Q1).

Which one of the following theory has the attribute of moderate risk taking as a function
of skill, not chance?

A. Need for independence

B. Need for achievement
C. Need for affiliation
D. Need for authority

Q2). Foundation companies are formed from:

A. Fashion
B. Research and development
C. Most popular business
D. winding up company

Q3). All of the following are the broad categories of External forces EXCEPT:

A. Economic forces
B. S Socioeconomic forces
C. Technological forces
D. Competitive forces

Q4). A ______________ is a professional money manager who makes risk investment from a pool
of equity capital to obtain a high rate of return on investments.

A. venture capitalist
B. entrepreneur
C. businessman
D. buyer

Q5). Members of distribution channels are excellent sources for new ideas because:

A. They are familiar with the needs of the market

B. They earn a handsome profit from new business
C. They do not bother if entrepreneur bears a loss
D. They have well-developed sales force

Q6). Which of the following geographical area is having least interest to U.S. entrepreneurs?

A. Europe
B. The Far East
C. Central Asia
D. Transition economies
Q7). Andrew Carnegie is an example of entrepreneur of which century:

A. Earliest period
B. 19th and 20th century
C. Middle ages
D. 17th century

Q8). The activity which occurs when the new venture is started are called:

A. Business skills
B. Motivation
C. Departure point
D. Goal orientation

Q9). The business plan should be prepared by:

A. Entrepreneurs
B. Consultants
C. Engineers
D. Small business administration services

Q10). What is the primary concern of founders who trade equity for capital for their growing
venture?

A. Capitalization
B. Control
C. Valuation
D. Investor capabilities

Q11). The importance of intellectual property should be understood by entrepreneur even

before:

A. Hiring a manager
B. Engaging an attorney
C. Developing a product
D. Establishing new venture

Q12). A patent is granted for a specified amount of time because of the assumption:

A. That during this time firm will cover its development costs
B. That firm will earn a sufficient profit during this period
C. To limit the monopoly of the firm
D. That it will stimulate idea and development of a better product
Q13). External forces directly affect all of the following EXCEPT:

A. Market segmentation strategies

B. Types of products/services offered
C. Management structure of organization
D. Choice of businesses to acquire or sell

Q14). Which of the following is alternatively called corporate venturing?

A. Intrapreneurship
B. Entrepreneurship
C. Act of stating a new venture
D. Offering new products by an existing company

Q15). Following are the types of non equity arrangements EXCEPT:

A. Licensing
B. T turnkey project
C. Direct export
D. Management contracts

Q16). Government can help in forming new venture by providing:

A. finance
B. technology
C. infrastructure
D. funds

Q17). The longest lasting trade agreement with the objective of liberalizing trade by eliminating
or reducing tariffs, subsidies and quotas is:

A. Free trade area - FTA

B. European community - EC
C. General agreement on tariffs and trade - GATT
D. The North American free trade agreement – NAFTA

Q18). Entrepreneurial success has been significant because of the culture and the political and
economic systems in ––––––––.

A. Asian countries
B. European countries
C. Transition economies
D. Middle East
Q19). The transitional disturbance and lack of reform has led to boom black market in:

A. China
B. Hungary
C. Singapore
D. Poland

Q20). Which of the following factors has allowed small companies to act like they are big ones?

A. Customers
B. Competition
C. Economic development
D. Technology

21. Gazelles are the firms with:

A. High growth rate

B. M moderate growth rate
C. Zero% growth rate
D. Low growth r

22. Professional support network includes following EXCEPT:

A. Personal affiliations
B. Mentor
C. Friends
D. Trade associations

23. The period in which the money person entered into a contract with the go-between to sell
his goods is known as

A. Middle ages
B. 18th century
C. 17th century
D. Earliest period

24. Which one of the Following is not the way by which an entrepreneur can enter into
international business?
 A. Export
B. Non equity arrangements
C. Direct foreign investment
D. Communication

25. ______________ viewed the entrepreneur as a risk taker who "buy(s) at an uncertain price,
therefore operating at a risk".

A. Eli Whitney
B. Edward hariman
C. Richard cantillon
D. Thomas Edison

26. Female entrepreneurs differ from male entrepreneurs in terms of all of the following EXCEPT:

A. Motivation
B. business skills
C. Departure point
D. Goal orientation

27. 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

28. Which of the following factors does not affect a person for being an entrepreneur?

A. Gender
B. Education
C. Family background
D. values

29. Which of the following factors does not affect a person for being an entrepreneur?

A. Work history
 B. Nationality
C. Education
D. Personal values

30. The former USSR received technology and syrup from Pepsi and provided it with Soviet vodka
and rights to distribute it in the US. This is an example of:

A. Economic development
B. Balance of payment
C. Barter system
D. International trade

31. Which one of the following is NOT a condition of a contract?

A. An offer is made
B. Consideration is given
C. An acceptance of offer
D. Contract must be illegal

32. Government can help in forming new venture by providing:

A. Finance
B. Technology
C. Infrastructure
D. Subsidiaries

33. A contract must be signed by:

A. At least one party

B. Both the parties
C. Not necessary to sign
D. By third party

34. Which of the following areas are preferred by women entrepreneurs?

A. Administration
B. Organization
C. Utilities
D. Manufacturing

35. A typical inventor is usually ______________.

A. Highly creative & in love with the invention

B. Does not encourage change
 C. Willing to modify the invention
D. Not enthusiastic

36. Which one of the following is the fourth step in the entrepreneurial process?

A. Developing successful business ideas

B. Initiating New rules
C. Deciding to become an entrepreneur
D. Growing the entrepreneurial firm

37. The commitment of administrative domain to the resources is for:

A. Periodic intervals
B. Total amount needed
C. For certain tasks
D. For long time

38. Developing a new idea through inquiry and testing is called:

A. Forced relationship
B. Heuristics
C. Scientific method
D. Value analysis

39. Which of the following is not a source of idea generation?

A. Consumers
B. Federal government
C. Brain storming
D. Training

40. Which of the following cannot be covered under the copyright protection?

A. Computer software
B. Poems and songs
C. Computer hardware
D. Models and sculpture

41. An individual who initiates, creates and manages a new business can be called
______________.

A. A leader
B. A manager
C. A professional
 D. An entrepreneur

42. Intellectual Property laws can protect ______________.

A. Trademarks.
B. Copyright.
C. Patents.
D. All the above.

43. 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.

44. 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.

45. 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.

View answer

46. 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.

View answer

47. 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.

48. EDPs course contents contains ______________.

A. General introduction to entrepreneurs.

B. Motivation training.
C. Managerial skills.
D. All the above.

49. ______________ 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.

50. ______________ 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.

51. EST stands for ______________.

A. Earliest Start Time.

B. Event Start Time.
C. Effective Start Time.
D. Essential Start Time.

View answer

52. ______________ 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
View answer

53. ______________ 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

54. Which of the list below does not form Intellectual Property?

A. Trade marks.
B. Patents.
C. Tangible assets.
D. Copyright.

55. 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.

56. 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.

57. LOB stands for______________.

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

58. 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

59. 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.

60. EXIM bank is a ______________.

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

61. 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.

62. 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.

63. A public corporation means ______________.

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

64. 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.

65. The charter of a company is its ______________.

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

66. 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.

View answer

67. 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

68. 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.

69. _____________ 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

70. Someone who improves an existing business can be called ______________.

 A. A changeling.
B. A professional.
C. A co-worker.
D. An intrapreneur.

71. 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.

72. Innovation can best be defined as ______________.

A. the successful exploitation of new ideas.

B. the evolution of new ideas.
C. the opposite of creativity.
D. the generation of new ideas.

73. 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.

74. 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.

75. IFCI has been converted into a ______________.

A. joint stock company.

B. co-operative society.
C. partnership firm.
D. sole proprietorship.

76. TIIC is sponsored by the ______________.

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

77. ______________ 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. Strategy
D. Project.

78. 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. Concession
D. Bounty.

79. ______________ 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

80. ______________ is an event-oriented approach.

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

81. 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
82. 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.

83. ______________ 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.

84. 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.

85. What is the role of a Business Ange?

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.

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

87. 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.

88. District Industries Centres are located ______________.

A. in each district.
B. in each state.
C. only in selected districts.
D. only in selected states.

89. 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.

90. 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

91. 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.

92. The term Capitalization is used in relation to ______________.

A. sole-proprietorship.
B. Partnership.
C. joint stock companies.
D. co-operative societies

93. 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.
94. 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.

95. 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.

96. Project management is ideally suited for a business environment requiring all of the following
except ______________.

A. Flexibility
B. Innovation
C. speed
D. Repeatability

97. what are the components of then project report ______________.

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

98. Today, many companies are using managerial techniques that are designed to encourage
______________.

A. Ehical behaviour
B. legal compliances
C. increasing profits
D. shareholders value

99. 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.
100. 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.

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.

View answer
Correct answer: (D)
All the above.

102. 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.

View answer
Correct answer: (D)
to achieve stated objectives.

103. State Industrial corporations engage in the development of ______________.

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

View answer
Correct answer: (A)
industrial estates.

104. 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.

View answer

105. 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.

View answer
Correct answer: (A)
Declining.

106. 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.

View answer
Correct answer: (C)
Programme Evaluation and Review Techniques.

107. New Small Scale industries are exempted from the payment of income tax under section 80J
is called ______________

A. InvestmentAllowance.
B. Development Rebate.
C. Rehabilitation Allowance.
D. Tax Holiday

View answer
Correct answer: (A)
InvestmentAllowance.

108. ______________ is an activity-oriented approach.

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

View answer
Correct answer: (A)
CPM

109. ______________ 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.

View answer
Correct answer: (B)
Project formulation.

110. A provisional SSI registration certificate is valid for a period of ______________.

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

View answer
Correct answer: (D)
one year.

Which of the following factors would not be included in a PESTLE analysis?

A. Government re-cycling policy.

B. Proposed reduction in interest rates.
C. Demographic changes.
D. Competitor activity.

View answer
Correct answer: (D)
Competitor activity.

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

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

View answer
Correct answer: (A)
Entrepreneurial networking.

113. Entrepreneurs are motivated by ______________.

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

View answer
Correct answer: (D)
All the above.

114. ______________ is the first development bank of the country.

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

View answer
Correct answer: (D)
IFCI.

115. 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.

View answer
Correct answer: (D)
All the above.
116. ______________ 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.

View answer
Correct answer: (A)
Project Scheduling.

117. The granting of cash subsidy on the capital investment is called ______________.

A. Concessional finance.
B. Quantum of Subsidy.
C. Interest Subsidy.
D. Central Investment Subsidy.

View answer
Correct answer: (D)
Central Investment Subsidy.

118. 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.

View answer
Correct answer: (A)
Preceeding Activities.

119. 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

View answer
Correct answer: (A)
Organizational decisions.

120. CPM stands for ______________.

A. Continuous Path Method.

B. Clear Path Method.
C. Critical Probabilistic Method.
D. Critical Path Method.

View answer
Correct answer: (D)
Critical Path Method.

The 'T' in a PESTLE analysis refers to ______________.

A. Technology.
B. Time.
C. Training.
D. Talent.

View answer
Correct answer: (A)
Technology.

122. 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.

View answer
Correct answer: (B)
The number of people who are jobless and are actively seeking work.

123. 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.
View answer
Correct answer: (B)
customer needs in a given market.

124. 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.

View answer
Correct answer: (A)
Manufacturing industries.

125. 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%

View answer
Correct answer: (D)
50%

126. 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.

View answer
Correct answer: (B)
horizontal integration.

127. Seed capital assistance ______________.

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

View answer
Correct answer: (B)
initial assistance

128. 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.

View answer
Correct answer: (C)
IPR 1977.

129. 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.

View answer
Correct answer: (B)
maximize profits.

130. 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.

View answer
Correct answer: (D)
Debentures.

The oldest form of business organization is ______________.

 A. Partnership.
B. sole proprietorship.
C. joint stock company.
D. co-operative undertaking.

View answer
Correct answer: (B)
sole proprietorship.

132. 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.

View answer
Correct answer: (A)
Young Enterprise.

133. 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.

View answer
Correct answer: (D)
All the above.

134. ______________ set up for the purpose of financing, facilitating, and promoting foreign
trade of India.

A. Repco bank
B. SBI
C. EXIM bank
D. HDFC

View answer
Correct answer: (C)
EXIM bank
135. 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

View answer
Correct answer: (A)
Analysis

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

acceleration of industrial and entrepreneurial activities.

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

View answer
Correct answer: (A)
economic development

137. Which industrial sector tends to naturally promote small-scale businesses and
Entrepreneurship, and generally has lower barriers to market entry?

A. Agriculture
B. Manufacturing.
C. Distribution.
D. Service.

View answer
Correct answer: (D)
Service.

138. 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.

View answer
Correct answer: (C)
Entrepreneurship takes place in a wide variety of contexts.

139. Goods or services reach the market place through ______________.

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

View answer
Correct answer: (A)
marketing channels.

140. Entrepreneurial Guidance Bureau(EGB) was set up by ______________.

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

View answer
Correct answer: (D)
IIC.

______________ 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.

View answer
Correct answer: (C)
Brain storming.

142. 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.
View answer
Correct answer: (B)
A franchise.

143. 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.

View answer
Correct answer: (C)
business awareness.

144. 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.

View answer
Correct answer: (C)
a portfolio entrepreneur.

145. 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.

View answer
Correct answer: (D)
Strategic decisions.

146. 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

View answer
Correct answer: (A)
conglomerate diversification.

147. 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.

View answer
Correct answer: (A)
6% p.a.

148. 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.

View answer
Correct answer: (C)
actual earnings are lower than the expected earnings.

149. Reserve bank of India is a/an ______________.

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

View answer
Correct answer: (A)
statutory corporation.

150. 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.

View answer
Correct answer: (A)
Issue of equity shares.

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.

View answer
Correct answer: (B)
rules regarding the constitution and activities of the company.

152. 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.

View answer
Correct answer: (B)
Retailer.

153. 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

View answer
Correct answer: (D)
A clear beginning and end

154. 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

View answer
Correct answer: (B)
implementation plan

155. 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.

View answer
Correct answer: (D)
All the above.

156. Primary data is ______________.

A. new data specifically collected for a project.

B. the data that is collected first.
C. the most important data.
D. data that is collected second.

View answer
Correct answer: (A)
new data specifically collected for a project.

157. 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.

View answer
Correct answer: (D)
there is a high failure rate.

158. SIDBI was set up as a subsidiary of ______________.

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

View answer
Correct answer: (A)
IDBI.

159. 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.

View answer
Correct answer: (A)
concessional terms.

160. In ______________, machines and equipments are arranged in the order or sequence in
which they are to be used for manufacturing the product

A. Product Layout.
B. Factory Layout.
C. Process Layout.
D. Combined Layout.

View answer
Correct answer: (A)
Product Layout.

Activities which can be accomplished simultaneously are termed as ______________.

A. Preceeding Activities.
B. Succeeding Activities.
C. Dummy Activities
D. Concurrent Activities

View answer
Correct answer: (D)
Concurrent Activities
162. 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.

View answer
Correct answer: (D)
Managerial competence.

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

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

View answer
Correct answer: (D)
materials.

164. 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.

View answer
Correct answer: (C)
is rarely used in small businesses.

165. ______________ 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.

View answer
Correct answer: (B)
Feasibility analysis.

166. 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.

View answer
Correct answer: (A)
General manager, DIC.

167. 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

View answer
Correct answer: (D)
all the above

168. 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.

View answer
Correct answer: (A)
The Reserve Bank of India.

169. 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.
View answer
Correct answer: (A)
takes part in the incorporation of a company.

170. Business risks can be ______________.

A. avoided.
B. reduced.
C. ignored.
D. erased.

View answer
Correct answer: (B)
reduced.

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.

View answer
Correct answer: (B)
An owner-manager.

172. 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.

View answer
Correct answer: (A)
Lack of independence.

173. 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

View answer
Correct answer: (D)
both b and c

174. market potential of the project report includes______________.

A. demand and supply conditions

B. market strategy
C. after sales service
D. all the above

View answer
Correct answer: (D)
all the above

175. 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 franchise.
B. A cooperative.
C. An owner-manager business.
D. A limited company.

View answer
Correct answer: (A)
A franchise.

176. 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.

View answer
Correct answer: (D)
Weather conditions.

177. 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.

View answer
Correct answer: (A)
1 crore.

178. 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.

View answer
Correct answer: (A)
Capital Intensive.

179. ______________ 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.

View answer
Correct answer: (C)
Project appraisal.

180. 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.

View answer
Correct answer: (A)
Directorate General of Technical Development.

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.

View answer
Correct answer: (B)
A realistic sales forecast.

182. Underestimation of project cost leads to ______________.

A. Time under run.

B. Cost under run
C. Time over run.
D. Cost over run

View answer
Correct answer: (D)
Cost over run

183. 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.

View answer
Correct answer: (D)
Societal feasibility.

184. 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.

View answer
Correct answer: (A)
Joint Director of industries.

185. 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.

View answer
Correct answer: (A)
acquiring fixed assets on excessive amounts.

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

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

View answer
Correct answer: (C)
Debentures.

187. 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.

View answer
Correct answer: (C)
it is invisible and intangible.

188. ______________, 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

View answer
Correct answer: (A)
working capital

189. Business means ______________.

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

View answer
Correct answer: (B)
industry and commerce.

190. 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.

View answer
Correct answer: (A)
Capital Intensive.

Which of the following shows the process of creating something new?

A. Business model
B. Modeling
C. Creative flexibility
D. Innovation

View answer
Correct answer: (D)
Innovation

192. 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

View answer
Correct answer: (B)
Role model
193. SBA stands for:

A. Small business accountants

B. Small business administration
C. Small business adequacy
D. Small business advisors

View answer
Correct answer: (B)
Small business administration

194. EDP (Entrepreneurship Development Programmes) is required to help:

A. Existing entrepreneurs
B. First generation entrepreneurs
C. Future generations entrepreneurs
D. None of the above

View answer
Correct answer: (B)
First generation entrepreneurs

195. 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

View answer
Correct answer: (C)
Intrapreneur

196. 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

View answer
Correct answer: (B)
Minority Interest

197. 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

View answer
Correct answer: (B)
Entrepreneurship

198. 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

View answer
Correct answer: (B)
Hyper competition

199. 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

View answer
Correct answer: (B)
Distribution channels

200. 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

201. 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

View answer

Correct answer: (C)

25 per cent

202. The entrepreneur was distinguished from capital provider in:

A. Middle ages

B. 17th century

C. 18th century

D. 19th and 20th century

View answer

Correct answer: (C)

18th century

203. Having more than 50% ownership position that provides the entrepreneur with

managerial control is called:

A. Joint venture

B. Majority interest
C. Horizontal merger

D. Diversified activity merger

View answer

Correct answer: (B)

Majority interest

204. The activity which occurs when the new venture is started is called:

A. Motivation

B. Business skills

C. Departure point

D. Goal orientation

View answer

Correct answer: (C)

Departure point

205. Which one of the following is the most important characteristic of a successful

business website?

A. Innovation

B. Speed

C. Graphics

D. Products

View answer

Correct answer: (B)

Speed

206. 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

View answer

Correct answer: (C)

Next generation

207. 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

View answer

Correct answer: (C)

Distribution Channels

208. 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

View answer
Correct answer: (D)

Creative destruction

209. 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

View answer

Correct answer: (B)

They are familiar with the needs of the market

210. 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

View answer

Correct answer: (B)

To see if there are possible barriers to success

211. 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

View answer

Correct answer: (C)

Intrapreneur

212. 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.

View answer

Correct answer: (A)

New project having potential for higher profit

213. GATT is established in 1947, under:

A. German leadership

B. U.S. leadership

C. French leadership

D. U.K. leadership

View answer

Correct answer: (B)

U.S. leadership

214. 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

View answer

Correct answer: (C)

Minority interest

215. The level at which an individual is viewed by society is called:

A. Financial status

B. Qualification

C. Social status

D. Achievement

View answer

Correct answer: (C)

Social status

216. 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

View answer

Correct answer: (C)

Product Development Stage

217. 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

View answer

Correct answer: (C)

Rs. 25 Lakh

218. 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

View answer

Correct answer: (B)

Intrapreneurship

219. Information regarding all of the following is related to operations, EXCEPT:

A. Location

B. Promotion

C. Raw materials

D. Labor skills

View answer

Correct answer: (C)

Raw materials

220. A Business Model is related to

A. A way of doing Business

B. A perspective and a mode of looking at Markets

C. A mode of transaction

D. A structure of doing business involving market analysis and planning, revenue

model and a plan of interacting with all the stakeholders involved.

View answer

Correct answer: (D)

A structure of doing business involving market analysis and planning, revenue model

and a plan of interacting with all the stakeholders involved.

221. Social entrepreneurship can be defined as which of the following?

A. A process involving the innovative use and combination of resources to pursue

opportunities to catalyze change and/or address social needs

B. Coming up with new solutions to social problems and then implementing them,

often on a large scale

C. An attempt at the creation new social value through the creation of a new

enterprise, such as self-employment, creating a new business or nonprofit, or

the expansion of an existing social enterprise by an individual, team of

individuals or firm'

D. Any entrepreneurship is Social Entrepreneurship. /All of the above

View answer

Correct answer: (D)

Any entrepreneurship is Social Entrepreneurship. /All of the above

222. Strategy Canvass is based on the framework of

A. Eliminate Raise

B. Eliminate Raise reduce create

C. Focus, Divergence and Compelling tagline

D. Offerings

View answer

Correct answer: (B)

Eliminate Raise reduce create

223. As a business model

A. Amazon is same as Uber

B. Big Basket is same as Big Bazaar

C. Amway is similar to HUL Shakti

D. IBM is same as Del Computers

View answer

Correct answer: (C)

Amway is similar to HUL Shakti

224. According to the ________________, it can be concluded that firms have a

competitive advantage in a market if they offer products of a higher perceived value

to the customers and lower relative costs than competing firms.

A. Red ocean strategy

B. Analysis of national competitiveness

C. Blue ocean strategy

D. Competitive triangle

View answer

Correct answer: (D)

Competitive triangle

225. What is the aim of a strategy canvas?

A. To avoid red oceans

B. To move towards uncontested market space

C. To increase a produce range

D. To beat competitors on prices

View answer

Correct answer: (B)

To move towards uncontested market space

226. An entrepreneur has an amalgamation of

A. Thinking Ability, creativity, critical thinking, analytical abilities and originality.

B. Aptitude for Human Relations.

C. Communication Skills.

D. Financial Ability

View answer

Correct answer: (A)

Thinking Ability, creativity, critical thinking, analytical abilities and originality.

227. Which of the following traditional marketing elements do not apply to social

entrepreneurship efforts?

A. Public Relations
B. Sales Promotion

C. Marketing mix

D. None of the above

View answer

Correct answer: (D)

None of the above

228. Which of the following sentences best summarizes the differences between the

red and blue oceans strategies?

A. In the red oceans, industry boundaries are defined and accepted and the

competitive rules of the game are known. Blue oceans are occasionally created

well beyond existing industry boundaries.

B. Red oceans denote an environment where products are not yet well defined

while blue oceans refer to the frequently accessed marketplaces where the

products are well-defined, competitors are known and competition is based on

price, product quality and service.

C. Blue oceans are an old paradigm that represents all the industries in existence

today while red oceans are those where companies beat competition by

focusing on developing compelling value innovations that create uncontested

market space.

D. Red oceans are about avoiding head-to-head competition while blue oceans

are about rivals fighting over a shrinking profit pool.

View answer

Correct answer: (A)

In the red oceans, industry boundaries are defined and accepted and the competitive

rules of the game are known. Blue oceans are occasionally created well beyond

existing industry boundaries.

229. Which of the following is correct?

A. All innovations are also inventions.

B. All inventions are also innovations.

C. Inventions are related to science while innovations are related to social issues.

D. None of the above

View answer

Correct answer: (A)

All innovations are also inventions.

230. "Recognizing that most of the future processes are going to be affected by

blockchain technology", is an example of

A. Recognition of waste

B. Understanding the future wave

C. Feeling the pain of current users of technology

D. All of the above

View answer

Correct answer: (B)

Understanding the future wave

231. What is the role of technology forecasting in innovation?

A. It helps in understanding the future application of existing technology.

B. It helps in understanding the development of new technologies.

C. It helps in understanding the market of a technology.

D. All of the above

View answer

Correct answer: (D)

All of the above

232. What is the innovation gap?

A. An opening that rivals might exploit

B. The time that elapses between invention and innovation

C. A nation's lack of inventiveness

D. An opening that can be exploited by an entrepreneur with a good idea

View answer

Correct answer: (D)

An opening that can be exploited by an entrepreneur with a good idea

233. Which of the following is correct?

A. Technology is the use of engineering knowledge for wealth generation.

B. Innovations are scientific inventions.

C. Innovations are new ideas.

D. Innovations are new ideas.

View answer

Correct answer: (A)

Technology is the use of engineering knowledge for wealth generation.

234. "Realizing that solid waste management is poor in India, some reasons were

identified. One of the reason is almost zero segregation of waste at source. Waste
segregation after collection is a very difficult task." How will you use this observation

in challenge book?

A. Waste of efforts in segregation

B. Pain of citizens for poor solid waste management

C. Opportunity to use latest technology for Solid waste management

D. All of the above

View answer

Correct answer: (D)

All of the above

235. Which of the following is correct?

A. Science is a systematic way of studying any phenomenon.

B. Science is all about experimentation.

C. Science is concerned with explaining things in a rational manner.

D. All of the above

View answer

Correct answer: (D)

All of the above

236. What is the general shape of a technology life cycle?

A. S curve

B. Normal distribution curve

C. Bell curve

D. Straight line

View answer
Correct answer: (A)

S curve

237. According to MSME Act in India, what is the limit of investment in plant and

machinery for a micro enterprises involved in manufacturing?

A. Rs 5 lakhs

B. Rs.20 lakhs

C. Rs.25 lakhs

D. There is no such limit in the act.

View answer

Correct answer: (C)

Rs.25 lakhs

238. Which of the following is not included in the parameters of sustainable

development?

A. Carrying capacity

B. Inter and Intra-generation equity

C. Gender disparity and diversity

D. None of the above

View answer

Correct answer: (D)

None of the above

239. Innovations provide

A. The primary means for differentiating your product from your competitors'

B. Higher profit margins

C. Potential barriers to entry

D. All of the above

View answer

Correct answer: (D)

All of the above

240. Basic framework of Insights is proposed on the basis of

A. Contentions

B. Information

C. Observation

D. Connections, Contradictions and Creative Desperation

View answer

Correct answer: (D)

Connections, Contradictions and Creative Desperation

241. Entrepreneurship ManagementWhich of the examples seem to be associated

with Insight and Entrepreneurship.

A. Clocks

B. Footwear

C. Furniture

D. All the business and products are a resultant of Insight and Entrepreneurship

View answer

Correct answer: (D)

All the business and products are a resultant of Insight and Entrepreneurship

242. Monetizing an idea to make money with some method of operations is known to
be

A. Strategy

B. Scope

C. Business model

D. Business system

View answer

Correct answer: (A)

Strategy

243. According to MSME Act in India, what is the limit of investment in plant and

machinery for a small enterprises involved in services?

A. There is no separate classification for service and manufacturing organizations.

B. It is less than Rs 1 crore.

C. It is less than Rs 2 crore.

D. It is more than Rs 10 lakh but less than Rs 2 crore.

View answer

Correct answer: (D)

It is more than Rs 10 lakh but less than Rs 2 crore.

244. "Not-invented-here (NIH) syndrome," "I already known it (IAKI)," "Prove it to me

(PITM)," and "How on Earth could my firm possibly do that" are.

A. Legitimate reasons to maintain a conservative innovation policy

B. Innovation's worst enemies

C. Signs of weak management

D. None of the above

View answer

Correct answer: (B)

Innovation's worst enemies

245. Which of the following describes the totality of the means people employ to

accomplish desired tasks?

A. Innovation

B. Competitive advantage

C. Technology

D. Facilities

View answer

Correct answer: (C)

Technology

246. Which of the ministry of Government of India deals with matters related to

intellectual property?

A. Niti Aayog

B. Ministry of Human Resource Development

C. Ministry of Commerce and Industry

D. Ministry of Finance

View answer

Correct answer: (C)

Ministry of Commerce and Industry

247. Which of the following is correct?

A. Knowledge available in patent is available in public domain.

B. Knowledge available in patent is kept confidential so that it can not be used by

others.

C. Patenting of invention is a big hindrance of use of technology for social welfare.

D. All of the above

View answer

Correct answer: (A)

Knowledge available in patent is available in public domain.

248. What do you mean by WIPO?

A. World Intellectual Property Right Organization

B. World Internet Protection Organization

C. World Intellectual Protection Organization

D. World Indicator of Patents Organization

View answer

Correct answer: (A)

World Intellectual Property Right Organization

249. Which of the following is correct?

A. A Patent is an exclusive right granted for an invention.

B. Getting patent is a guarantee for a regular income for your invention.

C. Both (a) and (b)

D. None of the above

View answer

Correct answer: (A)

A Patent is an exclusive right granted for an invention.

250. What do you mean by PCT?

A. Patent Cooperation Treaty

B. Protection of Copyright Treaty

C. Patent and Copyright Treaty

D. None of the above

View answer

Correct answer: (A)

Patent Cooperation Treaty

251. What is not an essential condition to obtain patent?

A. Novelty

B. Non obviousness

C. Theory development

D. Industry application

View answer

Correct answer: (C)

Theory development

252. What is the normal life a patent?

A. 10 years

B. 20 Years

C. 25 Years

D. There is no fixed life.

View answer

Correct answer: (B)

20 Years

253. Which of the following is correct?

A. A Patent gives universal protection.

B. A Patent is a territorial protection.

C. A Patent is specific to an industry.

D. A patent is specific to an application.

View answer

Correct answer: (B)

A Patent is a territorial protection.

254. Which of the following is not a form of intellectual property?

A. Patent

B. Copyright

C. Cash in hand

D. Geographical Indicator

View answer

Correct answer: (C)

Cash in hand

255. The typical ______________ has a climate and reward system that favor conservative

decision making.

A. Entrepreneurship culture

B. Corporate culture

C. Intrapreneurial culture

D. None of the above

View answer

Correct answer: (B)

Corporate culture

256. Which of the following is correct?

A. Mind-set is the biggest barrier in the process of innovation.

B. External environment is a major barrier in the process of innovation.

C. “Many of us feel that innovation is not my cup of tea” – this is a major challenge

in the process of innovation.

D. All of the above

View answer

Correct answer: (D)

All of the above

257. Which of the following is not a characteristics of systems thinking approach?

A. Point of leverage is to be identified.

B. It uses concept of silver bullet.

C. Theory of constraints is best suited for systems thinking.

D. None of the above

View answer

Correct answer: (D)

None of the above

258. Which of the following is not correct with respect to “concept of challenge book”?

A. It helps in creating a template for recording various observations.

B. It helps in getting a readymade list of various problems which require innovative

solution.

C. It is a record of impact created by different innovations.

D. None of the above

View answer

Correct answer: (C)

It is a record of impact created by different innovations.

259. Which of the following is a possible assumption to be validated in an experiment

in the process of innovation?

A. Indian customers would enjoy buying product on line.

B. Indian customers would enjoy movies depicting India mythological characters.

C. Indian customers would pay for an email service for high level of data security.

D. All of the above

View answer

Correct answer: (D)

All of the above

260. Who is not needed in developing participation for innovation in the

organizations?

i. Role Model

ii. Catalyst

iii. Investor

iv. Customer

A. Only (iv)

B. Only (iii) and (ii)

C. Only (iii) and (iv)

D. Only (i)

View answer

Correct answer: (C)

Only (iii) and (iv)

261. Which of the following is correct?

A. Incubators are used for getting initial funding for startups.

B. Incubators are used for getting mentorship for startups.

C. Both (a) and (b) are false.

D. Both (a) and (b) are correct.

View answer

Correct answer: (D)

Both (a) and (b) are correct.

262. How does an Organization delivers value? Through

A. By knowing what business they are into?

B. By knowing what the World is doing?

C. By knowing the politics of their Country.

D. By understanding the people around.

View answer

Correct answer: (A)

By knowing what business they are into?

263. Looking at things with the innovative and innovation perspective India should be

looking at the market growth with reference to products/areas of business/services

like

A. Energy and Food

B. Entertainment

C. Shipping

D. Financial Management

View answer

Correct answer: (A)

Energy and Food

264. What is not part of the design thinker's profile?

A. Empathy

B. Integrative Thinking

C. Creativity

D. Functionality Focus

View answer

Correct answer: (D)

Functionality Focus

265. The ______________ plan shows whether the business is economically easible or not.

A. Financial

B. Business

C. Technical

D. Marketing

View answer

Correct answer: (B)

Business

266. Japanese term “Kaizen” is close to ______________

A. Product innovation

B. Process innovation

C. Business model innovation

D. None of the above

View answer

Correct answer: (B)

Process innovation

267. Which of the following can be a source of curiosity?

A. Use of Social Media

B. 5 G Mobile Technology

C. Packaging wastages

D. All of the above

View answer

Correct answer: (D)

All of the above

268. What is convergent thinking?

A. The process of creating many solutions to one problem.

B. The process of routine solutions to many problems.

C. The process of coming up with a logical, single best solution to a problem

D. The process of coming up with a logical solution to several problems.

View answer
Correct answer: (C)

The process of coming up with a logical, single best solution to a problem

269. What are the different types of assumptions to be validated in an experiment

designed in

i. Need

ii. Technical

iii. Positioning

A. Only (i) and (ii)

B. Only (ii) and (iii)

C. Only (i) and (iii)

D. All (i) , (ii) and (iii)

View answer

Correct answer: (A)

Only (i) and (ii)

270. A set of reasons for engaging in a particular behavior, especially human behavior

is known as ______________

A. Values

B. Vision

C. Entrepreneurship

D. Motivation

View answer

Correct answer: (D)

Motivation
271. One of the most important remedies of a business model failure is:

A. Consistency and Persistence of the organization and the leadership

B. Market Analysis

C. Competitor’s Analysis

D. Product analysis

View answer

Correct answer: (A)

Consistency and Persistence of the organization and the leadership

272. The importance of intellectual property should be understood by entrepreneur

even before ______________

A. Hiring a manager

B. Engaging an attorney

C. Developing a product

D. Establishing new venture

View answer

Correct answer: (B)

Engaging an attorney

273. Which of the following is correct?

A. Uncertainty about future gives excitement to an innovator.

B. Prediction disability is a villain in the process of innovation.

C. Innovation is an adventurous process.

D. None of the above

View answer
Correct answer: (B)

Prediction disability is a villain in the process of innovation.

274. Which of the following is not a characteristics of design thinking approach?

A. Rapid prototyping

B. Detailed analysis

C. Faster implementatio

D. None of the above

View answer

Correct answer: (B)

Detailed analysis

275. Which of the following statements is not correct?

A. Divergent thinking works best for open ended problems.

B. Divergent thinking involves creativity.

C. Unlike convergent thinking, there is no single best correct answer in divergent

thinking.

D. The process of divergent thinking is systematic and logical

View answer

Correct answer: (C)

Unlike convergent thinking, there is no single best correct answer in divergent

thinking.

276. Which of the following is not a possible assumption to be validated in an

experiment designed in the process of innovation?

A. Women are as hard working as men.

B. Women are as intelligent as men.

C. Women are as fearless as men.

D. All of the above

View answer

Correct answer: (D)

All of the above

277. Which of the following is not correct?

A. In process of cocreation, customers and solution provider shares value.

B. In process of cocreation, focus shifts from problem loci to problem space.

C. Both (a) and (b) are false.

D. Both (a) and (b) are correct.

View answer

Correct answer: (C)

Both (a) and (b) are false.

278. How does an organization creates value?

A. By knowing their customers well

B. By knowing their employees well

C. By knowing themselves well

D. By knowing their successors well

View answer

Correct answer: (A)

By knowing their customers well

279. How should India or similar markets look at the future?

A. On the basis of Needs and Resources.

B. On the basis of pattern set by the developed markets.

C. On the basis of the neighboring markets

D. On the basis of the desire of the entrepreneurs.

View answer

Correct answer: (A)

On the basis of Needs and Resources.

280. Which of the following is/are challenge(s) in the process of innovation?

A. Fear of failure

B. Unable to predict

C. Lack of resources

D. All of the above

View answer

Correct answer: (D)

All of the above

281. Which of the following is correct?

A. In present times, the product life cycles are reducing.

B. In present times, the product life cycles are increasing.

C. In present times, uncertainty in business environment is reducing.

D. None of the above

View answer

Correct answer: (A)

In present times, the product life cycles are reducing.

282. Which of the following is correct?

A. Innovation starts with creativity.

B. Innovation begins with curiosity.

C. Innovation happens accidently.

D. All of the above

View answer

Correct answer: (B)

Innovation begins with curiosity.

283. Which of the following is correct?

A. Maslow proposed a five stage need hierarchy model.

B. Maslow proposed three stages need hierarchy model.

C. Maslow divided human behaviour in two categories.

D. Maslow divided human behaviour in three categories.

View answer

Correct answer: (A)

Maslow proposed a five stage need hierarchy model.

284. In stage of responsibility allocation process the entrepreneur follows?

A. High centralized decision making process

B. Highly decentralized decision making process

C. Somewhat centralized decision making process

D. No particular standards

View answer

Correct answer: (B)

Highly decentralized decision making process

285. Which of the following is not correct?

A. Cocreation is a process which is used by innovators for getting new ideas.

B. Cocreation involves participation of customers in the process of solving a problem

C. Cocreation is possible in services and manufacturing.

D. None of the above

View answer

Correct answer: (A)

Cocreation is a process which is used by innovators for getting new ideas.

286. What is the role of incubator in the process of entrepreneurship?

A. Incubator provides financial support to start up.

B. Incubator provides mentorship support.

C. Incubator provides networking opportunities with venture capitalists.

D. All of the above

View answer

Correct answer: (D)

All of the above

287. Single largest factor associated with a Business Model Failure is:

A. Incoherence with the Business Environment

B. Unavailability of regular banking and finance support

C. Powerful Competition

D. Complacency of the Organization and the team

View answer
Correct answer: (D)

Complacency of the Organization and the team

288. Which of the following is correct?

A. Japanese manufacturing philosophy focuses on Cost minimization.

B. Japanese manufacturing philosophy focuses on innovation.

C. Japanese manufacturing philosophy focuses on quality with minimum cost.

D. All of the above

View answer

Correct answer: (C)

Japanese manufacturing philosophy focuses on quality with minimum cost.

289. Which of the following is important in selection of an idea?

A. Novelty of idea

B. Ease of implementation of idea

C. Impact of idea

D. All of the above

View answer

Correct answer: (D)

All of the above

290. Which of the following can not be a type of reward for encouraging innovation in your

organization?

A. Putting a poster mentioning your achievement alongwith your photograph on main

notice board of the company

B. Giving you a Cash prize of Rs1 million

C. Giving you a promotion to some different department or location

D. None of the above

View answer

Correct answer: (C)

Giving you a promotion to some different department or location

291. Which of the following is correct?

A. All ideas leading to innovation must go through the process of incubation.

B. All ideas leading to innovation must develop a prototype.

C. Both (a) and (b) are false.

D. Both (a) and (b) are correct.

View answer

Correct answer: (B)

All ideas leading to innovation must develop a prototype.

292. The development of a new venture based on an inventor’s work often requires

______________

A. Expertise of an entrepreneur

B. Heavy investment from financers

C. Skilled Human resources

D. Highly educated staff

View answer

Correct answer: (A)

Expertise of an entrepreneur

293. Which of the following is correct?

A. “naïve perception” helps in improving our ability to see more things around us.

B. “naïve perception” helps in improving our ability to implement the idea.

C. “naïve perception” helps in creating harmonious environment for innovation.

D. All of the above

View answer

Correct answer: (A)

“naïve perception” helps in improving our ability to see more things around us.

294. Which of the following is not a characteristics of frugal innovation?

A. Reducing complexity of a product

B. Removing nonessential features of a product

C. Reducing cost of a product

D. Improving quality of a product

View answer

Correct answer: (D)

Improving quality of a product