Entrepreneurship Development
Multiple Choice Questions
1. An individual who starts, creates and manages a new business can be
called
.
A. A leader
B. A manager
C. A professional
D. An entrepreneur
ANSWER: D
2. Trademarks relate
to
.
A. Practice and knowledge acquired through
experience
B. The protection of proprietary information of commercial
value
C. The right to reproduce ones own original
work
D. Brand identity
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 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
5. 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
6. 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
7. 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
8.
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
9. 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
10. 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
11. 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
12. Entrepreneurs are motivated by
.
A. money.
B. personal values.
C. pull influences.
D. All the above.
ANSWER: D
13. 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
14. 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
15. 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
16. Goods or services reach the market
place through
.
A. marketing channels.
B. multilevel pyramids.
C. monopolies.
D. multiplication.
ANSWER: A
17. 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
18. State Industrial corporations engage in the
development of
.
A. industrial estates.
B. institutional estates.
C. individual investors.
D. agricultural entrepreneurs.
ANSWER: A
19. 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
20. IFCI has been converted into a
.
A. joint stock company.
B. co-operative society.
C. partnership firm.
D. sole proprietorship.
ANSWER: A
21. SIDBI was set up as a subsidiary of
.
A. IDBI.
B. IFCI.
C. ICICI.
D. SFC.
ANSWER: A
22. 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
23. 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
24. 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
25. EDPs course contents
contains
.
A. General introduction to entrepreneurs.
B. Motivation training.
C. Managerial skills.
D. All the above.
ANSWER: D
26. Entrepreneurial Guidance Bureau(EGB) was set
up by
.
A. SISI.
B. SIPCOT.
C. IIC.
D. SIDCO.
ANSWER: C
27. 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
28. 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
29.
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
30.
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
31. 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
32. 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
33.
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
34. 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
35. EST stands for
.
A. Earliest Start Time.
B. Event Start Time.
C. Effective Start Time.
D. Essential Start Time.
ANSWER: A
36. 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
37.
is an activity-oriented approach.
A. CPM
B. PERT
C. GERT
D. WASP
ANSWER: A
38.
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
39.
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
40. 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
41.
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
42. .
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
43. CPM stands
for
.
A. Continuous Path Method.
B. Clear Path Method.
C. Critical Path Method.
D. Critical Probabilistic Method.
ANSWER: C
44. 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
45. 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
46. 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
47. 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
48. 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
49. LOB stands
for
.
A. Line of Business.
B. Line of Balance.
C. Loss of Business.
D. Loss of Balance
ANSWER: B
50. Underestimation of project cost
leads to
.
A. Time under run.
B. Cost under run
C. Time over run.
D. Cost over run
ANSWER: D
51. 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
52. 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
53. EXIM bank is
a
.
A. State-level institution.
B. Regional -level institution.
C. All India institution.
D. International institution.
ANSWER: C
54.
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
55.
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
56.
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
57.
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
58.
A public corporation
means
.
A. public company.
B. government company.
C. statutory corporation.
D. department of union government
ANSWER: C
59.
The term Capitalization is used in
relation to
.
A. sole-proprietorship.
B. Partnership.
C. joint stock companies.
D. co-operative societies
ANSWER: C
60.
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
61.
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
62.
Investment in which of the following is most
risky?
A. Equity shares.
B. Preference shares.
C. Debentures.
D. Land.
ANSWER: C
63.
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
64.
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
65.
NABARD is a Bank for
development
A. Urban
B. Agricultural and Rural
C. Scientific
D. Agriculture and research
ANSWER: B
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