Business Studies

Practice Paper
Chapter-9
Small Business & Entrepreneurship development
1. What is the parameter used by the government to identify manufacturing
enterprises?
2. What is the investment limit in fixed assets of plant and machinery for small scale
industry?
3. What is the investment limit in fixed assets of plant and machinery for medium
manufacturing enterprises?
4. What is the investment limit in fixed assets for micro manufacturing enterprises?
5. What percentage do small industries contribute to the total exports from India?
6. What percentage do small industries contribute to the total industrial production?
7. Name the industry which is the second largest provider of employment in India?
8. Mention any two points showing the role of small business in rural India.
9. Attracting talented and skilled employees is a major problem faced by small
business enterprises why?
10. Name the institute, which provides an integrated administrative framework for
small scale industries at district level.
11. Which institution has introduced a new scheme of ‘Performance and Credit
rating’?
12. What is the role of National Small Corporation for the growth of small business
units in India?
13. Enumerate any two financial institutions set up by the government for small
industries in backward and hilly areas.
14. State any two incentives and financial assistance which the government provides
for the development of rural, backward and hilly areas.
15. What are the different parameters used to measure the size of business?
16. Lakshay Industries has a permanent capital of `5 crore with investment in the plant
and machinery amounting `15 lakh. Whereas Ritesh industries has a permanent capital of
`1 crore with investment in the plant and machinery amounting to `50 lakh. Which of the
two will be classified as small scale industry?
(3 marks)
17. Give the classification of manufacturing enterprises in terms of investment in
plant and machinery in accordance with the provisions of Micro, small and
Medium Enterprises Development Act, 2006.
18. Give the classification of service enterprises in terms of investment in equipment
in accordance with the provisions of Micro, small and Medium Enterprises
Development Act, 2006.
19. Explain any three problems faced by small scale business in India.
20. a. “It can be defined as a process of improving the skills and knowledge of
entrepreneur through various training and classroom programmes.” Identify the
term.
b. What is meant by startup India scheme?
c. Define Intellectual Property Rights.
21. ‘Mayank Food Industries’ set up food and beverages processing plant in the rural
area of Rajasthan and opted for labour intensive technique due to easy
 availability of labour and to provide employment to local people. The Board of
directors decided to invest `50 lakhs to acquire plant and machinery, `20 lakhs 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.
(4 marks)
22. Discuss the role of following in promotion of small industries in India.
a. NSIC B.DICs
23. Mansi wants to start a factory of cosmetics. He wants to set up the factory in rural
and backward area of his hometown village of Orissa, so that people of that area
have not to migrate to cities in search of jobs. Moreover he is of viewpoint that
the small scale industries play a very important role in socio-economic
development.
Discuss by giving any four points the contribution of small scale industries in rural
India.
24. Nakul was a very industrious sales executive with a small herbal cosmetic
manufacturer. He earned a good salary and commission on the business he
brought for the company and had very good command over the Chennai market
for which he had virtually become indispensable. He was aware of the enviable
position he held in the company and thought aloud:
“The key to success in any business is the sale of its products. The beginning
and end of the business cycle is nothing but sale and other people working in the
factory to manufacture products are mere cogs in the business machine set in
motion by sales people. So why carry this burden and get only a tiny share of the
prosperity of the firm? Instead others enjoying the fruits of my labour, why should
I not start my own business?”
a. Should Nakul take a leap? Give reasons in support of your answer.
b. State any three functions Nakul will perform as an entrepreneurs in relation to
economic development.
25. a. Shenoy deals in manufacturing of artificial jewellery with a capital investment
of `25 lakh. He wants to expand his business by increasing its capital up to four crores.
His brother Sagar advices him to use his saved profits for the same but he wants to
approach an institution to finance his business. Name two forms of small industries
discussed in the above phara.
b.Lakshay is an owner of small business is in the requirement of money. One of
his friend Vansh advises him to take his raw material on short term credit from his
fellow businessmen as it would reduce much of his problems. While his another
friend Divyansh informs about the institutional support provided by the
government. Discuss any one of that support
26. a. why intellectual property rights are important? Give reasons.
b.State any two features of entrepreneurship.
(6 marks)
27. why there is a need for entrepreneurship?
28. Explain the following types of Intellectual Property Rights:
a. Patent b. Copyright c. Trademark
29. Elucidate the ways to fund Startups.
30. Explain the aims of the Startup India scheme of the Government of India.
31. Enumerate the role of small business in India.