ENTREPRENEURSHIP

DEVELOPMENT

Prepared by
Dr. Jnanaranajan Mohanty
Ms. Lipsa Rowlo
PARALA MAHARAJA ENIGINEERING
COLLEGE,
BERHAMPUR,ODISHA
1) Which of these is not a type of entrepreneurship?
a. Small business entrepreneurship
b. Scalable entrepreneurship
c. Large scale entrepreneurship
d. Intrapreneurship

ANSWER:D

2) Which of these actions of an entrepreneur will most likely result in creative

destruction?
a. Developing a new product
b. Taking over a competitor’s business
c. Issuing shares to individuals and institutions
d. Lowering prices of your product or service

ANSWER:A

3) According to Schumpeter, innovative entrepreneurs would:

a. Thrive in the market
b. Not survive and disappear from the market.
c. Get absorbed within larger innovative businesses
d. Get absorbed within non-innovative businesses

ANSWER:D

4) Which of these is not a challenge for the entrepreneur?

a. Managing the cash flow of their business
b. Recruiting new employees
c. Choosing the product or service to sell in the market
d. Formulating rules and regulations relating to conducting entrepreneurship in
their country

ANSWER:D

5) Which of these theories involve taking a moderate amount of risk as a function of

skill and not chance?
a. Need for achievement
b. Need for affiliation
c. Need for authority
d. Need for independence

ANSWER:B
6) Which of these is not a category of external forces that affects a business?
a. Competitive forces
b. Technological forces.
c. Economic forces
d. Socio-economic forces

ANSWER:B

7) Which among these is a money manager who is involved in making risk investments
from equity capital with the objective of gaining better returns?
a. Entrepreneur
b. Businessperson
c. Buyer
d. Venture capitalist

ANSWER:D

8) Which of these is the first activity of a new business?

a. Departure point
b. Goal Orientation
c. Business skill development
d. None of the above

ANSWER:A

9) Who should be involved in preparing a firm’s business plan?

a. Accountant
b. Engineer
c. Entrepreneur
d. None of the above

ANSWER:C

10) What should be the main worry of a company’s founder who asks for capital in
exchange for equity shares in their venture?
a. Valuation
b. Control
c. Capitalisation
d. Legal formalities

ANSWER:C

11) The process of creating something new is called:

a. Creative flexibility
b. Management
c. Business
d. Innovation
 ANSWER:C

12) Ownership position of less than 50 per cent in a business is known as:
a. Majority Interest
b. Joint Venture
c. Minority Interest
d. None of the above

ANSWER:C

13) Which of these is also known as corporate venturing?

a. Intrapreneurship
b. Mergers
c. Entrepreneurship
d. Acquisition

ANSWER:A

14) If an entrepreneur takes decisions on behalf of their enterprise, it is known as

______:
a. Routine decisions
b. Strategic decisions
c. Organisational decisions
d. Personal decisions

ANSWER:C

15) Entrepreneurship Development Program is helpful for:

a. First-generation entrepreneurs
b. Future generation entrepreneurs
c. Existing Entrepreneurs
d. None of the above

ANSWER:A

16) These decisions are concerned with policy matters, and they influence the goals and
objectives of a business venture:
a. Routine decisions
b. Strategic decisions
c. Organisational decisions
d. Personal decisions

ANSWER:B

17) Ownership position of more than 50 per cent in a business is known as:
a. Minority Interest
b. Joint Venture
c. Majority Interest
 d. None of the above

ANSWER:C

18) What is the purpose of a feasibility study for starting a new venture?
a. Exploring for potential customers
b. Estimate sales
c. To understand if there are any barriers to success
d. None of the above

ANSWER:C

19) An entrepreneur who is the owner of more than one business is called:
a. Portfolio Entrepreneur
b. Intrapreneur
c. Corporate Entrepreneur
d. None of the above

ANSWER:A

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

21) Trademarks relate to _______.

A. Practice and knowledge acquired through experience
B. The protection of proprietary information of commercial value
C. The right to reproduce one’s own original work
D. Brand identity
ANSWER: D

22) 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

23) 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. Competitor activity.
D. Demographic changes.
ANSWER: C

24) Which industrial sector tends to naturally promote small-scale businesses and
Entrepreneurship, and generally has lower barriers to market entry?
A. Service.
B. Manufacturing.
C. Distribution.
D. Agriculture.
ANSWER: A

25) 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

26) 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

27) 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

28) 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
29) 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

30) 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

31) 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

32) 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

33) 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

34) Entrepreneurs are motivated by _________.

A. money.
B. personal values.
C. pull influences.
D. All the above.
ANSWER: D
35) 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

36) 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

37) 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.
ANSWER: D

38) 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

39) 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

40) 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
41) Goods or services reach the marketplace through ________.
A. marketing channels.
B. multilevel pyramids.
C. monopolies.
D. multiplication.
ANSWER: A

42) 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

43) State Industrial corporations engage in the development of__________.

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

44) ________ is the first development bank of the country.

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

45) 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

46) IFCI has been converted into a________.

A. joint-stock company.
B. co-operative society.
C. partnership firm.
D. sole proprietorship.
ANSWER: A
47) 28. SIDBI was set up as a subsidiary of_________.
A. IDBI.
B. IFCI.
C. ICICI.
D. SFC.
ANSWER: A

48) Which of the following is a function of SIDBI?

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

49) 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

50) SIPCOT’s financial assistance is in the form of __________.

A. term loan.
B. seed capital scheme.
C. underwriting the capital issues.
D. All the above.
ANSWER: D

51) 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

52) 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
53) 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

54) 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

55) EDPs course contents contains ___________.

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

56) Entrepreneurial Guidance Bureau(EGB) was set up by____________.

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

57) _____________ can be defined as a specifically evolved work plan to achieve a

specific objective within a specific period of time
A. Idea generation.
B. Opportunity Scanning.
C. Project.
D. Strategy.
ANSWER: C

58) 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

59) 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

60) _____________ 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

61) ______________ 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

62) 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

63) 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

64) 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.
ANSWER: D

65) 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

66) __________ 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

67) _____________ 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

68) _____________ 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

69) Activities which must be finished before a given event can occur are termed as
_________.
A. Preceding Activities.
B. Succeeding Activities
C. Concurrent Activities
D. Dummy Activities.
ANSWER: A
70) 1. The term “Entrepreneur” has been derived from the word “entreprenerd” which
means:
a. To give
b. To undertake
c. To choose
d. To decide
ANSWER: B

71) 2. Entrepreneurship is a creative activity – Said by:

a. Frederick Harbison
b. B. F. Hoselitz
c. B. Higgins
d. Joseph
ANSWER:C

72) What is the hallmark of a successful entrepreneur?

a. Risk bearing capacity
b. Persistence
c. Flexibility
d. Self-confidence
ANSWER:D

73) Which type of entrepreneurs utilizes a chance to introduce a new technique or new
product?
a. Innovative entrepreneur
b. Instigated entrepreneur
c. Initiative entrepreneur
d. Fabian entrepreneur
ANSWER:D

74) Which phase is the phase of real training?

a. Initial phase
b. Training phase
c. post-training phase
d. Follow up phase
ANSWER:B

75) “Seed Capital Scheme” is being operated by?

a. IDBI
b. SIDC
c. ICICI
d. IFCI
ANSWER:A

76) 10. Why most women are unaware of technological developments?

a. Low-risk bearing ability
b. Low mobility
 c. Lack of education
d. Low need for achievement
ANSWER:C

77) Which of the following is a remedy to solve the problems of women entrepreneurs?
a. social attitude
b. Finance cells
c. Stiff Competition
d. Supervision
ANSWER: B

78) What is the analytical study of the end products and by-product can throw light on
new product ideas?
a. Emerging technologies
b. Market characteristics
c. Social and economic trends
d. Product profile
ANSWER:D

79) What can be defined as an attractive project idea which an entrepreneur accepts as
a basis for his investment decision?
a. Possibility
b. Business
c. Opportunity
d. Notion
ANSWER:C

80) What is a two-way exchange process in which the needs and wants of the buyer and
seller are satisfied?
a. Marketing
b. Selling
c. Producing
d. Accounting
ANSWER:A

81) Which phase starts after the investment decision is taken?

a. Normalisation phase
b. Construction phase
c. Pre-investment phase
d. Product identification phase
ANSWER:B

82) What provides all the necessary information of the unit proposed to be set-up for
the manufacture of a product or rendering a service?
a. Project description
b. Project appraisal
c. Project implementation schedule
 d. Project report
ANSWER:D

83) Which statement gives a projection of future sources of cash and their applications?
a. Cash flow statement
b. Fund flow statement
c. Income statement
d. Balance sheet
ANSWER:A

84) In long term capital, the repayment of money is arranged for what time period?
a. Within 1 year
b. More than 2 years
c. More than 7 years
d. More than 5 years
ANSWER:D

85) Ownership capital is also known as?

a. Debt
b. Equity
c. Loan
d. Mortgage
ANSWER:B

86) To whom does the company pay interest?

a. Shareholder
b. Customer
c. Debenture holder
d. Creditor
ANSWER:C

87) 25. When was Small Scale Industries Board constituted?

a. 1958
b. 1960
c. 1953
d. 1954
ANSWER:D

88) 26. Which type of industrial estates is called conventional industrial estates?
a. General type of industrial estate
b. Special type industrial estate
c. Ancillary industrial estate
d. Workshop bay
ANSWER:A

89) Government industrial estates come under which type of classification?

a. Variant
 b. Objective
c. Functional
d. Organizational
ANSWER:D

90) 31. IPR stands for?

a. Industrial Policy Resolutions
b. Industrial Protection Resolutions
c. Independent Policy Reforms
d. Income Plan Rewards
ANSWER:A

91) 32. When was the policy titled” Policy Measures for Promoting and Strengthening
and Supplementing Small, Tiny and Village Enterprises” tabled in the Parliament?
a. July 6, 1990
b. August 28, 1992
c. August 6, 1991
d. June 15, 1991
ANSWER:C

92) 35. What refers to managing continuous improvement and does not address any
specific organizational level?
a. Quality
b. Administration
c. Management
d. People
ANSWER:C

93) 36. What is the fourth element involved in TQM?

a. Processes
b. Team Work
c. Continuous Improvement
d. Customer Satisfaction
ANSWER:B

94) 38. In which stage the business expands by way of opening its branches?
a. Startup stage
b. Growth stage

c. Expansion stage
d. Maturity stage
ANSWER:C

95) Which form of growth of the business is diversification?

a. External
 b. Vertical
c. Horizontal
d. Internal
ANSWER:B

96) When two or more enterprises merge into one to form a new enterprise, what is it
called?
a. Absorption
b. Amalgamation
c. Joint Venture
d. Franchising
ANSWER:B

97) ___ says that entrepreneurship is a ___ activity.

a. Fredrick Harbison & creative
b. Fredrick Harbison & innovative
c. Schumpeter & creative
d. Schumpeter & innovative
ANSWER:C

98) 42. Which of the following is not a quality of a successful entrepreneur as specified
by Mc Clelland?
a. He is endowed with unusual creativeness
b. He has a high degree of ambition
c. He is enriched by a high propensity
d. He has also a strong need for achievement.
ANSWER:B

99) 46. Which of the following is not a source of idea for an entrepreneur?
a. Cost of the project
b. Product profile
c. Imports and exports
d. Emerging technologies
ANSWER:A

100)The IPR 1956 for SSI aimed at:

a. Protection plus Growth
b. Protection plus Development
c. Protection plus Promotion
d. Promotion plus Development
ANSWER:B