3rd Sem EFB

What is the full form of MSME?

• Micro Small and Medium Enterprises

• Mini Scale and Medium Enterprises

• Medium Small and Macro Enterprises

• Macro Sustainable Management Enterprises

Answer explanation

The correct full form of MSME is 'Micro Small and Medium Enterprises', which refers to the classification of businesses based on their size and investment. The other options do not accurately represent this classification.

Which of the following is not a characteristic of MSMEs?

• Low investment in machinery

• High export orientation

• High labor intensity

• Strong reliance on multinational funding

Answer explanation

MSMEs typically do not have a strong reliance on multinational funding; they often depend on local resources and smaller investments. The other options reflect common characteristics of MSMEs.

What is the primary advantage of E-Commerce for businesses?

• Limited geographical reach

• Lower operational costs

• Lack of consumer insights

• Inflexible operational hours

Answer explanation

The primary advantage of E-Commerce for businesses is lower operational costs. Online operations reduce expenses related to physical storefronts, staffing, and inventory management, allowing businesses to operate more efficiently.

Which of the following is essential for setting up an online store?

• Digital mapping tools

• Cart integration

• Traditional marketing methods

• Offline inventory only

Answer explanation

Cart integration is essential for an online store as it allows customers to add products to their cart and proceed to checkout, facilitating the purchasing process. Other options do not directly support this core function.

Market positioning helps in:

• Reducing operational costs

• Establishing a brand's identity in customers' minds

• Increasing production quantity

• Improving internal team communication

Answer explanation

Market positioning is crucial for establishing a brand's identity in customers' minds, helping them differentiate the brand from competitors and fostering customer loyalty.

A successful market strategy involves:

• Ignoring competition

• Focusing on a target market

• Selling to all market segments

• Avoiding market research

Answer explanation

A successful market strategy focuses on a target market to effectively meet specific customer needs, unlike ignoring competition, selling to all segments, or avoiding market research, which can dilute efforts and resources.

Which of the following is a common issue in family-owned businesses?

• Hierarchical transparency

• Succession planning

• Low customer loyalty

• Limited market potential

Answer explanation

Succession planning is a common issue in family-owned businesses as they often struggle to identify and prepare the next generation of leaders, which can threaten the continuity and success of the business.

Family-owned businesses typically rely on:

• Complex governance systems

• Strong interpersonal relationships

• High external investments

• Centralized decision-making

Answer explanation

Family-owned businesses thrive on strong interpersonal relationships, which foster trust and collaboration among family members. This is crucial for effective communication and decision-making, unlike complex governance or high external investments.

Which is a common funding source for startups?

• Crowdfunding

• Union Loans

• International Trade Credits

• Subsidized Corporate Grants

Answer explanation

Crowdfunding is a popular funding source for startups, allowing them to raise small amounts of money from a large number of people, typically via online platforms. This method is more accessible than traditional funding options.

Which government scheme supports MSME funding in India?

• Stand-Up India

• Digital India

• Startup India

• Skill India

Answer explanation

Stand-Up India is a government scheme specifically designed to support funding for Micro, Small, and Medium Enterprises (MSMEs) in India, promoting entrepreneurship among women and SC/ST communities.