Industrial Location and Business Size Syllabus Part II

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Questions and Answers

What are the factors influencing the location of industry?

Various factors including availability of raw materials, transportation facilities, labor supply, market access, and government policies.

What do you mean by the location of industry?

The geographical site where an industry is established, influenced by various economic, social, and environmental factors.

What are the disadvantages of concentration of industry at one place?

Potential disadvantages include over-reliance on a specific area, increased competition, resource depletion, and environmental degradation.

What do you mean by small-scale industry?

Industries characterized by limited investment and a smaller production capacity compared to large-scale industries. Signup and view all the answers

What is an optimum firm?

An optimum firm is the most efficient scale of production for a particular enterprise. Signup and view all the answers

What is an industrial estate?

A designated area developed for industrial purposes, facilitating the establishment of businesses and industries. Signup and view all the answers

What are District Industries Centers (DIC)?

DICs are government initiatives aimed at promoting and facilitating the growth of small-scale industries. Signup and view all the answers

What are the objectives of setting up an industrial estate?

Objectives include promoting industrial development, creating jobs, providing infrastructure, and encouraging investment. Signup and view all the answers

What is the role of stock exchange?

To facilitate the buying and selling of securities, provide liquidity, and enable companies to raise capital. Signup and view all the answers

What is a broker in the context of stock exchange?

A broker is a licensed individual or firm that facilitates the buying and selling of securities on behalf of clients. Signup and view all the answers

What is demutualization in the stock exchange?

Demutualization refers to the process of converting a member-owned exchange into a shareholder-owned company. Signup and view all the answers

What is the role of SEBI?

SEBI, or the Securities and Exchange Board of India, regulates the securities markets in India to protect investors and promote the development of the market. Signup and view all the answers

What is the Bull market?

A bull market is characterized by rising prices of securities, typically indicating investor confidence. Signup and view all the answers

What is a Bear market?

A bear market is characterized by declining prices of securities, usually signaling pessimism among investors. Signup and view all the answers

What is a cash credit?

Cash credit is a short-term borrowing facility provided by banks to businesses, allowing them to withdraw funds as needed. Signup and view all the answers

What are the objectives of business combinations?

Objectives include increasing market share, achieving economies of scale, diversifying products, and enhancing competitiveness. Signup and view all the answers

Study Notes

Location of Industry

Industry location refers to the geographical positioning of manufacturing units and enterprises.
Types of location include geographical areas (urban, rural), economic environments (industrial complexes), and proximity to resources.
Factors influencing location include access to raw materials, transport facilities, labor availability, market proximity, climage, and governmental policies.
The selection process encompasses analyzing the demand for products, cost factors, and environmental impact assessments.
Government policies may include incentives for industries in certain regions, zoning regulations, and infrastructure development.
Concentration of industries can lead to disadvantages like overpopulation, pollution, and resource depletion.

Business Size

Large firms typically benefit from economies of scale, while small firms can be more flexible and innovative.
Factors to measure business size include the number of employees, investment capital, and output levels.
The layout of a plant impacts operational efficiency, affecting production flow and employee productivity.
Small and large scale industries each have distinct merits and demerits, influencing employment, capital intensity, and market reach.

Industrial Estates

Industrial estates are designated zones for industrial activities, aimed at boosting local economies and facilitating business operations.
Issues in establishing industrial estates include land acquisition, infrastructure development, financing, and regulatory compliance.
Major industrial estates in India play a significant role in industrial growth and regional balance.
Objectives include promoting entrepreneurship, providing essential facilities, and attracting foreign investments.

District Industries Centres (DIC)

DICs serve as support mechanisms for small and medium enterprises, facilitating various services including funding and technical assistance.
Objectives of DICs include fostering entrepreneurship, enhancing competitiveness, and providing necessary resources for small businesses.

Stock Exchange

Stock exchanges facilitate the buying and selling of securities, promoting capital raising for companies.
Key players include brokers, individual investors, and institutional investors.
Disadvantages of stock exchanges include market volatility, risk of fraud, and limited access for small investors.
Listing of securities is subject to rules ensuring transparency and compliance with regulatory bodies like SEBI.

Business Combinations

Types of business combinations include horizontal, vertical, lateral, diagonal, and circular combinations, each serving different strategic purposes.
Pools and cartels aim to control prices and limit competition.
Organizations like FICCI, ASSOCHAM, and CII represent business interests, offering support and advocacy for various industries.

Financial Schemes

PMEGP, SMS, and DIC loan schemes provide financial assistance to new enterprises and small businesses, enhancing their operational capacity.
Features of cash credit facilities include short-term loans secured against inventory or receivables.

Stock Market Dynamics

Market operators include bulls (optimistic investors), bears (pessimistic investors), and other terms like stag and lame duck, defining investor behavior.
Forward trading involves contracts to buy/sell assets at predetermined prices in the future.
Registered debentures provide companies with an avenue for raising funds while offering investors fixed returns.

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Description

This quiz covers essential topics related to the location of industries and the factors influencing business size. Key areas include types of locations, advantages and disadvantages of different industry scales, and the government's role in industrial placement. Test your knowledge and understanding of these important economic concepts.