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Read the following hypothetical text and answer question that follow:
India’s Micro, Small and Medium Enterprises (MSME) sector is poised for a mega transformation in 2020, with the launch of an Alibaba-like e-marketplace, trendy yet affordable khadi products to appeal to the masses and digital data-based credit ratings to help entrepreneurs avail loans. However, the MSME sector is often considered the bulwark of the economy as it contributes around 29% to the GDP and 48% to the Indian exports. There is an urgent need of major reforms and policy interventions towards ensuring timely availability of low-cost credit, improving ease of doing business and technological upgradation, to take on the formidable challenge of creating millions of jobs, ensure equitable distribution of national income and achieving large-scale import substitution. The World Bank has recently approved loan worth $750 million to address the immediate liquidity and credit needs of India’s MSME sector that has been severely impacted by the Covid-19 crisis. This will give a push to the Atmanirbhar Bharat vision of the government.
Q. Identify which of the following is not an advantage of the MSME sector?
- a)It is suited for the utilization of local resources.
- b)It is helpful in creating employment opportunities.
- c)It requires more capital than labour.
- d)It ensures equitable distribution of income in the country.
Correct answer is option 'C'. Can you explain this answer?
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Read the following hypothetical text and answer question that follow:...
MSMEs don’t require heavy capital investment as they produce simple products by using simple technologies mainly labour-intensive production techniques.
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Read the following hypothetical text and answer question that follow:...
Not an Advantage of the MSME Sector:
Advantages of the MSME Sector:
- Utilization of Local Resources: MSMEs typically rely on local resources, which helps in promoting local industries and reducing dependency on imports.
- Creation of Employment Opportunities: The MSME sector is known for its ability to generate a large number of jobs, thereby contributing to reducing unemployment rates.
- Equitable Distribution of Income: MSMEs play a crucial role in ensuring a more even distribution of income in the country by providing opportunities for small entrepreneurs and workers.
Explanation:
The statement "It requires more capital than labor" is not an advantage of the MSME sector. In fact, one of the key characteristics of MSMEs is their ability to operate efficiently with limited capital investment, often relying more on labor-intensive processes. This allows for greater flexibility and adaptability, especially in the initial stages of business growth. MSMEs are known for their innovation and resourcefulness, making them well-suited for utilizing local resources and creating employment opportunities, rather than requiring a significant amount of capital. Therefore, the statement that MSMEs require more capital than labor is not aligned with the advantages typically associated with this sector.
Advantages of the MSME Sector:
- Utilization of Local Resources: MSMEs typically rely on local resources, which helps in promoting local industries and reducing dependency on imports.
- Creation of Employment Opportunities: The MSME sector is known for its ability to generate a large number of jobs, thereby contributing to reducing unemployment rates.
- Equitable Distribution of Income: MSMEs play a crucial role in ensuring a more even distribution of income in the country by providing opportunities for small entrepreneurs and workers.
Explanation:
The statement "It requires more capital than labor" is not an advantage of the MSME sector. In fact, one of the key characteristics of MSMEs is their ability to operate efficiently with limited capital investment, often relying more on labor-intensive processes. This allows for greater flexibility and adaptability, especially in the initial stages of business growth. MSMEs are known for their innovation and resourcefulness, making them well-suited for utilizing local resources and creating employment opportunities, rather than requiring a significant amount of capital. Therefore, the statement that MSMEs require more capital than labor is not aligned with the advantages typically associated with this sector.
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Read the following hypothetical text and answer question that follow:India’s Micro, Small and Medium Enterprises (MSME) sector is poised for a mega transformation in 2020, with the launch of an Alibaba-like e-marketplace, trendy yet affordable khadi products to appeal to the masses and digital data-based credit ratings to help entrepreneurs avail loans. However, the MSME sector is often considered the bulwark of the economy as it contributes around 29% to the GDP and 48% to the Indian exports. There is an urgent need of major reforms and policy interventions towards ensuring timely availability of low-cost credit, improving ease of doing business and technological upgradation, to take on the formidable challenge of creating millions of jobs, ensure equitable distribution of national income and achieving large-scale import substitution. The World Bank has recently approved loan worth $750 million to address the immediate liquidity and credit needs of India’s MSME sector that has been severely impacted by the Covid-19 crisis. This will give a push to the Atmanirbhar Bharat vision of the government.Q. Identify which of the following is not an advantage of the MSME sector?a)It is suited for the utilization of local resources.b)It is helpful in creating employment opportunities.c)It requires more capital than labour.d)It ensures equitable distribution of income in the country.Correct answer is option 'C'. Can you explain this answer?
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Read the following hypothetical text and answer question that follow:India’s Micro, Small and Medium Enterprises (MSME) sector is poised for a mega transformation in 2020, with the launch of an Alibaba-like e-marketplace, trendy yet affordable khadi products to appeal to the masses and digital data-based credit ratings to help entrepreneurs avail loans. However, the MSME sector is often considered the bulwark of the economy as it contributes around 29% to the GDP and 48% to the Indian exports. There is an urgent need of major reforms and policy interventions towards ensuring timely availability of low-cost credit, improving ease of doing business and technological upgradation, to take on the formidable challenge of creating millions of jobs, ensure equitable distribution of national income and achieving large-scale import substitution. The World Bank has recently approved loan worth $750 million to address the immediate liquidity and credit needs of India’s MSME sector that has been severely impacted by the Covid-19 crisis. This will give a push to the Atmanirbhar Bharat vision of the government.Q. Identify which of the following is not an advantage of the MSME sector?a)It is suited for the utilization of local resources.b)It is helpful in creating employment opportunities.c)It requires more capital than labour.d)It ensures equitable distribution of income in the country.Correct answer is option 'C'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Read the following hypothetical text and answer question that follow:India’s Micro, Small and Medium Enterprises (MSME) sector is poised for a mega transformation in 2020, with the launch of an Alibaba-like e-marketplace, trendy yet affordable khadi products to appeal to the masses and digital data-based credit ratings to help entrepreneurs avail loans. However, the MSME sector is often considered the bulwark of the economy as it contributes around 29% to the GDP and 48% to the Indian exports. There is an urgent need of major reforms and policy interventions towards ensuring timely availability of low-cost credit, improving ease of doing business and technological upgradation, to take on the formidable challenge of creating millions of jobs, ensure equitable distribution of national income and achieving large-scale import substitution. The World Bank has recently approved loan worth $750 million to address the immediate liquidity and credit needs of India’s MSME sector that has been severely impacted by the Covid-19 crisis. This will give a push to the Atmanirbhar Bharat vision of the government.Q. Identify which of the following is not an advantage of the MSME sector?a)It is suited for the utilization of local resources.b)It is helpful in creating employment opportunities.c)It requires more capital than labour.d)It ensures equitable distribution of income in the country.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Read the following hypothetical text and answer question that follow:India’s Micro, Small and Medium Enterprises (MSME) sector is poised for a mega transformation in 2020, with the launch of an Alibaba-like e-marketplace, trendy yet affordable khadi products to appeal to the masses and digital data-based credit ratings to help entrepreneurs avail loans. However, the MSME sector is often considered the bulwark of the economy as it contributes around 29% to the GDP and 48% to the Indian exports. There is an urgent need of major reforms and policy interventions towards ensuring timely availability of low-cost credit, improving ease of doing business and technological upgradation, to take on the formidable challenge of creating millions of jobs, ensure equitable distribution of national income and achieving large-scale import substitution. The World Bank has recently approved loan worth $750 million to address the immediate liquidity and credit needs of India’s MSME sector that has been severely impacted by the Covid-19 crisis. This will give a push to the Atmanirbhar Bharat vision of the government.Q. Identify which of the following is not an advantage of the MSME sector?a)It is suited for the utilization of local resources.b)It is helpful in creating employment opportunities.c)It requires more capital than labour.d)It ensures equitable distribution of income in the country.Correct answer is option 'C'. Can you explain this answer?.
Read the following hypothetical text and answer question that follow:India’s Micro, Small and Medium Enterprises (MSME) sector is poised for a mega transformation in 2020, with the launch of an Alibaba-like e-marketplace, trendy yet affordable khadi products to appeal to the masses and digital data-based credit ratings to help entrepreneurs avail loans. However, the MSME sector is often considered the bulwark of the economy as it contributes around 29% to the GDP and 48% to the Indian exports. There is an urgent need of major reforms and policy interventions towards ensuring timely availability of low-cost credit, improving ease of doing business and technological upgradation, to take on the formidable challenge of creating millions of jobs, ensure equitable distribution of national income and achieving large-scale import substitution. The World Bank has recently approved loan worth $750 million to address the immediate liquidity and credit needs of India’s MSME sector that has been severely impacted by the Covid-19 crisis. This will give a push to the Atmanirbhar Bharat vision of the government.Q. Identify which of the following is not an advantage of the MSME sector?a)It is suited for the utilization of local resources.b)It is helpful in creating employment opportunities.c)It requires more capital than labour.d)It ensures equitable distribution of income in the country.Correct answer is option 'C'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Read the following hypothetical text and answer question that follow:India’s Micro, Small and Medium Enterprises (MSME) sector is poised for a mega transformation in 2020, with the launch of an Alibaba-like e-marketplace, trendy yet affordable khadi products to appeal to the masses and digital data-based credit ratings to help entrepreneurs avail loans. However, the MSME sector is often considered the bulwark of the economy as it contributes around 29% to the GDP and 48% to the Indian exports. There is an urgent need of major reforms and policy interventions towards ensuring timely availability of low-cost credit, improving ease of doing business and technological upgradation, to take on the formidable challenge of creating millions of jobs, ensure equitable distribution of national income and achieving large-scale import substitution. The World Bank has recently approved loan worth $750 million to address the immediate liquidity and credit needs of India’s MSME sector that has been severely impacted by the Covid-19 crisis. This will give a push to the Atmanirbhar Bharat vision of the government.Q. Identify which of the following is not an advantage of the MSME sector?a)It is suited for the utilization of local resources.b)It is helpful in creating employment opportunities.c)It requires more capital than labour.d)It ensures equitable distribution of income in the country.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Read the following hypothetical text and answer question that follow:India’s Micro, Small and Medium Enterprises (MSME) sector is poised for a mega transformation in 2020, with the launch of an Alibaba-like e-marketplace, trendy yet affordable khadi products to appeal to the masses and digital data-based credit ratings to help entrepreneurs avail loans. However, the MSME sector is often considered the bulwark of the economy as it contributes around 29% to the GDP and 48% to the Indian exports. There is an urgent need of major reforms and policy interventions towards ensuring timely availability of low-cost credit, improving ease of doing business and technological upgradation, to take on the formidable challenge of creating millions of jobs, ensure equitable distribution of national income and achieving large-scale import substitution. The World Bank has recently approved loan worth $750 million to address the immediate liquidity and credit needs of India’s MSME sector that has been severely impacted by the Covid-19 crisis. This will give a push to the Atmanirbhar Bharat vision of the government.Q. Identify which of the following is not an advantage of the MSME sector?a)It is suited for the utilization of local resources.b)It is helpful in creating employment opportunities.c)It requires more capital than labour.d)It ensures equitable distribution of income in the country.Correct answer is option 'C'. Can you explain this answer?.
Solutions for Read the following hypothetical text and answer question that follow:India’s Micro, Small and Medium Enterprises (MSME) sector is poised for a mega transformation in 2020, with the launch of an Alibaba-like e-marketplace, trendy yet affordable khadi products to appeal to the masses and digital data-based credit ratings to help entrepreneurs avail loans. However, the MSME sector is often considered the bulwark of the economy as it contributes around 29% to the GDP and 48% to the Indian exports. There is an urgent need of major reforms and policy interventions towards ensuring timely availability of low-cost credit, improving ease of doing business and technological upgradation, to take on the formidable challenge of creating millions of jobs, ensure equitable distribution of national income and achieving large-scale import substitution. The World Bank has recently approved loan worth $750 million to address the immediate liquidity and credit needs of India’s MSME sector that has been severely impacted by the Covid-19 crisis. This will give a push to the Atmanirbhar Bharat vision of the government.Q. Identify which of the following is not an advantage of the MSME sector?a)It is suited for the utilization of local resources.b)It is helpful in creating employment opportunities.c)It requires more capital than labour.d)It ensures equitable distribution of income in the country.Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
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