Question

Which of the following is not true for Ancillary Small Industrial Unit?

• A. The small scale industry can enjoy the status of an ancillary small industry if it supplies not less than 50 % of its production to another industry.
• B. The ancillary small industry can manufacture parts, components, sub assemblies, tools or intermediate products for the parent unit.
• C. It cannot do business on its own.
• D. Ancillary units have the advantage of assured demand from parent units.

Answer 1

Answer: (C)

It cannot do business on its own.

Ancillary small industrial unit:

• The small scale industry can enjoy the status of an ancillary small industry if it supplies not less than 50 per cent of its production to another industry, referred to as the parent unit.
• The ancillary small industry can manufacture parts, components, subassemblies, tools or intermediate products for the parent unit.
• Apart from catering to the needs of the parent unit, it can do business on its own.
• Ancillary units have the advantage of assured demand from parent units.