BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

ENTREPRENEURIAL DEVELOPMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
The minimum amount of ____, irrespective of such private participation, could be specified at a minimum 17.5 per cent of project costs by lending institutions.
A
. bank loans
B
promotors contribution
C
. fixed capital
D
working capital
Explanation: 

Detailed explanation-1: -5. The Industrial Policy Statement of 1977 laid emphasis on decentralisation and on the role of small-scale, tiny and cottage industries.

Detailed explanation-2: -The first comprehensive industrial policy announced by the Government of India, after independence, was the Industrial Policy Resolutions (IPRs), 1948 which identified the critical role of the cottage and small-scale industries.

Detailed explanation-3: -Answer: (D) Under-estimation of initial rate of earnings leads to under-capitalization. Explanation: Undercapitalization happens when an organization doesn’t have adequate capital to direct typical business tasks and pay leasers.

Detailed explanation-4: -The term overcapitalization refers to a situation wherein the value of a company’s capital is worth more than its total assets.

There is 1 question to complete.