industries manufacturing & service sectors section 2 Practice Questions Answers Test with Solutions & More Shortcuts

Answer: (d)

SEBI, the regulatory body completed 25 years of its establishment in 2013.

It was formed in the year 1988 to protect the interests of investors in securities and to promote the development and regulate the securities market.

Answer: (d)

Just as diseases are identified by certain symptoms, 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 a high interest rate,
• Continuous cash losses leading to erosion of tangible net worth etc.

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

Answer: (b)

The first petrochemical industry in India was started with the establishment of National Organic Chemical Industry Limited in 1961.

The company manufacture various organic and inorganic chemicals. The real thrust of the Petrochemical industry in India came with the establishment of Indian Petrochemical Corporation Limited (IPCL) at Baroda on March 22, 1969, with a view to promote and encourage the use of plastics in India.

Answer: (b)

Generation Capacity from various sources as on 31.12.2019 

As per the new classification of government, all hydro projects, big or small come under renewable energy.

Answer: (a)

The government has relaxed norms for giving Maharatna status to public sector enterprises, a move that will benefit blue-chip companies such as Coal India, GAIL, BHEL and NMDC in their expansion plans.

Only four state-run companies --ONGC, SAIL, IOC and NTPC -- at present enjoy the Maharatna status, which gives them the financial and managerial autonomy to invest up to Rs. 5,000 crore in a new venture without seeking government approval.

Under the new norms, a company qualifying for the Maharatna status should have an average annual turnover of Rs. 20,000 crore during the last three years against Rs. 25,000 crore prescribed earlier.

Further, the criteria on average annual net worth have been relaxed to Rs. 10,000 crore from the earlier limit of 15,000 crores.