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Maharashtra State Board · HSC Commerce · Class 11 (Std XI)

Class 11 OCM Chapter 3: Small Scale Industry and Business

Short notes, key concepts, quick revision and practice MCQs with answers

Small scale industries produce goods or services on a small or micro scale. They suit developing countries like India that have less capital and more manpower, and they create large employment.

Key concepts: Small Scale Industry and Business

Meaning
Industries where manufacturing, production or services are organised on a small scale with limited machinery, labour and power.
Importance
Provide employment, use local resources, need less capital, reduce regional imbalance and use unskilled and semi-skilled artisans easily available in rural areas.
Government support
Financial and other assistance under schemes such as the Rural Employment Generation Programme, through Khadi and Village Industries Commission and District Industries Centres.
Cottage industries
Family-based industries using simple tools, mainly in rural areas.

Quick revision: important points

Practice MCQs with answers

  1. Small scale industries are most suitable for countries having:

    1. Less capital and more manpower
    2. More capital and less manpower
    3. No workers
    4. No resources
    Show answer

    Answer: A. Less capital and more manpower
    They make use of abundant labour.

  2. Cottage industries are mainly:

    1. Family based
    2. Foreign owned
    3. Government run only
    4. Stock listed
    Show answer

    Answer: A. Family based
    They are based on family labour.

  3. Which body supports rural small businesses with finance?

    1. Khadi and Village Industries Commission
    2. SEBI
    3. IRDAI
    4. FIFA
    Show answer

    Answer: A. Khadi and Village Industries Commission
    KVIC provides assistance to village industries.

  4. An important benefit of small scale industry is:

    1. Creating employment
    2. Increasing unemployment
    3. Raising imports only
    4. None
    Show answer

    Answer: A. Creating employment
    They generate large employment.

  5. Unskilled and semi-skilled artisans required for SSIs are easily available in:

    1. Rural areas
    2. Only Mumbai
    3. Only abroad
    4. Space
    Show answer

    Answer: A. Rural areas
    Rural areas have plenty of such workers.

All Class 11 OCM chapters

Class 11 OCM notes: all chapters