RBI Assistant Model Paper 5

Question : 96 of 100

Marks: +1, -0

Statement : The Government is working on a proposal to double the investment threshold that defines micro, small and medium enterprises (MSMEs).
Which of the following cannot be a possible effect of the above proposal it is accepted ?

The MSMEs would grow at rapid pace as many small entities prefer to be small for the fear of losing out the tax benefits.
If the sizes of companies are bigger then they are less vulnerable and their issues can be addressed in a better way.
The MSMEs would discard its basic structure and these would come in direct competition with the bigger companies.
The step would enable more companies to get tax benefits currently available and more R & D would be available to MSMEs.
Technological upgradation and more R & D would be available to MSMEs.

Validate

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