NIOS Class 10 Entrepreneurship Chapter 13 Micro, small and medium enterprises (MSMEs)

NIOS Class 10 Entrepreneurship Chapter 13 Micro, small and medium enterprises (MSMEs) Solutions to each chapter is provided in the list so that you can easily browse through different chapters NIOS Class 10 Entrepreneurship Chapter 13 Micro, small and medium enterprises (MSMEs) and select need one. NIOS Class 10 Entrepreneurship Chapter 13 Micro, small and medium enterprises (MSMEs) Question Answers Download PDF. NIOS Study Material of Class 10 Entrepreneurship Notes Paper 249.

NIOS Class 10 Entrepreneurship Chapter 13 Micro, small and medium enterprises (MSMEs)

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Also, you can read the NIOS book online in these sections Solutions by Expert Teachers as per National Institute of Open Schooling (NIOS) Book guidelines. These solutions are part of NIOS All Subject Solutions. Here we have given NIOS Class 10 Entrepreneurship Chapter 13 Micro, small and medium enterprises (MSMEs), NIOS Secondary Course Entrepreneurship Solutions for All Chapters, You can practice these here.

Chapter: 13

Intext Questions 13.1

State whether these statements are true or false: 

(i) The manufacturing sector and service sector are both the same. 

Ans: False.

(ii) The proprietary firm is an enterprise. 

Ans: True.

(iii) Cooperative Society is also an Enterprise. 

Ans: True. 

(iv) Enterprise means manufacture or production of goods engaged in providing or rendering any service or services. 

Ans: True.

(v) The factory is an enterprise.

Ans: True.

Intext Questions 13.2

I. Match the following:

(i) Cement factory(a) Service Sector.
(ii) 9 crore investment in plant and machinery(b) Medium Enterprise.
(iii) 9 lakhs investment in photo studio equipment(c) Small Enterprise.
(iv) Courier(d) Micro Enterprise. 
(v) 25 crore investment in Food processing unit(e) Manufacturing Sector.


(i) Cement factory(e) Manufacturing Sector.
(ii) 9 crore investment in plant and machinery(c) Small Enterprise. 
(iii) 9 lakhs investment in photo studio equipment(d) Micro Enterprise.
(iv) Courier(a) Service Sector.
(v) 25 crore investment in Food processing unit(b) Medium Enterprise.

II. Choice the correct answer:

(i) Micro Enterprise (Limit for Investment) 

(a) 0-1 Crore. 

(b) 2-10 Crore. 

(c) 11-50 Crore. 

(d) None. 

Ans: (a) 0-1 Crore.

(ii) Small Enterprise (Limit for Investment) 

(a) 0-1 Crore. 

(b) 2-10 Crore. 

(c) 11-50 Crore.

(d) None. 

Ans: (b) 2-10 Crore.

(iii) Medium Enterprise (Limit for Investment) 

(a) 0-1 Crore. 

(b) 2-10 Crore. 

(c) 11-50 Crore. 

(d) None. 

Ans: (c) 11-50 Crore.

(iv) Micro Enterprise (Limit for Turnover) 

(a) 0-5 Crore. 

(b) 6-50 Crores. 

(c) 51-250 crore. 

(d) None. 

Ans: (a) 0-5 Crore.

(v) Small Enterprise (Limit for Turnover) 

(a) 0-5 Crore. 

(b) 6-50 Crores. 

(c) 51-250 crore. 

(d) None. 

Ans: (b) 6-50 Crores. 

(vi) Medium Enterprise (Limit for Turnover) 

(a) 0-5 Crore. 

(b) 6-50 Crores. 

(c) 51-250 crore. 

(d) None.

Ans: (c) 51-250 crore.

Intext Questions 13.3

Fill in the blanks:

(i) EODB means __________. 

Ans: Ease of Doing Business.

(ii) EODB Index created by __________. 

Ans: Simeon Djankov.

(iii) EODB Index focusing on __________ key areas. 

Ans: Eight.

(iv) EODB is being published every __________ by the World Bank. 

Ans: Year.

(v) India rank in EODB 2018 __________. 

Ans: 77th Position.

(vi) __________ state have first Rank in EODB 2018.

Ans: Gujarat State.

Terminal Questions

 1. What is MSME?

Ans: Micro, small and medium enterprises are the pillars of economic growth in many developed and developing countries. MSME is rightly termed as “the engine of growth” for India. MSMEs have played a prominent role in the development of the country in terms of creating employment opportunities. MSMEs have employed more than 50 million people, scaling manufacturing capabilities, curtailing regional disparities, balancing the distribution of wealth, and contributing to the Gross Domestic Product (GDP). MSME sector forms 8% of GDP.

2. Explain the difference between Manufacturing Sector and Service Sector? 


Manufactures sectorsService sectors
Production and distribution are separated from consumption.Production, distribution and consumption are simultaneous processes.
A thing.An activity or process.
Core value processed in the factory.Core value produced in the buyer-seller interaction.
Customers do not participate in the production process.Customers participate in production.
Can be kept in stock.Cannot be kept in stock.
Transfer of ownership.No transfer of ownership.

3. What is the meaning of Ease of Doing Business?

Ans: “Ease of doing business” (EoDB) is an index created by Simeon Djankov published yearly by the World Bank. It defines the ease of doing business in a country. Higher rankings in the index imply better, simpler business regulations and stronger protections for property rights. 

4. Explain the limits of Investment & Turnover amount for micro, small and medium enterprises? 

Ans: Investment: To allocate money in the expectation of some benefit in the business (Personal money or loan from Banks and other financial institutions). 

Turnover: The amount derived from the provision of goods and services after deduction of trade discounts, taxes and any other taxes based on the amounts so derived.

Micro Enterprise15
Small Enterprise1050
Medium Enterprise50250

5. What is UdyogAadhar?

Ans: UdyogAadhaar is a twelve digit Unique Identification Number provided by the Ministry of Micro, Small and Medium Enterprises, Government of India for small and medium enterprises in India. It is also known as Aadhaar for Business. You can get yourself registered as Small and Medium Enterprise (SME) under the MSME Act.

6. Explain Cement manufacturing process? 

Ans: The cement manufacturing process are as follow:

(i) Crushing Section: The raw materials, mainly limestone, additives etc. are crushed in the separate crushers and stored automatically into the respective silos.

(ii) Storage & Proportioning: The different raw materials are extracted from the silos in the desired proportion through table feeders and conveyed to the raw mill. 

(iii) Raw Milling: The raw mix is ground into a Ball Mill at desired fineness to produce Raw Meal, and transported for Homogenizing. 

(iv) Blending & Homogenization: The raw meal is homogenised in the blending silos, and is stored automatically into a storage silo for feeding to the kiln. 

(v) Palletizing & Burning: The raw meal is charged into the kiln for burning. The clinker after discharge is stored in the clinker yard through a deep Bucket Elevator. 

(vi) Clinker/gypsum crushing, storage & proportioning: Clinker & Gypsum after crushing stored into the hoppers and extracted in the desired proportion with the help of table feeders and transported to the Cement mill Hopper. 

(vii) Cement Milling: The clinker, Gypsum & Fly ash mix is ground in the cement mill to produce cement. 

(viii) Storage & Packing: The cement is stored into the cement silos and aerated, tested and packed for dispatch.

7. Explain about registration of enterprises based on various acts?


Business RegistrationUnder which ActRegistration at
Sole Proprietorship
Partnership FirmPartnership Act 1932Registrar offices(State Government)
Limited liability partnership Act 2008Registrar offices(State Government)
Company one person 
Company Private limitedCompany public limited Company
Companies Act 2013Registrar offices(Central Government)
Co-operative societyCooperative Act mutually aided cooperatives Act.Registrar of cooperatives.

(i) Sole Proprietorship: Sole proprietorship is a business that is owned, managed and controlled by one person. It is one of the most common forms of business in India, used by small businesses. Although sole proprietor doesn’t require any specific registrations, he is advised to obtain a few registrations to make his business function smoothly. Registering as SME, Shop and Establishment Act License & GST Registration. 

(ii) Partnership / Limited Liability Partnership: A partnership firm is an organisation which is formed with two or more persons to run a business with a view to earn profit. Each member of such a group is known as a partner and collectively known as a partnership firm. If you want to start your business, then you must get it registered under Indian Partnership Act, 1932. 

(iii) Company means an entity formed and registered under the Companies’ Act 2013. One Person Company (OPC) or private limited or public limited companies registered under this Act is called as a Company.

(iv) Cooperative Society: A cooperative is “an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly owned enterprise”. Cooperative Society means a co-operative society registered under this Act 1950 or any state/relevant act.

8. Explain about key areas of EODB?

Ans: To setup an enterprise, the Central and State Governments are focusing on following aspects:

(i) Starting a Business. 

(ii) Dealing with Construction Permits. 

(iii) Getting Electricity. 

(iv) Registering Property. 

(v) Getting Credit. 

(vi) Protecting Minority Investors. 

(vii) Paying Taxes. 

(viii) Trading across Borders. 

(ix) Enforcing Contracts. 

(x) Resolving Insolvency.

9. Explain about Courier Company services?

Ans: The courier company services are discussed below:

(i) Merchant or retail customer plans to send a shipment abroad or domestically and request a delivery via phone. Email or web booking. 

(ii) Customer service takes the shipment order and directly updates the system to notify the courier person to pick-up the shipment. 

(iii) Notified by the IT system, the courier collect or picks the shipment and records successful pickup and heads to the warehouse. 

(iv) At the warehouse, the shipment is sorted based on the urgency and destination requested. The customer is able to track his shipment on a real time basis. 

(v) Operations allocate a delivery job to each courier boy based on their zone coverage. Operations track the movement of all of its couriers via mobile including the number of deliveries performed and his efficiency. 

(vi) For domestic shipments, the delivery is made to the end customer or parcel lockers. 

(vii) For International shipments, we either deliver the shipment to our agents or they pick it up from our warehouse depending on the agreement. Those agents also provide us with shipment tracking services. 

(viii) The agent chooses the d3elivery mode depending on the parcel delivery requirements (priority, size and destination) and delivers it to the warehouse of the destination country. The shipment is then sorted for delivery. 

(ix) The recipient of the shipment is then contracted by the customer services of the agent and arranges a time for delivery. 

10. Explain the importance of MSMEs in India. 

Ans: Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in India’s economy for several reasons:

(i) Employment Generation: They provide employment opportunities in local communities and are often a significant source of jobs in rural or underserved areas where opportunities to work in big corporations are not available. By creating jobs, MSMEs help to reduce unemployment rates and stimulate economic growth.

(ii) Contribution to GDP: It also accounts for 45 % of total industrial production, 40% of total exports and contributes very significantly to the GDP. Manufacturing segment within the MSME contributes to 7.09% of GDP. MSMEs also contribute to 30.50% of services. The total contribution of MSMEs to the GDP is 37.54.

(iii) Promotion of Entrepreneurship: The Ministry of Micro, Small and Medium Enterprises (MSME) has taken following initiatives for promotion of MSME’s and to enable ease of doing business: Under Udyog Aadhaar Memorandum (UAM) Ministry has notified a simple one-page registration Form UAM on 18.09. 2015.

(iv) Regional Development: Micro, Small, and Medium Enterprises (MSMEs) located in rural regions provide job prospects for the young residing in the adjacent villages. In addition to providing direct employment, the firm also generates indirect possibilities for other enterprises.

(v) Contribution to Exports: In case of items like readymade garments, leather goods, processed foods, engineering items, the performance has been commendable both in terms of value and their share within the MSME sector while in some cases like sports goods they account for 100% share to the total exports of the sector.

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