Parineeta has set up a small business unit in Ghaziabad to manufacture various types of home decoration items. She deals in various kinds of vases, chimes and other things that can beautify houses. She now wishes to export her products to different countries and develop export worthiness. (i) Name and briefly describe the agency that she can approach in this regard.
(ii) She wants to safeguard that her business unit scores a higher rating when she approaches the financial institution for her increased financial requirements. How can she ensure this?
(5 Points)
Answers
Answer:
Name and briefly describe the agency's that she can approach in this regard
Small Business
Explanation:
(i) There are several government institutions assisting small scale business. One of them is National Small Industries Corporation (NSIC). It was set up in 1955. Its aims to promote, foster and aid the growth of small businesses in India. NSIC was established to cater to the needs of entrepreneurs. Main functions of NSIC includes:
- Providing technological assistance and upgraded technology to small business units.
- Helps in exporting products of small scale industry.
- Provides various equipment on lease, and many more.
(ii) In order to safeguard that her business unit scores a higher rating when she approaches the financial institution, she must get Letter of Credit from Importer. A Letter of Credit (LC) is a document that guarantees the buyer's payment to the sellers. It is issued by a bank. It ensures the seller (Parineeta) will receive her payment on time and for the correct amount.