MCQs on Setting up MSMEs and Related Topics
📝 25 MCQs on Setting up MSMEs and Related Topics
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Which act defines MSMEs in India?
- A) Companies Act
- B) MSMED Act, 2006
- C) Banking Regulation Act
- D) Industrial Act, 1951
Answer: B) MSMED Act, 2006
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Which organization is primarily responsible for MSME development in India?
- A) NABARD
- B) SIDBI
- C) RBI
- D) SEBI
Answer: B) SIDBI
-
What is the maximum turnover limit for a Micro enterprise?
- A) ₹10 crore
- B) ₹5 crore
- C) ₹1 crore
- D) ₹50 lakh
Answer: B) ₹5 crore
-
Flexibility and adaptability are key characteristics of:
- A) Large corporations
- B) MSMEs
- C) Public sector units
- D) Multinational companies
Answer: B) MSMEs
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Which of the following is NOT a form of organization for SMEs?
- A) Proprietorship
- B) HUF
- C) LLP
- D) Government Corporation
Answer: D) Government Corporation
-
In an HUF business model, the head is called:
- A) CEO
- B) Karta
- C) Trustee
- D) Manager
Answer: B) Karta
-
Environmental scanning does NOT include:
- A) Political factors
- B) Personal interests
- C) Legal factors
- D) Economic factors
Answer: B) Personal interests
-
PESTEL analysis includes all EXCEPT:
- A) Environmental
- B) Political
- C) Technological
- D) Psychological
Answer: D) Psychological
-
Which is an advantage of MSMEs?
- A) Reducing rural unemployment
- B) Concentrating industries in metro cities
- C) High capital requirement
- D) Import dependency
Answer: A) Reducing rural unemployment
-
The essential need of SMEs is:
- A) High political support only
- B) Access to finance
- C) Luxury goods
- D) International branding only
Answer: B) Access to finance
-
Which business structure provides limited liability and easy compliance?
- A) Proprietorship
- B) LLP
- C) HUF
- D) Partnership
Answer: B) LLP
-
Market assessment primarily helps in understanding:
- A) Employee behavior
- B) Customer needs and competition
- C) Government rules
- D) Product packaging only
Answer: B) Customer needs and competition
-
Who regulates LLPs in India?
- A) SEBI
- B) Ministry of Corporate Affairs
- C) RBI
- D) SIDBI
Answer: B) Ministry of Corporate Affairs
-
Entrepreneurial development is encouraged most through:
- A) Higher taxes
- B) Government incentives and training
- C) Export bans
- D) Labor restrictions
Answer: B) Government incentives and training
-
Technology selection is important for SMEs because:
- A) It ensures the cheapest production only
- B) It impacts efficiency and competitiveness
- C) It satisfies labor unions
- D) It reduces environmental impact alone
Answer: B) It impacts efficiency and competitiveness
-
Which is NOT typically a site selection criterion for SMEs?
- A) Proximity to market
- B) Availability of skilled labor
- C) Distance from supply chain
- D) Isolation from transport facilities
Answer: D) Isolation from transport facilities
-
Which rule governs the registration of small businesses in India?
- A) GST Act
- B) Shops and Establishments Act
- C) Income Tax Act
- D) FDI Guidelines
Answer: B) Shops and Establishments Act
-
Gender and entrepreneurship programs focus on:
- A) Male dominance in businesses
- B) Women empowerment and inclusion
- C) Eliminating SMEs
- D) Only urban startups
Answer: B) Women empowerment and inclusion
-
SIDBI stands for:
- A) Small Industries Development Bank of India
- B) State Investment Development Board of India
- C) Small Investors Development Bureau of India
- D) State Industrial Development Board of India
Answer: A) Small Industries Development Bank of India
-
In SMEs, functional organizational structure means:
- A) Structuring based on geographical areas
- B) Structuring based on specialization and functions
- C) Structuring based on customer profiles
- D) Structuring randomly
Answer: B) Structuring based on specialization and functions
-
The MSMED Act was enacted in which year?
- A) 1991
- B) 2006
- C) 2013
- D) 2016
Answer: B) 2006
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For MSMEs, what is the key to survival in competitive markets?
- A) Huge capital reserves
- B) Innovation and adaptability
- C) Mergers with MNCs
- D) Government subsidies only
Answer: B) Innovation and adaptability
-
MSMEs contribute approximately what percent to India’s GDP?
- A) 10%
- B) 20%
- C) 30%
- D) 50%
Answer: C) 30%
-
Which of the following is crucial for SME rehabilitation?
- A) Additional taxation
- B) Access to restructuring finance
- C) Shutdown assistance
- D) Legal proceedings
Answer: B) Access to restructuring finance
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Which of the following promotes clusters and cluster development for MSMEs?
- A) MNCs
- B) State Governments
- C) UN only
- D) Individuals
Answer: B) State Governments
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