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

Answer: (c)

Cotton Industry in India is the most organized industry which contributes to about 4% of GDP, 14% of manufacturing value and 13.5% to total export earnings.

Answer: (c)

The Planning Commission fixed the baseline of poverty per capita for rural areas using the Tendulkar methodology at Rs. 816 per capita per month and Rs. 1,000 per capita per month in urban areas.

Answer: (a)

Disinvestment is a process in which off-loading of government shares is done to private companies. A company or government organization will divest an asset or subsidiary as a strategic move for the company, planning to put the proceeds from the divestiture to better use that garners a higher return on investment.

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: (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)

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.