Module: General Practice
Q114: In the process of setting up an MSME, what is the specific document called that covers the technical analysis, financial viability, and market potential, and serves as the primary basis for banks to sanction loans?
✅ Correct Answer: B
Correct Option: B. Concept: Project Documentation.
Context: Before funding a business, lenders need proof that the idea is profitable.
Distinctions: Detailed Project Report (DPR): This is the master plan.
It calculates the Break-Even Point, Return on Investment (ROI), and cash flow projections.
It tells the bank how the loan will be repaid.
MoA (A): This is a legal charter defining the company's relationship with shareholders, not a financial feasibility study.
Udyam (C): Proof of identity/registration only.
Context: Before funding a business, lenders need proof that the idea is profitable.
Distinctions: Detailed Project Report (DPR): This is the master plan.
It calculates the Break-Even Point, Return on Investment (ROI), and cash flow projections.
It tells the bank how the loan will be repaid.
MoA (A): This is a legal charter defining the company's relationship with shareholders, not a financial feasibility study.
Udyam (C): Proof of identity/registration only.