Entrepreneurial Development MCQ Questions and Answers Part – 1

Entrepreneurial Development MCQ Questions and Answers Part – 1

Entrepreneurial Development MCQ Questions and Answers Part – 2

Entrepreneurial Development MCQ Questions and Answers Part – 3

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

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Author and Assistant Professor in Finance, Ardent fan of Arsenal FC. Always believe "The only good is knowledge and the only evil is ignorance - Socrates"