As per the MSME classification of Government of India, a service firm with an investment of Rs. 1 crore is called Micro enterprise Small enterprise Medium enterprise Nano enterprise
Question
As per the MSME classification of Government of India, a service firm with an investment of Rs. 1 crore is called Micro enterprise Small enterprise Medium enterprise Nano enterprise
Solution
As per the MSME classification of Government of India, a service firm with an investment of Rs. 1 crore is classified as a 'Small enterprise'.
Here's the step by step explanation:
-
The Government of India has defined Micro, Small and Medium Enterprises based on their investment in plant and machinery (for manufacturing enterprises) or equipment (for service enterprises).
-
As per the revised guidelines (effective from July 1, 2020), a service enterprise is considered a 'Micro' enterprise if its investment in equipment does not exceed Rs. 1 crore and its turnover is less than Rs. 5 crores.
-
A service enterprise is considered a 'Small' enterprise if its investment in equipment is more than Rs. 1 crore but does not exceed Rs. 10 crores, and its turnover is less than Rs. 50 crores.
-
Therefore, a service firm with an investment of Rs. 1 crore falls under the 'Small enterprise' category as per the MSME classification of the Government of India.
Please note that the 'Nano' enterprise is not a recognized category in the MSME classification of the Government of India.
Similar Questions
Micro enterprises are those whose investment in plant and machinery does not exceed rupees___Options2 Lakh5 Lakh3 Lakh1 Lakh
A micro enterprise is defined as having:a.11-50 employees with a turnover of R3-32 million per annumb.6-10 employees with a turnover of more than R100 000, but less than R3 million per annumc.5 or fewer employees with a turnover of R100 000 per annumd.Up to 200 employees
A Micro entrepreneur is…. A. A formal-sector entrepreneur with zero to 10 employees B. A formal-sector entrepreneur with zero to 15 employees C. A formal-sector entrepreneur with 1 to 15 employees D. A formal-sector entrepreneur with 1 to 10 employees
Small and Medium Enterprises (SMEs) . It is accepted they contribute significantly to our GDP. Now to prosper and expand the business in this sector what they need cultivate Digital Business . The digital business is best defined in this context as : Please indicate the appropriate oneSelect one:a. Involves digital technologyb. Doing business with dedicated communication link with partnersc. digital business excludes smaller partiesd. Business on Internet with many to many on variety of transactions on digital devices
These are manufacturing companies with more than a hundred of employees whichcan be an opportunity for entrepreneursA. Industry B. Macro Market C. Market D. Micro-market
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.