.

The protection is 20 years in the case of patents.

It is a process meant to develop entrepreneurial abilities among entrepreneurs.

Obsolete technology and lack of marketing facilities.

Ancillary industry supplies not less than 50 percent of its output to another industry.

Small scale firms require less capital per unit of output and therefore, greater output can be obtained with small investment. Hence, these are considered as the seedbed for entrepreneurs.

Small Industry Development Bank of India (SIDBI) was established to provide lending to new and existing small scale enterprises.

These are rural-based industries owned and operated by individuals who invest their private resources in these units.

Ministry of Small Scale Industries.

Small business units provide multiple sources of income in rural areas.

95%

1. Land: In order to encourage the establishment of industries in backward areas, the government provides land plots at concessional rates, especially to industrialists in backward regions.
2. Power: Power is an essential requirement for the functioning of business enterprises.

Small industries in India account for 95 percent of the total industrial units.

To meet the credit needs of small scale enterprises.

Intellectual property rights are the intellectuals emerged from the human mind and the legal right on these human intellects.

Two incentives provided by the government for the development of rural and backward areas are:

1. Concessional finance.
2. Exemption in tax.

If it exports more than 50 percent of its production.

1. It is a continuous process.
2. Emphasis on operational rather than academic training.

Small Industries Development Bank of India.

Small industries contribute 40 percent of gross industrial value added in India.

A tiny enterprise is one whose investment in plant and machinery is presently upto ₹ 25 lakh.

Rural and Women Entrepreneurship Development (RWED) was introduced to promote the women entrepreneurs in rural areas.

The official definitions of the small scale unit are as follows:

1. Small-Scale Industries: These are the industrial undertakings having fixed investment in plant and machinery, whether held on ownership basis or lease basis or hire purchase basis not exceeding ₹ 1 crore.
2. Ancillary Industries: These are industrial undertakings having fixed investment in plant and machinery not exceeding ₹ 1 crore engaged in or proposed to engage in,

1. The manufacture of parts, components, sub-assemblies, tooling or intermediaries.
2. The rendering of services supplying 30 percent of their production or services as the case may be, to other units for production of other articles.

3. Tiny Units: These refer to undertakings having fixed investment in plant and machinery not exceeding ₹ 23 lakhs. These also include undertakings providing services such as laundry, xeroxing, repairs and maintenance of customer equipment and machinery, hatching and poultry etc. located m towns with population less than 50,000.
4. Small-Scale Service Establishments: These mean enterprises engaged in personal or household services in rural areas and town with population not exceeding 50000 and having fixed investment in plant and machinery not exceeding ₹ 25 lakhs.
5. Household Industries: These cover artisans, skilled craftsman and technicians who can work in their own houses if their work requires less than 300 square feet space, less than 1Kw power, less than 5 workers and no pollution is caused. Handicrafts, toys, dolls, small plastic and paper products, electronic and electrical gadgets are some of the examples of these industries.

Following two financial institutions were set up by the government for small industries in backward areas are:

1. Small Industries Development Bank of India.
2. National Bank for Agricultural and Rural Development.

A startup is an entity, private, partnership or limited liability partnership (LLP) firm that is headquartered in India, which was opened less than five years ago. To be eligible for considering as startup, the entity should not be formed by splitting up or ₹ 25 crore during its existence.

Yes, I agree. Scale of operations can be measured in terms of workers employed, capital invested or total output. Indian Government considers the criterion of capital invested in plant and machinery. Accordingly a business in which investment in plant and machinery is less than 1 core comes under small scale business.