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

Answer: (d)

1. Hindalco industries : Novelis
2. Tata Steel : Chorus group
3. Jet airways : Air Sahara
4. Kingfisher Airlines: MDR Airlines

Answer: (a)

The correct locations of the given companies are :

1. BALCO — Korba
2. HINDALCO — Renukoot
3. Indian Aluminium Company — Hirakund
4. NALCO — Koraput

Answer: (d)

Industrial sickness can be identified by the following symptoms. These symptoms act as leading indicators of sickness, and if immediate remedial actions are not taken, the sickness will grow to the extent that the organization will find its natural death.

Continuous reduction in turnover, Piling up of inventory, Continuous reduction of net profit to sales ratio, Short term borrowings at high interest rate, Continuous cash losses leading to erosion of tangible net worth etc.

However, a decline of market share is not an immediate indicator.

Answer: (b)

The services sector’s significance in the Indian economy has continued to increase, with the sector now accounting for around 55 per cent of GVA, two-thirds of total FDI inflows into India and about 38 per cent of total exports.

Ref: Economic Survey 2019-20, Vol – II, Page 273.

Answer: (c)

In the short run insurance premium are fixed costs because they are independent of the level of production.

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.