Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

MSME and Business Entrepreneurship

Question:

MSME are considered to be........... labour intensive and ............ capital intensive.

Options:

Less, More

More, Less

Equal, More

Lees, Equal

Correct Answer:

More, Less

Explanation:

The correct answer is option 2- More, Less.

MSME are the second largest employers of human resources, after agriculture. They generate more number of employment opportunities per unit of capital invested compared to large industries. They are, therefore, considered to be more labour intensive and less capital-intensive. This is a boon for a labour surplus country like India.