Small Scale Industries Very Short Answer Type Questions

Question 1.
Define Small Scale Industry.
Answer:
In India, the Ministry of Commerce and Industries defined a small scale industry as a ‘unit with a capital investment of not more than Rs. 5 lakhs irrespective of the number of persons employed’.

Question 2.
State any 4 objectives of small scale industries.
Answer:
The four objectives of small scale industries are:

  • To generate more employment in rural areas.
  • To rise income and standard of living.
  • To provide subsidiary or alternate occupations.
  • To utilize of local raw materials and talents.

Question 3.
Mention any three functions of SSI.
Answer:
The three functions of SSI are:

  • To achieve a wide dispersal of industries.
  • To bring forth indigenous entrepreneurship.
  • The function of providing employment.

Question 4.
Mention any three advantages of small scale industry compared to large scale industry.
Answer:
The three advantages of small scale industry compared to large scale industry are:

  • Small scale industries do not require a high level of technology.
  • Small scale industries are generally labour intensive and do not require a large amount of capital.
  • Small scale industries are the training ground for local entrepreneurs on decision making.

Question 5.
What is Product Range?
Answer:
Product range refers to the variety of products made or produced by the same company. For example, Hyundai produces Xing, ilO, i20 etc. which will all fall under its product range.

Question 6.
Give the meaning of capital Investment.
Answer:
It refers to money invested in a business with the understanding that the money will be used to purchase fixed assets, rather than used to cover the business’ day-to-day operating expenses.

Question 7.
Give the meaning of Venture Capital.
Answer:
Venture capital is equity support to fund new concepts that involve a higher risk and at the same time, have a high growth and profit. It is also broadly implies an investment of long term, equity finance in high risk projects with high rewards possibilities.

Question 8.
Define “Ownership Patterns”.
Answer:
Ownership patterns implies the right of an individual or a group of individuals to acquire legal title to assets for the purpose of controlling an industrial operation and enjoying the gains or profits flowing from such activities.

Question 9.
What is a “tiny industry”? OR What is tiny enterprise.
Answer:
A tiny industrial unit is one with an investment limit of Rs. 2.5 million in plant and machinery irrespective of location of the unit.

Question 10.
What is an ancillary unit or industry?
Answer:
An ancillary industry is a subsidiary industry or supplementary industry to a main industry.

Question 11.
What is cottage industry?
Answer:
A cottage industry is a traditional industry, catering mainly to the local population and dependent upon local raw materials. They are located usually at the homes of the producers, hence the name cottage industry.

Question 12.
Write any four objectives of Khadi and village industries corporation.
Answer:
The four objectives of Khadi and village industries corporation are:

  • Social objective: Providing employment.
  • Economic objective: Producing saleable articles.
  • To create self-reiiance amongst the poor and
  • Building up of a strong rural community spirit.

Question 13.
State any two roles played by SSI in the development of Indian Economy.
Answer:
The two roles played by SSI in the development of Indian economy are:

  • Enhanced employment.
  • It helps to remove regional disparities.

Question 14.
Mention any two problems faced by SSI’s.
Answer:
The two problems faced by SSI’s are:

  • Poor management.
  • Poor planning.

Question 15.
What do you mean by sick industrial unit?
Answer:
A sick industrial unit may be defined as one when it fails to generate surplus on a continuous basis and depends on frequent infusion of external funds for its survival.

Question 16.
What is an. Industrial Sickness?
Answer:
Industrial sickness can be defined as a condition wherein an industrial unit fails to generate surplus on a continuous basis and depends on frequent infusion of external funds for its survival.

Question 17.
What are the symptoms of Industrial sickness?
Answer:
The symptoms of industrial sickness are:

  • Irregular or unsatisfactory turnover in the account.
  • Slow and unsatisfactory movement of stocks
  • Decline in production, sales and profitability
  • Frequent violation of terms and condition
  • Asking for additional grants.

Question 18.
Mention various steps taken to solve the problems faced by SSI’s.
Answer:
The various steps taken to solve the problems faced by SSI’s are:

  • Institutions offering Financial Support
  • Institutions offering Technical Support
  • Institutions offering Marketing Support

Question 19.
State any four policies governing SSI.
Answer:
The four policies governing SSI are:

  • Payment mechanism
  • Factoring services
  • Resources
  • Timely and Adequate credit

Question 20.
What is industrial policy?
Answer:
Industrial policy is a statement which defines the role of government in industrial development. The place of the public and private sectors in industrialisation of the country. The relative role of large and small industries.