Multiple Choice Questions.

1. An individual who starts, creates and manages a new business can be called
.
A. A leader
B. A manager
C. A professional
D. An entrepreneur
ANSWER: D

2. Trademarks relate to .
A. Practice and knowledge acquired through experience
B. The protection of proprietary information of commercial value
C. The right to reproduce ones own original work
D. Brand identity

3. Which could provide an individual with the motivation to start a new business venture?
A. The financial rewards.
B. A desire to be independent.
C. Risk taking
D. All the above.
ANSWER: D

4. Which of the following factors should not be included in PESTLE analysis?

A. Government re-cycling policy.
B. Proposed reduction in interest rates.
C. Competitor activity.
D. Demographic changes.
ANSWER: C

5. Which industrial sector promotes small-scale businesses and

Entrepreneurship, and has lower barriers to market entry?
A. Service.
B. Manufacturing.
C. Distribution.
D. Agriculture.
6. Why are small businesses important to a country's economy?
A. They give an outlet for entrepreneurs.
B. They can provide specialist support to larger companies.
C. They can be innovators of new products.
D. All the above.
ANSWER: D

7. A business arrangement where one party allows another party to use a business name and sell
its products or services is known as .
A. A cooperative.
B. A franchise.
C. An owner-manager business.
D. A limited company.
ANSWER: B

8. Which of the following is the reason for business failure .

A. Lack of market research.
B. Poor financial control.
C. Poor management.
D. All the above.
ANSWER: D

9. The use of informal networks by entrepreneurs to gather information is known as .

A. Secondary research.
B. Entrepreneurial networking.
C. Informal parameters.
D. Marketing
ANSWER: B

10. Good sources of information for an entrepreneur about competitors can be obtained
from .
A. Websites.
B. Product information leaflets.
C. Company reports and published accounts.
D. All the above.
ANSWER: D

11. A new venture's business plan is important because .

A. It helps to persuade others to commit funding to the venture.
B. Can help demonstrate the viability of the venture.
C. Provides a guide for business activities by defining objectives.
D. All the above.
ANSWER: D

12. Primary data is .

A. the most important data
B. the data that is collected first.
C. new data specifically collected for a project.
D. data that is collected second.
ANSWER: C
13. Innovation can best be defined as .
A. the generation of new ideas.
B. the evolution of new ideas.
C. the opposite of creativity.
D. the successful exploitation of new ideas.
ANSWER: D

14. Which of these statements best describes the context for entrepreneurship?
A. Entrepreneurship takes place in small businesses.
B. Entrepreneurship takes place in large businesses.
C. Entrepreneurship takes place in a wide variety of contexts.
D. Entrepreneurship does not take place in social enterprises.
ANSWER: C

15. Entrepreneurs are motivated by .

A. money.
B. personal values.
C. pull influences.
D. All the above.
ANSWER: D

16. Which of the following are described as one of the Big Five personality traits?
A. tolerance of others.
B. need for achievement.
C. propensity to leadership.
D. locus of control.
ANSWER: B

17. Which of the following is least likely to influence the timing of new business births?
A. Government policies.
B. Profitability.
C. Consumer expenditure.
D. Weather conditions.
ANSWER: D

18. Which of the following statements is false?

A. Market segmentation is a useful process for small businesses to undertake.
B. Selling is essentially a matching process.
C. A benefit is the value of a product feature to a customer.
D. It is a good idea for small businesses to compete solely on price.

19. The purpose of all good small business strategy is .

A. to increase turnover.
B. to increase profitability.
C. to achieve competitive advantage.
D. to achieve stated objectives.
ANSWER: D
20. Which of the following is a recognized disadvantage of setting up as a start-up as compared
with other routes to market entry?
A. less satisfaction of the owners.
B. less help from various agencies.
C. there are more funds required.
D. there is a high failure rate.
ANSWER: D

21. Someone legally appointed to resolve the financial difficulties of an insolvent firm
is called .
A. an administrator.
B. a predator.
C. an auditor.
D. a turnaround consultant.
ANSWER: A

22. Goods or services reach the market place through .

A. marketing channels.
B. multilevel pyramids.
C. monopolies.
D. multiplication.
ANSWER: A

23. To provide financial assistance to entrepreneurs the government has set up a

number of .
A. financial advisors.
B. financial intermediaries.
C. Industrial estates.
D. financial institutions.
ANSWER: D

24. State Industrial corporations engage in the development of .

A. industrial estates.
B. institutional estates.
C. individual investors.
D. agricultural entrepreneurs.
ANSWER: A

25. is the first development bank of the country.

A. ICICI.
B. IDBI.
C. SFC.
D. IFCI.
ANSWR
:D
26. IFCI stands for .
A. Industrial finance corporation of India.
B. Institutional finance corporation of India.
C. Industrial funding corporation of India.
D. Indian finance corporation and institution.
ANSWER: A

27. IFCI has been converted into a .

A. joint stock company.
B. co-operative society.
C. partnership firm.
D. sole proprietorship.
ANSWER: A

28. SIDBI was set up as a subsidiary of .

A. IDBI.
B. IFCI.
C. ICICI.
D. SFC.
ANSWER: A

29. Which of the following is a function of SIDBI?

A. Extension of seed capital.
B. Discounting of bills.
C. Providing factoring services.
D. All of the above.
ANSWER: D

30. SFC is prohibited from granting financial assistance to any company whose aggregate paid
up capital exceed .
A. 1 crore.
B. 1.5 crores.
C. 2 crores.
D. 2.5 crores.
ANSWER: A

31. SIPCOT's financial assistance is in the form of .

A. term loan.
B. seed capital scheme.
C. underwriting the capital issues.
D. All of the above.
ANSWER: D
32. The business development department of SIPCOT guides entrepreneurs in .
A. applying for licences
B. approval on collaboration.
C. allocation of scarce raw materials.
D. All the above.
ANSWER: D

33. TIIC is sponsored by the .

A. Government of Karnataka.
B. Government of Andhra Pradesh.
C. Government of Kerala.
D. Government of Tamil Nadu.
ANSWER: D

34. In backward areas, term loans for expansion or setting up a new unit are available at
.
A. concessional terms.
B. differential terms.
C. standard terms.
D. specific terms.
ANSWER: A

35. A commercial banker would prefer a debt-equity ratio over the years as it
indicates financial strength of a unit.
A. Declining.
B. Increasing.
C. Stable.
D. Fluctuating.
ANSWER: A

36. EDPs course contents contains .

A. General introduction to entrepreneurs.
B. Motivation training.
C. Managerial skills.
D. All the above.
ANSWER: D

37. Entrepreneurial Guidance Bureau(EGB) was set up by .

A. SISI.
B. SIPCOT.
C. IIC.
D. SIDCO.

38. can be defined as a specifically evolved work plan densed to achieve a

specific objective within a specific period of time
A. Idea generation.
B. Opportunity Scanning.
C. Project.
D. Strategy.
39. Large investment is made in fixed assets, the project will be termed as .
A. Capital Intensive.
B. Labour Intensive.
C. Product Intensive.
D. Market Intensive.
ANSWER: A

40. PERT stands for .

A. Programme Evaluation and Research Techniques.
B. Project Evaluation and Review Techniques.
C. Programme Evaluation and Review Techniques.
D. Project Evaluation and Research Techniques.
ANSWER: C

41. is used to accomplish the project economically in the minimum available

time with limited resources
A. Project Scheduling.
B. Network Analysis.
C. Budget Analysis.
D. Critical Planning.
ANSWER: A

42. is a form of financing especially for funding high technology, high

risk and perceived high reward projects
A. Fixed capital.
B. Current capital.
C. Seed capital.
D. Venture capital.
ANSWER: D

43. In , machines and equipments are arranged in the order or sequence in which
they are to be used for manufacturing the product
A. Factory Layout.
B. Product Layout.
C. Process Layout.
D. Combined Layout.
ANSWER: B

44. The term denotes bonus or financial aid which is given by a government to an
industry to help it compete with other units
A. Incentive.
B. Subsidy.
C. Bounty.
D. Concession.
ANSWER: C
45. he granting of cash subsidy on the capital investment is called .
A. Concessional finance.
B. Quantum of Subsidy.
C. Interest Subsidy.
D. Central Investment Subsidy.
ANSWER: D

46. New Small Scale industries are exempted from the payment of income tax under section 80J
is called
A. Development Rebate..
B. Investment Allowance.
C. Rehabilitation Allowance.
D. Tax Holiday
ANSWER: B

47. is primarily concerned with the identification of the project demand

potential and the selection of the optimal technology.
A. Techno-economic analysis.
B. Feasibility analysis.
C. Input analysis.
D. Financial analysis.
ANSWER: A

48. refers to some action which is a time consuming effort necessary to

complete a specific event.
A. A Network.
B. An Activity.
C. An Event.
D. A Node.
ANSWER: B

49. is a graphical representation of the various activity and event relating to a

project.
A. Network analysis.
B. Scheduling technique.
C. Logical Model.
D. Network Diagram
ANSWER: D

50. Activities which must be finished before a given event can occur are termed as .
A. Preceeding Activities.
B. Succeeding Activities
C. Concurrent Activities
D. Dummy Activities.
ANSWER: A
51. Activities which can be accomplished simultaneously are termed as .
A. Preceeding Activities. Succeeding Activities.
B. Concurrent Activities
C. Dummy Activities.
ANSWER: C

52. EST stands for .

A. Earliest Start Time.
B. Event Start Time.
C. Effective Start Time.
D. Essential Start Time.
ANSWER: A

53. Additional time which a non-critical activity can consume without increasing the project
duration is called .
A. Total Float.
B. Free Float
C. Independent Float.
D. Dependant Float
ANSWER: A

54. is an event-oriented approach .

A. CPM.
B. GERT.
C. PERT.
D. WASP.
ANSWER: C

55. is an activity-oriented approach.

A. CPM
B. PERT
C. GERT
D. WASP
ANSWER: A

56. is the analysis of costs and benefits of a proposed project with the goal
of assuming a rational allocation of limited funds.
A. Project formulation.
B. Project evaluation.
C. Project appraisal .
D. Project Design.
ANSWER: C

57. may be defined as the excess of present value of project cash inflows over
that of out flows.
A. Net present value technique.
B. Average rate of return.
C. Benefit-Cost ratio.
D. Internal rate of return

ANSWER: A
58. Decisions taken by an entrepreneur on behalf of his enterprise are known as .
A. Organizational decisions.
B. Personal decisions.
C. Routine decisions.
D. Strategic decisions
ANSWER: A

59. Decisions which are concerned with policy matters and exercise fundamental influence on
the objectives of the organization are called as .
A. Organizational decisions.
B. Personal decisions.
C. Routine decisions.
D. Strategic decisions.
ANSWER: D

60. is a problem -solving technique designed to produce numerous ideas

in a short period
A. Synectics.
B. Delphi technique.
C. Brain storming.
D. Nominal group technique.
ANSWER: C

61. . is the systematic development of a project idea for the

eventual purpose of arriving at an investment decision.
A. Project identification.
B. Project formulation.
C. Project feasibility.
D. Project evaluation.
ANSWER: B

62. The process of preparing an inventory of skills needed for effective implementation of
the project is called as .
A. Economic viability.
B. Financial feasibility.
C. Technical feasibility.
D. Managerial competence.
ANSWER: D

63. implies the availability or otherwise of plant and machinery and

technical know how to produce the product.
A. Economic viability.
B. Financial feasibility.
C. Technical feasibility.
D. Managerial competence
ANSWER: C
64. CPM stands for .
A. Continuous Path Method.
B. Clear Path Method.
C. Critical Path Method.
D. Critical Probabilistic Method.
ANSWER: C

65. is granted to small scale units under section 33B of the Income tax act,
1961.
A. Depreciation Allowance.
B. Development Debate.
C. Investment Allowance.
D. Rehabilitation Allowance.
ANSWER: D

66. DGTD stands for .

A. Directorate General of Technical Development.
B. District General of Technical Development.
C. District General of Taxation Deduction.
D. Directorate General of Taxation Deduction.
ANSWER: A

67. A provisional SSI registration certificate is valid for a period of _.

A. four Years.
B. three Years.
C. two Years.
D. one year.
ANSWER: D

68. National Alliance of Young Entrepreneurs (NAYE) Sponsored an

Entrepreneurial Development scheme with Bank of India in .
A. January 1920.
B. August 1920.
C. January 1972.
D. August 1972.
ANSWER: D

69. Which of the following is not one of the 4 Ms?

A. motivation.
B. management.
C. materials.
D. money.
ANSWER: C

70. Which of the list below does not form Intellectual Property?
A. Trade marks.
B. Patents.
C. Tangible assets.
D. Copyright.
ANSWER: C
71. The 'T' in a PESTLE analysis refers to .
A. Time.
B. Technology.
C. Training.
D. Talent.
ANSWER: B

72. A business arrangement where one party allows another party to use a business Name and
sell its products or services is known as .
A. A cooperative.
B. A franchise.
C. An owner-manager business.
D. A limited company.
ANSWER: B

73. What is the role of a Business Angel?

A. To provide small business advice.
B. To provide capital for business development in exchange for a stake
in the Business ownership.
C. To set up a franchise business.
D. To assist an entrepreneur to open a lifestyle business.
ANSWER: B

74. A key aspect of the financial section of the business plan is .

A. A statement of management skills.
B. A realistic sales forecast.
C. Production capacity.
D. A description of competitors.
ANSWER: B

75. Which one of the following describes unemployment?

A. The number of people who voluntarily choose not to work.
B. The number of people who are jobless and are actively seeking work.
C. The number of people who are not actively seeking work.
D. The number of people actively seeking work who find work.
ANSWER: B

76. Idea of new product is tested in potential consumers to determine consumer acceptance at
stage.
A. Concept.
B. Product development.
C. Test marketing.
D. Commercialization.
ANSWER: C
77. Which one of the following is not considered as one of the building blocks of the model
entrepreneur?
A. technical skills.
B. management competencies.
C. business awareness.
D. personal attributes.
ANSWER: C

78. Which of the following factors does the macro-environment not include?
A. political and regulatory factors.
B. customer needs in a given market.
C. social and demographic factors.
D. technological changes.
ANSWER: B

79. Which of the following statements is false? Electronic commerce:

A. can allow new ventures to compete on more or less equal terms with large firms.
B. can lead to small businesses having reduced contact with its customers.
C. is rarely used in small businesses.
D. is used in many different industries and markets.
ANSWER: C

80. Strategic entrepreneurial marketing has been summarised as the 4Is: identification of target
markets, interactive marketing methods, informal intelligence gathering and what is the fourth?
A. independence.
B. instructiveness.
C. innovation.
D. internet.
ANSWER: C

81. An entrepreneur who owns more than one business at a time is called .
A. an intrapreneur.
B. a corporate entrepreneur.
C. a portfolio entrepreneur.
D. None of the above.
ANSWER: C

82. Industries producing complete articles for direct consumption & also processing industries
is called as .
A. Manufacturing industries.
B. Feeder Industries.
C. Service Industries.
D. Mining or Quarrying.
ANSWER: A
83. is primarily concerned with the identification, qualification and evaluation
of the project resources.

A. Techno-economic analysis.
B. Feasibility analysis.
C. Input analysis.
D. Financial analysis.
ANSWER: B

84. LOB stands for .

A. Line of Business.
B. Line of Balance.
C. Loss of Business.
D. Loss of Balance
ANSWER: B

85. Underestimation of project cost leads to .

A. Time under run.
B. Cost under run
C. Time over run.
D. Cost over
run ANSWER: D

86. New entrepreneurs entering the field of medium industry for the first time can have market
studies with the subsidiary of .
A. 75% of the cost or Rs.15000 whichever is less.
B. 75% of the cost or Rs.15000 whichever is high
C. 50% of the cost or Rs.15000 whichever is less.
D. 50% of the cost or Rs.15000 whichever is high
ANSWER: A

87. Decisions which are concerned with policy matters and exercise fundamental influence on
the objectives of the organization are called as .
A. Organizational decisions.
B. Personal decisions.
C. Routine decisions.
D. Strategic decisions.
ANSWER: D

88. Section 80 HHB provides for a deduction of of profits and gains

earned by a resident Indian company.
A. 65%.
B. 60%.
C. 55%.
D. 50%
ANSWER: D
89. Decisions which are non-repetitive and novel nature and required to solve unstructured
problem is called as .
A. Programmed decisions.
B. Non -programmed decisions.
C. Routine decisions.
D. Strategic decisions.

90. The application for registration of a small scale unit should be submitted to the .
A. General manager, DIC.
B. Director, DIC.
C. General manager. NSIC.
D. Director, NSIC.
ANSWER: A

91. The type of diversification in which the company adds complementary to the existing
product or service line is .
A. conglomerate diversification.
B. horizontal integration.
C. vertical integration.
D. concentric integration.
ANSWER: C

92. Which of the following is not an aspect of appraisal of term loans by commercial banks?
A. Financial feasibility.
B. Technical feasibility.
C. Economic feasibility.
D. Societal feasibility.
ANSWER: D

93. The type of diversification in which the company adds up same type of products at the same
level of production is .
A. conglomerate diversification.
B. horizontal integration.
C. vertical integration.
D. concentric integration.
ANSWER: B

94. When a firm enters into some business which is related with its present business in terms of
technology, marketing or both it is called as .
A. conglomerate diversification.
B. horizontal integration.
C. vertical integration.
D. concentric integration.

95. When a firm enters into business which is unrelated to its existing business both in terms of
technology and marketing .
A. conglomerate diversification.
B. horizontal integration.
C. vertical integration.
D. concentric integration
96. District Industries Centres are located .
A. in each district.
B. in each state.
C. only in selected districts.
D. only in selected states.
ANSWER: A

97. The purpose of soft loan scheme is to encourage units to undertake .

A. modernization of plant and machinery.
B. replacement of plant and machinery.
C. renovation of plant and machinery.
D. all the above
ANSWER: D

98. Seed capital assistance _ .

A. a long-term assistance.
B. initial assistance
C. a help for the purchase of seeds.
D. a short-term assistance.
ANSWER: B

99. EXIM bank is a .

A. State-level institution.
B. Regional -level institution.
C. All India institution.
D. International institution.
ANSWER: C

100. DIC is headed by General Manager in the rank of .

A. Joint Director of industries.
B. Assistant Director of industries.
C. Non-departmental officer.
D. Departmental officer.
ANSWER: A

101. Institutional agencies grant financial assistance to small scale industries for .
A. participation in equity capital only.
B. acquisition of fixed assets.
C. working capital assistance.
D. all of the above.
ANSWER: D

102. Under section 80J of the income tax act, 1961, small-scale industries are exempted from
the payment of income tax on their profits at .
A. 6% p.a.
B. 6% p.m.
 C. 5% p.a.
D. 5% p.a.
ANSWER: A

103. The policy which stressed the role of cottage and small-scale industries for balanced
industrial development of the country is .
A. IPR 1940.
B. IPR 1948.
C. IPR 1956.
D. IPR 1977.
ANSWER: B

104. The policy which emphasized the need of promoting small-scale industries through
integrated industrial development is .
A. IPR 1948.
B. IPR 1956.
C. IPR 1977.
D. IPR 1980.
ANSWER: C

105. The small scale unit wishing to export has to obtain exporters code number from
.
A. The Reserve Bank of India.
B. The Central Bank of India.
C. Any Regional Bank.
D. Any International Bank.
ANSWER: A

106. The expenses incurred on the setting up of the enterprise are called as .
A. Cost of financing.
B. Cost of promotion..
C. Cost of fixed assets.
D. Cost of current assets.
ANSWER: B

107. Over - capitalization arises due to .

A. excess of assets over the liabilities.
B. excess of liabilities over the assets.
C. actual earnings are lower than the expected earnings.
D. actual earnings are higher than the expected earnings.
ANSWER: C

108. Under-capitalization arises due to .

A. excess of assets over the liabilities.
B. excess of liabilities over the assets.
C. actual capitalization is higher than the proper capitalization.
D. actual capitalization is lower than the proper capitalization.
ANSWER: D
109. Which of the following leads to over-capitalization?
A. acquiring fixed assets on excessive amounts.
B. under-estimation of initial rate of earnings.
C. using lower-rate of capitalization.
D. under estimation of required funds.
ANSWER: A

110. Which of the following leads to under-capitalization?

A. raising of more money by issue of shares.
B. acquiring fixed assets on excessive amounts.
C. over-estimation of earnings for enterprise.
D. under-estimation of initial rate of
earnings. ANSWER: D

111. Business means _.

A. Commerce.
B. industry and commerce.
C. trade and commerce.
D. selling and buying of goods.
ANSWER: B

112. A valid definition of a business purpose is to .

A. create a customer.
B. maximize profits.
C. serve the society.
D. increase the wealth of the firm.
ANSWER: B

113. Reserve bank of India is a/an .

A. statutory corporation.
B. company limited by guarantee.
C. company limited by shares.
D. unlimited company.
ANSWER: A

114. A public corporation means .

A. public company.
B. government company.
C. statutory corporation.
D. department of union government
ANSWER: C

115. Promoter is a person who .

A. takes part in the incorporation of a company .
B. is a director.
C. is a relative of the managing director.
D. works to publicity to the company.
116. The term Capitalization is used in relation to .
A. sole-proprietorship.
B. Partnership.
C. joint stock companies.
D. co-operative societies
ANSWER: C

117. Which of the following sources is not use for medium term financing?
A. Issue of equity shares.
B. Issue of debentures.
C. Term loans from banks.
D. Sale of current asset.
ANSWER: A

118. Which of the following securities proves a burden on finances of the company,
when company is not earning profits?
A. Equity shares.
B. Preference shares.
C. Redeemable preference shares.
D. Debentures

119. Investment in which of the following is most risky?

A. Equity shares.
B. Preference shares.
C. Debentures.
D. Land.
ANSWER: C

120. A project, which may not add to the existing profits, should be financed by
A. debentures.
B. preference share capital.
C. equity capital.
D. public deposits.
ANSWER: A

121. Business risks can be .

A. avoided.
B. reduced.
C. ignored.
D. Erased
.
122. O & M refers to
A. overall efficiency of business.
B. efficiency of office and administrative work.
C. office work measurement.
D. office and management study.
ANSWER: D
123. The oldest form of business organization is .
A. Partnership.
B. sole proprietorship.
C. joint stock company.
D. co-operative undertaking.
ANSWER: B

124. Memorandum of association of a firm contains .

A. rules regarding the internal management of the company.
B. rules regarding the constitution and activities of the company.
C. rules regarding the external management.
D. rules regarding the constitution.
ANSWER: B

125. A Company is called an artificial person because .

A. it does not have the shape of a natural person.
B. it cannot be used in the court of law.
C. it is invisible and intangible.
D. it exists only in contemplation of law.Answer:
C ANSWER: C

126. The charter of a company is its .

A. prospectus.
B. statement lieu of prospectus.
C. memorandum of association.
D. articles of association.
ANSWER: A

127. A person owning and running a small firm, is known as .

A. A manager-owner.
B. An owner-manager.
C. A professional adapter.
D. An enterprise worker.
ANSWER: B

128. Which of the following is a characteristic typical of ?Most entrepreneurs

A. Choose high risk ventures.
B. Choose low risk ventures.
C. Choose moderate (or calculated) risk ventures.
D. Choose no risk ventures.
ANSWER: C

129. The UK government has implemented a number of policies to encourage Entrepreneurship

in schools. One such initiative is _.

A. Young Enterprise.
B. Youth venture.
C. Young Business.
D. Young Initiative.
ANSWER: A
130. One of the disadvantages of a franchise business for a franchisee is .
A. Lack of independence.
B. Franchise businesses typically have a high failure rate.
C. Lack of brand identity.
D. Training is not normally provided by the franchisor.
ANSWER: A

131. The Markets and Competitors section of a business plan should contain .
A. A statement of the target market.
B. The size of each market segment.
C. The key characteristics of buyers in each business segment.
D. All the above.
ANSWER: D

132. As a new company grows, the entrepreneur will need to .

A. be responsive to changes in the market.
B. ensure financial controls are maintained.
C. build a management team.
D. all the above.
ANSWER: D

133. An entrepreneur into the hosiery business found out the reason his hosiery was not selling
was due to its color. What could be the best source of this information?
A. Supplier.
B. Retailer.
C. Competition.
D. Government bureau.
ANSWER: B

134. Entrepreneurship can best be described as .

A. a process that requires setting up a business.
B. taking a significant risk in a business context.
C. having a strong vision.
D. a process involving innovation, new products or services, and value creation.
ANSWER: D

135. , which is included in the project cost, is estimated on the basis of the year
when the enterprise breaks even.
A. working capital
B. cost of capital
C. cost of production
D. cost of equity
136. The minimum amount of ----------------- ,irrespective of such private participation,could be
specified at a minimum 17.5 per cent of project costs by lending institutions.
A. bank loans
B. promotors contribution
C. fixed capital
D. working capital
ANSWER: B

137. 137. set up for the purpose of financing, facilitating, and promoting foreign trade
of India.
A. Repco bank
B. SBI
C. EXIM bank
D. HDFC
ANSWER: C

138. Which of the following is not considered to be a characteristic of a project?

A. An established objective
B. Complex tasks
C. A clear beginning and end
D. Only for internal use ANSWER: D

139. Project management is ideally suited for a business environment requiring all of the
following except .
A. Flexibility
B. Innovation
C. speed
D. Repetability
ANSWER: D

140. Integration of project management with the organization takes place with the
.
A. master budjet
B. strategic plan
C. Process of managing actual projects
D. both b and c
ANSWER: D

141. The content of the final report typically includes the following topics .
A. Executive summary
B. review and analysis
C. recommendations
D. If all the above are correct.
ANSWER: D
142. Project mission and objectives, procedures and systems used, and organization
resources used typically appear in the section of the final project report.
A. Analysis
B. Recommendation
C. lessons learned
D. financial
feasibility
ANSWER: A

143. what are the components of then project report .

A. requirement of funds
B. location
C. manpower
D. all the
above
ANSWER: D

144. market potential of the project report includes .

A. demand and supply conditions
B. market strategy
C. after sales service
D. all the
above
ANSWER: D

145. Every entrepreneur should draw an for his project to ensure the
timely completion of all activities involved in setting up an enterprise.
A. cost structure
B. implementation plan
C. market structure
D. production
structure
ANSWER: B

146. describes the direction, the enterprise is going in, what its
goals are, where it wants to be,and how it is going to get there.
A. project report
B. technical anlaysis
C. market analysis
D. financial
analysis
ANSWER: A

147. Today, many companies are using managerial techniques that are designed to
encourage
.
 A. increasing profits
B. legal compliances
C. Ethical behaviour
D. shareholders
value ANSWER:
C

148. Entrepreneurial development is the key to achieve all-round through

A. economic development
B. increase in profits
C. shareholders value
D. business
development
ANSWER: A

149. Swot Analysis is a tool

A. Conceptual
B. Modern
C. Scientific
D. Tradit
ional
ANSWER
:A

150. NABARD is a Bank for development

A. Urban
B. Agricultural and Rural
C. Scientific
D. Agriculture and
research ANSWER: B
 1. The term Entrepreneur is derived from the word

A. English

B .Tamil

SC. Hindi

D. French ANSWER: D

2. An individual who has prior business ownership experience entrepreneurs.

A. Habitual

B. Novice

C. Serial

D. Portfolio

ANSWER: A

3. Identified innovation as a characteristic of entrepreneur for the first time in 1934.

A. William Diamond

B.A.H.Cole

C. W.B.Gartner D.J.A.Schuumpeter

ANSWER: D

4. Refusal to adopt and use opportunities to make changes in production entrepreneurs.

A. Fabian

B. Imitative

C. Innovative

D. Drone

ANSWER: D
 short-term, internal source of funds can be obtained by reducing
all of the following except .

A.Short-term assets

B.Fixed assets

C.cash

D.Inventory

ANSWER: C

6. Which one of the following is not an Intrapreneurial leadership characteristic?

A.Encourage the team work

B.Not flexible

C.Understands environment

D.Persistent

ANSWER: B

7 .Which of the following factor does not affect a person for being an entrepreneur?

A.Education

B.Gender

C.Personal values

D.Family background

ANSWER: B

8. There is evidence that an entrepreneur usually has parents.

A. Self employed

B. B.Discouraged

C. C.Strict

D. Non supportive

ANSWER: A
 9. The entrepreneur must possess the abilities of .

A. Conceptualization

B.Creative

C.Understanding environment

D.All of the above

ANSWER: D

10. Which of the following is not a characteristic of an entrepreneur?

A. Need for independence

B. Need for affiliation

C. Need for achievement

D. Risk taking

ANSWER: B

11. People who own, operate, and take risk of a business venture is known as .

A. Aptitude

B.Employee

C.Entrepreneu

D.Intrapreneur

ANSER: C

12. An entrepreneur doing business within the national border is called .

A. International entrepreneurship
B. Intrapreneurship

C. Domestic entrepreneur

D.Imports

D.
 13. What type of entrepreneurial business actually produces the products they sell?

A. Manufacturing

B.Wholesaling

C.Retailing

D.Consumer

ANSWER: A

14. The assessment of the needed resources by the entrepreneur starts with .

A. An appraisal of the entrepreneurs present resources

B. An assessment of economic conditions of the country

C. A scanning of friends and family for funds

D.A survey of banks and other financial institutions in the area

15. Entrepreneurial task depend upon the personality of the entrepreneur, organisational
structure and

A. The environment

B. The market

C. The labour

D. The government

ANSWER: A

16. The term intrapreneur is coined in .

A. America
B. Andaman
C. Australia .
D. Antartica
 17. The term intrapreneurship is coined in late .

A.Fifties

B.Sixties

C.Seventies

D.Eighties

ANSWER: C

18. The difference in the entrepreneurial and managerial domains has contributed towards an
increase in interest is .

A. Forming new firms.

B.Partnership.

C.Intrapreneurship.

D.Private firms.

ANSWER: A
22 type of entrepreneurs are very cautious and skeptical while
practising any change.

A.Innovative

B.Imitative

C.Fabian

D.Drone

ANSWER: C

23. Which one among the following is considered as one of the important economic factor
which determine entrepreneurial growth?

a. Government

B.Politics

C.Market

D.Private

ANSWER: C

24. Entrepreneurial management is noted for its ability to react quickly and effectively to new

a. Market

b. Business opportunities

c. Product

d. Technology

ANSWER: B

25. Which of the following is the back bone of financial plan?

a. Budgeting.

B.Capital.

C.Nature of business.

D.Cost of production.

ANSWER: B
 26. Female entrepreneur differs from male entrepreneur in terms of the following except
.

a. Motivation

B.Business skill.

C.Departure point

D.Goal orientation

ANSWER: A

27. Which of the following is alternatively called corporate venturing?

A .Entrepreneurship

B.Intrapreneurship

B. Act of stating a new venture

C. Offering new products by an existing company

ANSWER: B
 28. The term EDP refers to .

a. Entrepreneurship Development Programme.

B.Entrepreneurial Development Programme.

C.Entrepreneur Development Programme.

D.Entrepreneuring Development Programme.

ANSWER: A

29. promotes the creation and/or growth of enterprises through a National Team of
Trainers and Counselors that provides training and counseling to young promoters to
establish their own business and to reduce the failure rate of start-ups, contributing thereof to
the economic growth of the Country.

A.EDQ

B.EDN

C.EDC

D.EDP

ANSWER: D

30. EDPs are conducted by .

a. Entrepreneurs

b. Specialised institutions

C .Business community D

.Government

ANSWER: B

31. is an apex Institute in the area of Entrepreneurship and Small Business

Development under the Ministry of Micro, Small and Medium Enterprises Government of
India.

A.NIESBUA

B.NIESBUB

C.NIESBUC

D.NIESBUD
ANSWER: D

32. has helped to set up twelve state-level exclusive entrepreneurship development

centres and institutes.

a. Entrepreneurship Development Institute of India

b. B.State Bank of India

C.Reserve Bank

D.Industrial Finance Corporation of India

ANSWER: A

33.The word entrepreneurship has been derived from a which means ' to
undertake'.

A. French root

B. Greek root

C. Roman root

D. Italian root

ANSWER: A
 34. Which of the following is alternatively called corporate venturing?

a. Entrepreneurship.

b. Intrapreneurship.

c. Act of stating a new venture.

d. Offering new products by an existing company.

ANSWER: B

Question No: 1
Which of the following shows the process of creating something new?
a) Business model
b) Modeling
c) Creative flexibility
d) Innovation

Question No: 2
Which one of the following gives suggestions for new product and also help to market new products?
a) Existing products and services
b) Federal government
c) Distribution Channels
d) Consumers

Question No: 3
Which of the following is used by entrepreneurs to acquire experience in an international market
before making a major commitment?
a) Merger
b) Minority Interest
c) Joint venture
d) Majority interest

Question No:4
GATT is established in 1947, under:
a) German leadership
b) U.S. leadership
c) French leadership
d) U.K. leadership

Question No: 5
The entrepreneur was distinguished from capital provider in:
a) Middle ages
b) 17th century
c) 18th century
d) 19th and 20th century
Question No: 6
A person who managed large project was termed as the entrepreneur in the .
a) Earliest period
b) Middle ages
c) 17th century
d) 19th and 20th century

Question No: 7
What is the process by which individuals pursue opportunities without regard to resources they
currently control?
a) Startup management
b) Entrepreneurship
c) Financial analysis
d) Feasibility planning

Question No: 8
Having less than 50 percent of equity share in an international venture is called:
a) Joint Venture
b) Majority interest
c) Minority interest
d) Exporting

Question No: 9
Having more than 50% ownership position that provides the entrepreneur with managerial control is
called:
a) Joint venture
b) Majority interest
c) Horizontal merger
c) Diversified activity merger

Question No: 10 –
Which one of the following is the process of entrepreneurs developing new products that over time
make current products obsolete?
a) New business model
b) Anatomization
c) None of the given options
d) Creative destruction

Question No: 11
Which of the following factors is the most important in forcing U.S companies to focus on new
product development and increased productivity?
a) Entrepreneurship
b) Hyper competition
 c) Governmental laws
d) Organizational culture

Question No: 12
Which of the following is alternatively called corporate venturing?
a) Entrepreneurship
b) Intrapreneurship
c) Act of stating a new venture
d) Offering new products by an existing company

Question No: 13
Individuals influencing an entrepreneur’s career choice and style are known as which of the
following?
a) Moral-support network
b) Role model
c) Professional support network
d) Support system

Question No: 14
The activity which occurs when the new venture is started is called:
a) Motivation
b) Business skills
c) Departure point
d) Goal orientation

Question No: 15
The level at which an individual is viewed by society is called:
a) Financial status
b) Qualification
c) Social status
d) Achievement

Question No: 16
Which one of the following is an important source of idea generation due to their familiarity with the
needs of market?
a) Existing products and services
b) Distribution channels
c) Federal government
d) Consumers

Question No: 17
Members of distribution channels are excellent sources for new ideas because:
a) They earn a handsome profit from new business
b) They are familiar with the needs of the market
 c) They do not bother if entrepreneur bears a loss
d) They have well-developed sales force

Question No: 18
Which one of the following is the most important characteristic of a successful business website?
a) Innovation
b) Speed
c) Graphics
d) Products

Question No: 19

Which one of the following is the next stage to the Concept Stage of Product Planning and
Development Process?
a) Idea Stage
b) Product Planning Stage
c) Product Development Stage
d) Test Marketing Stage

Question No: 20 SBA stands for:

a) Small business accountants
b) Small business administration
c) Small business adequacy
d) Small business advisors

Question No: 21
Why should an entrepreneur do a feasibility study for starting a new venture
a) To identify possible sources of funds
b) To see if there are possible barriers to success
c) To estimate the expected sales
d) To explore potential customers

Question No: 22
Information regarding all of the following is related to operations, EXCEPT:
a) Location
b) Promotion
c) Raw materials
d) Labor skills
Question No:23
A performance and credit rating scheme has been launched by the MSME Ministry to assess
creditworthiness and capabilities of industries in the sector. What is it called?

(a) Performance and Credit Rating Scheme

(b) Zero Defect Zero Effect Certification
(c) Performance and Economy Rating Scheme
(d) None of the above

Question No: 24
A Micro Enterprise is an enterprise where investment in plant and machinery does not exceed
(According to MSMED Act, 2006):
(a) Rs. 15 Lakh
(b) Rs. 20 Lakh
(c) Rs. 25 Lakh
(d) Rs. 30 Lakh

Question No: 25
EDP (Entrepreneurship Development Programmes) is required to help:
(a) Existing entrepreneurs
(b) First generation entrepreneurs
(c) Future generations entrepreneurs
(d) None of the above

Question No: 26
A corporate manager who starts a new initiative for their company which entails setting up a new
distinct business unit and board of directors can be regarded as?
(a) Ecopreneur
(b) Technopreneur
(c) Intrapreneur
(d) Social Entrepreneur

Question No: 27
A women entrepreneur is supposed to have a minimum financial interest in share capital of
entrepreneur’s enterprise:
(a) 35 per cent
(b) 51 per cent
(c) 25 per cent
(d) None of the above
Question No: 28
Family business always interested to handover the change of his business to:
(a) Indian Administration Officers
(b) Professional Managers
(c) Next generation
(d) None of the above

Question No: 29
A corporate manager who starts a new initiative for their company which entails setting up a new
distinct business unit and board of directors can be regarded as?
(a) Ecopreneur
(b) Technopreneur
(c) Intrapreneur
(d) Social Entrepreneur

Question No: 30
Venture capital is concerned with:

(a) New project having potential for higher profit

(b) New project of high technology
(c) New project having high risk
(d) All the above.

Answer Key: 1(d), 2(c), 3(b), 4(b), 5(c), 7(b), 8(c), 9(b), 10(d), 11(b), 12(b), 13(b), 14(c), 15(c), 16(b),
17(b),
18(b), 19(c), 20(b), 21(b), 22(c), 23(a), 24(c), 25(b), 26(c), 27(c), 28(c), 29(c), 30(a)