Module: General Practice
Q113: Which of the following is NOT a typical characteristic of the MSME sector in India?
✅ Correct Answer: A
Correct Option: A. Concept: Characteristics of MSMEs.
Reasoning: MSMEs are defined by a Low Capital-Output Ratio.
This means they are efficient at producing output with relatively small capital investments.
Why others are characteristics: Labor Intensive (B): They create more jobs per unit of capital than large industries.
Adaptability (C): Their small size allows them to change product lines or processes quickly in response to market demand.
Low Overheads (D): They usually have lean management structures and lower fixed costs.
Reasoning: MSMEs are defined by a Low Capital-Output Ratio.
This means they are efficient at producing output with relatively small capital investments.
Why others are characteristics: Labor Intensive (B): They create more jobs per unit of capital than large industries.
Adaptability (C): Their small size allows them to change product lines or processes quickly in response to market demand.
Low Overheads (D): They usually have lean management structures and lower fixed costs.