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Question
Match the correct pairs.
Group 'A'
Group 'B'
a) Infrastructure Problem
1) Decrease in operating cost
b) Marketing problem
2) Stable demand
c) Export related problem
3) Labour shortage
d) Under utilization of capacity
4) No Branding
e) Consumer goods
5) Demand Fluctuation
6) Huge Advertisement
7) Increase in operating cost
8) Cottage industries
9) Power shortage
10) Large industries
| Group 'A' | Group 'B' |
| a) Infrastructure Problem | 1) Decrease in operating cost |
| b) Marketing problem | 2) Stable demand |
| c) Export related problem | 3) Labour shortage |
| d) Under utilization of capacity | 4) No Branding |
| e) Consumer goods | 5) Demand Fluctuation |
| 6) Huge Advertisement | |
| 7) Increase in operating cost | |
| 8) Cottage industries | |
| 9) Power shortage | |
| 10) Large industries |
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Solution
Group 'A'
Group 'B'
a) Infrastructure Problem
9) Power shortage
b) Marketing problem
4) No branding
c) Export related problem
5) Demand fluctuation
d) Under utilization of capacity
7) Increase in operating cost
e) Consumer goods
8) Cottage industries
Explanations:
a) Power shortage is an infrastructure problem. Power is an essential requirement for the functioning of business enterprises. However, its supply is highly irregular in some parts of India. Therefore, most of the business units are forced to close down due to shortage of power.
b) Branding is a part of marketing and is essential for every business. Big firms perform branding activities to build their image in the eyes of the consumers. However, small scale industries cannot indulge in branding activities due to the shortage of funds. As a result of this marketing problem, small units are forced to sell their products in the markets through middlemen, which further leads to the exploitation of the small scale entrepreneurs.
c) Small business units face export related problems due to demand fluctuations. As the foreign demand for domestic goods is subject to fluctuations, small business units face hardships in exporting their products.
d) Small-scale units fail to utilise the optimum capacity due to lack of funds, lack of marketing skills and low demand for their products. This not only leads to the wastage of resources, but increases the operating costs as well.
e) Cottage industries mostly produce consumer goods which are home-made and hardly require the usage of complicated machines. Such industries mainly produce edible items such as pickles, spices, etc.
| Group 'A' | Group 'B' |
| a) Infrastructure Problem | 9) Power shortage |
| b) Marketing problem | 4) No branding |
| c) Export related problem | 5) Demand fluctuation |
| d) Under utilization of capacity | 7) Increase in operating cost |
| e) Consumer goods | 8) Cottage industries |
Explanations:
a) Power shortage is an infrastructure problem. Power is an essential requirement for the functioning of business enterprises. However, its supply is highly irregular in some parts of India. Therefore, most of the business units are forced to close down due to shortage of power.
b) Branding is a part of marketing and is essential for every business. Big firms perform branding activities to build their image in the eyes of the consumers. However, small scale industries cannot indulge in branding activities due to the shortage of funds. As a result of this marketing problem, small units are forced to sell their products in the markets through middlemen, which further leads to the exploitation of the small scale entrepreneurs.
c) Small business units face export related problems due to demand fluctuations. As the foreign demand for domestic goods is subject to fluctuations, small business units face hardships in exporting their products.
d) Small-scale units fail to utilise the optimum capacity due to lack of funds, lack of marketing skills and low demand for their products. This not only leads to the wastage of resources, but increases the operating costs as well.
e) Cottage industries mostly produce consumer goods which are home-made and hardly require the usage of complicated machines. Such industries mainly produce edible items such as pickles, spices, etc.
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