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Consider the following statements regarding MSMEs:
1. Micro-Small and Medium-Sized Enterprises are the organizations that usually employ more than 250 employees.
2. MSMEs are responsible for creating more than two-thirds of all jobs globally.
3. Organizations with more than 20 crores of investment are classified as Medium Enterprise.
Which of the statements given above is/are not correct?
- a)1 and 2 only
- b)1 and 3 only
- c)2 only
- d)3 only
Correct answer is option 'B'. Can you explain this answer?
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Most Upvoted Answer
Consider the following statements regarding MSMEs:1. Micro-Small and M...
Explanation:
MSMEs, or Micro, Small, and Medium-Sized Enterprises, play a crucial role in the global economy. Let's examine each statement to determine which ones are correct and which ones are not.
Statement 1: Micro-Small and Medium-Sized Enterprises are the organizations that usually employ more than 250 employees.
This statement is not correct. In fact, the definition of MSMEs varies across countries. In India, for example, the classification is based on the investment in plant and machinery or equipment for manufacturing enterprises, and on investment in equipment for service enterprises.
Statement 2: MSMEs are responsible for creating more than two-thirds of all jobs globally.
This statement is correct. According to the International Council for Small Business (ICSB), MSMEs are responsible for creating more than two-thirds of all jobs globally. These enterprises are often labor-intensive and serve as a significant source of employment.
Statement 3: Organizations with more than 20 crores of investment are classified as Medium Enterprise.
This statement is correct. In India, MSMEs are classified into three categories based on investment in plant and machinery or equipment for manufacturing enterprises, and on investment in equipment for service enterprises. Medium Enterprises are those with an investment between 5 crores and 20 crores.
Therefore, the correct answer is option B - 1 and 3 only.
MSMEs, or Micro, Small, and Medium-Sized Enterprises, play a crucial role in the global economy. Let's examine each statement to determine which ones are correct and which ones are not.
Statement 1: Micro-Small and Medium-Sized Enterprises are the organizations that usually employ more than 250 employees.
This statement is not correct. In fact, the definition of MSMEs varies across countries. In India, for example, the classification is based on the investment in plant and machinery or equipment for manufacturing enterprises, and on investment in equipment for service enterprises.
Statement 2: MSMEs are responsible for creating more than two-thirds of all jobs globally.
This statement is correct. According to the International Council for Small Business (ICSB), MSMEs are responsible for creating more than two-thirds of all jobs globally. These enterprises are often labor-intensive and serve as a significant source of employment.
Statement 3: Organizations with more than 20 crores of investment are classified as Medium Enterprise.
This statement is correct. In India, MSMEs are classified into three categories based on investment in plant and machinery or equipment for manufacturing enterprises, and on investment in equipment for service enterprises. Medium Enterprises are those with an investment between 5 crores and 20 crores.
Therefore, the correct answer is option B - 1 and 3 only.
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Community Answer
Consider the following statements regarding MSMEs:1. Micro-Small and M...
- International MSME Day is observed every year on 27th June all over the world to highlight the significance of MSMEs and how they play a crucial role in being the backbone of the country’s economy.
- Micro-Small and Medium-Sized Enterprises are the organizations that do not usually employ more than 250 employees. Hence, statement 1 is not correct.
- Despite being small in number of employees per enterprise, MSMEs are responsible for creating more than two-thirds of all jobs globally.
- Hence, statement 2 is correct.
- Despite being small in number of employees per enterprise, MSMEs are responsible for creating more than two-thirds of all jobs globally.
- Revised MSME Criteria is as follows:
- MICRO: Investment < 1 Crore and Turnover < 5 Crore
- SMALL: Investment < 10 Crore and Turnover < 50 Crore
- MEDIUM: Investment < 20 Crore and Turnover < 100 Crore
- Hence, statement 3 is not correct.
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Consider the following statements regarding MSMEs:1. Micro-Small and Medium-Sized Enterprises are the organizations that usually employ more than 250 employees.2. MSMEs are responsible for creating more than two-thirds of all jobs globally.3. Organizations with more than 20 crores of investment are classified as Medium Enterprise.Which of the statements given above is/arenotcorrect?a)1 and 2 onlyb)1 and 3 onlyc)2 onlyd)3 onlyCorrect answer is option 'B'. Can you explain this answer?
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Consider the following statements regarding MSMEs:1. Micro-Small and Medium-Sized Enterprises are the organizations that usually employ more than 250 employees.2. MSMEs are responsible for creating more than two-thirds of all jobs globally.3. Organizations with more than 20 crores of investment are classified as Medium Enterprise.Which of the statements given above is/arenotcorrect?a)1 and 2 onlyb)1 and 3 onlyc)2 onlyd)3 onlyCorrect answer is option 'B'. 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 regarding MSMEs:1. Micro-Small and Medium-Sized Enterprises are the organizations that usually employ more than 250 employees.2. MSMEs are responsible for creating more than two-thirds of all jobs globally.3. Organizations with more than 20 crores of investment are classified as Medium Enterprise.Which of the statements given above is/arenotcorrect?a)1 and 2 onlyb)1 and 3 onlyc)2 onlyd)3 onlyCorrect answer is option 'B'. 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 regarding MSMEs:1. Micro-Small and Medium-Sized Enterprises are the organizations that usually employ more than 250 employees.2. MSMEs are responsible for creating more than two-thirds of all jobs globally.3. Organizations with more than 20 crores of investment are classified as Medium Enterprise.Which of the statements given above is/arenotcorrect?a)1 and 2 onlyb)1 and 3 onlyc)2 onlyd)3 onlyCorrect answer is option 'B'. Can you explain this answer?.
Consider the following statements regarding MSMEs:1. Micro-Small and Medium-Sized Enterprises are the organizations that usually employ more than 250 employees.2. MSMEs are responsible for creating more than two-thirds of all jobs globally.3. Organizations with more than 20 crores of investment are classified as Medium Enterprise.Which of the statements given above is/arenotcorrect?a)1 and 2 onlyb)1 and 3 onlyc)2 onlyd)3 onlyCorrect answer is option 'B'. 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 regarding MSMEs:1. Micro-Small and Medium-Sized Enterprises are the organizations that usually employ more than 250 employees.2. MSMEs are responsible for creating more than two-thirds of all jobs globally.3. Organizations with more than 20 crores of investment are classified as Medium Enterprise.Which of the statements given above is/arenotcorrect?a)1 and 2 onlyb)1 and 3 onlyc)2 onlyd)3 onlyCorrect answer is option 'B'. 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 regarding MSMEs:1. Micro-Small and Medium-Sized Enterprises are the organizations that usually employ more than 250 employees.2. MSMEs are responsible for creating more than two-thirds of all jobs globally.3. Organizations with more than 20 crores of investment are classified as Medium Enterprise.Which of the statements given above is/arenotcorrect?a)1 and 2 onlyb)1 and 3 onlyc)2 onlyd)3 onlyCorrect answer is option 'B'. Can you explain this answer?.
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