MCQ: FUNDAMENTALS OF MICRO, SMALL AND MEDIUM ENTERPRISES (MSME)

1 MSMEs are important for the nation's economy because they significantly contribute to-
(A) Industrial production & export (B) Employment
(C) Innovation (D) All above

2. The minimum and maximum members that can exist in a partnership firm are-
(A) 2 & 10 (B) 2 & 20
(C) 2 & 30 (D) 2 & 50

3. Minimum member of the Public Ltd. Company is-

(A) 50 (B) 20
(C) 100 (D) 7

4. MSMED Act was enacted in-

(A) 2005 (B) 2008
(C) 2006 (D) 2010

5. Which one ofthefollowing activities is not included in Micro &Small (Service) Enterprises?
(A) Professional persons (B) Small business
(C) Dairy (D) Self Employed Persons

6. Direct Finance to MSMEs does not include which one of the following?
(A) Exports (B)Khadi & Village Industries
(C) MFIs (D) Services

7. PPP denotes-
(A)Private Public Participation (B) Promoter Partner Participation
(C) Public Private Participation (D) Partner Private Public

8. Which one of the following stages of development of MSMEs regulations are not required?
(A) Entry stage (B)Operational stage
(C) Manufacturing stage (D) Implementation stage

9. LLP stands for

(A) Long term Liability Participation (B) Limited Liability Partnership
(C)Legitimate Liability Partnership (D) Liability Limited Partnership

10. Composite Loan limit for SSI that can be sanctioned without security is Rs.
 (A) 10,00,000/ (B) 25,00,000/
(C) 50,000/ (D) Any limit

11. What is the minimum and maximum number of participants in LLP?

(A) 2, 50 (B) 2, 20
(C) 2, 100 (D) 2, unspecified

12. "Village Industry' is any industry located in a rural area producing goods and/or services in
which fixed capital investment per head does not exceed
(A) Rs.50,000/ (B) Rs. 1,00,00/
(C) Rs.2,00,000/ (D) Rs.5,00,000/

13. The organizational set up of SSI came into being in

(A) 1950 (B) 1954
(C) 1969 (D) 1975

14. Which one of thefollowing support services are not provided by MSME do?
(A) Training for entrepreneurship development
(B) Financial assistance
(C) Tool making
(D) Preparation of project and product profiles

15. EDIs stands for.

(A) Export Development Institute
(B) Entrepreneurship Development Institute
(C) Entrepreneurship Development of India
(D) Entrepreneurship Design Instruments

16. Which one of the following organizations is not under the control of the State Government?
(A) Directorate of Industries (B) District Industries Centre
(C) Technical Consultancy Organization (D)EDII

17. What is the maximum amount of guaranteeavailable for Micro Enterprise up to credit limit
of Rs. 5.00 Lakh?
(A) Rs. 5.00 Lakh (B) Rs. 3.75 Lakh
(C) Rs. 2.50 Lakh (D) Rs. 4.25 Lakh

18. The full form of the scheme "SFURTI" is

(A) Scheme of Fund for Regeneration of Traditional Industries
MCQ: FUNDAMENTALS OF MICRO, SMALL AND MEDIUM ENTERPRISES (MSME)

(B) Scheme of Fund for Revival of Traditional Industries

(C) Scheme of Fund for Restoration of Traditional Industries
(D) Scheme of Fund for Redressal of Traditional Industries

19. Which one of the following is not part of Banking Codes & Standards Board of India
(BCSBI) for MSMEs?
(A) Minimum standards of banking practices for banks
(B) Actual rates of interest and charges to be applied by banks
(C) Expected dealings of banks with MSME in day-to-day operations
(D) Increased transparency for better understanding of bank's services

20. What is hurt money?

(A) Equity (B) Loan
(C) Debi (D) Venture Capital

21. Hybrid Capital means-

(A) Equity + debt (B)Debt + loan
(C) Equity + Venture capital (D) Insurance + credit card

22. Venture Capital means-

(A) High Risk Fund (B) Private equity
(C) Dedicated pools of capital privately held (D) Share capital

23. Pre-shipment credit refers to-

(A) Financing ships for export
(B) Payment to supplicr before shipment of goods
(C)Working capital finance to enable the exporter to procure material for export
(D) Financing for repairs to ships

24. Post Shipment Credit refers to-

(A) Financing the shipping companies:
(B) Credit posted after shipping the goods;
(C) Working capital finance from the time of export to the time of actual realization of
dues;
(D) Loons and Advances against documents covering shipment of goods;

25. Under the Composite Loon scheme what is the maximum amount eligible?
(A) Rs 50,000/ (B) Rs.1,00,000/
(C) Rs.1,50,000/ (D) Rs.2,00,000/-.
MCQ: FUNDAMENTALS OF MICRO, SMALL AND MEDIUM ENTERPRISES (MSME)

26.Which one of the following is not correct in regard to MSME Credit Rating?
(A) Internal (B) External
(C) Beneficial (D) Mandatory

(27) MSMED Act was enacted in the year-

(A) 2004; (B)2007;
(C)2006; (D)2008;

(28) MSMEs are important for the Nation's Economy because they significantly
contribute to-
(A) Industrial Production: (B) Exports;
(C) Production: (D) All of these;

(29) helps towards the industrialisation of rural and backwards areas-

(A) MSME; (B) Entrepreneurs;
(C) Small scale industries; (D) Large scale industries

(30) The manufacturing enterprises are defined in terms of investment in

(A) Furniture; (B) Stock;
(C) Plant &Machinery: (D) None of these;

(31)Clay pot making industry is the best example for Enterprises.

(A)Micro; (B) Medium;
(C) Small; (D) Large;

(32) Amendment of MSME Act-2006 and new definition ofMSMEs are come into force-
(A) 1" April, 2020 (B) 1" May, 2020
(C) 1" June, 2020 (D) 1 July, 2020

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