Formation of Small Scale Industry Very Short Answer Type Questions

Question 1.
What is business opportunity?
Answer:
Business opportunity is a chance for a person to own a business. It is the beginning process of the sale or purchase of a business.

Question 2.
Give the meaning of Scanning of environment.
Answer:
Environmental scanning involves studying and interpreting the sweep of social, political, economic, ecological and technological events in an effort to spot budding trends and conditions that could become driving forces. Environmental scanning involves the scanning of internal and external environments.

Question 3.
What is evaluation of alternatives?
Answer:
Evaluation of alternatives is the stage of the buyer decision process in where a consumer uses the information gathered in the Information Search to evaluate alternative brands in the product category.

Question 4.
Mention various steps involved in the formation of a small business venture.
Answer:
The various steps involved in the formation of a small business venture are:

  • Location
  • Clearances and permits
  • Licensing
  • Registration

Question 5.
What is plant location?
Answer:
Plant location is the function of determining where the plant should be located for maximum operating economy and effectiveness.

Question 6.
What are the steps in determining location of the plant?
Answer:
The steps in determining location of the plant are:

  • Within the country or outside
  • Selection of the region
  • Selection of the locality or community
  • Selection of the exact site.

Question 7.
State any four needs for the selection of the location.
Answer:
The four needs for the selection of the location are:

  • When the business is newly started.
  • The existing business unit has outgrown its original facilities.
  • A lease expires and the landlord does not renew the lease
  • The volume of business or the extent of market necessitates the establishment of branches.

Question 8.
What are the factors which influence the selection of a region?
Answer:

  • Availability of raw materials
  • Nearness to the market
  • Availability of power
  • Transport facilities

Question 9.
What is meant by selection of a community in industrial location?
Answer:
Selection of community in industrial location stands for selection of the locality within the selected region.

Question 10.
What are the factors which influence the selection of a community?
Answer:
The factors which influence the selection of a community are:

  • Availability of labour
  • Civic amenities for workers
  • Finance and research facilities
  • Availability of water and fire-fighting facilities

Question 11.
What are the factors which influence the selection of the site?
Answer:
The factors which influence the selection of the site are:

  • Soil, size and topography
  • Disposal of waste
  • Sites should be well connected by road, rail and water transport.
  • There should be facilities for housing the workers.

Question 12.
What is a project?
Answer:
A project is a productive activity which can be analysed, appraised and monitored independently.

Question 13.
Define project formulation.
Answer:
Project formulation is defined as taking a first took carefully and critically at a project idea by an entrepreneur to build up an all round benefit to project after carefully weighing its various components.

Question 14.
What is project report?
Answer:
A project report gives a complete analysis of the inputs and outputs of the project. It enables the entrepreneur to understand, at the initial stage, whether the project is sound on technical, commercial, financial and economic parameters.

Question 15.
What is a feasibility report?
Answer:
A feasibility report is a project report of a new enterprise or of an expansion which provides, in general, primary economic, information, financial data and technical details. The financial aspects of any business relate to the total amount of capital required, the sources of finance, the cost of capital and its implication on the business.

Question 17.
Give the meaning of technical feasibility of the project.
Answer:
Technical feasibility analysis helps the entrepreneur to possess the required technology for proposed business unit. The technology to be adopted has to be cost effective in production process and as far as possible tested and proven technology has to be adopted.

Question 18.
What is marketing feasibility study?
Answer:
Market Feasibility Studies analyze the economic, demographic and competitive factors that impact the development project. The Market Feasibility Study represents the most complete research on demographic trends and the marketing environment that determine the success of the development.

Question 19.
What is social feasibility of the project?
Answer:
Social feasibility aspect has to be looked into to assess as to how far the proposed business is useful for both the entrepreneur and the society.