Answer in not more than 50 words:
List the parameters used to measure the volume of the business.
How would you differentiate between an ancillary unit and a tiny unit?
When is any activity referred as a ‘Business Activity’?
Answers
1. Several parameters can be used to measure the size of business units. These include the number of persons employed in business, capital invested in business, volume of output or value of output of business and power consumed for business activities...
2. An ancillary unit is the unit which supplies not less than 50% of its production to the parent unit. A tiny unit is the business enterprise whose investment in plant and machinery is not more than Rs. 25 lakh...
3. In a specific sense, business activities refer to any occupation in which people regularly engage in an activity with a view to earning the profit..
Hope this helped...
Answer:
Several parameters can be used to measure the size of business units. These include the number of persons employed in business, capital invested in business, volume of output or value of output of business and power consumed for business activities. Appropriate parameter may be used depending on the need and advantages or limitations of various measures.
S.N. Ancillary Unit Tiny Unit
(i) An ancillary unit is the unit which supplies not less than 50% of its production to the parent unit. A tiny unit is the business enterprise whose investment in plant and machinery is not more than Rs. 25 lakh.
(ii) Investment limit in such unit is one crore. Investment limit is Rs. 25 lakh in this type of unit.
(iii) Parent unit assists the ancillary unit by providing technical and financial help. No such assistance is there.