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

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 CRR of Bank in the country in June 2013 was 4%. Cash Reserve Ratio (CRR) is a specified minimum fraction of the total deposits of customers, which commercial banks have to hold as reserves either in cash or as deposits with the central bank.

Answer: (b)

Maruti views Tata motors as a prominent competitor but does not view Volvo as a competitor.

This type of competition in the market is known as product competition because the companies are competing on the same and similar products.

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.