Chapter Exam

Chapter 21: Micro Small and Medium Enterprises (MSMEs) and Self Help Groups (SHGs) — Online MCQ Test

Q: What does the abbreviation MSME stand for?

Answer: A. Micro, Small and Medium Enterprises — MSME stands for Micro, Small and Medium Enterprises as defined under the MSMED Act of 2006.

Q: Which of the following acts governs the classification of MSMEs in India?

Answer: B. MSMED Act, 2006 — The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 provides the legal framework for these enterprises.

Q: If a unit has an investment of 8 crores and an annual turnover of 40 crores, which category does it fall under?

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.

Q: If an enterprise exceeds the threshold for a 'Medium' enterprise, what is its status?

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.

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 for Tamil Nadu State Board CLASS 11th COMMERCE. 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.... AI-generated questions from basic to board-exam level, with instant results and explanations.

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Chapter 21: Micro Small and Medium Enterprises (MSMEs) and Self Help Groups (SHGs) — Important Questions & Answers (FAQ)

Frequently asked questions from Tamil Nadu State Board CLASS 11th COMMERCE — Chapter 21: Micro Small and Medium Enterprises (MSMEs) and Self Help Groups (SHGs), with answers and explanations. These are sample questions; the exam has its own separate question set.

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.

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.

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.

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.

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.