Multiple Choice Questions.

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

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

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

4.Which of the following factors should not be included in PESTLE analysis?A. Government re-cycling
policy. B reduction in interest rates. C activity. D changes. ANSWER: C

5.Which industrial sector promotes small-scale businesses andEntrepreneurship, and has lower barriers
to market entry? A. Service. B. C. D. ANSWER: A

6.Why are small businesses important to a country's economy?A. They give an outlet for entrepreneurs.
B can provide specialist support to larger companies. C can be innovators of new products. D the above.
ANSWER: D

7.A business arrangement where one party allows another party to use a business name and sellits
products or services is known as. A. A cooperative. B franchise. C owner-manager business. D limited
company. ANSWER: B

8.Which of the following is the reason for business failure. A. Lack of market research. B financial
control.

C management. D the above. ANSWER: D

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

research. B networking. C parameters. D ANSWER: B

10 sources of information for an entrepreneur about competitors can be obtainedfrom. A. B information

leaflets. C reports and published accounts. D the above. ANSWER: D

11 new venture's business plan is important because. A helps to persuade others to commit funding to
the venture. B help demonstrate the viability of the venture. C a guide for business activities by defining
objectives. D the above. ANSWER: D

12 data is. A. the most important data. B data that is collected first. C data specifically collected for a
project. D that is collected second. ANSWER: C

13 can best be defined as. A. the generation of new ideas. B evolution of new ideas. C opposite of
creativity. D successful exploitation of new ideas. ANSWER: D
14 of these statements best describes the context for entrepreneurship?A. Entrepreneurship takes place
in small businesses. B takes place in large businesses. C takes place in a wide variety of contexts. D does
not take place in social enterprises. ANSWER: C

15 are motivated by. A. B values. C influences. D the above. ANSWER: D

16 of the following are described as one of the Big Five personality traits?A. tolerance of others.

State Industrial corporations engage in the development of . A. industrial estates. B estates. C investors.
D entrepreneurs. ANSWER: A

is the first development bank of the country. A. ICICI. B. C. D. ANSWER: D

IFCI stands for. A finance corporation of India. B finance corporation of India. C funding corporation of
India. D finance corporation and institution. ANSWER: A

IFCI has been converted into a. A. joint stock company. B-operative society. C firm. D proprietorship.
ANSWER: A

SIDBI was set up as a subsidiary of. A. B. C. D. ANSWER: A

Which of the following is a function of SIDBI?A. Extension of seed capital. B of bills. C factoring services.
D of the above. ANSWER: D

SFC is prohibited from granting financial assistance to any company whose aggregate paidup capital
exceed. A. 1 crore. B.1 crores. C crores. D.2 crores. ANSWER: A

SIPCOT's financial assistance is in the form of. A. term loan. B capital scheme. C the capital issues. D of
the above. ANSWER: D

The business development department of SIPCOT guides entrepreneurs in. A. applying for licences. B on
collaboration. C of scarce raw materials. D the above. ANSWER: D

TIIC is sponsored by the. A. Government of Karnataka. B of Andhra Pradesh. C of Kerala. D of Tamil

Nadu. ANSWER: D

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

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

EDPs course contents contains. A. General introduction to entrepreneurs. B training. C skills. D the
above. ANSWER: D

Entrepreneurial Guidance Bureau(EGB) was set up by. A. SISI. B. C. D. ANSWER: C

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 Scanning. C. D. ANSWER: C

Large investment is made in fixed assets, the project will be termed as . A. Capital Intensive. B Intensive.
C Intensive.

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

refers to some action which is a time consuming effort necessary to complete a specific event. A. A
Network. B Activity. C Event. D Node. ANSWER: B

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 DiagramANSWER: D

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

Activities which can be accomplished simultaneously are termed as . A. Preceeding Activities. B

Activities. Concurrent Activities D. Dummy Activities. ANSWER: C

EST stands for. A. Earliest Start Time. B Start Time. C Start Time. Essential Start Time. ANSWER: A

Additional time which a non-critical activity can consume without increasing the projectduration is
called. A Float. B Float C Float. D Float ANSWER: A

is an event-oriented approach. A. B. C. D. ANSWER: C

is an activity-oriented approach. A B C D ANSWER: A

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 evaluation. C appraisal. D Design. ANSWER: C

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

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

Decisions which are concerned with policy matters and exercise fundamental influence onthe objectives
of the organization are called as. A. Organizational decisions. B decisions. C decisions. D decisions.
ANSWER: D

is a problem -solving technique designed to produce numerous ideas in a short period A. Synectics. B
technique. C storming. D 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 formulation. C feasibility. D evaluation. ANSWER: B

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

The 'T' in a PESTLE analysis refers to. A. B. C. D. ANSWER: B

A business arrangement where one party allows another party to use a business Name andsell its
products or services is known as . A. A cooperative. B franchise. C owner-manager business. D limited
company. ANSWER: B

What is the role of a Business Angel?A. To provide small business advice. B provide capital for business
development in exchange for a stake in theBusiness ownership. C set up a franchise business. D assist an
entrepreneur to open a lifestyle business. ANSWER: B

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

Which one of the following describes unemployment? A number of people who voluntarily choose not
to work. B number of people who are jobless and are actively seeking work. C number of people who are
not actively seeking work. D number of people actively seeking work who find work. ANSWER: B

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

Which one of the following is not considered as one of the building blocks of the modelentrepreneur? A
skills.

B competencies. C awareness. D attributes. ANSWER: C

Which of the following factors does the macro-environment not include?A. political and regulatory
factors. B needs in a given market. C and demographic factors. D changes. ANSWER: B

Which of the following statements is false? Electronic commerce: A allow new ventures to compete on
more or less equal terms with large firms. B lead to small businesses having reduced contact with its
customers. C rarely used in small businesses. D used in many different industries and markets. ANSWER:
C

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

An entrepreneur who owns more than one business at a time is called . A. an intrapreneur. B corporate
entrepreneur. C portfolio entrepreneur. D of the above. ANSWER: C

Industries producing complete articles for direct consumption & also processing industriesis called as. A
industries. B Industries. C Industries. D or Quarrying. ANSWER: A
is primarily concerned with the identification, qualification and evaluation of the project resources. A-
economic analysis. B analysis. C analysis. D analysis. ANSWER: B

LOB stands for. A. Line of Business. B of Balance. C of Business.

ANSWER: C

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

The type of diversification in which the company adds up same type of products at the samelevel of
production is. A diversification. B integration. C integration. D integration. ANSWER: B

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

When a firm enters into business which is unrelated to its existing business both in terms oftechnology
and marketing. A. conglomerate diversification. B integration. C integration. D integration ANSWER: A

District Industries Centres are located. A. in each district. B each state. C in selected districts. D in
selected states. ANSWER: A

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

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

EXIM bank is a. A. State-level institution.

B -level institution. C India institution. D institution. ANSWER: C

DIC is headed by General Manager in the rank of. A. Joint Director of industries. B Director of industries.
C-departmental officer. D officer. ANSWER: A

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

Under section 80J of the income tax act, 1961, small-scale industries are exempted fromthe payment of
income tax on their profits at . A% p. B% p. C% p. D% p. ANSWER: A

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

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

114 public corporation means. A. public company. B company. C corporation. D of union government
ANSWER: C

115 is a person who. A part in the incorporation of a company. B a director. C a relative of the managing
director. D to publicity to the company. ANSWER: A

116 term Capitalization is used in relation to. A. sole-proprietorship. B. C stock companies. D-operative
societies ANSWER: C

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

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

119 in which of the following is most risky?A. Equity shares. B shares. C. D. ANSWER: C

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

121 risks can be. A. avoided. B. C. D. ANSWER: B

122 & M refers to A. overall efficiency of business. B of office and administrative work. C work
measurement. D and management study. ANSWER: D

123 oldest form of business organization is. A. Partnership. B proprietorship. C stock company. D-
operative undertaking. ANSWER: B

124 of association of a firm contains . A regarding the internal management of the company. B regarding
the constitution and activities of the company. C regarding the external management. D regarding the
constitution. ANSWER: B

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

The charter of a company is its. A. prospectus. B lieu of prospectus. C of association. D of association.

ANSWER: A

A person owning and running a small firm, is known as. A. A manager-owner. B owner-manager. C
professional adapter. D enterprise worker. ANSWER: B

Which of the following is a characteristic typical of ?Most entrepreneurs A. Choose high risk ventures. B
low risk ventures. C moderate (or calculated) risk ventures. D no risk ventures. ANSWER: C
The UK government has implemented a number of policies to encourage Entrepreneurshipin schools.
One such initiative is _. A Enterprise. B venture. C Business. Young Initiative.

s et up for the purpose of financing, facilitating, and promoting foreign trade of India.

A. Repco bank B. SBI C bank D ANSWER: C

138 of the following is not considered to be a characteristic of a project? A established objective B tasks
C clear beginning and end D for internal use ANSWER: D

139 management is ideally suited for a business environment requiring all of thefollowing except.

A B C D ANSWER: D

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

141 content of the final report typically includes the following topics. A summary B and analysis C D all
the above are correct. ANSWER: D 142 mission and objectives, procedures and systems used, and
organization resourcesused typically appear in the section of the final project report. A B C learned D
feasibility ANSWER: A

143 are the components of then project report. A of funds B C D the above ANSWER: D

144 potential of the project report includes.

A and supply conditions B strategy C sales service D the above ANSWER: D

145 entrepreneur should draw an for his project to ensure the timely completion of all activities
involved in setting up an enterprise. A structure B plan C structure D structure ANSWER: B

146 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 report B anlaysis C analysis D analysis ANSWER: A

147, many companies are using managerial techniques that are designed to encourage . A profits B
compliances C behaviour D value ANSWER: C

148 development is the key to achieve all-round through

A development B in profits C value D development ANSWER: A