industries manufacturing & service sectors section 8 MCQ Questions & Answers Detailed Explanation

Answer: (c)

Force Majeure is a French phrase that means a ‘superior force’. It is an unforeseeable circumstance that prevents someone from fulfilling a contract. It is a contractual provision agreed upon between parties.

The occurrence of a force majeure event protects a party from liability for its failure to perform a contractual obligation. Typically, force majeure events include an Act of God or natural disasters, war or war-like situations, epidemics, pandemics, etc.

The intention of a force majeure clause is to save the performing party from the consequences of something over which it has no control.

Force Majeure is an exception to what would otherwise amount to a breach of contract. This term is generally used in commercial contracts.

Answer: (c)

It is a method of awarding projects by the government.

Under this method, various bidders submit their plan for the project and the company (the bidder) whose project plan is accepted by the govt. is given the opportunity to work on the project at the price quoted by the lowest bidder.

If it does not accept this, then the project is given to the lowest bidder.

Answer: (d)

The budget (2020-21) is woven around three prominent themes:

1. Aspirational India
2. Economic Development
3. Caring society

This budget is dedicated to providing “Ease of Living” to all citizens.

The “Ease of Living” is a bouquet and holding this bouquet are two hands- one, corruption-free, policy-driven good governance and two, the clean and sound financial sector. And the details under the three broad themes are the flowers in the bouquet.

Answer: (b)

A Miniratna company is one that has made profits continuously for the last three years or earned a net profit of Rs. 30 crores or more in one of the three years.

Miniratna company can invest up to Rs. 500 crores or equal to their net worth, whichever is lower without govt approval.

Answer: (a)

Answer: (c)

The government has relaxed norms for giving Maharatna status to public sector enterprises, a move that will benefit blue-chip companies such as Coal India, GAIL, BHEL and NMDC in their expansion plans.

Only four state-run companies --ONGC, SAIL, IOC and NTPC -- at present enjoy the Maharatna status, which gives them the financial and managerial autonomy to invest up to Rs. 5,000 crore in a new venture without seeking government approval.

Under the new norms, a company qualifying for the Maharatna status should have an average annual turnover of Rs. 20,000 crore during the last three years against Rs. 25,000 crore prescribed earlier.

Further, the criteria on average annual net worth have been relaxed to Rs. 10,000 crore from the earlier limit of 15,000 crores.