Updated for 2026 Syllabus Detailed Explanations High-Yield Core Concepts

Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: General Practice

Q142: Which of the following is widely regarded as the most vital intangible "Critical Success Factor" (CSF) for the sustainability of a cluster development initiative?

A
The amount of subsidy released by the State Government.
B
The availability of cheap land for expansion.
C
The presence of "Social Capital" (Trust) and strong local leadership.
D
The immediate construction of a grand entry gate and administrative building.
✅ Correct Answer: C
Concept Definition: While finance and infrastructure (Hard Interventions) are visible, the sustainability of a cluster depends on Soft Aspects.
Critical Success Factors (CSFs):





Trust (Social Capital): If members do not trust each other, the SPV (Special Purpose Vehicle) will fail, and the Common Facility Centre (CFC) will become a "White Elephant" (useless asset).




Leadership: Presence of "Cluster Champions"—local leaders who can drive consensus.




Active Participation: Members must contribute their own equity (margin money) to prove commitment.
Why others fail: Subsidies (A) and Infrastructure (D) are enablers, but without internal cohesion and trust, the cluster cannot function collectively.