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

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The following question based on Industries, Manufacturing & Service Sectors topic of indian economy mcq

Questions : Which one of the following is not an immediate indicator of Industrial Sickness?

(a) Shrinking of market credit

(b) Drop in profitability

(c) Labour unrest

(d) Decline in market share

The correct answers to the above question in:

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.

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Read more industries manufacturing service sectors Based Indian Economy Questions and Answers

Question : 1

In June 2013 the CRR of Bank in the country was

a) 12%

b) 4%

c) 16%

d) 8%

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.

Question : 2

Which sentence is correct regarding CPSE?

  1. 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
  2. In 2015, there are as many as 290 CPSEs, wherein, 169 are Holding CPSEs and 121 are subsidiaries.
  3. 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.

a) Only III

b) Only I

c) I & II

d) All the above

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.

Question : 3

Consider the following statements about the Navaratna status industries.

  1. Navaratna was originally assigned to nine public sector enterprises in 1997.
  2. The number of PSEs (Public Sector Enterprises) having Navaratna status is now more than 15 industries.
Which of the statements given above is/are correct?

a) Both 1 and 2

b) 2 only

c) 1 only

d) Neither 1 nor 2

Answer: (a)

Navratna was the title given originally to 9 Public Sector Enterprises (PSEs) identified by the government in 1997 as public sector companies that have comparative advantages enjoying greater autonomy to compete in the global market so as to support their drive to become global giants.

However, the number of PSEs (Public Sector Enterprises) having Navaratna status is now more than 15 industries.

Question : 4

Match the given companies with their locations and select the correct answer by using the codes given below:

List I List II
(Company) (Location)
A. Balco 1. Hirakund
B. Hindalco 2. Korba
C. Indian Aluminium company 3. Koraput
D. Nalco 4. Renukoot
Codes: A B C D

a) 2 4 1 3

b) 3 4 1 2

c) 3 1 4 2

d) 2 1 4 3

Answer: (a)

The correct locations of the given companies are :

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

Question : 5

Which one of the following is not correctly matched?

a) Jet Airways : Air Sahara

b) Hindalco industries : Novelis

c) Tata Steel : Corus Group

d) Kingfisher Airlines : MDR Airlines

Answer: (d)

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

Question : 6

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

a) Cost control competition

b) Product competition

c) Production flow competition

d) None of these

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.

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