11th OCM Chapter 3 Exercise (Small Scale Industry and Business) Maharashtra Board – Free Resource

11th OCM Chapter 3 Exercise

Chapter 3 – Small Scale Industry and Business

Q.1 (A) Select the correct option and rewrite the sentences.

1) The problem of _____ has been becoming more serious in India.
a) employment
b) unemployment
c) pollution

2) India is _____ abundant country.
a) labour
b) money
c) material

3) _____ cost of power acquisition, frequent power cuts, irregular supply of power affect the productivity of SSI.
a) High
b) Lower
c) Average

4) Before setting up business, it is essential to study prevailing _____ environment.
a) business
b) natural
c) political

5) Small Scale Business are _____ intensive.
a) money
b) power
c) labour

6) Occurring obscured ideas in mind of entrepreneur is _____ stage of establishing business.
a) first
b) second
c) third

7) Small Scale industries contribute nearly _____ to the industrial exports of the country.
a) 40%
b) 60%
c) 20%

Q.1 (B) Match the pairs.

1)

Group A	Group B
a) Micro-Manufacturing sector	1) Handloom
b) Traditional Small Scale Business	2) Unskilled or skilled
c) Registration	3) Does not exceed Rs 25 lakhs
d) Labour	4) 40% of exports of India
e) Bicycle	5) Does not exceed Rs 1 lakhs
	6) DIC
	7) Marketing Problem
	8) Modern Small Scale Business
	9) Project Appraisal
	10) Cost-efficiency

Answers.
a. 3) Does not exceed Rs 25 lakhs
b. 1) Handloom
c. 6) DIC
d. 2) Unskilled or skilled
e. 8) Modern Small Scale Business

Q.1 (C) Give one word/phrase/term for the following statements.

1) A sector which is backbone of rural India.
Answer: Small Scale Industries sector

2) An industry using power with less than 50 employees.
Answer: Small Scale Industries

Solution of other subjects
Solution of all Chapters of OCM
1 – 2 – 3 – 4 – 5 – 6 – 7 – 8

Q.1 (D) State True or False.

1) Small Scale industries should be developed in order to maintain, economic balance in a country. (True)

2) Majority Small Scale industry uses advanced technology. (False)

3) Small Business easily get access to low-interest rates. (False)

4) Small Business can not survive in the competition. (True)

Q.1 (E) Find the odd one.

1) Coir, Handicraft, Spare Parts, Hand-loom.

2) Bicycle Parts, Sericulture, Electronic Appliances, Sewing machine.

Q.1 (F) Complete the sentences.

1) Small scale Industries play an important role in developing countries.

2) SSI is Second largest industry which creates huge employment opportunities.

3) SSI enjoys the advantage of low cost of the produce.

4) SSI are labour intensive.

5) SSI requires less capital as compared to large-scale industries.

6) SSI produce consumer goods as well as industrial components.

Q.1 (G) Complete the following table

A	B
1) More than Rs 25 lakhs but Does not exceed Rs 5 cores	Small manufacturing sector
2) Micro manufacturing sector	Does not exceed Rs 25 lakhs
3) More than Rs 5 crores but does not exceed Rs 10 crores	Medium manufacturing sector
4) Microservices sector	Does not exceed Rs 10 lakhs
5) More than Rs 10 lakhs but does not exceed does not exceed Rs 2 crores	Small services sector

Q.1 (H) Answer in one sentence.

1) What is SSI?
Answer: Traditionally the industries in India which are organized on a Small Scale and produce goods with help of machines, labour, and power are considered as Small Scale Industries.

2) State the examples of Traditional Small Scale Industry.
Answer: (a) Hand-loom (b) Handicraft (c) 3) Coir

3) Give examples of Modern Small Scale Industry.
Answer: (a) Bicycle Parts (b) Sewing Machines (c) Blades, Razors

Q.1(I) Correct the underlined word and rewrite the following sentences.

1) The problem of employment has been becoming more serious in India.
Answer: Unemployment

2) India is a material abundant country.
Answer: Labour

3) Small scale Industry uses advanced technology.
Answer: outdated

4) SSI begins with large amount of capital.
Answer: small

5) Business proposal is the first step in setting up of a small-scale business.
Answer: Decision on Business Area

Q.1(J) Arrange in proper order.

a) Selection of a place
b) Selection of a product
c) Business proposal
d) Selection of technology

Answer:
a) Selection of a product
b) Selection of a place
c) Selection of technology
d) Business proposal

Q.2 Explain the following terms/concepts.

1) Small Scale Industry
Answer: Traditionally the industries in India which are organized on a Small Scale and produce goods with help of machines, labour and power are considered as Small Scale Industries.

Investment in fixed assets like plant and equipment either held on ownership terms or on lease or hire purchase should not be more than one crore. However, the unit in no way can be owned or controlled or auxiliary for any other industrial unit.

2) Service Sector
Answer: According to MSMED on the basis of investment Micro Service Sector ‘does not exceed Rs 10 lakhs’, Small Service Sector, ‘more than 10 lakhs but does not exceed 2 crores’ and Medium Service Sector ‘more than Rs 2 crores but does not exceed Rs 5 crores.

3) Micro Small Scale Business
Answer: Micro small-scale business is classified as Manufacturing sector and Services Sector. According to MSMED, Micro Manufacturing sector does not exceed Rs 25 lakhs and Micro Services sector does not exceed Rs 10 lakhs.

4) Traditional Industrial Sector
Answer: Small Scale Industries are further classified as Traditional Small Scale Industries and Modern Small Scale Industries. Handloom, Handicraft, Coir, Sericulture, Khadi, and Village Industries are examples of traditional SSI Industries.

5) Modern Industrial Sector
Answer: Small Scale Industries are further classified as Traditional Small Scale Industries and Modern Small Scale Industries. Bicycle Parts, Sewing Machines, Blades, Razors, Electric Appliances, and Spare Parts are examples of Modern Small Scale Industries.

Solution of other subjects
Solution of all Chapters of OCM
1 – 2 – 3 – 4 – 5 – 6 – 7 – 8

Q.3 Study the following case/situation and express your opinion.

1) Mr. Ram wants to start Small Scale business of manufacturing parts of bicycles or machinery.

i) Identify the first step or stage of setting up his Small Scale business.
ii) Identify the sector in which Mr. Ram wants to start the business?
iii) State any one advantage of small-scale business.

Solution:
i) Mr. Ram needs to prepare the description for the Small scale business one wants to set up. It is necessary to decide whether he wishes to set up a corporation, proprietorship, or partnership. The potential entrepreneur has to analyze his strength, and weaknesses while deciding for an entrepreneurship career. This analysis helps in knowing what type and size of business would be the most suitable.

ii) Mr. Ram wants to start a business in the manufacturing sector. (Small Scale Business)

iii) Utilization of Domestic Resources:
SSI makes use of local resources which are available to a greater extent. A small amount of savings that normally remain idle is now channelized. This will increase capital formation and investment in the economy.

Q.4 Answer in brief.

1) State any four points of importance of Small Scale Industry/Business.

Answer:
Importance of Small Scale Industry/Business

1) Job Opportunities

SSI is the second largest industry which creates huge employment opportunities. Because it can be operated with a minimum amount of capital. SSI can be run with basic and potential skills. This is a boost for a labour surplus country like India.

2) Regional Balance

In India, all regions are not developed due to lack of industrialization. SSI can be set up with a minimum amount of capital. Small industries manufacture products using simple technologies, locally available resources, materials, and labour. Thus, they contribute significantly to the balanced development of the country.

3) Increase Competitive Strength

Small scale industries enjoy the advantages of low cost of product. These industries use locally available resources which are less expensive. The establishment and running costs of small industries are comparatively less. Low cost of production, and low overheads ultimately result in low price of goods. Increased turnover increases competitive strength.

4) Maximum Use of Natural Resources

Small-scale industries are labour intensive. They utilize available natural resources and raw materials from local areas. Such use of local natural resources minimizes the cost of production which result into a reasonable price of the goods.

2) Write any four advantages of Small Scale Industry.

Answer:
Advantages of Small Scale Industry

1) Large Employment

India is labour abundant country. Small Scale Industries have potential to create employment opportunities on a mass scale. They are labour intensive They use more labour than other factors of production. Their gestation period is low and can provide employment opportunities to large number of people.

2) Less Capital Requirement

SSI requires less capital as compared to large-scale industries. SSI can be started and run by small entrepreneurs with limited capital resources.

3) Utilization of Domestic Resources

SSI makes use of local resources which are available in a greater extent. A small amount of savings that normally remain idle are now channelized. This will increase capital formation and investment in the economy.

4) Increases Industrial Output

SSI produces consumer goods as well as industrial components. The goods are cheaper and satisfy the needs of poor sections of society. Products produced by SSI form a significant portion of the industrial output of a country.

3) State any four challenges before Small Scale Industries.

Answer:
Challenges before Small Scale Industries

1) Old Methods of Production

Generally, Small scale industries use outdated technology and old methods of production. The use of low-grade technical know-how and skills is resulting in low productivity in many industries.

2) Inadequate Finance

Nonavailability of adequate finance is a serious problem faced by Small scale industries. Generally, SSI begins with a small capital base. These units frequently suffer from lack of adequate working capital.

3) Problem of Raw Material

Another major problem of Small scale industries is an inadequate supply of raw materials. Due to that SSI has to compromise on the quantity and quality of raw material, or pay more price to good quality of raw material.

4) Labour Problem

Most small industries recruit unskilled and semi-skilled workers on daily wages. This creates the problem of low labour productivity, higher absenteeism, and poor job commitment. The wages are low due to financial limitations which turn into labour dissatisfaction and increases labour turnover. Improper shifts and lack of job security makes employment in small industries unattractive and the talented workforce does not opt for such job.

Solution of other subjects
Solution of all Chapters of OCM
1 – 2 – 3 – 4 – 5 – 6 – 7 – 8

Q.5 Justify the following statements.

1) Generally Small Scale Industries are sick.

Answer:
a) There are many problems faced by Small Scale Industries. These problems may be internal problems or external problems.
b) Internal Problems are unskilled labour or untrained labour, lack of managerial skills and marketing skills, lack of modernization, etc.
c) External problems like shortage of working capital, inadequate loans, delayed payments, shortage of raw material, etc.
d) According to RBI a sick unit is that which has incurred a cash loss for one year, and is likely to continue it for current year as well as the following year.
e) Thus, mainly due to financial problems, industrial units are unable to sustain themselves and are called as sick units.

2) Small Scale Industry requires less amount of capital

Answer:
a) The production of Small Scale Industries is less.
b) General unskilled labours are employed.
c) As production is less raw material requirement is also less.
d) In a place like India, where capital formation is low, small business is suitable.
e) Due to small in size, such a form of business can easily adapt to changing atmosphere. This promotes flexibility. It can easily change their working style without much loss as compared to large businesses.
f) Thus, SSI requires less amount of capital.

3) Small Scale Industries have problems.

Answer:
Small-scale industries have to face many problems:

1) Old Methods of Production: Generally Small scale industries use outdated technology and old methods of production.

2) Inadequate Finance: Non-availability of adequate finance is a serious problem faced by Small scale industries.

3) Problem of Raw Material: Another major problem of Small scale industries is an inadequate supply of raw materials.

4) Marketing Problem: Marketing is one of the most important activities as it generates revenue.

5) Sickness: The Prevalence of sickness in small industries has become a point of worry to both policymakers and entrepreneurs.

6) Thus, Small Scale Industries have problems.

Solution of other subjects
Solution of all Chapters of OCM
1 – 2 – 3 – 4 – 5 – 6 – 7 – 8

Q.6 Attempt the following.

1) Explain the meaning of Small Scale industries.

Answer:
Traditionally the industries in India are organized on a Small Scale and produce goods
with help of machines, labour and power are considered as Small Scale Industries.
Initially, two categories were considered, those using power with less than 50 employees
and those not using power with employee strength more than 50 but less than 100. However,
capital resources invested in plant and machinery, building etc. have been the primary criteria to differentiate small business from large and medium scale business.

Investment in fixed assets like plants and equipment either held on ownership terms or on
lease or hire purchase should not be more than one crore. However, the unit in no way can be owned or controlled or auxiliary for any other industrial unit.

An industrial unit can be categorized as a small business if it fulfills the capital investment limit fixed by the Government of India according to Micro Small and Medium Enterprises
Development Act (MSMED) 2006.
Business is classified into two sectors.

1) Manufacturing Sector:
i) Micro Enterprise – Does not exceed Rs 25 lakhs
ii) Small Enterprise – More than Rs 25 lakhs but does not exceed Rs 5 crores.
iii) Medium Enterprise – More than Rs 5 crores but does not exceed Rs 10 crores.

2) Services Sector:
i) Micro Enterprise – Does not exceed Rs 10 lakhs
ii) Small Enterprise – More than Rs 10 lakhs but does not exceed Rs 2 crores.
iii) Medium Enterprise – More than Rs 2 crores but does not exceed Rs 5 crores.

2) State the importance of small business.

Answer:
Following are the importance of Small Business

1) Job Opportunities

SSI is the second largest industry which creates huge employment opportunities. Because it can be operated with a minimum amount of capital. SSI can be run with basic and potential skills. This is a boost for a labour surplus country like India.

2) Regional Balance

In India, all regions are not developed due to a lack of industrialization SSI can be set up with a minimum amount of capital. Small industries manufacture products using simple technologies, locally available resources, materials and labour. Thus, they contribute significantly to the balanced development of the country.

3) Increase Competitive Strength

Small scale industries enjoy the advantages of the low cost of the product. These industries use locally available resources which are less expensive. The establishment and running costs of small industries are comparatively less. Low cost of production, and low overheads, ultimately result in the low price of goods. Increased turnover increases competitive strength.

4) Maximum Use of Natural Resources

Small-scale industries are labour intensive. They utilize available natural resources and raw materials from local areas. Such use of local natural resources minimizes the cost of production which result in a reasonable price of the goods.

5) Reduces Migrations

Small Scale industries can create large number of employment in rural areas. The small-scale industry is also the best example of self-employment. Therefore, migration of people from rural areas to urban areas can be reduced or minimized.

3) Explain in brief the impact of capital on Small Scale industries.

Answer:

The major problem faced by small-scale industries is insufficient capital, which creates the following difficulties for them.

(i) Borrowings of Capital from Landlords and Money Lenders

Nationalised and Cooperative banks are not ready to finance Small Scale Industries without security. Thus, they are forced to borrow from money lenders, where they have to pay very high rates of interest.

(ii) Storage of Raw material

Small Scale Industries are agro-based. The raw material is available seasonally. To stock goods, they required huge finance. Due to lack of finance, they run the industry only in seasons.

(iii) Lack of Skilled Labour

Only unskilled and semi-skilled labourers are available. Small Scale Industries cannot afford the labour cost of skilled labourer which affect the quality and quantity of production and profitability.

(iv) Outdated technology

Due to insufficient capital, production methods used by SSI are old, which results in poor quality and quantity of output.

(v) Weaker Marketing Skill

In today’s world marketing plays an important role. The rural area is facing marketing problems due to a lack of facilities and knowledge and they are exploited by middlemen too.

4) State any five problems faced by Small Scale industries.

Answer:

1) Old Methods of Production

Generally, Small scale industries use outdated technology and old methods of production. The use of low-grade technical know-how and skills is resulting in low productivity in many industries.

2) Inadequate Finance

Nonavailability of adequate finance is a serious problem faced by Small scale industries. Generally, SSI begins with a small capital base. Many of the units in the small sector raise funds from the capital market. These units frequently suffer from a lack of adequate working capital.

3) Problem of Raw Material

Another major problem of Small scale industries is an inadequate supply of raw materials. Due to that SSI has to compromise on the quantity and quality of raw material, or pay more price for good quality raw material.

4) Labour Problem

Most small industries recruit unskilled and semi-skilled workers on daily wages. This creates the problem of low labour productivity, higher absenteeism, and poor job commitment. The wages are low due to financial limitations which turn into labour dissatisfaction and increases labour turnover. Improper shifts and lack of job security makes employment in small industries unattractive and the talented workforce does not opt for such job.

5) Problem of Transport

It is necessary for SSI to spend on transportation of raw materials and finished goods. Due to a lack of transport facilities, it is difficult to transfer raw material from market to factory and finished products from factories to consumers.

5) Explain the role of Small Scale industries in employment generation.

Answer:
Small Scale Industries play a very important role in the generation of employment as follows:

1) Small Scale Industries are Labour Intensive

There is a shortage of capital in small-scale industries. They are labour intensive. They use more manpower than machines, they create more opportunities for rural employment.

2) Employment to Unskilled and Semiskilled Labourer

Small Scale Industries are using old and traditional methods of production where they need unskilled and semi-skilled labourers.

3) Employment of Rural Land Less Labourer

Small Scale Industries are set up in rural areas. They provide employment to local labourers. They have the potential to create opportunities for large-scale employment for the mass population in villages.

4) Decrease in Migration of Labourers

Migration means the movement of labourers from village to city in search of a job. Due to the increase in small-scale industries in village areas migration of labour is reduced. Labourers are getting good employment in their own villages.

Q.7 Answer the following.

1) Explain the challenges before small business.

Answer:
In India, Small scale industries are facing many difficulties and problems. So there is an adverse effect on their work. The following are the challenges before Small scale industries.

They faced the following challenges/difficulties

1) Old Methods of Production

Generally, Small scale industries use outdated technology and old methods of production. The use of low-grade technical know-how and skills is resulting in low productivity in many industries.

2) Inadequate Finance

Non-availability of adequate finance is a serious problem faced by Small scale industries. Generally, SSI begins with a small capital base. Many of the units in the small sector raise funds from capital market. These units frequently suffer from lack of adequate working capital.

3) Problem of Raw Material

Another major problem of Small scale industries is an inadequate supply of raw materials. Due to that SSI have to compromise on the quantity and quality of raw material, or pay more price to good quality of raw material.

4) Labour Problem

Most of the small industries recruit unskilled and semi-skilled workers on daily wages. This creates the problem of low labour productivity, higher absenteeism and poor job commitment. The wages are low due to financial limitations which turn into labour dissatisfaction and increases labour turnover. Improper shifts and lack of job security makes employment in small industries unattractive and the talented workforce does not opt for such job.

5) Marketing Problem

Marketing is one of the most important activities as it generates revenue. Effective marketing of goods requires a thorough understanding of the customer’s needs and requirements. In most cases, marketing is a weaker area of small industries. These SSI have to depend excessively on middlemen who at times exploit them by paying low prices and delayed payments. Further, the direct marketing may not be feasible for small business firms as they lack the necessary infrastructure.

6) Problem of Transport

It is necessary for SSI to spend on transportation of raw materials and finished goods. Due to the lack of transport facilities, it is difficult to transfer raw material from market to factory and finished products from factories to consumers.

7) Sickness

The prevalence of sickness in small industries has become a point of worry to both policymakers and entrepreneurs. The causes of sickness are both internal and external. Internal problems include lack of skilled and trained labour, lack of managerial and marketing skills etc. External problems include delayed payment, shortage of working capital, inadequate loans and lack of demand for their products.

8) Power Shortage and Irregular Supply

Higher cost of power acquisition, load shedding, frequent power cuts, irregular supply of power, voltage fluctuation and rising power charges badly affect productivity.

9) Global Competition

Apart from the problems stated above, small businesses are facing problems on the context of Liberalization, Privatization and Globalization (LPG) policies being followed by several countries across the world.

2) Write down the benefits of small business.

Answer:
Small Scale industries have always played an important role in the economic development of the country.

The following are the benefits of Small Scale Industries:

1) Large Employment

India is labour abundant country. Small Scale Industries have the potential to create employment opportunities on a mass scale. They are labour intensive They use more labour than other factors of production. Their gestation period is low and can provide employment opportunities to large number of people.

2) Less Capital Requirement

SSI requires less capital as compared to large-scale industries. SSI can be started and run by small entrepreneurs with limited capital resources.

3) Utilization of Domestic Resources

SSI make use of local resources which are available in a greater extent. A small amount of savings which normally remain idle are now channelized. This will increase capital formation and investment in the economy.

4) Increases Industrial Output

SSI produce consumer goods as well as industrial components. The goods are cheaper and satisfy the needs of poor sections of society. Products produced by SSI form a significant portion of the industrial output of a country.

5) Contribution to Export

Nearly 40% of the industrial exports are contributed by SSI. Products such as hosiery, knitwear, gems and jewellery, handicrafts, coir products, woollen garments, processed food, chemical and allied products and a large number of engineering goods contribute substantially to India’s exports. Also, products produced by SSI are used in the manufacturing of products by large-scale industries which are exported. It contributes directly and indirectly to exports and earns valuable foreign exchange.

6) Equitable Distribution

Large-scale industries lead to inequalities in income distribution and concentration of economic power. But small scale industries distribute resources and wealth more equitably. This is because income is distributed among more workers as it is labour intensive. This results in both economic and social welfare.

7) Earning Foreign Exchange

Small scale industries earn valuable foreign exchange for the country by exporting products to different countries of the world. At the same time, their imports are very little. e.g. The Small Scale industries in Tiruppur contribute to a substantial portion of India’s textile export and earn valuable foreign exchange for the country.

8) Opportunities for Entrepreneurship

Small-scale industries provide opportunities for entrepreneurs with limited capital. SSI requires less capital and lower investment in technology and machines as compared to large-scale enterprises. Therefore small entrepreneurs can start small-scale industries easily. SSI in Japan, which was devastated by the second world war became a major economic power because of many small entrepreneurs who contributed greatly to the nation’s development.

9) Cost Efficiency

Small Scale units can adopt micro production methods which offer better quality and more variety at a lower cost. They are most cost-effective as compared to large scale because their expenses are lower.

10) Reduces Migration

Migration happens when people living in rural areas are not able to find employment and therefore, they migrate to urban areas seeking employment. Large-scale migration puts tremendous pressure on land, water and other resources in urban areas. The skills and talents of rural craftsmen, artisans etc. lead to gainful employment for those with inheritance skills resulting in their economic upliftment. Thus Small Scale industries help in reducing migration.

11) Flexibility in Operation

Small-scale industries are more flexible. They can adapt themselves to changing market requirements very fast.

3) Explain the process of establishment of Small Scale industries.

Answer:
The small-scale business provides more independence than large-scale business and through this type of business, one can fulfil their dream to become an entrepreneur. One can set up Small scale business by following the simple steps which are as follows.

1) Decision of Business Area

One needs to prepare the description for the Small scale business one wants to set up. It is necessary to decide whether one wishes to set up a corporation, proprietorship or partnership. The potential entrepreneur has to analyze his strength, and weaknesses while deciding on an entrepreneurship career. This analysis helps in knowing what type and size of business would be the most suitable.

2) Study of Business Environment

Before setting up an industry, it is always essential to study and understand the prevailing business environment in which they operate particularly the industrial policy, economic policy, licensing policy, legal environment, and technological environment.

3) Selection of Product

One needs to decide the product to manufacture or the service to offer. When choosing the product or service which one wants to offer, one must conduct good market research and learn about the prevailing competition in the market.

4) Selection of Place

One needs to choose a location to set up a small-scale business. While choosing the location, factors such as nearness to market, sources of availability of raw materials, labour, transportation services, modern infrastructural facilities and other things are considered.

5) Selection of Technology

To manufacture any item technology is used. Entrepreneurs should posses information of all available technologies and its suitability. It will be also useful to determine the need of money, material and equipment to be installed.

6) Business Proposal

Project appraisal means the assessment of a project. It is a technique for analysis of a scheme or project while preparing to set up an enterprise. The entrepreneur has to appraise the project carefully from the economic, financial, technical, market, social and managerial points of view.

7) Finance

Finance is the lifeblood of the enterprise. So, the next big step is to arrange for finance. No business can be created, with zero capital. If one doesn’t have enough finance then the best way is to borrow from outside.

8) Registration

It is always worthwhile to get the unit registered with the government. The entrepreneur has to obtain the prescribed application form from District Industries Centre (DIC). After having duly filled in the application form, he has to submit the application with all relevant documents in the local DIC.

9) Actual Arrangements of Resources: The required resources are arranged.

a) Physical Resources: This includes allocating space for different operations and choosing production methods. One is required to purchase machinery and hire employees and workers for different departments.

b) Arrangement of Power and Water Supply: The sites where the enterprise will be located should either have adequate power connections, or it should be arranged. The entrepreneur can calculate the total power requirement and determine the nearest pole from which power will be available for a business, as it can materially affect the installation cost.

c) Staffing: Once machines are installed, the need for manpower arises to run them. So the quantum and type of manpower are to be decided. The sources of getting desired labour are also important. This follows the recruitment, training and placement.

10) Production and Marketing of Product

Production is the next step. Once Small scale business is started. Marketing is the most important activity as far as entrepreneurial development is concerned. Marketing and business advertising form the next step of setting up Small Scale business. Online business directories and various traditional forms of advertising can gain exposure for business.

11) Review or feedback for Future Changes

Periodical monitoring and evaluation not only of markets but also production quality and profitability help in knowing where the firm stands in comparison to the performance envisaged in the business plan. It also identifies the direction of future growth

4) Explain the importance of small business.

Answer:
For Answer refer to Q.6 (2)

5) It is clear that the absence of capital and raw material is the main reason for short-term sickness. Explain it.

Answer:

Solution of other subjects
Solution of all Chapters of OCM
1 – 2 – 3 – 4 – 5 – 6 – 7 – 8

11th OCM Textbook Solutions

Chapter Name	Solution Link
1) Introduction of Commerce and Business	Click Here
2) Trade	Click Here
3) Small Scale Industry and Business	Click Here
4) Forms of Business Organisation – I	Click Here
5) Forms of Business Organisation – II	Click Here
6) Institutes Supporting Business	Click Here
7) Business Environment	Click Here
8) Introduction to Management	Click Here

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