Small Business and Entrepreneurship

Topics in this chapter

• Small Business Concepts
• Entrepreneurship And Opportunities
• MSME Classification And Role
• Finance And Working Capital
• Government And Institutional Support
• Management And Business Challenges
• Innovation And Intellectual Property

Cheat sheet

Practice questions

1. Question 1Q-9E2844

   Which of the following bodies was set up in 2007 by the Government of India by merging the erstwhile Ministry of Small Scale Industries and the Ministry of Agro and Rural Industries?

   1. A.Ministry of Commerce and Industry
   2. B.Ministry of Micro, Small and Medium Enterprises (MSMED)
   3. C.National Small Industries Corporation (NSIC)
   4. D.District Industries Centre (DIC)
   See the answer and solution
2. Question 2Q-FB8846

   According to the MSMED Act, 2006 (with subsequent updates), how are manufacturing and service enterprises classified primarily?

   1. A.On the basis of number of workers employed
   2. B.On the basis of annual turnover only
   3. C.On the basis of investment in plant and machinery or equipment, and annual turnover
   4. D.On the basis of geographical location and export earnings
   See the answer and solution
3. Question 3Q-F222F4

   What is the primary role of the District Industries Centre (DIC) at the district level in India?

   1. A.To formulate national monetary policy
   2. B.To provide a focal point for promoting small, tiny, cottage and village industries in the district
   3. C.To regulate foreign direct investment into the country
   4. D.To manage state-owned heavy industries and public sector undertakings
   See the answer and solution
4. Question 4Q-465008

   Which institution was established by the Government of India in 1955 with a view to promoting, aiding and fostering the growth of small business units in the country?

   1. A.National Small Industries Corporation (NSIC)
   2. B.Small Industries Development Bank of India (SIDBI)
   3. C.National Bank for Agriculture and Rural Development (NABARD)
   4. D.Industrial Finance Corporation of India (IFCI)
   See the answer and solution
5. Question 5Q-1601B6

   Explain the concept of 'Entrepreneurship' as distinct from mere 'management'.

   See the answer and solution