Chapter 21: Micro Small and Medium Enterprises (MSMEs) and Self Help Groups (SHGs) — Online MCQ Test
COMMERCE · CLASS 11th · Tamil Nadu State Board
Practice Chapter 21: Micro Small and Medium Enterprises (MSMEs) and Self Help Groups (SHGs) with a free chapter-wise online MCQ test.
This chapter covers: This chapter details small-scale business sectors in India and Tamil Nadu. Students study MSME definitions economic contributions industrial policies and micro-financing through Se....
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Chapter 21: Micro Small and Medium Enterprises (MSMEs) and Self Help Groups (SHGs) — Important Questions & Answers
What does the abbreviation MSME stand for?
- A. Micro, Small and Medium Enterprises
- B. Macro, Small and Modern Enterprises
- C. Micro, Standard and Major Enterprises
- D. Medium, Small and Micro Entities
Answer: A. Micro, Small and Medium Enterprises
MSME stands for Micro, Small and Medium Enterprises as defined under the MSMED Act of 2006.
MSME stands for Micro, Small and Medium Enterprises as defined under the MSMED Act of 2006.
Which of the following acts governs the classification of MSMEs in India?
- A. Companies Act, 2013
- B. MSMED Act, 2006
- C. Factories Act, 1948
- D. Partnership Act, 1932
Answer: B. MSMED Act, 2006
The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 provides the legal framework for these enterprises.
The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 provides the legal framework for these enterprises.
Under current MSME classification, what is the primary criterion used to categorize enterprises?
- A. Number of employees
- B. Investment in plant and machinery/equipment and Annual Turnover
- C. Location of the business
- D. Type of product manufactured
Answer: B. Investment in plant and machinery/equipment and Annual Turnover
As per the revised norms, MSMEs are classified based on the composite criteria of investment in plant and machinery and annual turnover.
As per the revised norms, MSMEs are classified based on the composite criteria of investment in plant and machinery and annual turnover.
If a unit has an investment of 8 crores and an annual turnover of 40 crores, which category does it fall under?
- A. Micro
- B. Small
- C. Medium
- D. Large Scale
Answer: B. Small
According to revised MSME criteria, an enterprise with investment up to 10 Cr and turnover up to 50 Cr is classified as Small.
According to revised MSME criteria, an enterprise with investment up to 10 Cr and turnover up to 50 Cr is classified as Small.
If an enterprise exceeds the threshold for a 'Medium' enterprise, what is its status?
- A. It remains a Medium enterprise
- B. It is reclassified as a Large enterprise
- C. It is reclassified as a Small enterprise
- D. The business must be shut down
Answer: B. It is reclassified as a Large enterprise
Any unit exceeding the prescribed limits of investment and turnover for a Medium enterprise ceases to be an MSME and becomes a Large Scale enterprise.
Any unit exceeding the prescribed limits of investment and turnover for a Medium enterprise ceases to be an MSME and becomes a Large Scale enterprise.