Q.3:- How would you differentiate between an ancillary unit and a tiny unit?
Answer:-
| S.N. | Ancillary Unit | Tiny Unit |
| (i) | An ancillary unit is the unit which supplies not less than 50% of its production to the parent unit. | A tiny unit is the business enterprise whose investment in plant and machinery is not more than Rs. 25 lakh. |
| (ii) | Investment limit in such unit is one crore. | Investment limit is Rs. 25 lakh in this type of unit. |
| (iii) | Parent unit assists the ancillary unit by providing technical and financial help. | No such assistance is there. |