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
Ans: An Entrepreneur
2. In
stage of responsibility allocation process the entrepreneur follows:
|
High
centralized decision making process |
|
|
Highly decentralized decision making
process |
|
|
Somewhat centralized decision making
process |
|
|
No particular standards Ans: High Centralized decision making
process |
|
|
|
|
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.
Ans: All the above
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.
Ans: Competitor Activity
5. Having
more than 50% ownership position that provides the entrepreneur with managerial
control is called
|
Joint venture |
|
|
Majority
interest |
|
|
Horizontal merger |
|
|
Diversified activity merger Ans: Majority Interest |
|
|
|
|
|
|
|
6. Which industrial sector
promotes small-scale businesses and Entrepreneurship, and has lower barriers to
market entry?
A.
Service.
B. Manufacturing.
C. Distribution.
D.
Agriculture.
Ans: Service
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.
Ans: All the above
8. 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.
Ans: A Franchise
9. 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?
|
Peter F. Drucker |
|
|
Henri Fayol |
|
|
Marshall and Robinson |
|
|
Peter Kilby Ans: Peter F. Drucker |
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.
Ans: All
the above
11. 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.
Ans: All the above
12. 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.
Ans: All
the above
13. 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.
Ans: New data
specifically collected for a project
14. 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.
Ans: The successful exploitation of new ideas.
15. 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.
Ans: Entrepreneurship takes place in
a wide variety of contexts.
16. Entrepreneurs are motivated by .
A.
Money.
B. Personal
values.
C. Pull influences.
D.
All the above.
Ans: All the above
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.
Ans: Weather conditions
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.
Ans: It is a good idea for
small businesses to compete solely on price
19.
The purpose of all good small business strategy is
A. To increase turnover.
B. To increase profitability.
C. To achieve competitive advantage.
D. To achieve stated objectives.
Ans: To achieve stated objectives
20.
The entrepreneur's ___________ depends
on his perception of the opportunity
|
Commitment to
opportunity |
|
|
Commitment of resources |
|
|
Control of resources |
|
|
Strategic orientation. Ans: Strategic Orientation |
|
|
|
|
21. 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.
Ans: There is a high failure rate
22. 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.
Ans: An administrator
23. Goods or services reach the market place through
.
A. Marketing
channels.
B. Multilevel
pyramids.
C. Monopolies.
D. Multiplication.
Ans: Marketing channel
24. Entrepreneurial
endeavors consist of all of the following key elements. Except.
|
New business venturing |
|
|
Increasing
productivity |
|
|
Innovativeness |
|
|
Proactiveness Ans: Increasing productivity |
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.
Ans: Financial Institutions
26. State Industrial corporations engage in the development of .
A. Industrial
estates.
B. Institutional estates.
C. Individual investors.
D.
Agricultural entrepreneurs.
Ans: Industrial estates
27. is the first development bank of the country.
A. ICICI.
B. IDBI.
C. SFC.
D.
IFCI.
Ans: IFCI
28. IFCI stands
for .
A. Industrial Finance Corporation of
B. Institutional Finance Corporation of
C. Industrial funding corporation of
D.
Indian Finance Corporation and
institution.
Ans: Industrial Finance
Corporation of India.
29. IFCI has been converted into a
.
A.
Joint
stock company.
B.
Co-operative society.
C.
Partnership firm.
D.
Sole proprietorship.
Ans: Joint stock company
30. SIDBI was set up as a subsidiary of .
A.
IDBI.
B.
IFCI.
C.
ICICI.
D.
SFC.
Ans: IDBI
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.
Ans: All of the above
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.
Ans: 1 crores
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.
Ans: All of the above
34. Which
of the following is alternatively called corporate venturing?
|
Entrepreneurship |
|
|
Intrapreneurship |
|
|
Act of stating a news venture |
|
|
Offering new products by an existing
company |
|
|
An |
S: Intrapreneurship |
35. The business development department of
SIPCOT guides entrepreneurs in .
A.
Applying
for licenses.
B.
Approval
on collaboration.
C.
Allocation
of scarce raw materials.
D.
All
the above.
Ans: All the above
36.
TIIC is sponsored by the .
A.
Government
of Karnataka.
B.
Government
of Andhra Pradesh.
C.
Government
of Kerala.
D.
Government of Tamil Nadu.
Ans:
Government of Tamil Nadu
37.
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.
Ans: Concessional terms
38.
Which is not the object of
'Entrepreneurial Development Programmes'?
|
To create awareness about government schemes and
programmes |
|
|
To create a successful Entrepreneur |
|
|
To remove doubts of Entrepreneurs and to give
solution to their problem |
|
|
None of the
above Ans:
None of the Above |
39. 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.
Ans: Declining
40 EDPs course contents contains .
A. General introduction to entrepreneurs.
B. Motivation
training.
C. Managerial
skills.
D. All the above.
Ans: All the above
41. Entrepreneurial Guidance Bureau(EGB)
was set up by .
A. SISI.
B. SIPCOT.
C. IIC.
D. SIDCO.
Ans: SIPCOT
42 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.
Ans: Capital Intensive
43
In which of the following situation the company is
considered to be on breakeven point?
|
No Profit no
loss |
|
|
Profits are higher than expenses |
|
|
Expenses are higher then profits |
|
|
None of the given options Ans: No Profit no Loss |
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.
Ans: Venture Capital
45 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.
Ans: Bounty
46. A person who
managed large project was termed as the entrepreneur in the _______
|
Earliest period |
|
|
Middle ages |
|
|
17th century |
|
|
19th and 20th century |
|
|
Ans: |
Middle ages |
47. He granting of cash subsidy on the capital
investment is called .
A. Concessional finance.
B. Quantum of
Subsidy.
C. Interest
Subsidy.
D. Central Investment Subsidy.
Ans: Central Investment
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
Ans: Investment Allowance
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.
Ans: Techno-economic Analysis
50.
In some countries, point of purchase
displays are not allowed in retail stores. Such differences are studied by
international entrepreneurs under __________.
|
Economic Environment |
|
|
Political Environment |
|
|
Cultural Environment |
|
|
Technological
Environment |
|
|
|
Ans:
Cultural Environment |
51. 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
Ans: Organizational Decisions
52. 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.
Ans: Strategic Decisions
53. 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.
Ans: Brain storming
54. . 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.
Ans: Project Formulation
55.
"An Entrepreneur always searches
for change, responds to it and exploits it as an opportunity." Who said?
|
M. S. Robert |
|
|
Peter F.
Drucker |
|
|
C. J. Wex |
|
|
J. R. Tulsian Ans: Peter F. Drucker |
56. 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.
Ans: Managerial competence
57. 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
Ans: Technical
Feasibility
58. 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.
Ans: Rehabilitation Allowance
59.
Entrepreneurs are concerned about
basic issues of
|
Sales, costs
and benefits |
|
|
Customers, sales and costs |
|
|
Risk, costs and benefits |
|
|
None of the above |
|
|
Ans |
: Sales, costs and benefits |
60. 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.
Ans: Directorate General of Technical Development
61. A provisional SSI registration certificate
is valid for a period of _.
A. Four Years.
B. Three Years.
C. Two Years.
D. One year.
Ans: One Year
62. 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.
Ans: August 1972
63. The 'T' in a PESTLE analysis refers
to .
A. Time.
B. Technology.
C. Training.
D. Talent.
Ans: Training
64. 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.
Ans: A franchise
65.
Which of the following is a measure
taken for revival of sick SSI
|
Margin money scheme |
|
|
Reservation of items |
|
|
Export
promotion |
|
|
Tax Holiday Ans: Export Promotion |
66. 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.
Ans: To provide capital for business development in
exchange for a stake in the business ownership
67.
Which one of the following best
represents the environment of an entrepreneurial oriented organization?
|
Corporate culture |
|
|
Entrepreneurial
culture |
|
|
Intrapreneurial culture |
|
|
Traditional culture |
|
|
|
|
|
Ans |
: Entrepreneurial Culture |
|
|
|
68. 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.
Ans: A realistic sales forecast
69. 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.
Ans: The
number of people who are jobless and are actively seeking work
70.
Which is the form of 'Entrepreneurship
Development Programme'?
|
Psychological form |
|
|
Social form |
|
|
Economic form |
|
|
All of the
above |
|
|
Ans |
:
All of the above |
71. 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.
Ans: Test marketing
72. 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.
Ans: Business awareness
73. 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.
Ans: A portfolio entrepreneur
74. 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.
Ans: Manufacturing industries
75. 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.
Ans: Feasibility analysis
76. 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
Ans: 75% of the cost or Rs. 15000 whichever is less.
77. 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.
Ans: General Manager, DIC
78. 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.
Ans: Societal
Feasibility
79. District Industries Centres are located
.
A. In each
district.
B. In each
state.
C. Only in selected districts.
D. Only in selected states.
Ans: In each district
80. 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
Ans: All the above
81. Seed capital assistance _ .
A. A long-term assistance.
B. initial
assistance
C. A help for the purchase of seeds.
D. A short-term assistance.
Ans: Initial assistance
82. EXIM bank
is a .
A. State-level institution.
B. Regional -level institution.
C. All India
institution.
D. International institution.
Ans:
All India Institution
83. 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.
Ans: Joint Director of Industries
84. 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.
Ans: All of the above
85.
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.
Ans: 6% p.a
86.
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.
Ans: IPR 1948
87.
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.
Ans: IPR 1977
88. 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.
Ans: The
Reserve Bank of India
89. 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.
Ans: Costs of promotion
90. Reserve bank of India is a/an
.
A. Statutory
Corporation.
B. Company limited by guarantee.
C. Company limited by shares.
D. Unlimited company.
Ans: Statutory Corporation
91. The oldest form of business organization is .
A. Partnership.
B. Sole proprietorship.
C. Joint stock company.
D. Co-operative undertaking.
Ans: Sole
Proprietorship
92. 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.
Ans: Choose moderate (or calculated) risk ventures.
93.
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.
Ans: Young Enterprise
94. 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.
Ans: Lack of independence
95. 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.
Ans: All the above
96. 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.
Ans: All the
above
97.
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.
Ans: Retailer
98. 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.
Ans: A process involving innovation, new products or
services, and value creation.
99. 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.
Ans: Lack of independence
100. 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.
Ans: All the above
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