Skip to content

CS Executive · Setting Up of Business, Industrial and Labour Laws · Micro, Small and Medium Enterprises

Under the MSMED Act, 2006, the Central Government may notify a Scheme to facilitate closure of business by a micro, small or medium enterprise. Which enterprise is excluded from the benefit of this provision?

An enterprise that is a company registered under the Companies Act, 1956 is excluded. Section 25 allows the Central Government to notify a closure Scheme for micro, small or medium enterprises, but expressly says it applies to enterprises that are not such registered companies.

  1. AA proprietorship firm engaged in manufacturing
  2. BA partnership firm providing services
  3. CAn enterprise that is a company registered under the Companies Act, 1956Correct
  4. DA medium enterprise engaged in services

Explanation

Section 25 empowers the Central Government to notify a closure Scheme for an MSME 'not being a company registered under the Companies Act, 1956'. Proprietorships, partnerships and medium service enterprises are not excluded; only the registered company is.

Did you get it right without looking?

One question tells you little. A timed set on Micro, Small and Medium Enterprises shows your real accuracy, how long you take and where you lose marks.

Practise Micro, Small and Medium EnterprisesFree diagnostic mock

More Micro, Small and Medium Enterprises questions