CLASS 11 - BUSINESS STUDIES

Time Allowed: 3 minutes Maximum Marks: 52

General Instructions:

1. In India, the Village and Small Industries Sector consists of both traditional and modern small [1]
industries. This sector has ________ subgroups.

a) five b) eight

c) eleven d) ten
2. Exemption from paying taxes for 5 to 10 years is known as ________. [1]

a) Value Added Tax b) tax deduction

c) tax holiday d) TDS

3. The government of India used which parameter to explain small industries? [1]

a) Power consumed for business b) Volume of output

activities

c) Number of persons employed in d) Investment in plant and machinery

business
4. When does SFURTI was set up by the Central Government of India? [1]

a) 2005 b) 2002

c) 2003 d) 2004
5. State the full form of RWED: [1]

a) Rural and Women Experiential b) Rural and Women Employment

Development Development

c) Rural and Women Engagement d) Rural and Women Entrepreneurship

Development Development
6. Which of the following is the main problem for small business? [1]

a) Finance b) Managerial skill

c) Raw material d) All of these

7. Expand RSBDC [1]

a) Rural Small Bank Development b) Rural Small Bank Development

Centre Corporation

c) Rashtriya Small Bank Development d) The Rural Small Business

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 Corporation Development Centre
8. ISO 9000 is concerned with: [1]

a) quality b) quantity

c) export d) import
9. What do you mean by entrepreneurship? [1]

a) Pursuing employment b) Setting up of one's own business

c) Practicing profession d) All of these

10. Expand NSIC: [1]

a) National Small Industries Centre b) National Small Indian Corporation

c) National Small Industries d) National Small Business Industries

Corporation Center
11. Which of the following issues faced by small businesses is incorrect regarding the raw [1]
materials required by them for production?

a) Low bargaining power due to the b) Required raw materials are not
small quantity of purchases made by available easily
them

c) Large storage facilities to store the d) Compromise on the quality as they

materials have to pay high prices to get good
quality materials
12. Decisions taken by small business in India are ________ as compared to large-sized [1]
organizations.

a) None of these b) Quick

c) Slow d) Delayed
13. The Small Industries Development Organisation (SIDO) is also known as ________. [1]

a) Organisation under development b) Office of the Development

Commissioner

c) None of these d) Organisation of Small Scale

industries
14. Micro enterprises are those whose investment in plant and machinery does not exceed rupees [1]
________.

a) 28 lakh b) 50 lakh

c) 25 lakh d) 15 lakh
15. The small scale industry can enjoy the status of ________ unit if it exports more than 50% of its [1]
production.

a) domestic unit b) small scale unit

c) import oriented units d) export oriented units

16. RSBDC (The Rural Small Business Development Centre) was sponsored by which organization? [1]

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 a) NABARD b) RWED

c) DIC d) SFURTI
17. ________ are also known as Rural industries or Traditional industries. [1]

a) Agricultural industry b) Food industry

c) None of these d) Cottage industries

18. A maximum investment that is required for equipment in Microenterprises which are [1]
engaged in rendering services is-

a) 5 lakhs b) 10 lakhs

c) 20 lakhs d) 15 lakhs
19. Which of the following is incorrect regarding the features of cottage industries? [1]

a) The equipment used is simple. b) The capital investment is small.

c) These are organized by individuals d) Production of goods is done by using

with their private resources modern and advanced technology.
20. Limit of investment in small scale industry is ________. [1]

a) ten crore b) five crore

c) two crore d) one crore

21. The District Industries Centers Programme was launched on: [1]

a) September 1, 1978 b) July 1, 1978

c) May 1, 1978 d) 15 August 1978

22. NABARD was setup in ________. [1]

a) 1975 b) 1987

c) 1982 d) 1991
23. Expand NABARD [1]

a) National Agricultural Bank and b) National Bank for Agriculture and

Rapid Development Rural Development

c) National Bank for Research and d) National Bank for Advance and
Development Rapid Development
24. Expand EOUs [1]

a) Essential Order Units b) Export Order Units

c) Essential Operating Units d) Export Oriented Units

25. NSIC was set up in: [1]

a) 1975 b) 1965

c) 1955 d) 1982
26. Which of the following comes under Modern Small Industries? [1]

a) Khadi b) Handicrafts

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 c) Coir d) Powerlooms
27. In which year National Small Industries Corporation(NSIC) was set up? [1]

a) 1953 b) 1954

c) 1956 d) 1955
28. Which problem is not faced by small businesses in India? [1]

a) Abundant finance to carry out its b) High operating cost due to operating
operations below full capacity

c) Human resources with little d) Use of outdated technology

managerial and technical knowledge
29. The small scale industry can enjoy the status of ________ if it supplies not less than 50% of its [1]
production to another industry, referred to as the parent unit.

a) ancillary small industry b) export-oriented unit

c) micro business industry d) village industries

30. A small scale service and business enterprise are one whose investment in fixed assets of [1]
plant and machinery excluding land and building does not exceed ________.

a) 25 lakhs b) 10 lakhs

c) 15 lakhs d) 30 lakhs
31. Expand SIDBI: [1]

a) Super Industrial Development Bank b) Small Indian Development Bank of

of India India

c) Small Industries Development Bank d) Society Industrial Development Bank

of India of India
32. A tiny unit is defined as an industrial or business enterprise whose investment in plant and [1]
machinery is not more than ________.

a) 25 lakhs b) 35 lakhs

c) 30 lakhs d) 50 lakhs
33. Entrepreneurship is ________ activity. [1]

a) All of these b) Legal

c) Risky d) Systematic
34. What do you mean by an entrepreneur ? [1]

a) Job-hunter b) Job-seeker

c) Job creator d) Job-applicant

35. Which of the following is incorrect regarding the types of manufacturing enterprises? [1]

a) In a Small enterprise investment in b) In a Microenterprise investment in

plant and machinery is more than plant and machinery does not
exceed twenty-five lakh rupees.

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 twenty-five lakh rupees does exceed
five crore rupees.

c) In a medium enterprise investment d) In a Small enterprise investment in

in plant and machinery is more than plant and machinery is more than
five crore rupees but does not exceed twenty-five lakh rupees but does not
ten crores rupees. exceed three crore rupees.
36. Who among the following are the highest risk-takers? [1]

a) People practicing a profession b) People engaged in career

employment

c) Entrepreneurs d) All of these

37. Investment in equipment in Small enterprises which are engaged in rendering services ranges [1]
between ________ and ________ rupees.

a) 10 lakhs, 1 crore b) 5 lakhs, 2 crore

c) 10 lakhs, 2 crore d) 5 lakhs, 1 crore

38. Small industries contribute ________ of gross industrial value. [1]

a) 48 percent b) 40 percent

c) 45 percent d) 49 percent
39. ________ is defined as one in which the investment in fixed assets of plant and machinery does [1]
not exceed rupees one crore.

a) Large Scale Industry b) None of these

c) Small Scale Industries d) Limited Companies

40. Which scheme has been introduced by Government of India to encourage an entrepreneurial [1]
culture, inculcate entrepreneurial values in the society and influence the mindset of people
towards entrepreneurship?

a) Jawahar Rozgar Yojna b) Start up India Scheme

c) Integrated Rural Development d) MGNREGA

Programme
41. Which of the following is an internal cause leading to sickness and closure of sick small [1]
business units?

a) Lack of skilled and trained labour b) Delayed payment

c) Lack of demand for their products d) Shortage of working capital

42. What is the maximum amount that can be invested in equipment by a Medium enterprise [1]
engaged in rendering services according to Government of India?

a) 5 crore rupees b) 2 crore rupees

c) 3 crore rupees d) 4 crore rupees

43. Which of the following is part of small scale sector? [1]

a) Paper Products and Printing b) Food Products

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 c) All of these d) Cotton Textiles
44. Which of the following is organised by individuals? [1]

a) Chemical Industry b) Cottage Industries

c) Railway Industry d) None of these

45. Small scale industries owned and managed by women entrepreneurs have a share capital of [1]
not less than ________.

a) 50 percent b) 25 percent

c) 51 percent d) 20 percent
46. Expand DIC [1]

a) District Industries Centers b) None of these

c) Directorate of Indian Corporation d) Directorate of Industry Corporation

47. Which of the following is part of Village and Small Industries Sector? [1]

a) Handlooms b) All of these

c) Sericulture d) Handicrafts
48. Under Village and Small Industries Sector which of the following accounts for modern [1]
small industries.

a) Hand looms b) Power looms

c) Khadi d) Coir
49. Expand KVIC [1]

a) King of Village Investment Culture b) Khadi and Village Industries

Commission

c) Khadi and Village Industries Core d) King of Village Industries

Commission
50. In India, small business units have ________ access to markets of developed countries. [1]

a) Unrestricted b) Limited

c) Unlimited d) Total
51. Which of the following are small industries? [1]

a) More labour intensive and less b) Less labour intensive and less capital
capital intensive. intensive.

c) More labour intensive and more d) Less labour intensive and more
capital intensive. capital intensive.
52. Any industry located in a rural area which produces any goods renders any service with or [1]
without the use of power is known as ________.

a) city industry b) district industry

c) town industry d) village industry

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