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

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: (d)

During the first five-year plan (1950-51 to 1955-56) there were only five CPSEs with a total financial investment (Including equity plus long-term loans) of Rs. 290 million, whereas at present, in 2015, there are as many as 290 CPSEs, wherein, 169 are Holding CPSEs and 121 are the subsidiaries.

As of Mar 31, 2012, the total financial investment of CPSEs was 7,292.3 billion, showing a CAGR of around 12% during the same period.

Answer: (d)

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

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.