Chapter Exam

Unit 5: MSME’s and MNC’s — Online MCQ Test

Q: What does MSME stand for?

Answer: B. Micro, Small and Medium Enterprises — MSME is the abbreviation for Micro, Small and Medium Enterprises. It refers to enterprises classified by investment and turnover limits.

Q: A bakery in Telangana employs 12 workers and has limited investment. Which category does it most likely belong to?

Answer: B. Micro enterprise — A small bakery with low investment and few workers is generally classified as a micro enterprise. MSME classification depends on investment and turnover limits.

Q: Which of the following is a possible adverse impact of MNCs on domestic industries?

Answer: C. Crowding out of small local firms — MNCs may dominate markets because of their strong capital and technology. This can crowd out smaller local firms that cannot compete effectively.

Q: Which of the following schemes/institutions is most directly linked with helping MSMEs obtain raw materials, marketing support, and buyer-seller interaction?

Answer: A. NSIC — NSIC provides several support services to MSMEs, including raw material assistance and marketing support. It helps them become competitive in the market.

COMMERCE & ACCOUNTANCY · CLASS 11 INTERMEDIATE 1 YEAR · Telangana State Board

Practice Unit 5: MSME’s and MNC’s with a free chapter-wise online MCQ test for Telangana State Board CLASS 11 INTERMEDIATE 1 YEAR COMMERCE & ACCOUNTANCY. This chapter covers: Focusing on modern business environments this chapter covers Micro Small Medium Enterprises role features government assistance schemes and Multinational Corporations features grow.... AI-generated questions from basic to board-exam level, with instant results and explanations.

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Unit 5: MSME’s and MNC’s — Important Questions & Answers (FAQ)

Frequently asked questions from Telangana State Board CLASS 11 INTERMEDIATE 1 YEAR COMMERCE & ACCOUNTANCY — Unit 5: MSME’s and MNC’s, with answers and explanations. These are sample questions; the exam has its own separate question set.

What does MSME stand for?

A. Medium Scale Manufacturing and Exports
B. Micro, Small and Medium Enterprises ✓
C. Modern Service and Marketing Enterprises
D. Multi-State Manufacturing Enterprises

Answer: B. Micro, Small and Medium Enterprises
MSME is the abbreviation for Micro, Small and Medium Enterprises. It refers to enterprises classified by investment and turnover limits.

Which of the following is a key feature of a Multinational Corporation (MNC)?

A. It operates only in one country
B. It has branches or operations in more than one country ✓
C. It is owned only by the government
D. It produces only agricultural goods

Answer: B. It has branches or operations in more than one country
An MNC carries out business operations in more than one country. It usually has a headquarters in one country and branches in others.

A bakery in Telangana employs 12 workers and has limited investment. Which category does it most likely belong to?

A. Large enterprise
B. Micro enterprise ✓
C. Public sector unit
D. Multinational corporation

Answer: B. Micro enterprise
A small bakery with low investment and few workers is generally classified as a micro enterprise. MSME classification depends on investment and turnover limits.

Which of the following is a possible adverse impact of MNCs on domestic industries?

A. Encouragement of local entrepreneurship
B. Increased competition forcing inefficiency removal
C. Crowding out of small local firms ✓
D. Improved technology diffusion

Answer: C. Crowding out of small local firms
MNCs may dominate markets because of their strong capital and technology. This can crowd out smaller local firms that cannot compete effectively.

Which of the following schemes/institutions is most directly linked with helping MSMEs obtain raw materials, marketing support, and buyer-seller interaction?

A. NSIC ✓
B. IMF
C. UNESCO
D. SEBI

Answer: A. NSIC
NSIC provides several support services to MSMEs, including raw material assistance and marketing support. It helps them become competitive in the market.

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