Question

For an enterprise in service sector to come under the preview of micro enterprise the total investment in plant and machinery should not be more than __________.

• A. Rs. 25 lakhs
• B. Rs. 20 lakhs
• C. Rs. 50 lakhs
• D. Rs. 10 lakhs

Answer 1

Answer: (D)

Rs. 10 lakhs

Micro, Small and Medium enterprises act, 2005 defines the micro, small and medium enterprises on the basis of the investment in the fixed assets. Hence, service sector enterprise to come under the preview of micro enterprise ,the total investment in plant and machinery should not be more than Rs. 10 lakhs.