Small Business and Entrepreneurship · Class 11 · CBSE · Commerce Business Studies
According to the MSMED Act, 2006 (with subsequent updates), how are manufacturing and service enterprises classified primarily?
Practice question from Small Business and Entrepreneurship (Class 11 · CBSE · Commerce Business Studies), with the correct answer and a step-by-step solution.
medium · MCQ · Q-FB8846
According to the MSMED Act, 2006 (with subsequent updates), how are manufacturing and service enterprises classified primarily?
- A.On the basis of number of workers employed
- B.On the basis of annual turnover only
- C.On the basis of investment in plant and machinery or equipment, and annual turnoverCorrect answer
- D.On the basis of geographical location and export earnings
Solution
The classification of enterprises into Micro, Small, and Medium is based on composite criteria involving both investment in plant and machinery (or equipment) and annual turnover.
More from Small Business and Entrepreneurship
- 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…
- What is the primary role of the District Industries Centre (DIC) at the district level in India?
- Which institution was established by the Government of India in 1955 with a view to promoting, aiding and fostering the growth of small bus…
- Explain the concept of 'Entrepreneurship' as distinct from mere 'management'.
Practise more Business Studies
Sign up free for adaptive practice on this chapter, with instant feedback and hints on every question.
Start practising freeFree to start · No credit card needed