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In India the small business can be classified into how many categories on the basis of capital investment:Options2354

Question

In India the small business can be classified into how many categories on the basis of capital investment:Options2354

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Solution

In India, small businesses can be classified into three categories on the basis of capital investment. These categories are:

  1. Micro Enterprises: Businesses where the investment in plant and machinery does not exceed Rs. 25 lakh.

  2. Small Enterprises: Businesses where the investment in plant and machinery is more than Rs. 25 lakh but does not exceed Rs. 5 crore.

  3. Medium Enterprises: Businesses where the investment in plant and machinery is more than Rs.5 crore but does not exceed Rs.10 crore.

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