Question

Small scale and large scale industries are classified on the basis of

• A. Capital investment
• B. Ownership
• C. Main role
• D. Source of raw materials

Answer 1

Answer: (A)

Industries can be classified according to their size

1. Small Scale Industries

2. Large Scale Industries

Size refers to the

• Amount of Capital Invested
• Number of People Employed
• Volume of Production

Small Scale Industries: Cottage or household industries are a type of small scale industry where the products are manufactured by hand, by the artisans.

· Small scale industries use very little capital.

· The craftsmen follow traditional methods while making their products and modern technology has no place here.

· The capital invested by small scale industries is very small.

· Basket weaving, Pottery, handicrafts, silk weaving, food processing and dress-making are all small-scale Industries

Large Scale Industries: Large scale industries make huge investments and use modern technology in their manufacturing process.

· Large scale industries invest huge capitals.

· The technology used is very superior and the large quantities of the product are manufactured. Classification of Industries

· The labor force involved in large scale industries is also very large.

· Automobile industry, manufacture of consumer goods like Television sets, iron and steel industries can be classified under large scale industries.