Project Assistance Very Short Answer Type Questions

Question 1.
Give the meaning of financial assistance?
Answer:
Financial assistance, also known as financial aid, refers to loans, loan guaranties, subsidies, tax allowances, cost sharing arrangements, or outright grants provided by third-parties.

Question 2.
What is SIDBI?
Answer:
Small Industries Development Bank of India (SIDBI) is an apex-level national institution for promotion, financing and development of industries in the small- scale sector.

Question 3.
Expand SFC and SIDBI.
Answer:

  • SFC stands for State Financial Corporation
  • SIDBI stands for Small Industries Development Bank of India.

Question 4.
What is meant by commercial bank?
Answer:
Commercial Banks are joint Stock Companies dealing in money and credit. It is a financial institution which accepts deposits and uses the money with it for lending to the businessmen and others who need them.

Question 5.
What are the objectives of KSIDC?
Answer:
KSIDC was established with the objective of promoting industrial growth in the state of Karnataka, especially in the medium and large sector.

Question 6.
What is IFCI?
Answer:
IFCI, the first development financial institution in India was established in 1948 as a statutory Corporation. Besides providing project finance, financial services, nonproject specific assistance, corporate advisory services.

Question 7.
What are Non-financial assistances?
Answer:
Non-financial assistance refers to any type of assistance that is not financial. This includes help in getting and securing a premise, training of the staff, assistance in forming a business plan etc.

Question 8.
State the name of non-financial institutions?
Answer:
The names of institutions offering non financial aid are:

  • District Industries Centre (DIC)
  • Small Industries Services Institute (SISIs)
  • Entrepreneurship Development Institute (EDI)
  • Small Industries Development Organisation (SIDO)

Question 9.
Expand KSIDC and KSSIDC.
Answer:

  • KSIDC: Karnataka State Industrial Development Corporation.
  • KSSIDC: Karnataka State Small Industries Development Corporation Ltd.

Question 10.
Expand DIC, SISI, EDI and SIDO.
Answer:

  • DIC: District Industries Centre
  • SISI: Small Industries Services Institute
  • EDI: Entrepreneurship Development Institute
  • SIDO: Small Industries Development Organisation

Question 11.
Expand TCO, TECSOK, KVIC and KFSC.
Answer:

  • TCO: Technical Consultancy Organisation
  • TECSOK: Technical Consultancy Services Organisation of Karnataka
  • KVIC: Khadi and Village Industries Corporation
  • KSFC: Karnataka State Financial Corporation

Question 12.
Expand AWAKE and SEWA.
Answer:
AWAKE: Association of Women Entrepreneurs of Karnataka SEWA: Self Employed Women’s Association

Question 13.
State any two financial incentives for SSI.
Answer:
The two financial incentives for SSI are:

  • Differential Rate of Interest Scheme
  • Composite Loan Scheme

Question 14.
Name any four institutions offering financial assistance to SSI’s?
Answer:
The four institutions offering financial assistance to SSI’s are:

  • Small Industries Development Bank of India (SIDBI)
  • Industrial Finance Corporation of India Limited (IFCI)
  • Industrial Investment Bank of India (IIBI)
  • State Financial Corporations (SFCs)

Question 15.
What is tax holding?
Answer:
Tax holding is the amount withheld by the party making a payment to another (payee) and paid to the taxation authorities. The amount the payer deducts may vary, depending on the nature of the product or service being paid for. The payee is assessed on the gross amount and the tax to be withheld is computed in that assessment.

Question 16.
What is Tax concessions?
Answer:
Tax concession means a concession in the tax rate. Infact, special tax concessions to small scale industries are desirable for the accumulation of capital and for directing it into the right channels.

Question 17.
What are the tax concession given to SSI?
Answer:
The tax concession given to SSI are:

  • Concession in excise duties and sales tax primarily aim at marketing support.
  • Concession in profit tax/dividend tax etc. offer investment support whereas.
  • Concessions in custom duty offer raw material support.

Question 18.
What is Tax Holiday?
Answer:
Tax Holiday refers to a government incentive program that offers a tax reduction or tax elimination to businesses. Tax holidays are often used to reduce sales taxes by local governments, but they are also commonly used by governments in developing countries to help stimulate foreign investment.

The various technical assistance includes:

  • TCO – Technical Consultancy Organisation
  • TECSOK – Technical Consultancy Services Organisation of Karnataka

Question 20.
Define industrial estate.
Answer:
The United Nations, has defined an Industrial Estate as “a planned clustering of enterprises, offering standard factory buildings erected in advance of demand and variety of services and facilities to the occupants.”

Question 21.
Mention various types of industrial estates.
Answer:
On the basis of organisational set up, industrial estates are classified into:

  • Government
  • Private
  • Co-operative and
  • Municipal estates.

Two important roles of industrial estates are as follows:

  • It helps in economic development.
  • It helps in development of small scale industries.

Question 23.
Mention any two types of Industrial Estate.
Answer:
The two types of Industrial Estates are as follows:

  • Hooghly Industrial Estate
  • Bombay-Pune Industrial Estate