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Question
Attempt the following.
Explain the meaning of Small Scale industries.
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Solution
Small Scale Industries are those industries where fixed assets i.e. plant and machinery which is owned or hired or taken on lease basis, do not exceed more than one crore. MSMED has classified Small Scale Industries into the manufacturing sector and services sector, and further into three categories of business i.e. Micro business, Small business, and Medium business.
Subsequently, over a period of time, a new definition was introduced by the MSMED Act, 2006 (Micro Small and Medium Enterprises Development) is as follows:
(A) Manufacturing Enterprises:
- A micro enterprise, Where the investment in plant and machinery is less than Rs. 25 lakh.
- A small enterprise, where the investment is more than Rs. 25 lakh but less than Rs. 5 crores.
- A medium enterprise, where the investment in plant and machinery is more than Rs. 5 crores but less than Rs. 10 crore.
(B) Service Enterprises:
- A micro enterprise, where the investment in equipment is less than Rs.10 lakh.
- A small enterprise, where the investment in equipment is more than Rs. 10 lakh but less than Rs. 2 crores.
- A medium enterprise where the investment in equipment is more than Rs. 2 crores but less than Rs. 5 crores. An industrial unit can be categorized as a small business if it fulfills the above capital investment criteria.
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RELATED QUESTIONS
Match the pairs.
| Group ‘A’ | Group ‘B' |
| A) Micro-Manufacturing sector | 1) Handloom |
| B) Traditional Small Scale business | 2) Unskilled |
| C) Registration | 3) Does not exceed ₹ 25 lakhs |
| D) Labour | 4) 40% of exports of India |
| E) Bicycle | 5) Does not exceeds ₹ 1 lakhs |
| 6) DIC | |
| 7) Marketing Problem | |
| 8) Modern Small Scale business | |
| 9) Project Appraisal | |
| 10) Cost-efficiency |
State True or False:
Small Scale industries should be developed in order to maintain, economic balance in a country
State True or False:
Small Business can not survive in the competition.
Find the odd one.
Complete the sentence.
SSI enjoys the advantage of ___________ cost of the produce.
Complete the sentence.
SSI requires __________ capital as compared to large scale industries.
Select the correct option.
| A | B |
| More than ₹ 5 crores but does not exceed ₹ 10 crores | ____________ |
Select the correct option.
| A | B |
| ___________ | Does not exceed ₹ 10 lakhs |
Answer in one sentence.
What is SSI?
Answer in one sentence.
Give examples of Modern Small Scale Industry.
Correct the underined word and rewrite the following sentence.
A business proposal is the first step in setting up a small scale business.
Explain the following term/concept.
Modern Industrial Sector
Give one word/phrase/term for the following sentence.
An industry using power with less than 50 employees.
Give one word/phrase/term. For the following sentence.
An industry using power with less than 50 employees.
Give one word/phrase/term. For the following sentence.
An industry using power with less than 50 employees.
Give one word/phrase/term.
An industry using power with less than 50 employees.
Give one word/phrase/term for the following sentence.
An industry using power with less than 50 employees.
Give one word/phrase/term. For the following sentence:
An industry using power with less than 50 employees.
According to the MSMED Act, a micro enterprise in the manufacturing sector must invest______.
