In the context of Micro, Small and Medium Enterprises (MSME) sector in India, which among the following is/are the correct criteria for declaring an enterprise Micro ? 1. The investment in plant and machinery does not exceed Rs. 25 lakhs. 2. The enterpris

examrobotsa's picture

Submitted by examrobotsa on

Q: 60 (IES/2012)
In the context of Micro, Small and Medium Enterprises (MSME) sector in India, which among the following is/are the correct criteria for declaring an enterprise “Micro” ?
1. The investment in plant and machinery does not exceed Rs. 25 lakhs.
2. The enterprise should fall in the category of manufacturing sector and not in service sector.

Select the correct answer using the codes given below :

question_subject: 

Economics

question_exam: 

IES

stats: 

0,41,67,41,19,43,5

keywords: 

{'medium enterprises': [0, 0, 0, 1], 'manufacturing sector': [0, 1, 0, 2], 'enterprise': [0, 0, 0, 1], 'sector': [0, 0, 0, 1], 'micro': [0, 0, 0, 3], 'service sector': [0, 0, 0, 1], 'msme': [0, 0, 0, 2], 'correct criteria': [0, 0, 0, 2], 'investment': [0, 0, 0, 1]}

The correct criteria for declaring an enterprise as "Micro" in the context of the MSME sector in India is that the investment in plant and machinery should not exceed Rs. 25 lakhs. This means that if an enterprise has invested more than Rs. 25 lakhs in plant and machinery, it will not qualify as a "Micro" enterprise.

Option 1 states that the investment in plant and machinery does not exceed Rs. 25 lakhs, which aligns with the correct criteria for a "Micro" enterprise. Therefore, option 1 is the correct answer.

Option 2 states that the enterprise should fall in the category of manufacturing sector and not in the service sector. However, this criterion is not relevant for determining whether an enterprise is "Micro" or not. Therefore, option 2 is incorrect.

Option 3 states that both criteria 1 and 2 are correct for declaring an enterprise as "Micro". However, as explained above, only criterion 1 is correct. Therefore, option 3 is incorrect.

Option 4 states that neither of the criteria 1 or 2 are correct for declaring an enterprise as "Micro". However, as mentioned earlier, criterion 1 is correct. Therefore, option 4 is incorrect.

In conclusion, option