Collected by : Prof. A. K.

Shaikh (NBNSCOE, Solapur)

MCQ BANK
1. Which of the following shows the process of creating something new?
► Business model ► Modeling ► Innovation ► Creative flexibility

2. Which one of the following gives suggestions for new product and also helps to
market new products?
► Existing products and services ► Distribution channels
► Federal government ► Consumers

3. GATT is established in 1947, under:

► German leadership ► French leadership ► U.S. leadership ► U.K. leadership

The entrepreneur was distinguished from capital provider in:

► Middle ages ► 18th century ► 17th century ► 19th and 20th century

4. A person who managed large project was termed as the entrepreneur in the _________.
► Earliest period ► Middle ages ► 17th century ► 19th and 20th century

5. What is the process by which individuals pursue opportunities without regard to

resources they currently control?
►Startup management ►Entrepreneurship ►Financial analysis ►Feasibility planning

6. Which one of the following is the process of entrepreneurs developing new products
that over time make current products obsolete?
► New business model ► Anatomization ► Creative destruction ► None

7. Which of the following factors is the most important in forcing U.S companies to focus
on new product development and increased productivity?
► Entrepreneurship ► Hyper competition
► Governmental laws ► Organizational culture

8. Which of the following is alternatively called corporate venturing?

► Entrepreneurship ► Intrapreneurship
► Act of stating a new venture ► Offering new products by an existing company

9. Individuals influencing an entrepreneur’s career choice and style are known as which
of the following?
► Role model ► Moral-support network
► Professional support network ► Support system

10. The activity which occurs when the new venture is started is called:
► Motivation ► Business skills ► Departure point ► Goal orientation
 Collected by : Prof. A. K. Shaikh (NBNSCOE, Solapur)

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

► Financial status ► Qualification ► Social status ► Achievement

12. Which one of the following is an important source of idea generation due to their
familiarity with the needs of market?
► Existing products and services ► Distribution channels
► Federal government ► Consumers

13. Members of distribution channels are excellent sources for new ideas because:
► They are familiar with the needs of the market
► They earn a handsome profit from new business
► They do not bother if entrepreneur bears a loss
► They have well-developed sales force

14. Which one of the following is the next stage to the Concept Stage of Product
Planning and Development Process?
► Idea Stage ► Product Planning Stage
► Product Development Stage ► Test Marketing Stage

15. SBA stands for:

► Small business accountants ► Small business administration
► Small business adequacy ► Small business advisors

16. 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

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

► Location ► Promotion ► Raw materials ► Labor skills

18. For which of the following copy right acquisition is desirable?

► Songs ► Poems ► Models ► All of the given options

19. Which of the following is TRUE for Disclosure Document?

► It gives recognition that he was the inventor of the idea in past
► It gives recognition that he is the first the inventor of the idea
► It gives recognition that he will be the invent an idea in future
► It gives recognition that he wants to copy the idea
 Collected by : Prof. A. K. Shaikh (NBNSCOE, Solapur)

20. Which of the following factor has allowed small companies to act like they are big
ones?
► Technology ► Customers ► Economic development ► Competition
21. What is an entrepreneur?
A. Someone who invests time and money to start a business.
B. Someone who makes a lot of money.
C. Someone who takes a risk to make a profit.
D. Both A & C.

22. Define Free Enterprise:

A. A business taking a risk to make a profit.
B. A program administered by the Government.
C. People in business trying to make a profit.
D. A business adventure or undertaking.

23. Capital is:

A. Money available to invest. B. Prohibitive cost of entry.
C. A guarantee that a company will be successful. D. A & B.

24. The following are included in a business plan

A. Financial information, production plans, personnel policies.
B. Goals of the business and how they will be achieved.
C. A step by step plan for the success of your business.
D. All of the above.

25. Quality Control is defined as:

A. Controlling the cost of the product.
B. Controlling the number of pieces produced.
C. Producing & monitoring products so they are acceptable to the consumer.
D. Producing & monitoring products so they are acceptable to the workers.

26. A market survey is important because it tells you:

A. How many & what types of people are shopping at a store.
B. Tells you what the customer will buy.
C. Tells you how much the

27. Making a purchase you had not planned is called:

A. Consumer shopping. B. A warranty.
C. Impulse buying. D. Comparison shopping.

28. Product planning tells you:

A. Where you will produce your product. B. Cost to produce your product.
C. Your Net profit. D. Total revenues.
 Collected by : Prof. A. K. Shaikh (NBNSCOE, Solapur)

29. Cost per serving means:

A. How much it will cost to produce one recipe.
B. How much it will cost to produce what you sell in one day.
C. How much it will cost to make “One.”
D. How much it will cost to make one batch.

30. What makes a good advertisement? (Choose the best combination)

A. Color, Attracts attention, ingredients in product.
B. Name of product, price, location, attractive.
C. Easy to read, price, color, location, why customers should buy it.
D. Nutritional information, price, color, where to buy it, easy to read.

31. What things could you change to adjust your profit?

A. Price.
B. Number.
C. Less expensive supply sources.
D. All of the above.

32. When counting change back to a customer, you should always give the ____________
amount of coins possible.
A. best.
B. least.
C. most.
D. correct.

33. If a customer’s bill totals $.65 and the customer gives you $1.00, the correct amount
of change (according to our worksheet) would be:
A. 3 dimes and 1 nickel.
B. 5 pennies and 3 dimes.
C. 1 quarter and 1 dime.
D. 1 quarter and 2 nickels.

34. Gross profit is the

A. Amount of money you get for profit lab.
B. Amount of money collected from selling products.
C. Amount of money your product costs to produce.
D. Has nothing to do with money.

35. Net profit is the:

A. Amount of money you get for profit lab.
B. Amount of money collected from selling products.
C. Amount of money your product costs to produce.
D. Has nothing to do with money.
 Collected by : Prof. A. K. Shaikh (NBNSCOE, Solapur)

36. To figure the Gross Profit:

A. Add up the ticket sales from selling day.
B. Add up the ticket sales from selling day and subtract the cost of the
ingredients.
C. Add up cost to produce the product and subtract the total sales.
D. Add the cost to produce the product and add the total sales.

37. To figure the Net Profit:

A. Add up the ticket sales from selling day.
B. Add up the ticket sales from selling day and subtract the cost of the ingredients.
C. Add up cost to produc3 the product and subtract the total sales.
D. Add the cost to produce the product and add the total sales.

38. All but which of the following is considered to be a myth associated with
entrepreneurship?
A) Successful entrepreneurs are born not made
B) First ventures are always successful
C) All entrepreneurs must willingly invest significant sums of money
D) Successful entrepreneurs must have a breakthrough
invention
E) An entrepreneur faces extraordinary business risks

39. A/An ______ is best described by stating it is any business that is independently
owned and operated and is not dominate in its market.
A) strategic alliance
B) corporation
C) entrepreneurship
D) proprietorship
E) small business

40. For small business owners, one of the most important objectives is _______.
A) market presence B) growth
C) profitability D) adaptability
E) innovation

41. Which of the following is not considered a common characteristic of an

entrepreneur?
A) Internal locus of control
B) High need for achievement
C) Selfconfidence
D) External locus of control
E) Willingness to take risks
 Collected by : Prof. A. K. Shaikh (NBNSCOE, Solapur)

42. Bobby believes that what takes place within his new company is mostly the result of
fate or factors that are outside of his control. It could be
stated that Bobby possesses a/an ______.
A) innovative spirit
B) intrapreneurship
C) internal locus of control
D) high need for achievement
E) external locus of control

43. 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
E) craftsperson

44. Melissa is one of the newest and most successful entrepreneurs in the technology
industry. She handles numerous dealings with other
companies for the exchange of goods and services. Her primary goal is to ensure that all
parties involved receive favorable and acceptable
terms. Melissa is most probably excellent at the entrepreneurial skill of _______.
A) negotiating
B) networking
C) leadership
D) analysis
E) alliance building

45. The steps involved in an entrepreneurial endeavor include all but which one of the
following?
A) Business plan formulation
B) Obtaining financing
C) Selecting the type of legal structure
D) Hiring a partner

46. The ideas for new businesses that are obtained by entrepreneurs are derived from
many sources. These various sources include all but
_______.
A) replication of an existing business
B) trade journals
C) trade shows
D) family members
E) children
 Collected by : Prof. A. K. Shaikh (NBNSCOE, Solapur)

47. Common reasons for entrepreneurial failure include all but which one of the
following?
A) Poor implementation
B) Lack of capital
C) Adequate financial support
D) Faulty product design
E) Ineffective human resources

48. A/An ________ is defined as the blueprint describing the business strategy for entering
the marketplace and explains the business to
potential investors.
A) business alliance
B) spinoff
C) intrapreneurship
D) competitor analysis
E) business plan

49. Of the following, which one is not considered a key component of a business plan?
A) Sources of funding
B) Market trend analysis
C) Methods for dissolution of the organization
D) Description of products or services
E) Expansion plans

50. A(n) ________ is defined as a form of business that is an association of two or more
people acting as coowners
of a business.
A) proprietorship B) partnership C) INC D) corporation E) conglomerate

51. Which one of the following would not be considered an advantage to a partnership
formation?
A) Potential for double taxation
B) Less governmental control
C) Ease of formation
D) Direct share of profits
E) Division of labor and management responsibilities

52. Which one of the following would not be considered a disadvantage of a

corporation?
A) Limited continuality of life of enterprise
B) Extensive government regulations of activities
C) High incorporation fees
D) Corporate capital, profits, dividends, and salaries are double taxed
E) Activities limited to those stated in charter
 Collected by : Prof. A. K. Shaikh (NBNSCOE, Solapur)

53. Entrepreneurships require financial backing in order to get started in the business
world. Which of the following is not one of the methods commonly utilized to obtain the
financial resources needed?
A) Equity
B) Commercial loans
C) Personal finances provided by friends
D) Venture capitalists
E) Public offerings

54. _________ financing is raising money by selling part of the ownership of the business
to investors.
A) Debt
B) Equity
C) Venture capitalist
D) Public offering
E) Spinoff

55. Of the following, which one would not be considered an alternative to independent
entrepreneurship?
A) Franchise B) Spinoff
C) Intrapreneurship D) Extrapreneurship
E) Business unit within a larger corporate structure

56. Of the following, which is best identified as an independent entrepreneurship that

produces a product or service that originated in a large
company?
A) Diversification B) Intrapreneurship C) Tradeoff
D) Franchise E) Spinoff

57. Of the following, which is best identified when a business with an established name
and product is sold to additional owners along with the
rights to distribute product?
A) Spinoff
B) Intrapreneurship
C) Tradeoff
D) Entrepreneurship
E) Franchise

58. Management tactics purported to maximize innovation for an entrepreneurship

include all but which of the following items?
A) Cutting of losses
B) Culture
C) Benchmarking
D) Customer orientation
 Collected by : Prof. A. K. Shaikh (NBNSCOE, Solapur)

59. ______ is best described as doing something differently and has been described as
discontinuous or complementary change.
A) Entrepreneurship
B) Innovation
C) Spinoff
D) Variance
E) Enterprise

60. In franchising, the entrepreneur assumes fewer risks because the franchise provides
all but which one of the following?
A) Established market for the product
B) Management assistance in operating the business
C) Economies of scale for purchasing
D) Oversale of rights
E) Favorable image for the product

61. An entrepreneur is someone who assumes the major risks of a new business by
committing which of the following?
a. equity.
b. time.
c. career.
d. all of the above.

62. An informal group of innovative employees who are permitted to digress

temporarily from their regular tasks to develop new ideas are referred to as:
a. underground. b. skunkworks. c. yahoos. d. intrapreneurs.

63. It is estimated that approximately _____ percent of small businesses fail within the
first five years.
a. 10. b. 25. c. 50. d. 75.

64. Which of the following is not a personal characteristic often found in an

entrepreneur?
a. self-confident. b. independent-minded. c. perceptive. d. follower.

65. 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.

66. Which of the following is usually included in a business plan?

a. detailed description of the product or service.
b. marketing and promotional plans.
c. management and staffing.
d. all of the above.
 Collected by : Prof. A. K. Shaikh (NBNSCOE, Solapur)

67. 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.

68. According to the textbook, which of the following management functions is the least
well done?
a. planning. b. organizing. c. leading. d. controlling.

69. Which of the following is not a common motivation of an entrepreneur?

a. desire for independence.
b. search for personal and professional growth.
c. desire to maintain the status quo.
d. search for more rewarding work.

70. Which of the following are risks for entrepreneurs in small business?
a. interference with personal lives.
b. psychological stress.
c. social and family pressure.
d. all of the above.

71. A strategy of courting other companies that have knowledge, ideas or promising
products is known as which type of intrapreneurship?
a. administrative intrapreneurship. b. opportunistic intrapreneurship.
c. acquisitive intrapreneurship. d. imitative intrapreneurship.

72. Which of the following is a purpose of a business plan?

a. to attract financing.
b. to inform competitors of plans.
c. to discipline the entrepreneur to think of all aspects of the proposed venture.
d. a & c.

73. Who said that the job of the entrepreneur is "creative destruction"?
a. Peter Drucker. b. Pierre Trudeau. c. Joseph Schumpeter. d. Brian Mulroney.

74. 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
 Collected by : Prof. A. K. Shaikh (NBNSCOE, Solapur)

75. All of the following were invented by a Canadians except:

a. IMAX multiscreen projection. b. snowmobile. c. twin engine airplane. d. post-it note.

76. 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.

77. 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

78. 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

79. 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

80. 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

81. 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
 Collected by : Prof. A. K. Shaikh (NBNSCOE, Solapur)

82. LLC ( limited liability company ) is more flexible than

A. S Corporation
B. Limited Partnership
C. Sole Proprietor
D.All of the above
83. 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

84. ____________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

85. 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.
86. Which statement is true?
A. The product-based concept of quality focuses on an attribute of the product that is
held in high regard
B. Manufacturing-based quality or process quality, concerns the attention to detail in
the 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
87. All of the following are the broad categories of External forces EXCEPT
A. Economic forces
B.Socioeconomic forces
C. Technological forces
D.Competitive forces
88. Which statement is true?
1. Liquidation value is the value of the assets if they had to be sold under pressure.
 Collected by : Prof. A. K. Shaikh (NBNSCOE, Solapur)

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

89. Entrepreneurial endeavors consist of all of the following key elements. Except.
A. New business venturing
B.Increasing productivity
C. Innovativeness
D.Proactiveness

90. 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

91. Which is a physical quality of an Entrepreneur?

A. Good health
B. Effective personalities
C. Agreeable looking
D.All of the above

92. Overdraft is a short-term finance measure to

A. pay taxes
B. repay loan
C. purchase plant and equipment.
D.meet working capital requirement.

93. Which of the following is alternatively called corporate venturing?

 Collected by : Prof. A. K. Shaikh (NBNSCOE, Solapur)

A. Entrepreneurship
B.Intrapreneurship
C. Act of stating a news venture
D.Offering new products by an existing company

94. 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

95. 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

96. A K-saving innovation

A. causes a greater outward shift in the nation's production possibilities curve along
the 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.

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

98. In which of the following year implementation of SBA Financial plan took place?
A. 1971
B.1972
C. 1973
D.1974

99. In which of the following situation the company is considered to be on breakeven

point?
 Collected by : Prof. A. K. Shaikh (NBNSCOE, Solapur)

A.No Profit no loss

B. Profits are higher than expenses
C. Expenses are higher then profits
D.None of the given options

100. 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

101. Internal environment includes

A. Competitors
B. Customers
C. Raw Material Suppliers
D.All of the above

102. Personal characteristics to be a successful entrepreneur includes

A. Understanding environment
B. Creating management options
C. Encourage open discussion
D.All of the above.

103. 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

104. Entrepreneurship consists

A. Knowledge-based behaviour
B. Universal activity
C. Management is the vehicle of entrepreneurship
D.All of the above

105. Which one of the following should consider in economy while conducting
environmental analysis?
 Collected by : Prof. A. K. Shaikh (NBNSCOE, Solapur)

A.GNP (Gross National Product)

B. Disposable income
C. Unemployment
D.Channel of distribution

106. Which is the type of patent?

A. Plant patents covering various forms of life and genetically engineered organisms
B. Design patents covering new and original ornamental designs for manufactured
products
C. Utility patents for new articles, processes, machines and techniques
D.All of the above

107. 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.

108. 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

109. 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

110. 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

111. Which one of the following is important for international business to avoid trade
barriers?
 Collected by : Prof. A. K. Shaikh (NBNSCOE, Solapur)

A. Protectionist attitude
B. Entrepreneurial partnering
C. Free trade areas
D.None of the given options

112. 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

113. 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.

114. 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

115. Which of the following is another exit to the equity partnership arrangement?
A. Impartial partnership
B. General partnership
C. Royalty partnership
D.Minor partnership

116. "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
 Collected by : Prof. A. K. Shaikh (NBNSCOE, Solapur)

117. 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

118. 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

119. 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

120. Which of the following is representing a single expense account

A. Depreciation
B.Cash account
C. Wages & Salaries
D.Utilities account

121. 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

122. Which one of the following best represents the environment of an entrepreneurial
oriented organization?
 Collected by : Prof. A. K. Shaikh (NBNSCOE, Solapur)

A. Corporate culture
B.Entrepreneurial culture
C. Intrapreneurial culture
D.Traditional culture

123. 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

124. 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

125. Which is the form of 'Entrepreneurship Development Programme'?

A. Psychological form
B. Social form
C. Economic form
D.All of the above