List of Important Questions for B.Tech Entrepreneurship With Answers

 List of Important Questions for B.Tech Entrepreneurship with Answers. Here we provide you the list of important questions with answers foe B.Tech Entrepreneurship Subject, We hope that this may help you studying for your exams.

List of Important Questions For B.Tech Entrepreneurship With Answers

Q1. Define MSME. 

Answer :

MSMED Act, 2006 defines MSME under two categories 

(i) Manufacturing MSME 

 Manufacturing MSMEs are defined as the MSMEs involved in manufacturing/production/preservation of the goods. The investment limits according to MSMED Act for Micro, Small and Medium enterprises are 

(a) Micro enterprises – Should be less than 25 lakhs. 

(b) Small Enterprises – Should be within 25 lakhs to 5 crores 

(c) Medium Enterprises – Should be within 5 crores to 10 crores. 

(ii) Service MSME 

Service MSMEs are defined as the enterprise involved in providing services. The investment limits according to MSMED Act for Micro, Small and Medium enterprises in service sector are, 

(a) Micro enterprise – Should be less than 10 lakhs. 

(b) Small enterprise – Should be within 10 lakhs to 2 crores. 

(c) Medium Enterprise – Should be within 2 crore to 5 crores.

Q2. What do you mean by registered and unregistered MSMEs? 

Answer : 

Registered MSMEs 

Registered MSMEs are the enterprises which are registered with the District Industries Centre (DIC) of the state/UT, KVIB and factories under the sections of 2m(i) and (ii) of factories Act, 1948. Unregistered MSMEs 

Unregistered MSMEs are the enterprises which are involved in manufacturing orservice sector but not registered with DICs.

Q3. What do you mean by industrial sickness? 

Answer : 

An industry is said to be sick when it is not healthy i.e., when it is not in a position to generate profits. RBI defines industrial sickness based on the profitability, liquidity and solvency of the unit. 

According to the Kohli committee of RBI, an enterprise is said to be sick in the following conditions. 

1. When the unit has any standard borrowal account for more than 6 months or any overdue borrowal account for more than a year. 

2. When there is an attrition or decrease in the networth to 50% of the previous year's net worth due to the losses. 

3. When the unit is involved in commercial production for a minimum of 2 years. 

4. When there exists any delays in the loan repayment to the financial institutions for more than a year.

Q4. List the sources of industrial sickness. 

Answer : 

 The sources of industrial sickness are, 

1. Internal Sources 

 The internal sources include operational results such as ledger data, financial statement analysis, factory visits etc. 

2. External Sources 

 The external sources include market and press reports, bank transactions, competitor reports etc.

Q5. What do you mean by a healthy unit? Write a short note on Industrial sickness. 

Answer : 

Health Unit 

 A healthy industry is a unit earning some fixed profit on the capital employed by maintaining the reserves after providing provision for dividends. 

Industrial Sickness 

 An industry is said to be sick when it is not healthy i.e., when it is not in a position to generate profits. RBI defines industrial sickness based on the profitability, liquidity and solvency of the unit.

Q6. List out some of the symptoms of industrial sickness. 

Answer : 

The symptoms of industrial sickness are, 

1. Lack of management's commitment in implementation. 

2. Unexpected delays. 

3. Delays in the payment of liabilities. 

4. Increased returns from the customers. 

5. Crossing the overdraft dues.

Q7. Brief on the process of rehabilitation of sick unit. 

Answer : 

The steps involved in the process of rehabilitation of sick units are, 

1. Assessment of viability of the sick units by BIFR along with banks/FIs. 

2. Providing reliefs and concessions on different parameters to assist the viable sick units to recover. 

3. Delegation of powers to approve the rehabilitation package quickly. 

4. Monitoring the performance of the sick unit.

Q8. Write a note on viable sick unit? 

Answer : 

 A sick unit is said to be viable or potentially viable sick unit when, 

1. It has the capacity to repay the obligations within specific time i.e., 2 years for tiny or decentralised sector units and 5 years for other SSIs. 

2. It has the capacity to repay the past debts within specific time i.e., 3 years for tiny or decentralized sector units and 7 years for other SSIs. 

Q9. What are the signals of industrial sickness? 

Answer : 

The signals include, 

1. Lack of optimum utilization of firm's capacity. 

2. Accumulation of high level of inventories. 

3. Lack of proper maintenance of accounts and non disclosure of data to the banks/financial institutions. 4. Increased breakdowns in the machinery/plant. 

5. Lack of sufficient liquidity to meet the short term financial needs.

Q10. What are the various measures used to prevent sickness in enterprises? Explain. 

Answer : 

An enterprise need to take the following measures to prevent the sickness. 

1. An enterprise, especially small scale units should focus more on effective planning of their operations and finding new markets with creative products/services in order to sustain in the market based economy. 

2. An entrepreneur should have up to date knowledge about the changing trends in the market using the revolutionary inventions in the information technology. 

3. An entrepreneur should focus more on their R & D in order to develop innovative products/services, improve quality and to utilize the resources effectively. 

4. An enterprise should concentrate more on managerial training programmes to enhance professionalism and leadership. 

5. Government should focus on the infrastructural developments to provide support to the entrepreneurial activities. 

6. An entrepreneur should focus on the plant modernization to exploit competitive advantage over the competitors in the market. Government need to support these units through financial assistance. 

7. An enterprise should focus on the healthy marketing relations with the prospective buyers in order to get orders regularly. 

8. An enterprise should also concentrate on creative advertising for their products on wide range of media in order to reach more customers. 

9. An enterprise should be very careful in maintaining their liquidity by collecting all the receivables and also by reducing the cost of working capital.