Unit 9: MSME and Business Entrepreneurship
1. **What percentage of India's GDP is contributed by MSMEs?**
- A) 29.7%
- B) 45%
- C) 15%
- D) 39.5%
- **Answer:** A) 29.7%
2. **Which of the following is NOT a subgroup of MSME industries in India?**
- A) Handlooms
- B) Sericulture
- C) Real Estate
- D) Coir
- **Answer:** C) Real Estate
3. **The MSMED Act came into force in which year?**
- A) 1996
- B) 2006
- C) 2011
- D) 2016
- **Answer:** B) 2006
4. **Which industry sector employs the most people in India after agriculture?**
- A) Large-scale industries
- B) MSMEs
- C) IT industry
- D) Real Estate
- **Answer:** B) MSMEs
5. **What is the maximum turnover limit for a small enterprise under the MSME category?**
- A) 5 crore
- B) 10 crore
- C) 50 crore
- D) 250 crore
- **Answer:** C) 50 crore
6. **What is one of the main challenges faced by MSMEs in India?**
- A) Overabundance of financial resources
- B) Lack of demand for their products
- C) High technology resources
- D) None of the above
- **Answer:** B) Lack of demand for their products
7. **Which traditional Indian knowledge system is protected under Intellectual Property Rights (IPR)?**
- A) Astrology
- B) Traditional Knowledge Digital Library (TKDL)
- C) Ancient Architecture
- D) Ancient Weaponry
- **Answer:** B) Traditional Knowledge Digital Library (TKDL)
8. **What is a Geographical Indication (GI)?**
- A) An indication of agricultural practices
- B) An indication of a region where a product originates and holds a unique reputation
- C) A measure of agricultural productivity
- D) A type of Intellectual Property Right for inventions
- **Answer:** B) An indication of a region where a product originates and holds a unique reputation
9. **The 'Startup India' scheme aims to achieve which of the following goals?**
- A) Strengthen large businesses only
- B) Build a strong ecosystem for innovation and entrepreneurship
- C) Regulate MSMEs more strictly
- D) Increase dependency on foreign companies
- **Answer:** B) Build a strong ecosystem for innovation and entrepreneurship
10. **Which of the following is true about a patent?**
- A) It protects new scientific discoveries
- B) It grants rights to the inventor for 50 years
- C) It creates a temporary monopoly for the inventor
- D) It does not require renewal after expiration
- **Answer:** C) It creates a temporary monopoly for the inventor
Here are additional MCQs based on the document content:
11. **Which of the following is considered a micro-enterprise in terms of investment and turnover?**
- A) Investment of up to 5 crore, turnover up to 10 crore
- B) Investment of up to 1 crore, turnover up to 5 crore
- C) Investment of up to 10 crore, turnover up to 50 crore
- D) Investment of up to 50 crore, turnover up to 250 crore
- **Answer:** B) Investment of up to 1 crore, turnover up to 5 crore
12. **In which Indian state was Romi Bags, a successful MSME, founded?**
- A) Gujarat
- B) Maharashtra
- C) Manipur
- D) Assam
- **Answer:** C) Manipur
13. **Which sector does NOT fall under MSME in India?**
- A) Powerlooms
- B) Pharmaceuticals
- C) Village industries
- D) Heavy engineering
- **Answer:** D) Heavy engineering
14. **What percentage of total exports in India is contributed by MSMEs?**
- A) 15%
- B) 29.7%
- C) 49.66%
- D) 60%
- **Answer:** C) 49.66%
15. **Which of the following is true about cottage industries?**
- A) They have high capital investment requirements
- B) They are primarily urban-based
- C) They are also known as rural industries
- D) They produce high-tech goods
- **Answer:** C) They are also known as rural industries
16. **Which of the following MSME types contribute significantly to India's space missions?**
- A) Village industries
- B) Tool Rooms
- C) Handlooms
- D) Cottage industries
- **Answer:** B) Tool Rooms
17. **The main objective of intellectual property rights (IPR) is to:**
- A) Control foreign competition
- B) Protect and incentivize creativity and inventions
- C) Promote monopoly in business
- D) Reduce investment in research and development
- **Answer:** B) Protect and incentivize creativity and inventions
18. **Which of the following is an example of a registered Geographical Indication (GI) in India?**
- A) Silicon Valley
- B) Kangra Tea
- C) Italian Leather
- D) French Wines
- **Answer:** B) Kangra Tea
19. **Which factor primarily differentiates MSMEs from large-scale industries in India?**
- A) Use of sophisticated technology
- B) Low capital investment
- C) Dependency on imported raw materials
- D) Large-scale production capability
- **Answer:** B) Low capital investment
20. **The Startup India Scheme aims to inspire which of the following groups?**
- A) Only large corporate companies
- B) The elderly and retired
- C) Educated youth, scientists, and technologists
- D) Exclusively rural workers
- **Answer:** C) Educated youth, scientists, and technologists
21. **What is the primary role of MSMEs in India’s economy?**
- A) Centralizing industrial activities in urban areas
- B) Preventing rural migration to cities by providing local employment
- C) Developing large-scale industries only
- D) Minimizing employment in manufacturing
- **Answer:** B) Preventing rural migration to cities by providing local employment
22. **Which of these is a major problem faced by MSMEs in India?**
- A) Excess availability of skilled managers
- B) Consistent government support in marketing
- C) Scarcity of affordable finance
- D) Large inventory space for raw materials
- **Answer:** C) Scarcity of affordable finance
23. **Which term describes the protection given to literary, artistic, and musical works?**
- A) Trademark
- B) Patent
- C) Copyright
- D) Geographical Indication
- **Answer:** C) Copyright
24. **Which IP protection type applies to the shape and appearance of a product?**
- A) Trademark
- B) Copyright
- C) Design
- D) Patent
- **Answer:** C) Design
25. **What is one benefit of MSMEs taking quick decisions due to their size?**
- A) Limited market reach
- B) Lower product diversity
- C) Slow response to new opportunities
- D) Flexibility to capture business opportunities promptly
- **Answer:** D) Flexibility to capture business opportunities promptly
26. **Which of the following best describes the primary objective of the MSMED Act, 2006?**
- A) Increase large-scale industries
- B) Provide a legal framework for MSMEs, covering credit, marketing, and technology
- C) Develop only urban industries
- D) Expand foreign investment in MSMEs
- **Answer:** B) Provide a legal framework for MSMEs, covering credit, marketing, and technology
27. **What is one major advantage MSMEs have over large-scale industries in India?**
- A) Higher capital investment
- B) More flexible decision-making
- C) Advanced technology use
- D) Higher employee turnover
- **Answer:** B) More flexible decision-making
28. **MSMEs are critical to the balanced development of India because they:**
- A) Rely solely on imported materials
- B) Are concentrated in metropolitan areas
- C) Use indigenous resources and create regional employment
- D) Require high financial investment for startup
- **Answer:** C) Use indigenous resources and create regional employment
29. **The MSME sector includes industries such as:**
- A) Information Technology only
- B) Large-scale manufacturing
- C) Handlooms, coir, and village industries
- D) Space and defense exclusively
- **Answer:** C) Handlooms, coir, and village industries
30. **In MSMEs, entrepreneurship involves:**
- A) Only management and supervision
- B) Starting new business ventures and taking calculated risks
- C) Working under established business setups
- D) Providing financial loans to small businesses
- **Answer:** B) Starting new business ventures and taking calculated risks
31. **Which category of MSME would a business with an investment of 30 crore in plant and machinery fall under?**
- A) Micro enterprise
- B) Small enterprise
- C) Medium enterprise
- D) Large enterprise
- **Answer:** C) Medium enterprise
32. **Which of the following best defines a cottage industry?**
- A) An industry with a large workforce located in urban areas
- B) A small, rural-based industry often operated from home
- C) An industry with advanced equipment and automation
- D) A large-scale industry operating across multiple regions
- **Answer:** B) A small, rural-based industry often operated from home
33. **Which of the following is a key problem related to MSME marketing?**
- A) Lack of middlemen
- B) Shortage of raw materials
- C) Heavy dependency on middlemen and low market reach
- D) Excessive international competition
- **Answer:** C) Heavy dependency on middlemen and low market reach
34. **What is the maximum investment allowed in plant and machinery for a small enterprise?**
- A) 1 crore
- B) 10 crore
- C) 25 crore
- D) 50 crore
- **Answer:** B) 10 crore
35. **The Traditional Knowledge Digital Library (TKDL) in India was developed to:**
- A) Promote the sale of modern medicinal products
- B) Prevent wrongful patenting of Indian traditional knowledge
- C) Create patents for all traditional knowledge
- D) Increase reliance on foreign patents
- **Answer:** B) Prevent wrongful patenting of Indian traditional knowledge
36. **What is the primary focus of the Startup India Scheme?**
- A) Reducing the number of entrepreneurs in India
- B) Supporting innovative startups and fostering an entrepreneurial culture
- C) Expanding only traditional businesses in rural areas
- D) Attracting only foreign investment in MSMEs
- **Answer:** B) Supporting innovative startups and fostering an entrepreneurial culture
37. **Which of the following products would likely be protected under a Geographical Indication (GI) in India?**
- A) Generic pharmaceutical drugs
- B) A specific type of traditional fabric from a region
- C) Imported electronic goods
- D) Software products
- **Answer:** B) A specific type of traditional fabric from a region
38. **What type of intellectual property protection is given to a new technological invention?**
- A) Copyright
- B) Trademark
- C) Patent
- D) Design
- **Answer:** C) Patent
39. **Intellectual Property Rights (IPR) is important for entrepreneurs because it:**
- A) Increases dependency on large businesses
- B) Deters foreign investments
- C) Allows creators to control the use of their inventions and works
- D) Provides free access to technology
- **Answer:** C) Allows creators to control the use of their inventions and works
40. **Which of the following best defines entrepreneurship?**
- A) Relying on stable employment in a large firm
- B) Developing a new business idea and managing associated risks
- C) Only producing goods for an established brand
- D) Government control over small industries
- **Answer:** B) Developing a new business idea and managing associated risks
41. **Which of the following statements about MSMEs is true?**
- A) MSMEs require a high level of formal education to start
- B) MSMEs contribute minimally to India’s exports
- C) MSMEs are known for their quick adaptability and decision-making
- D) MSMEs mostly operate in the heavy industrial sector
- **Answer:** C) MSMEs are known for their quick adaptability and decision-making
42. **Which of the following is NOT a common problem faced by MSMEs?**
- A) Access to foreign market data
- B) Availability of managerial talent
- C) Dependence on local financial resources
- D) High-quality production standards
- **Answer:** D) High-quality production standards
43. **The Start-up India initiative aims to encourage entrepreneurship primarily through:**
- A) High-interest loans
- B) Grants for large corporations
- C) Fostering an innovation ecosystem for new businesses
- D) Restricting traditional industries
- **Answer:** C) Fostering an innovation ecosystem for new businesses
44. **What is the primary benefit of geographical indication (GI) for a region’s product?**
- A) Higher import duties
- B) Increased product pricing due to unique regional attributes
- C) Patent protection for the design of the product
- D) Protection against international competitors
- **Answer:** B) Increased product pricing due to unique regional attributes
45. **Which IP type is granted for inventions and innovations?**
- A) Copyright
- B) Design
- C) Patent
- D) Trademark
- **Answer:** C) Patent
46. **How do MSMEs contribute to the reduction of income inequality in India?**
- A) By centralizing employment opportunities in cities
- B) By providing employment across different regions and reducing rural-to-urban migration
- C) By replacing large industries in urban areas
- D) By focusing exclusively on exports
- **Answer:** B) By providing employment across different regions and reducing rural-to-urban migration
47. **A 'trade secret' is best defined as:**
- A) An intellectual property right for traditional knowledge
- B) Confidential information that provides a competitive edge
- C) Information shared with the public to promote transparency
- D) A compulsory registration for all businesses
- **Answer:** B) Confidential information that provides a competitive edge
48. **What is the purpose of MSME Tool Rooms in India?**
- A) To import raw materials for MSMEs
- B) To provide essential components for advanced projects like Mangalyaan and Chandrayaan
- C) To fund foreign MSMEs
- D) To exclusively focus on local cottage industries
- **Answer:** B) To provide essential components for advanced projects like Mangalyaan and Chandrayaan
49. **Which sector has been specifically boosted by MSMEs’ contribution to India’s space missions?**
- A) Retail sector
- B) Aerospace and technology sector
- C) Financial services
- D) Agriculture
- **Answer:** B) Aerospace and technology sector
50. **What kind of items are commonly produced by MSMEs in India?**
- A) Only raw agricultural products
- B) Both mass consumer goods and high-precision items
- C) Large-scale industrial machinery only
- D) Exclusive luxury goods
- **Answer:** B) Both mass consumer goods and high-precision items
51. **The intellectual property type that protects the visual appearance of a product is known as:**
- A) Patent
- B) Design
- C) Copyright
- D) Trademark
- **Answer:** B) Design
52. **Which of the following is an example of a traditional industry commonly found in rural India?**
- A) Automobile manufacturing
- B) IT services
- C) Cottage industries
- D) Pharmaceutical production
- **Answer:** C) Cottage industries
53. **Why is it challenging for MSMEs to access adequate finance?**
- A) They often lack the collateral and creditworthiness needed for bank loans
- B) They receive high-interest loans from the government
- C) They are not allowed to seek foreign investment
- D) They are exclusively funded by international sources
- **Answer:** A) They often lack the collateral and creditworthiness needed for bank loans
54. **Which of the following best explains the concept of 'entrepreneurship'?**
- A) Working in an established business environment
- B) The process of setting up a new business and taking associated risks
- C) Relying on government employment schemes
- D) Selling products for a well-known brand
- **Answer:** B) The process of setting up a new business and taking associated risks
55. **One of the biggest issues in MSMEs' procurement of raw materials is:**
- A) High bargaining power due to bulk purchases
- B) High availability and low costs of resources
- C) Limited bargaining power and high costs
- D) Easy access to quality resources
- **Answer:** C) Limited bargaining power and high costs
56. **What is one of the unique advantages of small businesses over large businesses?**
- A) High export volume
- B) Low overhead costs and adaptability
- C) Abundant resources and infrastructure
- D) More formal business processes
- **Answer:** B) Low overhead costs and adaptability
57. **The term "cottage industry" often refers to businesses that:**
- A) Operate on a large scale
- B) Require substantial investment
- C) Are run from home using local resources
- D) Need high-level technology
- **Answer:** C) Are run from home using local resources
58. **The MSME sector supports balanced regional development by:**
- A) Focusing only on urban areas
- B) Ensuring equal infrastructure in rural areas
- C) Enabling local entrepreneurship and using local materials
- D) Relying heavily on imported raw materials
- **Answer:** C) Enabling local entrepreneurship and using local materials
59. **Under the IPR framework, copyrights are primarily intended to protect:**
- A) Scientific inventions
- B) Literary and artistic works
- C) Product design and aesthetics
- D) Company logos and branding
- **Answer:** B) Literary and artistic works
60. **Which of the following accurately describes an entrepreneur’s approach to risk?**
- A) They avoid any form of risk
- B) They take only high risks regardless of potential loss
- C) They assess and take calculated risks
- D) They depend on others to manage risks
- **Answer:** C) They assess and take calculated risks
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