MCQs on Clusters and Cluster Development

Cluster Development in MSMEs

MCQs on Clusters and Cluster Development


Certificate in MSME

Multiple Choice Questions (MCQs)

  1. What is a business cluster?
    • a) A group of companies under one owner
    • b) Geographic concentration of interconnected businesses
    • c) A single large factory
    • d) None of the above
  2. Which of the following is an advantage of clusters?
    • a) Higher production cost
    • b) Decreased market reach
    • c) Improved innovation through collaboration
    • d) Isolation from competitors
  3. Horizontal clusters are defined as:
    • a) Firms producing similar products
    • b) Firms in different regions
    • c) Firms at various supply chain levels
    • d) Government units
  4. Which Indian city is known for its textile cluster?
    • a) Moradabad
    • b) Rajkot
    • c) Tirupur
    • d) Ludhiana
  5. Which report is used for credit evaluation in MSMEs?
    • a) RBI Bulletin
    • b) CIBIL Report
    • c) IMF Review
    • d) SEBI Report
  6. Which agency supports MSME credit guarantees in India?
    • a) SIDBI
    • b) CGTMSE
    • c) RBI
    • d) NABARD
  7. Vertical clusters include:
    • a) Firms with the same ownership
    • b) Firms at different production stages
    • c) Firms in different sectors
    • d) Government agencies
  8. One major disadvantage of clusters is:
    • a) Access to skilled labor
    • b) Shared infrastructure
    • c) Overdependence on shared resources
    • d) Lower production
  9. PMEGP is aimed at:
    • a) Environmental protection
    • b) Promoting self-employment
    • c) Cluster measurement
    • d) Cluster saturation
  10. Which region is globally known for IT cluster?
    • a) Baden-Württemberg
    • b) Silicon Valley
    • c) Emilia-Romagna
    • d) Tirupur
  11. Who promotes TUFS scheme?
    • a) RBI
    • b) Ministry of Textiles
    • c) SIDBI
    • d) MSME Ministry
  12. NEF scheme is meant for:
    • a) Urban enterprises
    • b) North-East region enterprises
    • c) Foreign companies
    • d) Agricultural loans
  13. Key benefit of clusters includes:
    • a) Isolation
    • b) Shared facilities
    • c) High cost
    • d) Legal complexity
  14. CGTSI is now known as:
    • a) CGSI
    • b) CGTMSE
    • c) MSME India
    • d) CIBIL
  15. Environmental impact assessment checks:
    • a) Loan default
    • b) Pollution and waste levels
    • c) Market saturation
    • d) Profitability

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