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Consider the following statements:
- The Micro, Small and Medium Enterprises Development (MSMED) Act was enacted in 2002.
- To step up the investment limit in Plant and Machinery to rupees two crore for small enterprises
- To step up the investment limit in Plant and Machinery to rupees ten crore for medium enterprises.
Which among following is incorrect?
- a)Only 1
- b)Only 3
- c)Only 1 and 2
- d)All 1, 2 and 3
Correct answer is option 'C'. Can you explain this answer?
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Verified Answer
Consider the following statements: The Micro, Small and Medium Enterpr...
Answer: c
Explanation: Government has enacted the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 stepping up the investment limit in Plant and Machinery to rupees five crore for small enterprises and rupees ten crore for medium enterprises, so as to reduce the regulatory interface with the majority of the industrial units.
Most Upvoted Answer
Consider the following statements: The Micro, Small and Medium Enterpr...
The incorrect statement among the given options is option (c) Only 1 and 2. The Micro, Small and Medium Enterprises Development (MSMED) Act was enacted in 2006, not in 2002.
Explanation:
The Micro, Small and Medium Enterprises Development (MSMED) Act was enacted in 2006 to provide a legal framework for the promotion, development, and enhancement of competitiveness of micro, small, and medium enterprises (MSMEs) in India.
The key provisions of the MSMED Act include:
1. Definition of MSMEs: The Act provides a definition for micro, small, and medium enterprises based on their investment in plant and machinery or equipment.
2. Registration: The Act provides for the establishment of a National Small Industries Corporation (NSIC) for the purpose of facilitating the registration of MSMEs. The registration is voluntary but provides various benefits and incentives to the registered enterprises.
3. Credit facilitation: The Act mandates that the banks and financial institutions should provide collateral-free credit to the MSMEs, subject to certain conditions.
4. Delayed payment: The Act provides for the settlement of disputes related to delayed payments to MSMEs. It establishes a mechanism for the recovery of such payments through conciliation, arbitration, or legal recourse.
Now let's analyze the given statements:
Statement 1: The Micro, Small and Medium Enterprises Development (MSMED) Act was enacted in 2002.
This statement is incorrect as the MSMED Act was enacted in 2006, not in 2002.
Statement 2: To step up the investment limit in Plant and Machinery to rupees two crore for small enterprises.
This statement is correct. The MSMED Act increased the investment limit in plant and machinery for small enterprises to rupees two crore.
Statement 3: To step up the investment limit in Plant and Machinery to rupees ten crore for medium enterprises.
This statement is correct. The MSMED Act also increased the investment limit in plant and machinery for medium enterprises to rupees ten crore.
Therefore, the incorrect statement among the given options is option (c) Only 1 and 2, as the MSMED Act was enacted in 2006, not in 2002.
Explanation:
The Micro, Small and Medium Enterprises Development (MSMED) Act was enacted in 2006 to provide a legal framework for the promotion, development, and enhancement of competitiveness of micro, small, and medium enterprises (MSMEs) in India.
The key provisions of the MSMED Act include:
1. Definition of MSMEs: The Act provides a definition for micro, small, and medium enterprises based on their investment in plant and machinery or equipment.
2. Registration: The Act provides for the establishment of a National Small Industries Corporation (NSIC) for the purpose of facilitating the registration of MSMEs. The registration is voluntary but provides various benefits and incentives to the registered enterprises.
3. Credit facilitation: The Act mandates that the banks and financial institutions should provide collateral-free credit to the MSMEs, subject to certain conditions.
4. Delayed payment: The Act provides for the settlement of disputes related to delayed payments to MSMEs. It establishes a mechanism for the recovery of such payments through conciliation, arbitration, or legal recourse.
Now let's analyze the given statements:
Statement 1: The Micro, Small and Medium Enterprises Development (MSMED) Act was enacted in 2002.
This statement is incorrect as the MSMED Act was enacted in 2006, not in 2002.
Statement 2: To step up the investment limit in Plant and Machinery to rupees two crore for small enterprises.
This statement is correct. The MSMED Act increased the investment limit in plant and machinery for small enterprises to rupees two crore.
Statement 3: To step up the investment limit in Plant and Machinery to rupees ten crore for medium enterprises.
This statement is correct. The MSMED Act also increased the investment limit in plant and machinery for medium enterprises to rupees ten crore.
Therefore, the incorrect statement among the given options is option (c) Only 1 and 2, as the MSMED Act was enacted in 2006, not in 2002.
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Consider the following statements: The Micro, Small and Medium Enterprises Development (MSMED) Act was enacted in 2002. To step up the investment limit in Plant and Machinery to rupees two crore for small enterprises To step up the investment limit in Plant and Machinery to rupees ten crore for medium enterprises.Which among following is incorrect?a) Only 1b) Only 3c) Only 1 and 2d) All 1, 2 and 3Correct answer is option 'C'. Can you explain this answer?
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Consider the following statements: The Micro, Small and Medium Enterprises Development (MSMED) Act was enacted in 2002. To step up the investment limit in Plant and Machinery to rupees two crore for small enterprises To step up the investment limit in Plant and Machinery to rupees ten crore for medium enterprises.Which among following is incorrect?a) Only 1b) Only 3c) Only 1 and 2d) All 1, 2 and 3Correct answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements: The Micro, Small and Medium Enterprises Development (MSMED) Act was enacted in 2002. To step up the investment limit in Plant and Machinery to rupees two crore for small enterprises To step up the investment limit in Plant and Machinery to rupees ten crore for medium enterprises.Which among following is incorrect?a) Only 1b) Only 3c) Only 1 and 2d) All 1, 2 and 3Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements: The Micro, Small and Medium Enterprises Development (MSMED) Act was enacted in 2002. To step up the investment limit in Plant and Machinery to rupees two crore for small enterprises To step up the investment limit in Plant and Machinery to rupees ten crore for medium enterprises.Which among following is incorrect?a) Only 1b) Only 3c) Only 1 and 2d) All 1, 2 and 3Correct answer is option 'C'. Can you explain this answer?.
Consider the following statements: The Micro, Small and Medium Enterprises Development (MSMED) Act was enacted in 2002. To step up the investment limit in Plant and Machinery to rupees two crore for small enterprises To step up the investment limit in Plant and Machinery to rupees ten crore for medium enterprises.Which among following is incorrect?a) Only 1b) Only 3c) Only 1 and 2d) All 1, 2 and 3Correct answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements: The Micro, Small and Medium Enterprises Development (MSMED) Act was enacted in 2002. To step up the investment limit in Plant and Machinery to rupees two crore for small enterprises To step up the investment limit in Plant and Machinery to rupees ten crore for medium enterprises.Which among following is incorrect?a) Only 1b) Only 3c) Only 1 and 2d) All 1, 2 and 3Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements: The Micro, Small and Medium Enterprises Development (MSMED) Act was enacted in 2002. To step up the investment limit in Plant and Machinery to rupees two crore for small enterprises To step up the investment limit in Plant and Machinery to rupees ten crore for medium enterprises.Which among following is incorrect?a) Only 1b) Only 3c) Only 1 and 2d) All 1, 2 and 3Correct answer is option 'C'. Can you explain this answer?.
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Consider the following statements: The Micro, Small and Medium Enterprises Development (MSMED) Act was enacted in 2002. To step up the investment limit in Plant and Machinery to rupees two crore for small enterprises To step up the investment limit in Plant and Machinery to rupees ten crore for medium enterprises.Which among following is incorrect?a) Only 1b) Only 3c) Only 1 and 2d) All 1, 2 and 3Correct answer is option 'C'. Can you explain this answer?, a detailed solution for Consider the following statements: The Micro, Small and Medium Enterprises Development (MSMED) Act was enacted in 2002. To step up the investment limit in Plant and Machinery to rupees two crore for small enterprises To step up the investment limit in Plant and Machinery to rupees ten crore for medium enterprises.Which among following is incorrect?a) Only 1b) Only 3c) Only 1 and 2d) All 1, 2 and 3Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of Consider the following statements: The Micro, Small and Medium Enterprises Development (MSMED) Act was enacted in 2002. To step up the investment limit in Plant and Machinery to rupees two crore for small enterprises To step up the investment limit in Plant and Machinery to rupees ten crore for medium enterprises.Which among following is incorrect?a) Only 1b) Only 3c) Only 1 and 2d) All 1, 2 and 3Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
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