Skip to content

CSEET · Economic and Business Environment · Entrepreneurship Scenario

A DPIIT-recognised start-up may benefit from the 'Startup India Seed Fund Scheme'. Which statement about this scheme is correct?

The Startup India Seed Fund Scheme gives early-stage start-ups financial support for proof of concept, prototype development, product trials, market entry and commercialisation, delivered through selected incubators. It is not meant for mature or listed companies and does not grant permanent tax exemption.

  1. AIt provides financial assistance for proof of concept, prototype development, product trials, market entry and commercialisation, routed through selected incubatorsCorrect
  2. BIt offers long-term working capital loans to mature start-ups with over ten years of operation
  3. CIt funds only start-ups listed on the stock exchanges
  4. DIt provides a permanent exemption from all taxes to every start-up

Explanation

The Seed Fund Scheme targets early-stage ventures and channels money through eligible incubators for proof of concept, prototypes, product trials, market entry and commercialisation. It is not for mature or listed firms and gives no blanket permanent tax exemption, which makes the other options wrong.

Did you get it right without looking?

One question tells you little. A timed set on Entrepreneurship Scenario shows your real accuracy, how long you take and where you lose marks.

More Entrepreneurship Scenario questions