1.

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

2. Trademarks relate to _______.

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

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

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

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

5. Which industrial sector promotes small-scale businesses and

Entrepreneurship, and has lower barriers to market entry?
A. Service.
B. Manufacturing.
C. Distribution.
D. Agriculture.
ANSWER: A

6. Why are small businesses important to a country's economy?

A. They give an outlet for entrepreneurs.
B. They can provide specialist support to larger companies.
C. They can be innovators of new products.
D. All the above.
ANSWER: D
7. A business arrangement where one party allows another party to use a business name and sell
its products or services is known as__________.
A. A cooperative.
B. A franchise.
C. An owner-manager business.
D. A limited company.
ANSWER: B

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

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

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

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

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

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

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

12. Primary data is________.

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

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

15. Entrepreneurs are motivated by _________.

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

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

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

18. Which of the following statements is false?

A. Market segmentation is a useful process for small businesses to undertake.
B. Selling is essentially a matching process.
C. A benefit is the value of a product feature to a customer.
D. It is a good idea for small businesses to compete solely on price.
ANSWER: D
19. The purpose of all good small business strategy is__________.
A. to increase turnover.
B. to increase profitability.
C. to achieve competitive advantage.
D. to achieve stated objectives.
ANSWER: D

20. Which of the following is a recognized disadvantage of setting up as a start-up as compared

with other routes to market entry?
A. less satisfaction of the owners.
B. less help from various agencies.
C. there are more funds required.
D. there is a high failure rate.
ANSWER: D

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

22. Goods or services reach the market place through ________.

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

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

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

24. State Industrial corporations engage in the development of__________.

A. industrial estates.
B. institutional estates.
C. individual investors.
D. agricultural entrepreneurs.
ANSWER: A
25. ________ is the first development bank of the country.
A. ICICI.
B. IDBI.
C. SFC.
D. IFCI.
ANSWER: D

26. IFCI stands for_____________.

A. Industrial finance corporation of India.
B. Institutional finance corporation of India.
C. Industrial funding corporation of India.
D. Indian finance corporation and institution.
ANSWER: A

27. IFCI has been converted into a________.

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

28. SIDBI was set up as a subsidiary of_________.

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

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

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

30. SFC is prohibited from granting financial assistance to any company whose aggregate paid
up capital exceed__________.
A. 1 crore.
B. 1.5 crores.
C. 2 crores.
D. 2.5 crores.
ANSWER: A
31. SIPCOT's financial assistance is in the form of __________.
A. term loan.
B. seed capital scheme.
C. underwriting the capital issues.
D. All of the above.
ANSWER: D

32. The business development department of SIPCOT guides entrepreneurs in ______.

A. applying for licences.
B. approval on collaboration.
C. allocation of scarce raw materials.
D. All the above.
ANSWER: D

33. TIIC is sponsored by the__________.

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

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

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

36. EDPs course contents contains ___________.

A. General introduction to entrepreneurs.
B. Motivation training.
C. Managerial skills.
D. All the above.
ANSWER: D
37. Entrepreneurial Guidance Bureau(EGB) was set up by____________.
A. SISI.
B. SIPCOT.
C. IIC.
D. SIDCO.
ANSWER: C

38. _____________ can be defined as a specifically evolved work plan densed to achieve a
specific objective within a specific period of time
A. Idea generation.
B. Opportunity Scanning.
C. Project.
D. Strategy.
ANSWER: C

39. Large investment is made in fixed assets, the project will be termed as __________.
A. Capital Intensive.
B. Labour Intensive.
C. Product Intensive.
D. Market Intensive.
ANSWER: A

40. PERT stands for __________.

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

41. _____________ is used to accomplish the project economically in the minimum available
time with limited resources
A. Project Scheduling.
B. Network Analysis.
C. Budget Analysis.
D. Critical Planning.
ANSWER: A

42. ______________ is a form of financing especially for funding high technology, high
risk and perceived high reward projects
A. Fixed capital.
B. Current capital.
C. Seed capital.
D. Venture capital.
ANSWER: D
43. In _________, machines and equipments are arranged in the order or sequence in which
they are to be used for manufacturing the product
A. Factory Layout.
B. Product Layout.
C. Process Layout.
D. Combined Layout.
ANSWER: B

44. The term ___________ denotes bonus or financial aid which is given by a government to an
industry to help it compete with other units
A. Incentive.
B. Subsidy.
C. Bounty.
D. Concession.
ANSWER: C

45. he granting of cash subs idy on the capital investment is called __________.
A. Concessional finance.
B. Quantum of Subsidy.
C. Interest Subsidy.
D. Central Investment Subsidy.
ANSWER: D

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

47. ____________ is primarily concerned with the identification of the project demand
potential and the selection of the optimal technology.
A. Techno-economic analysis.
B. Feasibility analysis.
C. Input analysis.
D. Financial analysis.
ANSWER: A

48. _____________ refers to some action which is a time consuming effort necessary to
complete a specific event.
A. A Network.
B. An Activity.
C. An Event.
D. A Node.
ANSWER: B
49. _____________ is a graphical representation of the various activity and event relating to a
project.
A. Network analysis.
B. Scheduling technique.
C. Logical Model.
D. Network Diagram
ANSWER: D

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

51. Activities which can be accomplished simultaneously are termed as ___________.

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

52. EST stands for ____________.

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

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

54. ______________ is an event-oriented approach .

A. CPM.
B. GERT.
C. PERT.
D. WASP.
ANSWER: C
55. _______________ is an activity-oriented approach.
A. CPM
B. PERT
C. GERT
D. WASP
ANSWER: A

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

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

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

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

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

in a short period
A. Synectics.
B. Delphi technique.
C. Brain storming.
D. Nominal group technique.
ANSWER: C
61. . __________________ is the systematic development of a project idea for the
eventual purpose of arriving at an investment decision.
A. Project identification.
B. Project formulation.
C. Project feasibility.
D. Project evaluation.
ANSWER: B

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

63. _________________ implies the availability or otherwise of plant and machinery and
technical know how to produce the product.
A. Economic viability.
B. Financial feasibility.
C. Technical feasibility.
D. Managerial competence
ANSWER: C

64. CPM stands for____________.

A. Continuous Path Method.
B. Clear Path Method.
C. Critical Path Method.
D. Critical Probabilistic Method.
ANSWER: C

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

66. DGTD stands for __________.

A. Directorate General of Technical Development.
B. District General of Technical Development.
C. District General of Taxation Deduction.
D. Directorate General of Taxation Deduction.
ANSWER: A
67. A provisional SSI registration certificate is valid for a period of __________.
A. four Years.
B. three Years.
C. two Years.
D. one year.
ANSWER: D

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

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

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

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

70. Which of the list below does not form Intellectual Property?
A. Trade marks.
B. Patents.
C. Tangible assets.
D. Copyright.
ANSWER: C

71. The 'T' in a PESTLE analysis refers to ___________.

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

72. A business arrangement where one party allows another party to use a business Name and
sell its products or services is known as__________.
A. A cooperative.
B. A franchise.
C. An owner-manager business.
D. A limited company.
ANSWER: B
73. What is the role of a Business Angel?
A. To provide small business advice.
B. To provide capital for business development in exchange for a stake in the
Business ownership.
C. To set up a franchise business.
D. To assist an entrepreneur to open a lifestyle business.
ANSWER: B

74. A key aspect of the financial section of the business plan is _________.
A. A statement of management skills.
B. A realistic sales forecast.
C. Production capacity.
D. A description of competitors.
ANSWER: B

75. Which one of the following describes unemployment?

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

76. Idea of new product is tested in potential consumers to determine consumer acceptance at
_________ stage.
A. Concept.
B. Product development.
C. Test marketing.
D. Commercialization.
ANSWER: C

77. Which one of the following is not considered as one of the building blocks of the model
entrepreneur?
A. technical skills.
B. management competencies.
C. business awareness.
D. personal attributes.
ANSWER: C

78. Which of the following factors does the macro-environment not include?
A. political and regulatory factors.
B. customer needs in a given market.
C. social and demographic factors.
D. technological changes.
ANSWER: B
79. Which of the following statements is false? Electronic commerce:
A. can allow new ventures to compete on more or less equal terms with large firms.
B. can lead to small businesses having reduced contact with its customers.
C. is rarely used in small businesses.
D. is used in many different industries and markets.
ANSWER: C

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

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

82. Industries producing complete articles for direct consumption & also processing industries
is called as_______________.
A. Manufacturing industries.
B. Feeder Industries.
C. Service Industries.
D. Mining or Quarrying.
ANSWER: A

83. _____________ is primarily concerned with the identification, qualification and evaluation
of the project resources.
A. Techno-economic analysis.
B. Feasibility analysis.
C. Input analysis.
D. Financial analysis.
ANSWER: B

84. LOB stands for____________.

A. Line of Business.
B. Line of Balance.
C. Loss of Business.
D. Loss of Balance
ANSWER: B
85. Underestimation of project cost leads to ___________.
A. Time under run.
B. Cost under run
C. Time over run.
D. Cost over run
ANSWER: D

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

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

88. Section 80 HHB provides for a deduction of ____________________ of profits and gains
earned by a resident Indian company.
A. 65%.
B. 60%.
C. 55%.
D. 50%
ANSWER: D

89. Decisions which are non-repetitive and novel nature and required to solve unstructured
problem is called as ___________.
A. Programmed decisions.
B. Non -programmed decisions.
C. Routine decisions.
D. Strategic decisions.
ANSWER: B

90. The application for registration of a small scale unit should be submitted to the _______ .
A. General manager, DIC.
B. Director, DIC.
C. General manager. NSIC.
D. Director, NSIC.
ANSWER: A
91. The type of diversification in which the company adds complementary to the existing
product or service line is _________.
A. conglomerate diversification.
B. horizontal integration.
C. vertical integration.
D. concentric integration.
ANSWER: C

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

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

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

95. When a firm enters into business which is unrelated to its existing business both in terms of
technology and marketing ______________.
A. conglomerate diversification.
B. horizontal integration.
C. vertical integration.
D. concentric integration
ANSWER: A

96. District Industries Centres are located ____________.

A. in each district.
B. in each state.
C. only in selected districts.
D. only in selected states.
ANSWER: A
97. The purpose of soft loan scheme is to encourage units to undertake ___________.
A. modernization of plant and machinery.
B. replacement of plant and machinery.
C. renovation of plant and machinery.
D. all the above
ANSWER: D

98. Seed capital assistance ___________.

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

99. EXIM bank is a __________.

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

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

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

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

102. Under section 80J of the income tax act, 1961, small-scale industries are exempted from
the payment of income tax on their profits at ___________.
A. 6% p.a.
B. 6% p.m.
C. 5% p.a.
D. 5% p.a.
ANSWER: A
103. The policy which stressed the role of cottage and small-scale industries for balanced
industrial development of the country is ___________.
A. IPR 1940.
B. IPR 1948.
C. IPR 1956.
D. IPR 1977.
ANSWER: B

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

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

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

107. Over - capitalization arises due to___________.

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

108. Under-capitalization arises due to __________.

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

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

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

111. Business means ________.

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

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

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

113. Reserve bank of India is a/an _______.

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

114. A public corporation means _____.

A. public company.
B. government company.
C. statutory corporation.
D. department of union government
ANSWER: C
115. Promoter is a person who ________.
A. takes part in the incorporation of a company .
B. is a director.
C. is a relative of the managing director.
D. works to publicity to the company.
ANSWER: A

116. The term Capitalization is used in relation to ______.

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

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

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

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

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

120. A project, which may not add to the existing profits, should be financed by _________
A. debentures.
B. preference share capital.
C. equity capital.
D. public deposits.
ANSWER: A
121. Business risks can be ______.
A. avoided.
B. reduced.
C. ignored.
D. erased.
ANSWER: B

122. O & M refers to ____________

A. overall efficiency of business.
B. efficiency of office and administrative work.
C. office work measurement.
D. office and management study.
ANSWER: D

123. The oldest form of business organization is ______.

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

124. Memorandum of association of a firm contains _______.

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

125. A Company is called an artificial person because ____.

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

126. The charter of a company is its ______.

A. prospectus.
B. statement lieu of prospectus.
C. memorandum of association.
D. articles of association.
ANSWER: A
127. A person owning and running a small firm, is known as________.
A. A manager-owner.
B. An owner-manager.
C. A professional adapter.
D. An enterprise worker.
ANSWER: B

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

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

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

in schools. One such initiative is _________.
A. Young Enterprise.
B. Youth venture.
C. Young Business.
D. Young Initiative.
ANSWER: A

130. One of the disadvantages of a franchise business for a franchisee is ________.

A. Lack of independence.
B. Franchise businesses typically have a high failure rate.
C. Lack of brand identity.
D. Training is not normally provided by the franchisor.
ANSWER: A

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

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

A. be responsive to changes in the market.
B. ensure financial controls are maintained.
C. build a management team.
D. all the above.
ANSWER: D
133. An entrepreneur into the hosiery business found out the reason his hosiery was not selling
was due to its color. What could be the best source of this information?
A. Supplier.
B. Retailer.
C. Competition.
D. Government bureau.
ANSWER: B

134. Entrepreneurship can best be described as _________.

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

135. ____________, which is included in the project cost, is estimated on the basis of the year
when the enterprise breaks even.
A. working capital
B. cost of capital
C. cost of production
D. cost of equity
ANSWER: A

136. The minimum amount of------------------,irrespective of such private participation,could be

specified at a minimum 17.5 per cent of project costs by lending institutions.
A. bank loans
B. promotors contribution
C. fixed capital
D. working capital
ANSWER: B

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

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

A. An established objective
B. Complex tasks
C. A clear beginning and end
D. Only for internal use
ANSWER: D
139. Project management is ideally suited for a business environment requiring all of the
following except _________.
A. Flexibility
B. Innovation
C. speed
D. Repetability
ANSWER: D

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

141. The content of the final report typically includes the following topics __________.
A. Executive summary
B. review and analysis
C. recommendations
D. If all the above are correct.
ANSWER: D

142. Project mission and objectives, procedures and systems used, and organization resources
used typically appear in the _____ section of the final project report.
A. Analysis
B. Recommendation
C. lessons learned
D. financial feasibility
ANSWER: A

143. what are the components of then project report ________.

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

144. market potential of the project report includes ________.

A. demand and supply conditions
B. market strategy
C. after sales service
D. all the above
ANSWER: D
145. Every entrepreneur should draw an _______ for his project to ensure the timely
completion of all activities involved in setting up an enterprise.
A. cost structure
B. implementation plan
C. market structure
D. production structure
ANSWER: B

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

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

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

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

149. Swot Analysis is a _____________ tool

A. Conceptual
B. Modern
C. Scientific
D. Traditional
ANSWER: A

150. NABARD is a Bank for _____________ development

A. Urban
B. Agricultural and Rural
C. Scientific
D. Agriculture and research
ANSWER: B
1. 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
ANSWER: D

2. Someone who improves an existing business can be called _________.

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

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

4. Which of the following factors 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

5. 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

6. What is the need of entrepreneurship?

A. For new innovation
B. To fill gap in growth
C. For healthy competition
D. All the above.
ANSWER: B
7. 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

8. Basic problems of women entrepreneurs in India

A. Lack of education skill
B. Male dominating society
C. Absence of listen bearing capacity
D. All the above.
ANSWER: D

9. If the investments in fixed assets or plant and machinery does not exceed one crore
rupees, then the
particular firm comes under the category of
A. Tiny industry
B. Small Scale Industry
C. Village Industry
D. Micro Industry
ANSWER: B

10. 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

11. 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

12. 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
13. 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

14. Name the institution which was setup as an apex bank to provide direct or indirect
financial assistance
under different scheme
A. SIDBI
B. NSIC
C. NABARD
D. RSBDC
ANSWER: A

15. 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

16. 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

17. Entrepreneurs are motivated by _________.

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

18. 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
19. 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

20. 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

21. 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

22. 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

23. 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

24. Goods or services reach the market place through ________.

A. marketing channels.
B. multilevel pyramids.
C. monopolies.
D. multiplication.
ANSWER: A
25. 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

26. State Industrial corporations engage in the development of__________.

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

27. ________ is the first development bank of the country.

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

28. 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

29. IFCI has been converted into a________.

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

30. SIDBI was set up as a subsidiary of_________.

A. IDBI.
B. IFCI.
C. ICICI.
D. SFC.
ANSWER: A
31. Which of the following is a function of SIDBI?
A. Extension of seed capital.
B. Discounting of bills.
C. Providing factoring services.
D. All of the above.
ANSWER: D

32. 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

33. SIPCOT's financial assistance is in the form of __________.

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

34. 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

35. 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

36. 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
37. 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

38. EDPs course contents contains ___________.

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

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

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

40. _____________ can be defined as a specifically evolved work plan densed to

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

41. 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

42. 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
43. _____________ 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

44. ______________ 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

45. 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

46. 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

47. 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
48. 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

49. ____________ 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

50. _____________ 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

51. _____________ 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

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

54. EST stands for ____________.

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

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

56. ______________ is an event-oriented approach .

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

57. _______________ is an activity-oriented approach.

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

58. _______________ is the analysis of costs and benefits of a proposed project with
the goal of assuming a
rational allocation of limited funds.
A. Project formulation.
B. Project evaluation.
C. Project appraisal .
D. Project Design.
ANSWER: C
59. ______________ may be defined as the excess of present value of project cash
inflows over that of out
flows.
A. Net present value technique.
B. Average rate of return.
C. Benefit-Cost ratio.
D. Internal rate of return
ANSWER: A

60. Decisions taken by an entrepreneur on behalf of his enterprise are known as

_________.
A. Organizational decisions.
B. Personal decisions.
C. Routine decisions.
D. Strategic decisions
ANSWER: A

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

62. __________________ is a problem -solving technique designed to produce

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

63. . __________________ is the systematic development of a project idea for the

eventual purpose of
arriving at an investment decision.
A. Project identification.
B. Project formulation.
C. Project feasibility.
D. Project evaluation.
ANSWER: B
64. The process of preparing an inventory of skills needed for effective implementation
of the project is called
as ____________.
A. Economic viability.
B. Financial feasibility.
C. Technical feasibility.
D. Managerial competence.
ANSWER: D

65. _________________ implies the availability or otherwise of plant and machinery

and technical know how
to produce the product.
A. Economic viability.
B. Financial feasibility.
C. Technical feasibility.
D. Managerial competence
ANSWER: C

66. CPM stands for____________.

A. Continuous Path Method.
B. Clear Path Method.
C. Critical Path Method.
D. Critical Probabilistic Method.
ANSWER: C

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

68. DGTD stands for __________.

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

69. A provisional SSI registration certificate is valid for a period of __________.

A. four Years.
B. three Years.
C. two Years.
D. one year.
ANSWER: D
70. National Alliance of Young Entrepreneurs (NAYE) Sponsored an Entrepreneurial
Development scheme
with Bank of India in______________.
A. January 1920.
B. August 1920.
C. January 1972.
D. August 1972.
ANSWER: D

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

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

72. Which of the list below does not form Intellectual Property?
A. Trade marks.
B. Patents.
C. Tangible assets.
D. Copyright.
ANSWER: C

73. The 'T' in a PESTLE analysis refers to ___________.

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

74. 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
75. 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.
ANSWER: B

76. A key aspect of the financial section of the business plan is _________.
A. A statement of management skills.
B. A realistic sales forecast.
C. Production capacity.
D. A description of competitors.
ANSWER: B

77. Which one of the following describes unemployment?

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

78. Idea of new product is tested in potential consumers to determine consumer

acceptance at _________
stage.
A. Concept.
B. Product development.
C. Test marketing.
D. Commercialization.
ANSWER: C

79. Which one of the following is not considered as one of the Building blocks of the
model entrepreneur?
A. technical skills.
B. management competencies.
C. business awareness.
D. personal attributes.
ANSWER: C

80. Which of the following factors does the macro-environment not include?
A. political and regulatory factors.
B. customer needs in a given market.
C. social and demographic factors.
D. technological changes.
ANSWER: B
81. Which of the following statements is false? Electronic commerce:
A. can allow new ventures to compete on more or less equal terms with large firms.
B. can lead to small businesses having reduced contact with its customers.
C. is rarely used in small businesses.
D. is used in many different industries and markets.
ANSWER: C

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

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

84. Industries producing complete articles for direct consumption & also processing
industries is called
as_______________.
A. Manufacturing industries.
B. Feeder Industries.
C. Service Industries.
D. Mining or Quarrying.
ANSWER: A

85. _____________ is primarily concerned with the identification, qualification and

evaluation of the project
resources.
A. Techno-economic analysis.
B. Feasibility analysis.
C. Input analysis.
D. Financial analysis.
ANSWER: B
86. Resource requirement in project becomes constant, while the project is in its ____
stage
A. 40 to 55%
B. 55 to 70%
C. 70 to 80%
D. 80 to 95%
ANSWER: D

87. Underestimation of project cost leads to ___________.

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

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

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

90. Section 80 HHB provides for a deduction of ____________________ of profits and

gains earned by a
resident Indian company.
A. 65%.
B. 60%.
C. 55%.
D. 50%
ANSWER: D
91. 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.
ANSWER: B

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

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

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

95. The type of diversification in which the company adds up same type of products at
the same level of
production is ____________.
A. conglomerate diversification.
B. horizontal integration.
C. vertical integration.
D. concentric integration.
ANSWER: B
96. Why should an entrepreneur do a feasibility study for a starting a new venture
A. To identify possible sources of funds
B. To see if there is any possible barriers to success
C. To estimate the expected sales
D. To explore the potential customers
ANSWER: B

97. 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
ANSWER: A

98. District Industries Centres are located ____________.

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

99. The purpose of soft loan scheme is to encourage units to undertake ___________.
A. modernization of plant and machinery.
B. replacement of plant and machinery.
C. renovation of plant and machinery.
D. all the above
ANSWER: D

100. Seed capital assistance ___________.

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

101. Entrepreneurship Development Programs are required to help

A. Existing Entrepreneurs
B. First Generation Entrepreneurs
C. Future generation entrepreneurs
D. Drone entrepreneurs
ANSWER: B
102. DIC is headed by General Manager in the rank of ___________.
A. Joint Director of industries.
B. Assistant Director of industries.
C. Non-departmental officer.
D. Departmental officer.
ANSWER: A

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

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

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

106. The policy which emphasized the need of promoting small-scale industries through
integrated industrial
development is_____________.
A. IPR 1948.
B. IPR 1956.
C. IPR 1977.
D. IPR 1980.
ANSWER: C
107. The small scale unit wishing to export has to obtain exporters code number from
_________.
A. The Reserve Bank of India.
B. The Central Bank of India.
C. Any Regional Bank.
D. Any International Bank.
ANSWER: A

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

109. Over -capitalization arises due to___________.

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

110. Under-capitalization arises due to __________.

A. excess of assets over the liabilities.
B. excess of liabilities over the assets.
C. actual capitalization is higher than the proper capitalization.
D. actual capitalization is lower than the proper capitalization.
ANSWER: D

111. Which of the following leads to over-capitalization?

A. acquiring fixed assets on excessive amounts.
B. under-estimation of initial rate of earnings.
C. using lower-rate of capitalization.
D. under estimation of required funds.
ANSWER: A

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

A. raising of more money by issue of shares.
B. acquiring fixed assets on excessive amounts.
C. over-estimation of earnings for enterprise.
D. under-estimation of initial rate of earnings.
ANSWER: D
113. Business means ________.
A. Commerce.
B. industry and commerce.
C. trade and commerce.
D. selling and buying of goods.
ANSWER: B

114. A valid definition of a business purpose is to ______.

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

115. A Performance and credit rating scheme has been launched by the MSME ministry
to assess the
creditworthiness and capabilities of industries in the sector. What is called as
A. Performance and Credit Rating scheme
B. Zero defect Zero effect certification
C. Performance and Economy Rating Scheme
D. RIBIL
ANSWER: A

116. A public corporation means _____.

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

117. 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.
ANSWER: A

118. The term Capitalization is used in relation to ______.

A. sole-proprietorship.
B. Partnership.
C. joint stock companies.
D. co-operative societies
ANSWER: C
119. Which of the following sources is not use for medium term financing?
A. Issue of equity shares.
B. Issue of debentures.
C. Term loans from banks.
D. Sale of current asset.
ANSWER: A

120. 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.
ANSWER: D

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

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

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

123. Business risks can be ______.

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

124. 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
ANSWER: C
125. The oldest form of business organization is ______.
A. Partnership.
B. sole proprietorship.
C. joint stock company.
D. co-operative undertaking.
ANSWER: B

126. A List of questions that address traditional areas of uncertainty on a project is

termed as risk of
A. Profile
B. Questionnaire
C. Research.
D. Checklist
ANSWER: A

127. A Company is called an artificial person because ____.

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

128. Project Selection criteria are typically classified as

A. Financial and non-Financial
B. Short and Long-Term
C. Strategic and Tactical
D. Required and Optional
ANSWER: A

129. A person owning and running a small firm, is known as________.

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

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

A. Choose high risk ventures.
B. Choose low risk ventures.
C. Choose moderate (or calculated) risk ventures.
D. Choose no risk ventures.
ANSWER: C
131. A Micro enterprise is an enterprise, where investment in plant and machinery does
not exceed
A. Rs 15 Lakhs
B. Rs 20 Lakhs
C. Rs 25 Lakhs
D. Rs 30 Lakhs
ANSWER: C

132. One of the disadvantages of a franchise business for a franchisee is ________.

A. Lack of independence.
B. Franchise businesses typically have a high failure rate.
C. Lack of brand identity.
D. Training is not normally provided by the franchisor.
ANSWER: A

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.
ANSWER: D

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

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

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

136. Entrepreneurship can best be described as _________.

A. a process that requires setting up a business.
B. taking a significant risk in a business context.
C. having a strong vision.
D. a process involving innovation, new products or services, and value creation.
ANSWER: D
137. -----------------, 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
ANSWER: A

138. The assessment of the external and internal environment is called as

A. PESTLE
B. SWOT
C. PEST
D. BEP
ANSWER: B

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

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

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

141. Project management is ideally suited for a business environment requiring all of
the following except-----
-------.
A. Flexibility
B. Innovation
C. speed
D. Repetability
ANSWER: D
142. Integration of project management with the organization takes place with the---------
---.
A. master budjet
B. strategic plan
C. Process of managing actual projects
D. both b and c
ANSWER: D

143. The content of the final report typically includes the following topics----.
A. Executive summary
B. review and analysis
C. recommendations
D. If all the above are correct.
ANSWER: D

144. Project mission and objectives, procedures and systems used, and organization
resources used typically
appear in the _____ section of the final project report.
A. Analysis
B. Recommendation
C. lessons learned
D. financial feasibility
ANSWER: A

145. what are the components of then project report-------

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

146. market potential of the project report includes--------

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

147. Every entrepreneur should draw an ------------ for his project to ensure the timely
completion of all
activities involved in setting up an enterprise.
A. cost structure
B. implementation plan
C. market structure
D. production structure
ANSWER: B
148. --------------describes the direction, the enterprise is going in, what its goals are,
where it wants to be,and
how it is going to get there.
A. project report
B. technical anlaysis
C. market analysis
D. financial analysis
ANSWER: A

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

150. 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
ANSWER: A

151. Innovative entrepreneurs face special issues in raising:

A. Development Capital
B. Structured Capital
C. Human Capital
D. Seed Capital
ANSWER: D

1. Entrepreneurial behaviours includes:

(a) Solving problems
(b) Taking initiatives
(c) Taking responsibility
(d) All of above
2. Entrepreneurs attributes includes:
(a) Preservence
(b) Hard working
(c) Determination
(d) All of above

3. Entrepreneurs skills includes:

(a) Creative problem solving
(b) Persuading
(c) Negotiation
(d) All of above

4. The term “entrepreneurs” was applied to business initially by the French economist in the 18th
century:
(a) Cantillon
(b) Jan Tinbergen
(c) J.S.Mill
(d) None of above

5. Which business function do experts agree, you should focus on first when preparing to start a
business.
(a) Financing
(b) Marketing vision
(c) Operation
(d) None of above

6. Which of the following is not something that can be invested:

(a) Energy
(b) Experties
(c) Money
(d) Time

7. From the following which one is factor affecting entrepreneurial growth:

(a) Social
(b) Economic
(c) Psychological
(d) All of above

8. What is the need of entrepreneurship:

(a) For new innovation
(b) To fill gap in growth
(c) For healthy competition
(d) All of above

9. Which one of the following is the process of entrepreneur developing new products that over time
make current products obsolete?
(a) New business model
(b) Anatomization
(c) Creative Destruction
(d) None of above

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

(a) Financial status
(b) Qualification
(c) Social Status
(d) Achievement

Q. 2 Do as directed:
1. An entrepreneur must Self Confident: A strong believer in his strengths and weakness:
2. Social/Economic/Educational/Geographical environment ina country exercises a significant
impact on the emergence of entrepreneurship.
3. The entrepreneur was distinguished from capital provider in 18th Century.
4. Innovations shows the process of creating something new.
5. “What the entrepreneur hopes to accomplish” – includes in the :Mission Statement.
6. The levels at which an individual is viewed by society is called Social Status.
7. Distribution Channels gives suggestions for new product and also help to market new product.
8. An Entrepreneur must should Innovative, Hard Working, very alert for new opportunities etc.
9. Entrepreneurship is the life blood of any economy.
10. Individuals influencing an entrepreneur’s career choice and style are known as Role model.

Q.3 Answer in one or two lines:-

Short Questions
1. Write meaning of Entrepreneur.

Answer : A person with vision and action plan to achieve it is an entrepreneur.

2. Write characteristics of entrepreneur.

Answer : Vision, Knowledge, Desire to succeed, Independence, Value addition, Initiative,

Optimism.
3. Write types of entrepreneur according to ownership.

Answer : Public entrepreneurship, Private entrepreneurship

4. Write types of entrepreneur according to scale of enterprise.

Answer : Large scale entrepreneur, Small scale entrepreneur.

5. Write any four Primary Functions of entrepreneurship.

Answer : Planning, Organizing, Decision making, Managing, Innovating, Risk bearing

6. Write any four secondary functions of entrepreneurship.
Answer : Diversification of production, Expansion of the enterprise, Tackling labour problem, Co-
ordinating and communicating with third parties.
7. Write any four barriers to entrepreneurship.

Answer : Environmental barriers, Financial barrier, Personal barrier, Societal barrier, Political
barrier
8. Write any two importance of entrepreneurship.

Answer : Development of managerial capabilities, Job creation, Innovation, Improving standard of

living.
9. Write any four factors affecting to entrepreneurship.

Answer : Personality factors, Environmental factors, Political, Social-economic factors, Economic

factor.
10. Explain any one difference between entrepreneur and intrapreneur.

Answer : Entrepreneur him-self raises funds and Intrapreneur does not raise funds.
Entrepreneur is independent in his operations and Intrapreneur is dependent on entrepreneur.
Unit – 2
Traits of an Entrepreneur
Q.1 Multiple choice questions:-
1. From the following which one is not classification of entrepreneurs according to the types of
business:
(a) Wholesale trade
(b) Retail trade
(c) Exporter
(d) Rural entrepreneur

2. From the following which one is the classification of entrepreneurs according to gender and age.
(a) Men entrepreneurs
(b) Women entrepreneurs
(c) Young entrepreneurs
(d) All of above

3. Basic problems of women entrepreneurs in India:

(a) Lack of education skill
(b) Male dominating society
(c) Absence of listen bearing capacity
(d) All of the above

4. From the following, types of entrepreneur are:

(a) Innovating entrepreneur
(b) Initiative entrepreneur
(c) Drone entrepreneur
(d) All of above

5. Which one is not the barriers of Enterpreneurship:

(a) Lack of technical skills
(b) Political instability
(c) Technical knowledge
(d) Time pressure and distractions

6. The key factor influencing the mobility of entrepreneurs are:

(a) Resources
(b) Experience and Education
(c) Language and culture
(d) All of above
7. It’s an institution to set up a network of technical consultancy organizations in the country.
(a) TCO
(b) ITC
(c) EGB
(d) None of above

8. An Entrepreneurs refers to :
(a) Initiator
(b) Motivator
(c) Visualizer
(d) All of above

9. Which of the following factor influence entrepreneurship:

(a) Technical Knowledge
(b) Entrepreneurial training
(c) Local manpower
(d) All of above

10. From the following which ones is the quality of Entrepreneur:

(a) Initiator
(b) Information Seeker
(c) Motivator
(d) All of above

Q.2 Do as directed:
1. Persistance follows the saying “try & try again you will succeed at last”
2. Efficiency lover tries to do things at a faster pace incurring the minimum cost.
3. Intrapreneurship is the process by which other new ventures are born within the confines of an
existing corporation:
4. An entrepreneur bears Full Risk of the business
5. An intrapreneurs are Semi dependent on the owners/Partners of the corporation.
6. An entrepreneurs can operates the business from Outside also.
7. An Intrapreneurneither raises the capital nor guarantees any returns to the supplies of capital.
8. An entrepreneurs who personally surprises the work to ensure that the work is accomplished
according to the standard set forth is: Efficient Monitoring.
9. Locational mobility of entrepreneurs represents the drive and initiative to move to other places in
search of better opportunities.
10. Heavily involved in family problems is one of the problem of Women Entrepreneur.

Q.3 Answer in one or two lines:

1. What is Intrapreneurhip.

Ans. Intrapreneurship is the process by which other new ventures are born whithin the confines of an
existing corporation.It involves expansion by exploring new opportunity through new combination of
existing resources.
2. What is Locational Mobility of Entrepreneurs.

Ans. Locational or geographical mobility of entrepreneurs represents the drive and initiative to move
to other places in search of better opportunities. For ex. Marvaris and sindhis in our country have
moved to almost every corner of India to carry out business activities. Such a spirit helps to reduce
regional imbalances in economic growth.

3. What are the types of Entrepreneurs.

Ans. Innovating Entrepreneurs, Imitative Entrepreneurs, Fabian Entrepreneurs, Drone Entrepreneurs.

4. Point out the barriers of entrepreneurship.

Ans. Lack of technical skills, Lack of market knowledge, Lack of seed capital, Lack of business
knowledge, Social stigma, Time pressure and distractions, Legal and bureaucratical constraints,
Political instability etc.

5. Write any one difference between Entrepreneurship and Intrapreneurship.

Ans. An entrepreneur is an independent businessman whereas an intrapreneur is semi-dependent on

the promoter/owners of the corporation.

6. Point out qualities of successful Entrepreneurs.

Ans. Initiation, Persistence, Information seeker, Quality conscious, Efficiency lover, Self confidence,
Assertiveness, Persuation, Commitment to work etc.

7. Write any two/three problems of women entrapreneurs.

Ans. Lack of need achievement- economic independence and autonomy, Absence of risk bearing
capacity, Lack of education skills, Male dominating society, Lack of business information and
experience, Heavily involved in family problems etc.

8. Write any two characteristics of Entrepreneurship.

Ans. 1. Creative Activity: Entrepreneurship is a creative response to changes in the environment. 2.

Purposeful activity: The entrepreneur who creates and operates an enterprise seeks to earn profits
through satisfaction of needs of customers. 3. Risk bearing: Risk is an inherent and inseperable
element of entrepreneurship.

9. Point out key factors influencing the mobility of entrepreneurs.

Ans. Resources, Experience, Education, Language, Culture, Nature of Enterprise etc.

10. Write a note on efficient monitoring .

Ans. Efficient monitoring means personally supervision of the work to ensure that the work is
accomplished according to the standards set forth.
Unit – 3
Small Scale Industries – An overview

Q .1 Multiple Choice Questions:

1.Small scale industries (SSIs) also known as MSMEs are defined & categorized by the Micro, Small
& Medium Enterprises Development Act
(a) 2006 (b) 2007 (c) 2008 (d) 2009

2.Who is the present Minister of Micro, Small and Medium Enterprises ? (a) Karan Singh (b)
Girirajsingh
(c) Virbhadra Singh (d) Abhishek Singh

3. Name the institution which was set up in 1982 to promote integrated rural development
(a) NSIC (b) NABARD (c) SIDBI (d) NCEUS

4. Name the institution which is set up as an apex bank to provide direct or indirect financial
assistance under different scheme.
(a) SIDBI (b) NSIC (c) RSBDC (d) None of the above

5. Investment in equipments service sector in Micro scale industry should be

(a) Up to 10 Lacs (b) 10Lacs – 2 Crores
(c) 2 Crores – 5 Crores (d) None of the above
6. Investment in equipments service sector in small scale industry should be
(a) Up to 10 Lacs(b) 10Lacs – 2 Crores
(c) 2 Crores – 5 Crores (d) None of the above

7. Investment in equipments service sector in Medium scale industry should be

(a) Up to 10 Lacs (b) 10Lacs – 2 Crores
(c) 2 Crores – 5 Crores (d) None of the above

8.Investment in plant and machinery/ equipment (excluding land and building).w.r.t. Manufacturing
sector in Micro industry should be
(a) Up to 25 Lacs (b) 25Lacs – 5 Crores
(c) 5 Crores – 10 Crores (d) None of the above

9.Investment in plant and machinery/ equipment (excluding land and building).w.r.t. Manufacturing
sector in Small industry should be
(a) Up to 25 Lacs(b) 25Lacs – 5 Crores
(c) 5 Crores – 10 Crores (d) None of the above

10.Investment in plant and machinery/ equipment (excluding land and building).w.r.t. Manufacturing
sector in Medium industry should be
(a) Up to 25 Lacs (b) 25Lacs – 5 Crores
(c) 5 Crores – 10 Crores (d) None of the above

Q-2 Do as directed.
1.95 % is the share of Small scale industries, in total number of industrial units in the country.
2.India is thelargest manufactures of jute in the world.
3.Indian Institute of Entrepreneurship (IIE) is located at Guwahati.
4.The full form of SFURTI = Scheme of Fund for Regeneration of Traditional Industries
5. Hindustan Machine Tools is the most important company in machine tools in India. (True /
False)
6.The full form of NABARD = National Bank for Agricultural and Rural Development
7. For Drugs and pharmaceuticals industries, licensing compulsory. (True/ False)
8.Small scale industries can provide more jobs at local level. (True/ False)
9.Export Oriented Unit (EOU) is an example of Traditional Industry. (True/ False)
10.Cottage industry is an example of Traditional Industry. (True/ False)

Q-3 Answer the following in one or two lines.

(1) What is the meaning of Tiny Enterprise?
A. The industrial undertaking having fixed investment in plant and machinery not exceeding Rs.25
lakhs engaged in manufacturing or rendering services.

(2)What is the meaning of Ancillary Industries?

A. The industrial undertaking having fixed investment in plant and machinery not exceeding Rs. 1
crore engaged in manufacturing or rendering services.

(3)Explain the main sectors of small scale industries.

A. (1) Traditional sector (2) Modern Sector

(4)Give any three examples of Traditional small scale industries.

A. (1) Khadi Industry (2) Handloom (3) Artisans

(5) Give any three examples of Modern small scale industries.

A. (1) Tiny Industry (2) Power loom (3) Ancillaries

(6) Give any three importance of small scale of industries.

A. (1) Partner in nation building (2) Customize products (3)Employment to local people

(7) What is the meaning of Sick Industries?

A. As per the RBI –“A small scale industrial unit should be considered as sick if it has at the end of
any accounting year, accumulated losses equal to or exceeding 50% of its Net Worth during two
previous accounting years”.

(8) Give any two symptoms of industrial sickness.

A. (1)Continuous shortage of cash
(2) Continuous fall in the price of the shares
(9)Give any two causes of industrial sickness.
A. (1) Changes in the industrial policies of Government
(2) Lack of adequate demand for the product

(10)Give any two remedies of industrial sickness.

A. (1) Technical and Professional counseling
(2) Financial support from Bankers

Unit – 4
Small Scale Business
Q-1 Multiple choice questions
1. A__________ is a specialized firm that finances young, start up companies
a) Venture capital firm
b) Finance company
c) Small business finance co.
d) Capital creation co.

2. Venture capital firms are usually organized as

a) Corporation
b) Non-profit organisation
c) Closed- end mutual funds
d) Limited partnership

3. Which of the following is a characteristics of Venture capital firms

a) Developing portfolio of companies
b) Allowing firm to use the funds as they see fit
c) Having a short term investment horizon
d) Holding Debts in the firm that are funded

4. The source of venture capital funding has

a) shifted from wealthy individuals to pension funds and corporations.
b) shifted from pension funds and corporations to wealthy individuals.
c) decreased since 1990.
d) none of the above.

5. Which of the following is not a characteristic feature of venture capital firms?

a) Funding just one or a small number of firms.
b) Holding equity in the firms that are funded.
c) Having a long-term investment horizon.
d) Providing advice and assistance to the firms that are funded.

6. The largest industry group receiving venture capital funding is

a) computer software.
b) medical/health.
c) computer hardware.
d) none of the above.

7. Name the institution which is set up as an apex bank to provide direct/indirect financial assistance
under different schemes and also coordinates the functions of other institutions in similar activities
a) SIDBI
b) NSIC
c) RSBDC
d) None

8. If the investment in fixed assets or plant and machinery does not exceed one crore rupees, then that
particular firm come s under the category of
a) Tiny industry
b) Small scale industry
c) Village industry
d) Cottage: industry

9. Name the institution which was set up in 1982 to promote integrated rural development.
a) NSIC
b) NABARD
c) SIDBI
d) NCEUS

10. Finance companies

a) are money market intermediaries.
b) borrow in large amounts, but lend in small amounts.
c) are virtually unregulated.
d) all of the above.

Q- 2 Do as Directed
1. Venture capital firms reduce risk by investing in only a few companies which can be carefully
monitored and nurtured.

Answer: FALSE

2. Investors in venture capital firms expect to profit quickly from their investment.
Answer: FALSE
3. Finance companies charge higher interest rates than do commercial banks.

Answer: TRUE

4. Interest-rate risk is a more serious problem for finance companies than for
banks.
Answer: FALSE

5. Finance companies gained a reputation for being more innovative than banks at
finding ways to finance small businesses.
Answer: TRUE

6. Finance companies offered loans secured by accounts receivable before

commercial banks did.
Answer: TRUE

7. Because finance companies are virtually unregulated, they charge lower

interest rates than do commercial banks.
Answer: FALSE

8. Venture capital is concerned with new project having potential for higher profit
Answer: TRUE

9. A women entrepreneur is supposed to have a minimum financial interest of 25% in share capital
of entrepreneur’s enterprise.
Answer: FALSE

10. Lack of confidence is one of the barrier faced by women entrepreneur.

Answer: TRUE

11. SIDBI provide services like factoring, leasing etc. to small units.
Answer: TRUE

Q- 3 Answer in one or two lines

1. Define Women entrepreneur.

Answer : Women entrepreneur is defined as an enterprise owned and controlled by woman having a
minimum financial interest of 51% of capital and giving at least 51% employment generation to
women.

2. Give Examples of Industries promoted by Women Entrepreneurs.

Answer : Agarbatti making, Papad making, Embroidery, Handicrafts, Catering services Beauty
parlors
etc.
3. Explain any two barriers faced by Women Entrepreneurs.

Answer : Lack of management skill, Lack of confidence, Low risk bearing ability, Male dominated
society.

4. Give any two reasons for growth of Women Entrepreneurship.

Answer : Growth of Literacy level, Industrial and economic growth, Awareness of democratic
values. Organizations promoting women entrepreneurship.

5. Give any two examples of Organizations promoting women entrepreneurship in India.

Answer : Women’s India Trust, Women Development Corporation, Working Women Forum, Self-
Employed Women’s Association
.
6. Write full form of SIDBI.

Answer : Small Industries Development Bank of India.

7. Write any two objectives of SIDBI.

Answer : Technological Up-gradation, Market expansion, Co-ordination of activities.

8. Write any two functions of SIDBI.

Answer : Refinance, Discounting Bills, Refinance for exports, Factoring services, Assistance to
NSIC.

9. Write three types of finance companies.

Answer : Business, Sales, and Consumer.

10. Explain factoring services provided in Finance company.

Answer : Business finance companies provide specialized forms of credit to businesses by making
loans and purchasing accounts receivable at a discount; this provision of
credit is called factoring

Question No: 1
Which of the following shows the process of creating something new?
a) Business model
b) Modeling
c) Creative flexibility
d) Innovation
Question No: 2
Which one of the following gives suggestions for new product and also help to market new
products?
a) Existing products and services
b) Federal government
c) Distribution Channels
d) Consumers

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

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

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

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

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

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

c) Horizontal merger
c) Diversified activity merger

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

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

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

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

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

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

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

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

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

Question No: 19
Which one of the following is the next stage to the Concept Stage of Product Planning and
Development Process?
a) Idea Stage
b) Product Planning Stage
c) Product Development Stage
d) Test Marketing Stage

Question No: 20
SBA stands for:
a) Small business accountants
b) Small business administration
c) Small business adequacy
d) Small business advisors

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

Question No: 22
Information regarding all of the following is related to operations, EXCEPT:
a) Location
b) Promotion
c) Raw materials
d) Labor skills
Question No:23
A performance and credit rating scheme has been launched by the MSME Ministry to assess
creditworthiness and capabilities of industries in the sector. What is it called?
(a) Performance and Credit Rating Scheme (b) Zero Defect Zero Effect Certification (c) Performance
and Economy Rating Scheme (d) None of the above

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

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

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

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

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

Question No: 30
Venture capital is concerned with:
(a) New project having potential for higher profit
(b) New project of high technology
(c) New project having high risk
(d) All the above.

Answer Key: 1(d), 2(c), 3(b), 4(b), 5(c), 7(b), 8(c), 9(b), 10(d), 11(b), 12(b), 13(b), 14(c), 15(c), 16(b), 17(b),
18(b), 19(c), 20(b), 21(b), 22(c), 23(a), 24(c), 25(b), 26(c), 27(c), 28(c), 29(c), 30(a)
 B.Com. (Hons.) : Semester IV (CBCS)
Paper BCH 4.5(a) : Entrepreneurship
Skill Enhancement Courses (SEC)

MULTIPLE CHOICE QUESTIONS

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Question No: 19

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

Question No: 20
SBA stands for:
a) Small business accountants
b) Small business administration
c) Small business adequacy
d) Small business advisors

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

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

(a) Performance and Credit Rating Scheme

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

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

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

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

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

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

Question No: 30
Venture capital is concerned with:

(a) New project having potential for higher profit

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

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

LONG QUESTIONS
QUESTION NO: 1
Write a note on entrepreneurship and creative response to the society problems and at work.
QUESTION NO: 2
“Entrepreneurship and Intrapreneurship are not mutually exclusive these are rather
dependent on each other for the development of an economy”. Elucidate.

QUESTION NO: 3
What types of conflict are possible in family business? How can these conflicts be averted or
overcome? Answer these questions in the light of business families.

QUESTION NO: 4
Explain the role of Entrepreneur’s Association and Self –help Groups as facilitators.

QUESTION NO: 5
“Self-employment is the best method of solving the problem of growing unemployment in
the country.” Do you agree? Suggest a suitable strategy for the identification and
development of entrepreneurs.

QUESTION NO: 6
Examine critically the government policies and programs to foster the growth of
entrepreneurship. What changes should be made in them?

QUESTION NO: 7
What is industry analysis? Describe the types of industries and the strategies needed for each
type.

QUESTION NO: 8
“E-commerce is a win-win situation for both entrepreneur and consumers.” Explain.

QUESTION NO: 9
What is Creative Thinking? Examine its techniques of Brainstorming, Attribute Analysis and
Synectics.

QUESTION NO: 10
How can a business determine the right price of the product, in this essence explain all the
determinants of pricing a product for a small organization.
 SHORT QUESTIONS
QUESTION NO: 1
What do you understand by concept of entrepreneurship?

QUESTION NO: 2
What is the role and function of business incubators?

QUESTION NO: 3
Who are the angel investors and what is their role?

QUESTION NO: 4
Differentiate between Internal and External growth strategies.

QUESTION NO: 5
Describe briefly various determinants of entrepreneurship.

QUESTION NO: 6
Define Micro, Small and Medium Enterprises.

QUESTION NO: 7
What are the functions of Small Industries Development Organisation?

QUESTION NO: 8
What is Business Idea? Describe in brief various sources of business idea.

QUESTION NO: 9
What is Feasibility Analysis? What are its benefits?

QUESTION NO: 10
What is Venture Capital? Describe its merits for a new venture.
 SEM -6

Entrepreneurship and Small Scale Business

Unit – 1

Introduction to Entrepreneurship

Q.1 Multiple Choice Questions:-

1. Entrepreneurial behaviours includes:

(a) Solving problems
(b) Taking initiatives
(c) Taking responsibility
(d) All of above

2. Entrepreneurs attributes includes:

(a) Preservence
(b) Hard working
(c) Determination
(d) All of above

3. Entrepreneurs skills includes:

(a) Creative problem solving
(b) Persuading
(c) Negotiation
(d) All of above

4. The term “entrepreneurs” was applied to business initially by the French economist in the
18th century:
(a) Cantillon
(b) Jan Tinbergen
(c) J.S.Mill
(d) None of above

5. Which business function do experts agree, you should focus on first when preparing to
start a business.
(a) Financing
(b) Marketing vision
 (c) Operation
(d) None of above

6. Which of the following is not something that can be invested:

(a) Energy
(b) Experties
(c) Money
(d) Time

7. From the following which one is factor affecting entrepreneurial growth:

(a) Social
(b) Economic
(c) Psychological
(d) All of above

8. What is the need of entrepreneurship:

(a) For new innovation
(b) To fill gap in growth
(c) For healthy competition
(d) All of above

9. Which one of the following is the process of entrepreneur developing new products that
over time make current products obsolete?
(a) New business model
(b) Anatomization
(c) Creative Destruction
(d) None of above

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

(a) Financial status
(b) Qualification
(c) Social Status
(d) Achievement

Q. 2 Do as directed:

1. An entrepreneur must Self Confident: A strong believer in his strengths and weakness:
2. Social/Economic/Educational/Geographical environment ina country exercises a
significant impact on the emergence of entrepreneurship.
3. The entrepreneur was distinguished from capital provider in 18th Century.
4. Innovations shows the process of creating something new.
 5. “What the entrepreneur hopes to accomplish” – includes in the :Mission Statement.
6. The levels at which an individual is viewed by society is called Social Status.
7. Distribution Channels gives suggestions for new product and also help to market new
product.
8. An Entrepreneur must should Innovative, Hard Working, very alert for new
opportunities etc.
9. Entrepreneurship is the life blood of any economy.
10. Individuals influencing an entrepreneur’s career choice and style are known as Role
model.

Q.3 Answer in one or two lines:-

Short Questions

1. Write meaning of Entrepreneur.

Answer : A person with vision and action plan to achieve it is an entrepreneur.
2. Write characteristics of entrepreneur.
Answer : Vision, Knowledge, Desire to succeed, Independence, Value addition,
Initiative, Optimism.
3. Write types of entrepreneur according to ownership.
Answer : Public entrepreneurship, Private entrepreneurship
4. Write types of entrepreneur according to scale of enterprise.
Answer : Large scale entrepreneur, Small scale entrepreneur.
5. Write any four Primary Functions of entrepreneurship.
Answer : Planning, Organizing, Decision making, Managing, Innovating, Risk bearing
6. Write any four secondary functions of entrepreneurship.
Answer : Diversification of production, Expansion of the enterprise, Tackling labour
problem, Co-ordinating and communicating with third parties.
7. Write any four barriers to entrepreneurship.
Answer : Environmental barriers, Financial barrier, Personal barrier, Societal barrier,
Political barrier
8. Write any two importance of entrepreneurship.
Answer : Development of managerial capabilities, Job creation, Innovation, Improving
standard of living.
9. Write any four factors affecting to entrepreneurship.
Answer : Personality factors, Environmental factors, Political, Social-economic factors,
Economic factor.
10. Explain any one difference between entrepreneur and intrapreneur.
Answer : Entrepreneur him-self raises funds and Intrapreneur does not raise funds.
Entrepreneur is independent in his operations and Intrapreneur is dependent on
entrepreneur.
Unit – 2

Traits of an Entrepreneur

Q.1 Multiple choice questions:-

1. From the following which one is not classification of entrepreneurs according to the types
of business:
(a) Wholesale trade
(b) Retail trade
(c) Exporter
(d) Rural entrepreneur

2. From the following which one is the classification of entrepreneurs according to gender
and age.
(a) Men entrepreneurs
(b) Women entrepreneurs
(c) Young entrepreneurs
(d) All of above

3. Basic problems of women entrepreneurs in India:

(a) Lack of education skill
(b) Male dominating society
(c) Absence of listen bearing capacity
(d) All of the above

4. From the following, types of entrepreneur are:

(a) Innovating entrepreneur
(b) Initiative entrepreneur
(c) Drone entrepreneur
(d) All of above

5. Which one is not the barriers of Enterpreneurship:

(a) Lack of technical skills
(b) Political instability
(c) Technical knowledge
(d) Time pressure and distractions

6. The key factor influencing the mobility of entrepreneurs are:

(a) Resources
 (b) Experience and Education
(c) Language and culture
(d) All of above

7. It’s an institution to set up a network of technical consultancy organizations in the

country.
(a) TCO
(b) ITC
(c) EGB
(d) None of above

8. An Entrepreneurs refers to :
(a) Initiator
(b) Motivator
(c) Visualizer
(d) All of above

9. Which of the following factor influence entrepreneurship:

(a) Technical Knowledge
(b) Entrepreneurial training
(c) Local manpower
(d) All of above

10. From the following which ones is the quality of Entrepreneur:

(a) Initiator
(b) Information Seeker
(c) Motivator
(d) All of above

Q.2 Do as directed:

1. Persistance follows the saying “try & try again you will succeed at last”
2. Efficiency lover tries to do things at a faster pace incurring the minimum cost.
3. Intrapreneurship is the process by which other new ventures are born within the
confines of an existing corporation:
4. An entrepreneur bears Full Risk of the business
5. An intrapreneurs are Semi dependent on the owners/Partners of the corporation.
6. An entrepreneurs can operates the business from Outside also.
7. An Intrapreneurneither raises the capital nor guarantees any returns to the supplies of
capital.
 8. An entrepreneurs who personally surprises the work to ensure that the work is
accomplished according to the standard set forth is: Efficient Monitoring.
9. Locational mobility of entrepreneurs represents the drive and initiative to move to other
places in search of better opportunities.
10. Heavily involved in family problems is one of the problem of Women Entrepreneur.

Q.3 Answer in one or two lines:

1. What is Intrapreneurhip.
Ans. Intrapreneurship is the process by which other new ventures are born whithin the
confines of an existing corporation.It involves expansion by exploring new opportunity
through new combination of existing resources.

2. What is Locational Mobility of Entrepreneurs.

Ans. Locational or geographical mobility of entrepreneurs represents the drive and
initiative to move to other places in search of better opportunities. For ex. Marvaris and
sindhis in our country have moved to almost every corner of India to carry out business
activities. Such a spirit helps to reduce regional imbalances in economic growth.

3. What are the types of Entrepreneurs.

Ans. Innovating Entrepreneurs, Imitative Entrepreneurs, Fabian Entrepreneurs, Drone
Entrepreneurs.

4. Point out the barriers of entrepreneurship.

Ans. Lack of technical skills, Lack of market knowledge, Lack of seed capital, Lack of
business knowledge, Social stigma, Time pressure and distractions, Legal and
bureaucratical constraints, Political instability etc.

5. Write any one difference between Entrepreneurship and Intrapreneurship.

Ans. An entrepreneur is an independent businessman whereas an intrapreneur is semi-
dependent on the promoter/owners of the corporation.

6. Point out qualities of successful Entrepreneurs.

Ans. Initiation, Persistence, Information seeker, Quality conscious, Efficiency lover, Self
confidence, Assertiveness, Persuation, Commitment to work etc.

7. Write any two/three problems of women entrapreneurs.

Ans. Lack of need achievement- economic independence and autonomy, Absence of risk
bearing capacity, Lack of education skills, Male dominating society, Lack of business
information and experience, Heavily involved in family problems etc.
 8. Write any two characteristics of Entrepreneurship.
Ans. 1. Creative Activity: Entrepreneurship is a creative response to changes in the
environment. 2. Purposeful activity: The entrepreneur who creates and operates an
enterprise seeks to earn profits through satisfaction of needs of customers. 3. Risk
bearing: Risk is an inherent and inseperable element of entrepreneurship.

9. Point out key factors influencing the mobility of entrepreneurs.

Ans. Resources, Experience, Education, Language, Culture, Nature of Enterprise etc.

10. Write a note on efficient monitoring .

Ans. Efficient monitoring means personally supervision of the work to ensure that the
work is accomplished according to the standards set forth.

Unit – 3

Small Scale Industries – An overview

Q .1 Multiple Choice Questions:

1.Small scale industries (SSIs) also known as MSMEs are defined & categorized
by the Micro, Small & Medium Enterprises Development Act

(a) 2006 (b) 2007 (c) 2008 (d) 2009

2.Who is the present Minister of Micro, Small and Medium Enterprises ?

(a) Karan Singh (b) Girirajsingh

(c) Virbhadra Singh (d) Abhishek Singh

3. Name the institution which was set up in 1982 to promote integrated rural development

(a) NSIC (b) NABARD (c) SIDBI (d) NCEUS

4. Name the institution which is set up as an apex bank to provide direct or indirect
financial assistance under different scheme.

(a) SIDBI (b) NSIC (c) RSBDC (d) None of the above

5. Investment in equipments service sector in Micro scale industry should be

(a) Up to 10 Lacs (b) 10Lacs – 2 Crores

 (c) 2 Crores – 5 Crores (d) None of the above

6. Investment in equipments service sector in small scale industry should be

(a) Up to 10 Lacs(b) 10Lacs – 2 Crores

(c) 2 Crores – 5 Crores (d) None of the above

7. Investment in equipments service sector in Medium scale industry should be

(a) Up to 10 Lacs (b) 10Lacs – 2 Crores

(c) 2 Crores – 5 Crores (d) None of the above

8.Investment in plant and machinery/ equipment (excluding land and building).w.r.t.

Manufacturing sector in Micro industry should be

(a) Up to 25 Lacs (b) 25Lacs – 5 Crores

(c) 5 Crores – 10 Crores (d) None of the above

9.Investment in plant and machinery/ equipment (excluding land and building).w.r.t.

Manufacturing sector in Small industry should be

(a) Up to 25 Lacs(b) 25Lacs – 5 Crores

(c) 5 Crores – 10 Crores (d) None of the above

10.Investment in plant and machinery/ equipment (excluding land and building).w.r.t.

Manufacturing sector in Medium industry should be

(a) Up to 25 Lacs (b) 25Lacs – 5 Crores

(c) 5 Crores – 10 Crores (d) None of the above

Q-2 Do as directed.

1.95 % is the share of Small scale industries, in total number of industrial units in the
country.

2.India is thelargest manufactures of jute in the world.

3.Indian Institute of Entrepreneurship (IIE) is located at Guwahati.

4.The full form of SFURTI = Scheme of Fund for Regeneration of Traditional

Industries

5. Hindustan Machine Tools is the most important company in machine tools in India.
(True / False)
6.The full form of NABARD = National Bank for Agricultural and Rural
Development

7. For Drugs and pharmaceuticals industries, licensing compulsory. (True/ False)

8.Small scale industries can provide more jobs at local level. (True/ False)

9.Export Oriented Unit (EOU) is an example of Traditional Industry. (True/ False)

10.Cottage industry is an example of Traditional Industry. (True/ False)

Q-3 Answer the following in one or two lines.

(1) What is the meaning of Tiny Enterprise?

A. The industrial undertaking having fixed investment in plant and machinery not
exceeding Rs.25 lakhs engaged in manufacturing or rendering services.

(2)What is the meaning of Ancillary Industries?

A. The industrial undertaking having fixed investment in plant and machinery not
exceeding Rs. 1 crore engaged in manufacturing or rendering services.

(3)Explain the main sectors of small scale industries.

A. (1) Traditional sector (2) Modern Sector

(4)Give any three examples of Traditional small scale industries.

A. (1) Khadi Industry (2) Handloom (3) Artisans

(5) Give any three examples of Modern small scale industries.

A. (1) Tiny Industry (2) Power loom (3) Ancillaries

(6) Give any three importance of small scale of industries.

A. (1) Partner in nation building (2) Customize products (3)Employment to local people

(7) What is the meaning of Sick Industries?

A. As per the RBI –“A small scale industrial unit should be considered as sick if it has at
the end of any accounting year, accumulated losses equal to or exceeding 50% of its Net
Worth during two previous accounting years”.

(8) Give any two symptoms of industrial sickness.

A. (1)Continuous shortage of cash

 (2) Continuous fall in the price of the shares

(9)Give any two causes of industrial sickness.

A. (1) Changes in the industrial policies of Government

(2) Lack of adequate demand for the product

(10)Give any two remedies of industrial sickness.

A. (1) Technical and Professional counseling

(2) Financial support from Bankers

Unit – 4

Small Scale Business

Q-1 Multiple choice questions

1. A__________ is a specialized firm that finances young, start up companies

a) Venture capital firm
b) Finance company
c) Small business finance co.
d) Capital creation co.
2. Venture capital firms are usually organized as
a) Corporation
b) Non-profit organisation
c) Closed- end mutual funds
d) Limited partnership
3. Which of the following is a characteristics of Venture capital firms
a) Developing portfolio of companies
b) Allowing firm to use the funds as they see fit
c) Having a short term investment horizon
d) Holding Debts in the firm that are funded
4. The source of venture capital funding has
a) shifted from wealthy individuals to pension funds and corporations.
b) shifted from pension funds and corporations to wealthy individuals.
c) decreased since 1990.
d) none of the above.

5. Which of the following is not a characteristic feature of venture capital firms?

a) Funding just one or a small number of firms.
 b) Holding equity in the firms that are funded.
c) Having a long-term investment horizon.
d) Providing advice and assistance to the firms that are funded.
6. The largest industry group receiving venture capital funding is
a) computer software.
b) medical/health.
c) computer hardware.
d) none of the above.

7. Name the institution which is set up as an apex bank to provide direct/indirect financial
assistance under different schemes and also coordinates the functions of other institutions
in similar activities
a) SIDBI
b) NSIC
c) RSBDC
d) None

8. If the investment in fixed assets or plant and machinery does not exceed one crore
rupees, then that particular firm come s under the category of
a) Tiny industry
b) Small scale industry
c) Village industry
d) Cottage: industry

9. Name the institution which was set up in 1982 to promote integrated rural development.
a) NSIC
b) NABARD
c) SIDBI
d) NCEUS

10. Finance companies

a) are money market intermediaries.
b) borrow in large amounts, but lend in small amounts.
c) are virtually unregulated.
d) all of the above.

Q- 2 Do as Directed

1. Venture capital firms reduce risk by investing in only a few companies which can be
carefully monitored and nurtured.
Answer: FALSE

2. Investors in venture capital firms expect to profit quickly from their investment.
Answer: FALSE
 3. Finance companies charge higher interest rates than do commercial banks.
Answer: TRUE
4. Interest-rate risk is a more serious problem for finance companies than for
banks.
Answer: FALSE
5. Finance companies gained a reputation for being more innovative than banks at
finding ways to finance small businesses.
Answer: TRUE
6. Finance companies offered loans secured by accounts receivable before
commercial banks did.
Answer: TRUE
7. Because finance companies are virtually unregulated, they charge lower
interest rates than do commercial banks.
Answer: FALSE

8. Venture capital is concerned with new project having potential for higher profit
Answer: TRUE
9. A women entrepreneur is supposed to have a minimum financial interest of 25% in
share capital of entrepreneur’s enterprise.
Answer: FALSE
10. Lack of confidence is one of the barrier faced by women entrepreneur.
Answer: TRUE
11. SIDBI provide services like factoring, leasing etc. to small units.
Answer: TRUE

Q- 3 Answer in one or two lines

1. Define Women entrepreneur.

Answer : Women entrepreneur is defined as an enterprise owned and controlled by
woman having a minimum financial interest of 51% of capital and giving at least 51%
employment generation to women.
2. Give Examples of Industries promoted by Women Entrepreneurs.
Answer : Agarbatti making, Papad making, Embroidery, Handicrafts, Catering services
Beauty parlors
etc.
3. Explain any two barriers faced by Women Entrepreneurs.
Answer : Lack of management skill, Lack of confidence, Low risk bearing ability, Male
dominated society.
4. Give any two reasons for growth of Women Entrepreneurship.
Answer : Growth of Literacy level, Industrial and economic growth, Awareness of
democratic values. Organizations promoting women entrepreneurship.
5. Give any two examples of Organizations promoting women entrepreneurship in India.
Answer : Women’s India Trust, Women Development Corporation, Working Women
Forum, Self-Employed Women’s Association.
6. Write full form of SIDBI.
Answer : Small Industries Development Bank of India.
7. Write any two objectives of SIDBI.
Answer : Technological Up-gradation, Market expansion, Co-ordination of activities.
8. Write any two functions of SIDBI.
Answer : Refinance, Discounting Bills, Refinance for exports, Factoring services,
Assistance to NSIC.
9. Write three types of finance companies.
Answer : Business, Sales, and Consumer.
10. Explain factoring services provided in Finance company.
Answer : Business finance companies provide specialized forms of credit to businesses
by making loans and purchasing accounts receivable at a discount; this provision of
credit is called factoring.
 STARUP AND NEW VENTURE MANAGEMENT (303)

MUTIPLE CHOICE QUESTION

1. 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

2. In some countries, points of purchase displays are not allowed in retail stores. Such differences are
studied by international entrepreneurs under __________ environment. a. Economic

b. Political

c. Cultural

d. Technological

3. 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 merge

4. 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

5. A business where an individual is both the owner and conductor of the business affairs is
called__________________.

a. Sole Proprietorship

b. Partnership

c. Corporation

d. None of the above

6. In __________________, the entrepreneur has the right to sell any assets.

a. Proprietorship

b. Partnership

c. Limited Liability Company

d. None of the given options

7. The idea and actions that explain how a firm will make its profits refers to a.

Mission
b. Goal
c. Strategy

d. Objective

8. Entrepreneurs are best as ________________

a. Managers
b. Venture capitalists
c. Planners
d. Doers

9. Entrepreneurs and ventures capitalists:

a. Get along well
b. Are the best friends
c. Are cordial friends
d. Are in conflict

10. _________________ is one method of stimulating, and then capitalizing on, individuals in an
organization who think that something can be done differently and better.

a) Strategic Orientation
b) Capitalization
c) Intrapreneurship
d) Management

11. The _______ plan shows whether the business is economically feasible or not. a.

Financial

b. Business

c. Economic

d. Marketing
12. In which of the following, the ownership of venture is reflected by ownership of shares of stock?
a. Partnership

b. Limited partnership

c. Corporation

d. Proprietorship

13. 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

14. The small business ‘owner-manager’ is always the founder of the business:

a. True
b. False (A management buyout is an example of a business where the owner-manager would
probably not have been the founder)

15. Which of these statements best describes the context for entrepreneurship:

a. Entrepreneurship takes place in small businesses

b. Entrepreneurship does not take place in social enterprises
c. Entrepreneurship takes place in a wide variety of contexts
d. Entrepreneurship takes place in large businesses

16. Which of the following are described as one of the ‘Big Five’ personality traits?

a. propensity to leadership
b. need for achievement
c. extravert personality
d. tolerance of others

17. The period of business when an entrepreneur must position the venture in a market and make
necessary adjustments to assure survival is called the:
a. pre-startup stage.

b. startup stage.

c. early growth stage.

d. later growth stage.

18. Which of the following is a reason why a person might prefer to purchase a franchise rather than
open a completely new business?

a. higher failure rate.

b. increased independence.

c. ability to benefit from previous experience.

d. reduced royalty fees.

19. MSMED stands to ___________

a. Micro, Small & Medium Enterprises Development

b. Mini, Small & Medium Enterprises Development
c. Micro, Small & Medium Entrepreneurship Development
d. Micro, Small & Medium Enterprises Department

20. Which of the following is an internal factor that influences entrepreneurs?

a. Technological Capacity
b. Social environment
c. Political environment
d. Economic condition

21.__________________ requires proper review and reconsideration of the selected alternative before
implementing it.

a. Developing possible alternatives

b. Selecting the best alternative
c. Checking the decision
d. Exploring the developed alternatives

22. Which one of the following is an economic barrier to an entrepreneur?

a. Emotional blocks
b. Labour
c. Lack of sustained motivation
d. lack of vision

23. Which of the following enterprises was found by Akio Morita?

a. Samsung
b. Apple
c. Panasonic
d. Sony

24. ________________ can be defined as psychological features that enable an individual to take
action toward a desired goal?

a. Motive
b. Trait
c. Attitude
d. Ego

25. ___________ implies that women entrepreneurs are now economically independent and take
decisions independently.

a. Better utilization of resources

b. Improved quality life
c. Economic development
d. Employment generation

26. Financial feasibility analysis can be done by comparing ______________ with the estimated sales
figure.

a. cash flow statement

b. balance sheet
c. break-even point
d. profit and loss statement

27. Which of the following is not considered while selecting the region?

a. Law and order

b. Price of land
c. Availability of raw materials
d. Proximity to the product market

28. Which one of the following is the step involved in setting up a new enterprises?

a. Creating a business plan

b. Making a product choice
c. Selecting the location
d. Setting up infrastructure

29. The parties involved in franchise business are ___________.

a. 1
b. 2
c. 3
d. 5

30. If someone starts a new business that is a service station, this is an example of a(n):

a. new concept/new business.

b. new concept/existing business
c. existing concept/new business.
d. existing concept/existing business.

31. If an entrepreneur has an internal locus of control, this means that he/she:

a. has a high need for achievement

b. believes that success or failure depends on his/her own actions.
c. feels comfortable in an unstructured situation
d. believes fate is a powerful force
32. The process of gathering information about trends is called:

a. need for achievement.

b. tenacity.
c. Trend
d. neuroticism

33. The opposite of "opportunity thinking" is:

a. obstacle thinking
b. thought self-leadership.
c. self-efficacy.
d. adaptive response behavior.

34. The startups which rarely go public are called:

a. Life style
b. Foundation company
c. Small company
d. High potential venture

35. Which of the following factor can create the managerial difficulties in the joint ventures between
foreign companies?

a. Cultural differences
b. Economic policies
c. Public ignorance
d. Government taxes

36. ___________ process of creating incremental wealth is called Entrepreneurship. a.

Static

b. Continuous
c. Systematic
d. Dynamic

37. Barriers to new product creation and development are known as:

a. Trial and error

b. Opportunity cost
c. Opportunity parameters
d. Intrapreneurship culture

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

a. Promotion
b. Location
c. Raw materials
d. Labor skills

39. hich of the following cannot be used as basis of loan?

a. Worth of the business

b. Fixed asset
c. Perishable asset
d. All of the given options

40. Which of the following is the key factor for choosing the type of financing?

a. Availability of funds
b. Assets of the venture
c. Prevailing interest rates
d. All of the given options

41. Entrepreneur actually starts setting up of an enterprise by

a. Planning
b. Organizing
c. Staffing
d. Directing

42. Which of the following is least likely to influence the timing of new business births?

a. Government policies
b. Profitability
c. Interest rates
d. Consumer expenditure

43. Which of the following is usually not a barrier to market entry for a small firm?

a. economy of scale
b. good ideas
 c. switching costs
d. access to distribution

44. 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. offers a relatively inexpensive means of advertising and conducting market and competitor
research
c. can lead to small businesses having reduced contact with its customers
d. is rarely used in small businesses

45. Generally speaking the risk involved in launching as a franchise is greater than that as a start
up.

a. True
b. False

46. Venture capital firms are usually organized as

a. closed-end mutual funds

b. limited partnerships
c. corporations
d. nonprofit businesses

47. The entrepreneur who is committed to the entrepreneurial effort because it makes good
business sense is classed as a/an_____________________

a. inventor
b. opportunist
c. hacker
d. craftsman

48. To the __________, physical location does not matter because the Internet allows anyone to
link to any Web site no matter where in the world that site might be.

a. bricks-and-clicks retailer

b. e-tailer

c. bricks-and-mortar retailer
d. B-to-G business
49. Being interested in computers, Jim Johnson came up with an idea of personalizing the screen
saver programs with family pictures. After trying a couple of programs, Jim started marketing
this service to neighbors and area businesses. Jim’s activities can be described as a(n)

a. entrepreneurship.

b. intrapreneurship.

c. useless idea.

d. large business.

50. Today, inspired by the growth of companies such as Amazon.com, entrepreneurs are flocking
to the to start new businesses.

a. Small Business Administration

b. Internet

c. bookstore

d. mall

51. Which of these refers to the belief by individuals that their future is within their control and
that external forces will have little influence?

a. Awareness of passing time

b. Tolerance for ambiguity

c. Internal locus of control

d. External locus of control

52. means that people are motivated to excel and pick situations in which success is likely.

a. External locus of control

b. Tolerance for Ambiguity

c. Awareness of passing time

 d. Need to achieve

53. Marleesha likes to set her own goals, which have an intermediate level of difficulty. Which of
the entrepreneurial characteristics does she probably possess?

a. A high need for achievement

b. A high need for power

c. An external locus of control

d. An inability to deal with uncertainty

54. The most cited source of new business ideas is

a. brainstorming.

b. in-depth understanding of industry/profession.

c. a hobby.

d. copying someone else.

e. none of the above.

55. Before opening his own business, Tanay was writing a report that details the specifics of his
ideas and future business operations. This document is known as

a. a SWOT analysis.

b. a business portfolio.

c. a business plan.

d. a competitive analysis.

56. ______ refers to an unincorporated business owned by an individual for profit.

a. Partnership

b. Proprietorship

c. Corporation

d. Association
57. Sangeeta , Kabir, and Ravi started selling computer software on college campuses under the
name Student Software Company. Each person contributed Rs.15000/- toward start-up costs
and agreed on dividing costs and profits equally. The legal structure for the company can best
be described as a

a. proprietorship.

b. partnership.

c. trade alliance.

d. corporation.

58. A group of companies or individuals that invests money in new or expanding businesses for
ownership and potential profits is known as

a. an equity financing firm.

b. franchising.

c. a venture capital firm.

d. a corporation.

59. An advantage of which of these tactics is that there is a shorter start-up time and an existing
track record?

a. Participate in a business incubator

b. Start a new business

c. Buy a franchise
d. Buy an existing business

60. Which of these refer to an arrangement by which the owner of a product or service allows
others to purchase the right to distribute the product or service with help from the owner?

a. Franchising

b. Business incubation

c. Spinning-off

d. Globalization
61. Which of these offers the advantage that the entrepreneur has the ability to develop and design
the business in the entrepreneur's own way?

a. Participate in a business incubator

b. Start a new business
c. Buy a franchise
d. Buy an existing business

62. For Internet start-ups, one typical source of first funds is through

a. stock financing.

b. government funds.

c. angel financing.

d. community development financing.

63. The final step in the start-up process is often the

a. development of partnerships.

a. launching the company.

b. obtaining venture capital.

c. securing government funding.

d. IPO.
64. Felix is an entrepreneur. At this stage of his company , his main concerns are do we have
enough customers and money. What stage of growth is Felix’s company in?

a. Start-up

b. Survival

c. Takeoff

d. Resource maturity

e. Success

65. Entrepreneurs take the risk of starting a business for all of the following reasons except:
 a. they want independence.

b. they like the challenge and the risk.

c. they want to make money for themselves.

d. they want to work less.

66. Steve Jacobi is an entrepreneur to the max. Steve has started three businesses, two of which he
sold for a great deal of money. He is now involved in running his third business, with plans to
sell it shortly and start yet another one. When commenting on his success as an entrepreneur,
he says that once an idea comes to him, he just can’t wait to start working on it and bring it to
reality, and that is what he focuses on. Which of the traits of successful entrepreneurs does this
suggest is characteristic of Steve?

a. Action-oriented

b. Self nurturing

c. Self-directed

d. Tolerant of uncertainty

67. An entrepreneurial team is:

a. a group of people who work within a corporation to launch new products.

b. a group of experienced people who join together to develop and market a new
product.

c. a group from the Small Business Administration which consults with small
business owners.

d. a group of managers who get together to find creative solutions to problems.

68. Robert Vadera is a business owner who works from home as a freelance video producer. He
really enjoys his work, but isn’t looking to “set the world on fire” with his company. He just
wants to make a good living and spend time with his family when he can. Vadera would be
classified as a(n)

a. entrepreneur.

b. intrapreneur.
 c. micropreneur.

d. venture capitalist.

69. An incubator is:

a. A government agency that advises and assists small businesses.

b. A program through which private investment companies licensed by the S.B.A. lend
money to small businesses.

c. A center that offers new businesses low-cost offices with basic business services.

d. A specific geographic area to which governments try to attract private businesses by a

variety of means.

70. Indrayani Jungle wants to start a small business importing some products from her native
Kenya. Before she starts, some good advice to Indrayani would be:

a. talk to others who have been or are in the import business.

b. get a loan right away.

c. find a business to buy as soon as possible.

d. incorporate immediately.

71. A business plan for a new business does not need to include:

a. a marketing plan.

b. a discussion of the purpose of the business.

c. a description of the company background.

d. the name of the lending bank.

72. The primary concerns when first starting your business are:

a. marketing and accounting.

b. planning and human resources.

c. financing and planning.

d. financing and marketing.

73. What are the primary sources of funding for entrepreneurs?

a. personal savings and individual investors

b. finance companies and banks

c. the Small Business Administration and banks

d. former employers and the Economic Development Authority

74. Kylie is employed by Street Wheels, a large corporation that produces accessories for scooters,
bicycles, and other children's vehicles. She is a creative force within the company and has
helped launch several new successful products. Kylie is a/an
____________________________. a. Intrapreneur.
b. Partner
c. Entrepreneur
d. Owner

75. Babba, a licensed real estate broker, received notification that his application for a business
loan was denied. The bank refused his request because he failed to provide a blueprint
identifying the intended target market and competitive strategy. In order secure a bank loan
Babba evidently needs a:

A) bankruptcy lawyer.

B) business plan.

C) venture capitalist.

D) loan advocate.

76. As a ________ Ronnie searches for firms in need of additional funding to achieve their goals.
In return for his investment, Ronnie becomes a part owner in the business. Ronnie operates as
a(n):

A) investment analyst.

B) venture capitalist.

C) corporate raider. D) securities trader.

77. The resistance of employees in an organization against flexibility, growth, and diversification
can be overcome by developing:

Entrepreneurship

Intrapreneurship

Managerial domain

Administrative domain

78. Which one of the following is a barrier to new product creation and development?

Trial and error

Opportunity parameter

Opportunity cost

Intrapreneurship culture

79. Factors contribute to the creation of new venture EXCEPT:

Government

Finance

High interest rates

Role models

80. Which one of the following is the process of entrepreneurs developing new products that over
time make current products obsolete?

Creative destruction

New business model

Anatomization

None of the given options

81. An entrepreneur doing business within the national border is called:

International entrepreneurship

Intrapreneurship

Domestic entrepreneurship

Imports

82 Which of the following is alternatively called corporate venturing?

Entrepreneurship

Intrapreneurship
Act of stating a new venture

Offering new products by an existing company

83. In which of the following situation the company is considered to be on breakeven point?

No Profit no loss

Profits are higher then expenses

Expenses are higher then profits

None of the given options

84. Licensing is a significant marketing strategy to:

Use intellectual property of others

Pirate others’ patents

Grow the business in new markets

Control the costs

85. Which one of the following best represents the environment of an entrepreneurial oriented
organization?

Corporate culture

Entrepreneurial culture

Intrapreneurial culture

Traditional culture

86. Individuals who help the entrepreneur in business activities are called:

Role models
Moral support networks

Professional support networks

Business support networks

87. Which one of the following is a business arrangement in which someone else is allowed to use
something of the company?

Patent

Trade mark

Copy right

Licensing

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

That during this time firm will cover its development costs

That firm will earn a sufficient profit during this period

To limit the monopoly of the firm

That it will stimulate idea and development of a better product

89. Which of the followings give the owners a negative right, preventing anyone from making, using,
or selling the invention?

Patent

Copyright

Trade mark

Trade secret

90. Which one of the followings statements is NOT true about trademarks?

The entrepreneur cannot file after the mark already been in use

A trademark could be a slogan or a particular sound

Some trademarks have no relationship with the product

The filing date for the trademark becomes the first date use of the mark

91. Which one of the following is the main problem for the entrepreneur in the beginning stages of
creating a new venture?

Lack of experience

Limited resources

Lack of education

None of the given options

92. Which one of the factors should be considered while assessing the location for business?

Parking

Access from roadways to facility

Delivery rates
All of the given options

93. Which one of the following is a sound strategic option for an entrepreneur when synergy is
present?

Merger

Joint venture
Minority interest

Majority interest

94. Why should an entrepreneur do a feasibility study for starting a new venture?

To see if there are possible barriers to success

To identify possible sources of funds

To estimate the expected sales

To explore potential customers

95. Kent is going to start his own business. He is concerned that the merchandise he wants to carry
will go out of style soon after opening his business. Which type of risk must he prepare for?

Human

Incompetence

Natural

Economic
MULTIPLE CHOICE QUESTIONS ON ED
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
2:
According to the governing bodies of common laws, the life of trade secret is
A. 12 years
B. 17 years
C. 20 years
D. As long as it remains confidential.
Answer Report Discuss
Option: D
Match the following
List-I (Organisation) List-II (Year of
Formation)
(A) All India Small Scale Industries Board 1. 1955
(B) National Small Industries Corporation Ltd. 2. 1956
(C) State Trading Corporation of India Ltd. 3. 1954
(D) National Research and Development Corporation 4. 1953
5. 1960
(A) (B) (C) (D)
A.
1 2 3 4
(A) (B) (C) (D)
B.
1 2 4 3
(A) (B) (C) (D)
C.
3 1 2 4
(A) (B) (C) (D)
D.
3 4 2 1
Answer Report Discuss
Option: C
4:
Match the following
List-I (Source of Capital) List-II (Nature of Capital)
(A) Equity share capital 1. Owner's capital
(B) Bonds 2. Long term capital
(C) Sinking fund 3. Retained capital
(D) Bank loan 4. Borrowed capital
5. Creditors
(A) (B) (C) (D)
A.
1 2 3 4
(A) (B) (C) (D)
B.
1 4 3 2
C. (A) (B) (C) (D)
 3 1 2 4
(A) (B) (C) (D)
D.
3 4 2 1
Answer Report Discuss
Option: B
5:
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
Answer Report Discuss
Option: B
Match the following
List-I (Type of Assets) List-II (Classification/Nature of assets)
(A) Stock 1. Current asset
(B) Plant 2. Fixed asset
(C) Goodwill 3. Intangible asset
(D) Development Expenses 4. Fictitious asset
5. Asset
(A) (B) (C) (D)
A.
1 2 3 4
(A) (B) (C) (D)
B.
1 4 3 2
(A) (B) (C) (D)
C.
3 1 4 2
(A) (B) (C) (D)
D.
3 4 2 1
Answer Report Discuss

7:
Match the following
List-I (Motivation) List-II (Features)
(A) Extrinsic motivation 1. It is based on force and fear.
(B) Intrinsic motivation 2. These motivators are associated with financial
rewards.
(C) Sizing up 3. Concerned with 'feeling of having accomplished
something worthwhile'.
(D) Negative motivation 4. This involves ascertaining motivational needs.
(A) (B) (C) (D)
A.
1 2 3 4
(A) (B) (C) (D)
B.
4 3 2 1
(A) (B) (C) (D)
C.
2 3 4 1
 (A) (B) (C) (D)
D.
2 4 3 1
Answer Report Discuss

8:
The resistance of employees in an organization against flexibility, growth and diversification
can be overcome by developing
A. Entrepreneurship
B. Intrapreneurship
C. Managerial domain
D. Administrative domain
Answer Report Discuss

9:
Licensing is a significant marketing strategy to
A. Use intellectual property of others
B. Pirate other's patents
C. Grow the business in new markets
D. Control the costs
Answer Report Discuss
Option: B
Explanation :
Click on Discuss to view users comments.
10:
The specific job of Entrepreneurship in business enterprise is to make today's business
capable of making the future, to enable today's already existing business to remain existing
and to remain successful in the future. Who said?
A. Peter F. Drucker
B. Henri Fayol
C. Marshall and Robinson
D. Peter Kilby
Match the following
List-I (Types of Debentures) List-II (Elements)
(A) Mortgage debentures 1. Unsecured
(B) Nadked debentures 2. Repayment
(C) Convertible debentures 3. Secured
(D) Redeemable debentures 4. Option
5. Costly
(A) (B) (C) (D)
A.
1 2 3 4
(A) (B) (C) (D)
B.
1 4 3 2
(A) (B) (C) (D)
C.
3 1 4 2
 (A) (B) (C) (D)
D.
3 4 2 1
Answer Report Discuss

12:
Match the following
List-I (Thinkers) List-II (Ideas)
(A) R. C. Davis 1. Introduction to business enterprise
(B) Richard J. Hopeman 2. Industrial organisation and management
(C) Muther 3. Production control
(D) Mc Naughton 4. Practical plant layout
5. Management
(A) (B) (C) (D)
A.
1 2 3 4
(A) (B) (C) (D)
B.
1 3 2 4
(A) (B) (C) (D)
C.
3 1 4 2
(A) (B) (C) (D)
D.
2 3 4 1
Answer Report Discuss

13:
Match the following
List-I (Source of Finance) List-II (Elements)
(A) Customer's Advance 1. Order Booking
(B) Financial Companies 2. ICICI Bank
(C) Distributor's Advances 3. Security
(D) Trade Credit 4. Bill of Exchange
5. Depreciation Fund
(A) (B) (C) (D)
A.
1 2 4 5
(A) (B) (C) (D)
B.
3 4 2 1
(A) (B) (C) (D)
C.
1 2 3 4
(A) (B) (C) (D)
D.
5 1 4 3
Answer Report Discuss

14:
What are the response of the business in respect of social responsibility?
A. Increase goodwill
B. More profit
C. Expansion and development of business
D. All of the above
Answer Report Discuss

15:
LLC is more flexible than
A. S Corporation
B. Limited Partnership
C. Sole Proprietor
D. All of the above
16:
The relation of ordinary shares to preference share capital and loan capital is described as the
A. Capital
B. Capital structure
C. Capital gearing
D. Cost of capital
Answer Report Discuss

17:
____________is the process of tracking the evolution, development and sequence of critical
events that affect the survival and profitability of the future new business.
A. Marketing
B. Monitoring
C. Scanning
D. New venture's environment
Answer Report Discuss

18:
Match the following
List-I (Concepts) List-II (Features)
(A) Financial plan 1. Financial statement
(B) Marketing 2. Quality assurance
(C) Development and production 3. Marketing strategy and resources
(D) Objectives 4. Long term
5. Equity
(A) (B) (C) (D)
A.
1 4 2 3
(A) (B) (C) (D)
B.
1 3 2 4
(A) (B) (C) (D)
C.
3 1 4 2
(A) (B) (C) (D)
D.
1 2 3 4
Answer Report Discuss
19:
87. Match the following
List-I (External Causes for Sickness) List-II (Features)
(A) Personal constraints 1. Fear of nationalisation
(B) Marketing constraints 2. Import-export restrictions
(C) Production constraints 3. Non-availability of skilled labour
(D) Finance constraints 4. Restrain of purchase by bulk
purchasers
(A) (B) (C) (D)
A.
3 4 2 1
(A) (B) (C) (D)
B.
3 1 2 4
(A) (B) (C) (D)
C.
1 2 3 4
(A) (B) (C) (D)
D.
4 3 2 1
Answer Report Discuss

20:
The entrepreneur's ___________ depends on his perception of the opportunity
A. Commitment to opportunity
B. Commitment of resources
C. Control of resources
D. Strategic orientation.
21:
Which statement is true?
The product-based concept of quality focuses on an attribute of the product that is held
A.
in high regard
Manufacturing-based quality or process quality, concerns the attention to detail in the
B.
construction and delivery of the product or service
C. The transcendent approach to quality is philosophical and asks questions about the
nature of things
D.
All of the above
Answer Report Discuss

22:
Which statement is true?
1. Liquidation value is the value of the assets if they had to be sold under pressure.
2. Earnings valuations entail multiplying the earnings of the venture by a price earnings ratio
or dividing the earnings by some capitalisation factor.
3. The book-value of an asset is the historical cost of the asset less accumulated depreciation.
4. Control issues are negotiable and not solely dependent on the proportion of stock the
investors have purchased. All minority stockholders have rights.
5. Social trends refer to the modes and manners in which people life their lives. Lifestyles
reflect people's tastes and preferences in an economic sense.
A. 1, 2 and 3
B. Only 4
C. Only 3
D. All of these
Answer Report Discuss

23:
Match the following
List-I (Type of Motives) List-II (Features)
(A) Competence motives 1. Closely tied to the learning concepts.
(B) secondary motives 2. Concerned with motives security regarding life,
accident, love, job, etc.
(C) Security motives 3. Concerned with achieving status or rank in a
group, organisation or society.
(D) Status motives 4. Show direct selectivity and persistence in
interacting with environment.
(A) (B) (C) (D)
A.
1 2 3 4
(A) (B) (C) (D)
B.
4 1 2 3
(A) (B) (C) (D)
C.
2 3 4 1
(A) (B) (C) (D)
D.
3 1 2 4
Answer Report Discuss

24:
Match the following
List-I (Type of Law) List-II (Features)
(A) Business Law 1. Insurance Act
(B) Economic Law 2. Social Control
(C) Labour Law 3. Air Pollution Control Act
(D) Pollution Control Law 4. FERA
5. Provident Fund Act
(A) (B) (C) (D)
A.
1 2 3 4
(A) (B) (C) (D)
B.
3 4 2 1
(A) (B) (C) (D)
C.
3 1 4 2
(A) (B) (C) (D)
D.
1 4 5 3
Answer Report Discuss

25:
All of the following are the broad categories of External forces EXCEPT
A. Economic forces
B. Socioeconomic forces
C. Technological forces
D. Competitive forces
26:
Entrepreneurial endeavors consist of all of the following key elements. Except.
A. New business venturing
B. Increasing productivity
C. Innovativeness
D. Proactiveness
Answer Report Discuss

27:
Which is the advantage of fixed position layout?
A. More flexibility
B. Less capital investment
C. Possible of different projects
D. All of the above
Answer Report Discuss

28:
Which is a physical quality of an Entrepreneur?
A. Good health
B. Effective personalities
C. Agreeable looking
D. All of the above
Answer Report Discuss

29:
Overdraft is a short-term finance measure to
A. pay taxes
B. repay loan
C. purchase plant and equipment.
D. meet working capital requirement.
Answer Report Discuss

30:
Which of the following is alternatively called corporate venturing?
A. Entrepreneurship
B. Intrapreneurship
C. Act of stating a news venture
D. Offering new products by an existing company
 1. rship and Innovation
2. Entrepreneurship and Innovation Questions
31:
Match the following
List-I (Authors)
(A) F. G. Moore
(B) M. E. Hurley
(C) R. C. Davis
(D) George R. Terry
List-II (Statement)
1. Any arrangement of a machine and facilities is a layout just as any house plan is a plan
2. Plant layout involves the development of physical relationships of among building,
equipment and production operations which enables the manufacturing process to be carried
efficiently
3. Plant lay-out may be defined as the work of planning and organisation the physical
conditions and relationship between plant, equipment and operations that will make possible
a satisfactory degree of manufacturing economy and effectiveness
4. Plant lay-out is the arrangement of machines work areas and service areas within a factory
(A) (B) (C) (D)
A.
1 4 3 2
(A) (B) (C) (D)
B.
3 2 4 1
(A) (B) (C) (D)
C.
1 2 3 4
(A) (B) (C) (D)
D.
3 1 2 4
Answer Report Discuss

32:
Match the following
List-I (Types of Qualities) List-II (Feature of Qualities)
(A) Physical 1. Alertness
(B) Mental 2. Character
(C) Social 3. Helpful behaviour
(D) Ethical 4. Agreeable looking
5. Leadership capability
(A) (B) (C) (D)
A.
1 3 2 4
(A) (B) (C) (D)
B.
3 1 4 2
(A) (B) (C) (D)
C.
1 4 3 4
(A) (B) (C) (D)
D.
4 1 3 2
Answer Report Discuss

33:
Which is not the object of 'Entrepreneurial Development Programmes'?
A. To create awareness about government schemes and programmes
B. To create a successful Entrepreneur
C. To remove doubts of Entrepreneurs and to give solution to their problem
D. None of the above
Answer Report Discuss

34:
Which is the determinant of capital structure decision?
A. Size of business
B. Future plan
C. Conditions of capital market
D. All of the above
Answer Report Discuss

35:
A K-saving innovation
causes a greater outward shift in the nation's production possibilities curve along the
A.
axis measuring the K-intensive commodity than along the axis measuring the L-
intensive commodity.
B.
increases the productivity of capital proportionately more than that of labour.
C. is equivalents to a proportionately greater increase in the supply of capital than in the
supply of labour.
D.
All of the above.
36:
An entrepreneur into the hosiery business found out the reason his hosiery was not selling
was due to its color. What could be the best source of this information?
A. Supplier
B. Retailer
C. Competition
D. Government bureau
Answer Report Discuss

37:
In which of the following year implementation of SBA Financial plan took place?
A. 1971
B. 1972
C. 1973
D. 1974
Answer Report Discuss
38:
Match the following
List-I (Type of Entrepreneurship) List-II (Reporting Countries)
(A) Joint 1. Pakistan Entrepreneurship
(B) Co-operative 2. China Entrepreneurship
(C) State 3. India Entrepreneurship
(D) Private 4. United State of Entrepreneurship America
(A) (B) (C) (D)
A.
1 2 3 4
(A) (B) (C) (D)
B.
1 4 3 2
(A) (B) (C) (D)
C.
3 1 2 4
(A) (B) (C) (D)
D.
3 4 2 1
Answer Report Discuss

39:
In which of the following situation the company is considered to be on breakeven point?
A. No Profit no loss
B. Profits are higher than expenses
C. Expenses are higher then profits
D. None of the given options
Answer Report Discuss

40:
The social responsibility towards business includes
A. Responsibilities of owners towards Entrepreneur
B. Responsibilities of consumers towards Entrepreneur
C. Responsibilities of employees towards Entrepreneur
D. All of the above
41:
Match the following
List-I (Methods of creativity) List-II (Features)
(A) Brainstorming 1. New product or services
(B) General group processing 2. Creativity of ideas
(C) Synectics method 3. Backstop creativity process
(D) Creative decision-making 4. Discussion about innovation
5. Ranking of ideas
(A) (B) (C) (D)
A.
1 2 3 4
(A) (B) (C) (D)
B.
5 3 4 2
(A) (B) (C) (D)
C.
3 1 2 4
 (A) (B) (C) (D)
D.
2 5 3 4
Answer Report Discuss

42:
Internal environment includes
A. Competitors
B. Customers
C. Raw Material Suppliers
D. All of the above
Answer Report Discuss

43:
Match the following
List-I (Authors) List-II (Books)
(A) Everett Hagen 1. Theory of Social Change
(B) David C. McClelland 2. The Achieving Society
(C) Joseph A. Scheumpeter 3. A Theory of Economic Development
(D) Koontzand O' Donnel 4. Principles of Management
5. Costing
(A) (B) (C) (D)
A.
1 3 2 4
(A) (B) (C) (D)
B.
3 4 2 1
(A) (B) (C) (D)
C.
3 1 4 2
(A) (B) (C) (D)
D.
1 2 3 4
Answer Report Discuss

44:
Match the following
List-I (Authors) List-II (Books)
(A) J. A. Steiner 1. The Creative Organisation
(B) Parkinson and Rustamji 2. Realities in Man Operent
(C) John Honarday 3. Research about Living Entrepreneurs
(D) Akhorie and Mishra 4. Training Youth for Self Employment
5. Planning
(A) (B) (C) (D)
A.
1 2 3 4
(A) (B) (C) (D)
B.
1 4 3 2
(A) (B) (C) (D)
C.
3 1 4 2
(A) (B) (C) (D)
D.
3 4 2 1
 Answer Report Discuss

45:
Match the following
List-I (Organisation)
(A) Khadi and Village Industries Commission
(B) Risk Capital and Technology Finance Corporation Ltd.
(C) Coffee Boards
(D) Jute Corporation of India
List-II (Year of Formation)
1. 1971
2. 1942
3. 1988
4. 1975
5. 1956
(A) (B) (C) (D)
A.
4 1 3 2
(A) (B) (C) (D)
B.
1 2 3 4
(A) (B) (C) (D)
C.
5 3 2 1
(A) (B) (C) (D)
D.
1 2 3 5
46:
Personal characteristics to be a successful entrepreneur includes
A. Understanding environment
B. Creating management options
C. Encourage open discussion
D. All of the above.
Answer Report Discuss

47:
Which one of the following is the process of entrepreneurs developing new products that
overtime make current products obsolete?
A. Creative destruction
B. New business model
C. Anatomization
D. None of the above
Answer Report Discuss

48:
Entrepreneurship consists
A. Knowledge-based behaviour
B. Universal activity
C. Management is the vehicle of entrepreneurship
D. All of the above
Answer Report Discuss

49:
Which one of the following should consider in economy while conducting environmental
analysis?
A. GNP
B. Disposable income
C. Unemployment
D. Channel of distribution
Answer Report Discuss

50:
Match the following
List-I (Type of Industry) List-II (Nature of Industry)
(a) Synthetic process 1. Cement
(b) Analytical process 2. T.V.
(c) Processing industry 3. Sugar industry
(d) Assembling process 4. Petrol from crude oil
5. Education
(A) (B) (C) (D)
A.
1 2 3 4
(A) (B) (C) (D)
B.
1 4 3 2
(A) (B) (C) (D)
C.
3 1 4 2
(A) (B) (C) (D)
D.
3 4 2 1
51:
Match the following
List-I (List of Functions of Entrepreneur)
(A) Exchange
(B) Administrative
(C) Managerial control
(D) Technological
List-II (Nature of Functions of Entrepreneur)
1. Industrial Technological Work
2. Production Management
3. Marketing Management
4. Human Resource Management
5. Cost
(A) (B) (C) (D)
A.
1 2 3 4
(A) (B) (C) (D)
B.
3 4 2 1
C. (A) (B) (C) (D)
 3 1 4 2
(A) (B) (C) (D)
D.
1 3 2 4
Answer Report Discuss
Option: B
Explanation :
Click on Discuss to view users comments.
52:
99. Match the following
List-I (Theories of Entrepreneurship) List-II (Elements)
(A) Process theory 1. Employment
(B) Entrepreneurial disposition theory 2. Demand and supply direction
(C) Economic theory 3. Development
(D) Cultural theory 4. Dynamic
5. Social cost
(A) (B) (C) (D)
A.
1 2 3 4
(A) (B) (C) (D)
B.
3 4 2 1
(A) (B) (C) (D)
C.
1 3 2 4
(A) (B) (C) (D)
D.
1 4 3 2
Answer Report Discuss

53:
Match the following
List-I (Types of Debentures) List-II (Features)
(A) Registered debentures 1. Nomination
(B) Bearer debentures 2. Transfer by delivery
(C) Partly convertible 3. Semi-option
(D) Non-redeemable 4. Payment at windup of the firm
5. Payment at maturity
(A) (B) (C) (D)
A.
3 1 4 2
(A) (B) (C) (D)
B.
1 2 3 4
(A) (B) (C) (D)
C.
1 3 2 4
(A) (B) (C) (D)
D.
1 4 3 2
Answer Report Discuss

54:
Which is the type of patent?
A. Plant patents covering various forms of life and genetically engineered organisms
 Design patents covering new and original ornamental designs for manufactured
B.
products
C. Utility patents for new articles, processes, machines and techniques
D.
All of the above
Answer Report Discuss

55:
A surety is not liable
A. If the terms of contract are changed without his consent.
B. If the terms of contract are changed.
C. When the principal breaches a contract with the creditor.
D. None of the above.
56:
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
Answer Report Discuss

57:
Which two work environments should be good for spawning the new enterprises?
A. Finance and marketing
B. Finance and R & D
C. Marketing and R & D
D. Marketing and IT
Answer Report Discuss

58:
Which the following are they key factors for choosing the type of financing?
A. Availability of funds
B. Assets of the venture
C. Prevailing interest rates
D. All of the above options
Answer Report Discuss

59:
Which one of the following is important for international business to avoid trade barriers?
A. Protectionist attitude
B. Entrepreneurial partnering
C. Free trade areas
D. None of the given options
Answer Report Discuss

60:
A person who managed large project was termed as the entrepreneur in the _______
A. Earliest period
B. Middle ages
C. 17th century
D. 19th and 20th century
61:
Which one of the following is NOT TRUE about male entrepreneurs?
A. Males often have investors, bank loans or personal loans in addition to personal funds.
B. Males often have more experience in manufacturing finance, or technical areas.
C. Men are often more confident and less flexible and tolerant.
D. Men usually list outside advisors as the least important supporters.
Answer Report Discuss

62:
In some countries, point of purchase displays are not allowed in retail stores. Such differences
are studied by international entrepreneurs under __________.
A. Economic Environment
B. Political Environment
C. Cultural Environment
D. Technological Environment
Answer Report Discuss

63:
Which of the following is another exit to the equity partnership arrangement?
A. Impartial partnership
B. General partnership
C. Royalty partnership
D. Minor partnership
Answer Report Discuss

64:
Match the following
List-I (Stage of Project) List-II (Forms of Venture Capital)
(A) Development of an idea 1. Seed capital
(B) Implementation stage 2. Start up finance
(C) Fledging stage 3. Additional finance
(D) Establishment stage 4. Establishment finance
5. Cost
A. (A) (B) (C) (D)
 2 1 4 3
(A) (B) (C) (D)
B.
5 1 4 3
(A) (B) (C) (D)
C.
1 2 3 4
(A) (B) (C) (D)
D.
1 2 4 3
Answer Report Discuss

65:
Match the following
List-I (Methods of decision-making) List-II (Technique)
(A) General Method 1. Traditions and Assumptions
(B) Mathematical Method 2. PERT
(C) Principles of Management 3. Span of Control
(D) Statistical Method 4. Probability Theory
5. Demand Theory
(A) (B) (C) (D)
A.
1 3 2 4
(A) (B) (C) (D)
B.
1 2 3 4
(A) (B) (C) (D)
C.
3 1 4 2
(A) (B) (C) (D)
D.
1 4 2 3
66:
Match the following
List-I (Thinkers) List-II (Books)
(A) Baumol, W. J. Litan, R. E. Schramm 1. Entrepreneurship in Business
Enterprise
(B) Peter F. Drucker 2. Entrepreneurial Management
(C) Calvin 3. Good Capitalism
(D) Pinchot G. 4. Intrapreneuring
5. Business
(A) (B) (C) (D)
A.
1 2 3 4
(A) (B) (C) (D)
B.
1 3 2 4
(A) (B) (C) (D)
C.
3 1 2 4
(A) (B) (C) (D)
D.
3 4 2 1
Answer Report Discuss

67:
"An Entrepreneur always searches for change, responds to it and exploits it as an
opportunity." Who said?
A. M. S. Robert
B. Peter F. Drucker
C. C. J. Wex
D. J. R. Tulsian
Answer Report Discuss

68:
Arrange the following five steps of small business development in the order in which they
shall occur
1. Survival 2. Success
3. Existence 4. Resource Maturity
5. Takeoff
A. 3, 1, 2, 5 and 4
B. 3, 2, 1, 4 and 5
C. 2, 3, 4, 1, and 5
D. 3, 2, 1, 5 and 4
Answer Report Discuss

69:
Entrepreneurs are concerned about basic issues of
A. Sales, costs and benefits
B. Customers, sales and costs
C. Risk, costs and benefits
D. None of the above
Answer Report Discuss

70:
The creative process for problem solving that involves making the strange familiar in first
step and then making the familiar strange through personal, direct or symbolic analogy is
called.
A. Synectics
B. Gordon method
C. Checklist method
D. Scientific method
71:
Match the following
List-I (Effect of capital gearing during trade cycles)
(A) Inflation
(B) Deflation
(C) Cost of capital
(D) No financial management
List-II (Features)
1. Cost increase
2. Low of income of business
3. Rate of interest
4. High capital gearing
5. Production
(A) (B) (C) (D)
A.
4 2 3 1
(A) (B) (C) (D)
B.
5 1 3 4
(A) (B) (C) (D)
C.
1 2 3 4
(A) (B) (C) (D)
D.
5 2 1 4
Answer Report Discuss

72:
Which of the following is representing a single expense account
A. Depreciation
B. Cash account
C. Wages & Salaries
D. Utilities account
Answer Report Discuss

73:
Which of the following is a measure taken for revival of sick SSI
A. Margin money scheme
B. Reservation of items
C. Export promotion
D. Tax Holiday
Answer Report Discuss

74:
Which one of the following best represents the environment of an entrepreneurial oriented
organization?
A. Corporate culture
B. Entrepreneurial culture
C. Intrapreneurial culture
D. Traditional culture
Answer Report Discuss

75:
Match the following
List-I (External factors of finance) List-II (Features)
(A) Nature of competition 1. Monopoly
(B) Seasonal changes 2. Tax planning
(C) Policy of financial institution 3. Equity capital or debt ratio
(D) Tax provision 4. Inflation
5. SEBI
(A) (B) (C) (D)
A.
1 2 3 4
(A) (B) (C) (D)
B.
3 2 4 1
(A) (B) (C) (D)
C.
3 1 4 2
(A) (B) (C) (D)
D.
1 4 3 2
Answer
76:
Which is the body of "National Research and Development Corporation"?
A. Council of Scientific and Industrial Research
B. Indian Council of Agricultural Research
C. National Medical Research Council
D. All of the above
Answer Report Discuss

77:
A horizontal merger
A. Is the combination of firms in successive stages of production
B. Is the combination of firms that produce closely related projects in same area.
C. Is the combination of firms that produce same products and sell in different areas.
D. None of the above
Answer Report Discuss

78:
Which is the form of 'Entrepreneurship Development Programme'?
A. Psychological form
B. Social form
C. Economic form
D. All of the above
Answer Report Discuss

79:
Match the following
List-I (Type of Enterpreneurship) List-II (Feature)
(A) Private Enterpreneurship 1. Centre-State role
(B) State Enterpreneurship 2. Socialists
(C) Joint Enterpreneurship 3. Mutual cooperation
(D) Co-operate Enterpreneurship 4. Capitalists
 (A) (B) (C) (D)
A.
1 3 4 2
(A) (B) (C) (D)
B.
1 2 3 4
(A) (B) (C) (D)
C.
4 2 1 3
(A) (B) (C) (D)
D.
3 1 2 4
Answer Report Discuss

80:
Match the following
List-I (Factors of capital structure) List-II (Elements)
(A) Size of business 1. Big and small organisation
(B) Expenses of capital issue 2. Brokerage
(C) Condition of capital Market 3. Capital ratio
(D) Tax provision 4. Allowed tax
5. Legal provision
(A) (B) (C) (D)
A.
1 2 3 4
B. 5 1 4 3
C. 3 1 4 2
D. 1 4 5 3
ACRONYMS :

BAM : Brick and Mortar

BIFR : Board for Industrial and Financial Reconstruction
CGMSF : Credit Guarantee Fund Scheme for Micro and Small Enterprises
CISCR : Committee on Industrial Sickness and Corporate Restructuring
CLCSS : Credit Linked Capital Subsidy Scheme for Technology Up gradation
CRAFICARD : Credit for Agriculture and Rural Development
CSIO : Central Small Industry Organisation
E/F+[DP] : Entrepreneurship/Faculty Development Program
EAC : Entrepreneurship Awareness Camp
EHTP : Electronic H/W Technology Park
FDI : Foreign Direct Investment
FICCI : Federation of Indian Chambers for Commerce and Industry
FIPB : Foreign Investment Promotion Board
G/N/F/V+[WC] : Working Capital
HR+[D/M] : Human Resource Development/Management
HTDTC : Hand Tool Design Development and Training Center
IDE : Innovation Driven Enterprise
IEM : Industrial Entrepreneurs Memorandum
IFCI : Industrial Finance Corporation of India
IIBI : Industrial Investment Bank of India
IPR : Intellectual Property Right/Industrial Policy Resolution
IRBI : Industrial Reconstruction Bank of India
JNNSM : Jawaharlal Nehru National Solar Mission
MVP : Minimal Viable Product
NABARD : National Bank for Agriculture and Rural Development
NBIA : National Business Incubation Assn.
NIESBUD : National Institute for Entrepreneurial and Small Business Development
NSIC : National Small Industries Corporation
NSTEDB : National Science and Technology Entrepreneurship Development Board
PIA : Product Inventory Analysis
PPDC : Process-cum Product Development Centers
RTC : Regional Testing Center
SAMPADA : Scheme for Agro-Marine Produce Processing and Development of Agro-Processing Clusters
SEPTI : Small Entrepreneur Promotion and Training Institutes
SEU : Small Enterprise Unit
SFC : State Financial Corporation
SIA : Secretariat for Industrial Assistance
SIDBI : Small Industries Development Bank of Ind
SIDC : State Industrial Development Corporation
SIDF : Small Industries Development Fund
SIDO : Small Industry Development Organisation
SISI : Small Industry Service Institute
SM+[B/E] : Small Medium Business/Enterprise
SSI : Small Scale Industries
STP : S/W Technology Park
T/J+[MF] : Textile/Jute Modernization Fund
TBI : Technology Business Incubation
TEDP : Technology Based Entrepreneurship Development Program
VBI : Virtual Business Incubator
VCF : Venture Capital Fund
WCM : Working Capital Management

YEARS

1. Environment (Protection) Act, 1986

2. IPR 1948, 1956 & 1991 are more important, whereas IPR 1977,1980 & 1990 are just the extension of IPR 1956.
3. MRTP : Monopolistic & Restrictive Trade Practice Act Intro : Aug 1969, Passed: Dec 1969 replaced by Competition Act 2002
4. FERA : Foreign Exchange Regulation Act 1973
5. Competition Act 2002
6. National Renewal Fund 1992, discontinued in 2000
7. Factory Act 1948
8. Mines Act, 1952
9. Merchant Shipping Act, 1923
10. Plantation Labour Act, 1998
11. Minimum wages Act, 1948
12. Payment of wages Act, 1936
13. Workmen‘s compensation Act, 1923
14. Employees‘ State Insurance (ESI) Act, 1948
15. Employees‘ Provident Fund (EPF) Act, 1952
16. Family Pension Fund Act, 1952
17. Trade union Act, 1926
18. Industrial Disputes Act, 1947
19. Water (Prevention and control of pollution) Act, 1974
20. Air (Prevention and control of Pollution) Act, 1981
21. SIDO ,1954
22. NSTEDB, 1982
23. DIC, 1978
24. Companies Act, 1956
25. NABARD approved 1981, founded 1982.
26. IFCI, 1948
27. SIDBI, 1990
28. Industrial Sickness Guidelines, 1981
29. BIFR, 1987
30. SIC Act (SICA), 1985
31. IRBI, 1985, taken over by IIBI in 1997
32. SIDF, 1986
33. CISCR, 1993