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STARUP AND NEW VENTURE MANAGEMENT (303)

MUTIPLE CHOICE QUESTION

1. 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

2. In some countries, points of purchase displays are not allowed in retail stores. Such differences are
studied by international entrepreneurs under environment. a. Economic

b. Political

c. Cultural

d. Technological

3. 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 merge


4. The development of a new venture based on an inventor's work often requires . a.

Expertise of an entrepreneur

b. Heavy investment from financers

c. Skilled human resources

d. Highly educated staff

5. A business where an individual is both the owner and conductor of the business affairs is
called .

a. Sole Proprietorship

b. Partnership

c. Corporation

d. None of the above

6. In , the entrepreneur has the right to sell any assets.

a. Proprietorship

b. Partnership

c. Limited Liability Company

d. None of the given options

7. The idea and actions that explain how a firm will make its profits refers to a.

Mission
b. Goal
c. Strategy

d. Objective

8. Entrepreneurs are best as


a. Managers
b. Venture capitalists
c. Planners
d. Doers

9. Entrepreneurs and ventures capitalists:


a. Get along well
b. Are the best friends
c. Are cordial friends
d. Are in conflict

10. is one method of stimulating, and then capitalizing on, individuals in an


organization who think that something can be done differently and better.

a) Strategic Orientation
b) Capitalization
c) Intrapreneurship
d) Management

11. The plan shows whether the business is economically feasible or not. a.

Financial

b. Business

c. Economic

d. Marketing
12. In which of the following, the ownership of venture is reflected by ownership of shares of stock?
a. Partnership

b. Limited partnership

c. Corporation

d. Proprietorship

13. 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

14. The small business ‘owner-manager’ is always the founder of the business:

a. True
b. False (A management buyout is an example of a business where the owner-manager would
probably not have been the founder)

15. Which of these statements best describes the context for entrepreneurship:

a. Entrepreneurship takes place in small businesses


b. Entrepreneurship does not take place in social enterprises
c. Entrepreneurship takes place in a wide variety of contexts
d. Entrepreneurship takes place in large businesses

16. Which of the following are described as one of the ‘Big Five’ personality traits?

a. propensity to leadership
b. need for achievement
c. extravert personality
d. tolerance of others

17. 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.

18. 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.

19. MSMED stands to

a. Micro, Small & Medium Enterprises Development


b. Mini, Small & Medium Enterprises Development
c. Micro, Small & Medium Entrepreneurship Development
d. Micro, Small & Medium Enterprises Department

20. Which of the following is an internal factor that influences entrepreneurs?

a. Technological Capacity
b. Social environment
c. Political environment
d. Economic condition

21. requires proper review and reconsideration of the selected alternative before
implementing it.

a. Developing possible alternatives


b. Selecting the best alternative
c. Checking the decision
d. Exploring the developed alternatives

22. Which one of the following is an economic barrier to an entrepreneur?

a. Emotional blocks
b. Labour
c. Lack of sustained motivation
d. lack of vision

23. Which of the following enterprises was found by Akio Morita?

a. Samsung
b. Apple
c. Panasonic
d. Sony

24. can be defined as psychological features that enable an individual to take


action toward a desired goal?

a. Motive
b. Trait
c. Attitude
d. Ego

25. implies that women entrepreneurs are now economically independent and take
decisions independently.

a. Better utilization of resources


b. Improved quality life
c. Economic development
d. Employment generation

26. Financial feasibility analysis can be done by comparing with the estimated sales
figure.

a. cash flow statement


b. balance sheet
c. break-even point
d. profit and loss statement

27. Which of the following is not considered while selecting the region?

a. Law and order


b. Price of land
c. Availability of raw materials
d. Proximity to the product market

28. Which one of the following is the step involved in setting up a new enterprises?

a. Creating a business plan


b. Making a product choice
c. Selecting the location
d. Setting up infrastructure

29. The parties involved in franchise business are .

a.1
b.2
c.3
d.5

30. If someone starts a new business that is a service station, this is an example of a(n):

a. new concept/new business.


b. new concept/existing business
c. existing concept/new business.
d. existing concept/existing business.

31. If an entrepreneur has an internal locus of control, this means that he/she:

a. has a high need for achievement


b. believes that success or failure depends on his/her own actions.
c. feels comfortable in an unstructured situation
d. believes fate is a powerful force
32. The process of gathering information about trends is called:

a. need for achievement.


b. tenacity.
c. Trend
d. neuroticism

33. The opposite of "opportunity thinking" is:

a. obstacle thinking
b. thought self-leadership.
c. self-efficacy.
d. adaptive response behavior.

34. The startups which rarely go public are called:

a. Life style
b. Foundation company
c. Small company
d. High potential venture

35. Which of the following factor can create the managerial difficulties in the joint ventures
between foreign companies?

a. Cultural differences
b. Economic policies
c. Public ignorance
d. Government taxes

36. process of creating incremental wealth is called Entrepreneurship. a.

Static

b. Continuous
c. Systematic
d. Dynamic

37. Barriers to new product creation and development are known as:

a. Trial and error


b. Opportunity cost
c. Opportunity parameters
d. Intrapreneurship culture

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

a. Promotion
b. Location
c. Raw materials
d. Labor skills

39. hich of the following cannot be used as basis of loan?

a. Worth of the business


b. Fixed asset
c. Perishable asset
d. All of the given options

40. Which of the following is the key factor for choosing the type of financing?

a. Availability of funds
b. Assets of the venture
c. Prevailing interest rates
d. All of the given options

41. Entrepreneur actually starts setting up of an enterprise by

a. Planning
b. Organizing
c. Staffing
d. Directing

42. Which of the following is least likely to influence the timing of new business births?

a. Government policies
b. Profitability
c. Interest rates
d. Consumer expenditure

43. Which of the following is usually not a barrier to market entry for a small firm?

a. economy of scale
b. good ideas
c. switching costs
d. access to distribution

44. Which of the following statements is false? Electronic commerce:

a. can allow new ventures to compete on more or less equal terms with large firms
b. offers a relatively inexpensive means of advertising and conducting market and
competitor research
c. can lead to small businesses having reduced contact with its customers
d. is rarely used in small businesses

45. Generally speaking the risk involved in launching as a franchise is greater than that as a
start up.

a. True
b. False

46. Venture capital firms are usually organized as

a. closed-end mutual funds


b. limited partnerships
c. corporations
d. nonprofit businesses

47. 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

48. To the , physical location does not matter because the Internet allows anyone
to link to any Web site no matter where in the world that site might be.

a. bricks-and-clicks retailer

b. e-tailer

c. bricks-and-mortar retailer
d. B-to-G business
49. Being interested in computers, Jim Johnson came up with an idea of personalizing the screen
saver programs with family pictures. After trying a couple of programs, Jim started marketing
this service to neighbors and area businesses. Jim’s activities can be described as a(n)

a. entrepreneurship.

b. intrapreneurship.

c. useless idea.

d. large business.

50. Today, inspired by the growth of companies such as Amazon.com, entrepreneurs are
flocking to the to start new businesses.

a. Small Business Administration

b. Internet

c. bookstore

d. mall

51. Which of these refers to the belief by individuals that their future is within their control
and that external forces will have little influence?

a. Awareness of passing time

b. Tolerance for ambiguity

c. Internal locus of control

d. External locus of control

52. means that people are motivated to excel and pick situations in which success is likely.

a. External locus of control

b. Tolerance for Ambiguity

c. Awareness of passing time


d. Need to achieve

53. Marleesha likes to set her own goals, which have an intermediate level of difficulty. Which of
the entrepreneurial characteristics does she probably possess?

a. A high need for achievement

b. A high need for power

c. An external locus of control

d. An inability to deal with uncertainty

54. The most cited source of new business ideas is

a. brainstorming.

b. in-depth understanding of industry/profession.

c. a hobby.

d. copying someone else.

e. none of the above.

55. Before opening his own business, Tanay was writing a report that details the specifics of his
ideas and future business operations. This document is known as

a. a SWOT analysis.

b. a business portfolio.

c. a business plan.

d. a competitive analysis.

56. refers to an unincorporated business owned by an individual for profit.


a. Partnership

b. Proprietorship

c. Corporation

d. Association
57. Sangeeta , Kabir, and Ravi started selling computer software on college campuses under the
name Student Software Company. Each person contributed Rs.15000/- toward start-up costs
and agreed on dividing costs and profits equally. The legal structure for the company can best
be described as a

a. proprietorship.

b. partnership.

c. trade alliance.

d. corporation.

58. A group of companies or individuals that invests money in new or expanding businesses for
ownership and potential profits is known as

a. an equity financing firm.

b. franchising.

c. a venture capital firm.

d. a corporation.

59. An advantage of which of these tactics is that there is a shorter start-up time and an existing
track record?

a. Participate in a business incubator

b. Start a new business

c. Buy a franchise
d. Buy an existing business

60. Which of these refer to an arrangement by which the owner of a product or service
allows others to purchase the right to distribute the product or service with help from the
owner?

a. Franchising

b. Business incubation

c. Spinning-off

d. Globalization
61. Which of these offers the advantage that the entrepreneur has the ability to develop and
design the business in the entrepreneur's own way?

a. Participate in a business incubator


b. Start a new business
c. Buy a franchise
d. Buy an existing business

62. For Internet start-ups, one typical source of first funds is through

a. stock financing.

b. government funds.

c. angel financing.

d. community development financing.

63. The final step in the start-up process is often the

a. development of partnerships.

a. launching the company.

b. obtaining venture capital.

c. securing government funding.

d. IPO.
64. Felix is an entrepreneur. At this stage of his company , his main concerns are do we have
enough customers and money. What stage of growth is Felix’s company in?

a. Start-up

b. Survival

c. Takeoff

d. Resource maturity

e. Success

65. Entrepreneurs take the risk of starting a business for all of the following reasons except:
a. they want independence.

b. they like the challenge and the risk.

c. they want to make money for themselves.

d. they want to work less.

66. Steve Jacobi is an entrepreneur to the max. Steve has started three businesses, two of which he
sold for a great deal of money. He is now involved in running his third business, with plans to
sell it shortly and start yet another one. When commenting on his success as an entrepreneur,
he says that once an idea comes to him, he just can’t wait to start working on it and bring it to
reality, and that is what he focuses on. Which of the traits of successful entrepreneurs does this
suggest is characteristic of Steve?

a. Action-oriented

b. Self nurturing

c. Self-directed

d. Tolerant of uncertainty

67. An entrepreneurial team is:

a. a group of people who work within a corporation to launch new products.


b. a group of experienced people who join together to develop and market a
new product.

c. a group from the Small Business Administration which consults with small
business owners.

d. a group of managers who get together to find creative solutions to problems.

68. Robert Vadera is a business owner who works from home as a freelance video producer. He
really enjoys his work, but isn’t looking to “set the world on fire” with his company. He just
wants to make a good living and spend time with his family when he can. Vadera would be
classified as a(n)

a. entrepreneur.

b. intrapreneur.
c. micropreneur.

d. venture capitalist.

69. An incubator is:

a. A government agency that advises and assists small businesses.

b. A program through which private investment companies licensed by the S.B.A. lend
money to small businesses.

c. A center that offers new businesses low-cost offices with basic business services.

d. A specific geographic area to which governments try to attract private businesses by


a variety of means.

70. Indrayani Jungle wants to start a small business importing some products from her native
Kenya. Before she starts, some good advice to Indrayani would be:

a. talk to others who have been or are in the import business.

b. get a loan right away.

c. find a business to buy as soon as possible.


d. incorporate immediately.

71. A business plan for a new business does not need to include:

a. a marketing plan.

b. a discussion of the purpose of the business.


c. a description of the company background.

d. the name of the lending bank.

72. The primary concerns when first starting your business are:

a. marketing and accounting.

b. planning and human resources.

c. financing and planning.

d. financing and marketing.


73. What are the primary sources of funding for entrepreneurs?

a. personal savings and individual investors

b. finance companies and banks

c. the Small Business Administration and banks

d. former employers and the Economic Development Authority

74. Kylie is employed by Street Wheels, a large corporation that produces accessories for
scooters, bicycles, and other children's vehicles. She is a creative force within the company
and has helped launch several new successful products. Kylie is a/an
. a. Intrapreneur.
b. Partner
c. Entrepreneur
d. Owner

75. Babba, a licensed real estate broker, received notification that his application for a business
loan was denied. The bank refused his request because he failed to provide a blueprint
identifying the intended target market and competitive strategy. In order secure a bank loan
Babba evidently needs a:

A) bankruptcy lawyer.

B) business plan.

C) venture capitalist.

D) loan advocate.

76. As a Ronnie searches for firms in need of additional funding to achieve their goals.
In return for his investment, Ronnie becomes a part owner in the business. Ronnie operates
as a(n):

A) investment analyst.

B) venture capitalist.

C) corporate raider. D) securities trader.


77. The resistance of employees in an organization against flexibility, growth, and
diversification can be overcome by developing:

Entrepreneurship

Intrapreneurship

Managerial domain

Administrative domain

78. Which one of the following is a barrier to new product creation and development?

Trial and error

Opportunity parameter

Opportunity cost

Intrapreneurship culture

79. Factors contribute to the creation of new venture EXCEPT:

Government

Finance

High interest rates

Role models

80. Which one of the following is the process of entrepreneurs developing new products that
over time make current products obsolete?

Creative destruction

New business model

Anatomization

None of the given options


81. An entrepreneur doing business within the national border is called:

International entrepreneurship

Intrapreneurship

Domestic entrepreneurship

Imports

82 Which of the following is alternatively called corporate venturing?

Entrepreneurship

Intrapreneurship
Act of stating a new venture

Offering new products by an existing company

83. In which of the following situation the company is considered to be on breakeven point?

No Profit no loss

Profits are higher then expenses

Expenses are higher then profits

None of the given options

84. Licensing is a significant marketing strategy to:

Use intellectual property of others

Pirate others’ patents

Grow the business in new markets


Control the costs

85. Which one of the following best represents the environment of an entrepreneurial
oriented organization?

Corporate culture

Entrepreneurial culture

Intrapreneurial culture

Traditional culture

86. Individuals who help the entrepreneur in business activities are called:

Role models
Moral support networks

Professional support networks

Business support networks

87. Which one of the following is a business arrangement in which someone else is allowed to use
something of the company?

Patent

Trade mark

Copy right

Licensing

88. A patent is granted for a specified amount of time because of the assumption:

That during this time firm will cover its development costs

That firm will earn a sufficient profit during this period

To limit the monopoly of the firm

That it will stimulate idea and development of a better product


89. Which of the followings give the owners a negative right, preventing anyone from making,
using, or selling the invention?

Patent

Copyright

Trade mark

Trade secret

90. Which one of the followings statements is NOT true about trademarks?

The entrepreneur cannot file after the mark already been in use

A trademark could be a slogan or a particular sound

Some trademarks have no relationship with the product

The filing date for the trademark becomes the first date use of the mark

91. Which one of the following is the main problem for the entrepreneur in the beginning stages
of creating a new venture?

Lack of experience

Limited resources

Lack of education

None of the given options

92. Which one of the factors should be considered while assessing the location for business?

Parking

Access from roadways to facility

Delivery rates
All of the given options

93. Which one of the following is a sound strategic option for an entrepreneur when synergy
is present?

Merger

Joint venture
Minority interest

Majority interest

94. 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

95. Kent is going to start his own business. He is concerned that the merchandise he wants to carry
will go out of style soon after opening his business. Which type of risk must he prepare for?

Human

Incompetence

Natural

Economic
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  1.  An individual who organizes or operates a business is known as ______

    

A.  employee

B.  entrepreneur

C.  speculator

D.  agent
  2.  The word entrepreneur has been derived from the French word which is called _______

    

A.  entroprenture

B.  entreprendure

C.  entreprenture

D.  ontreprendure
  3.  The resistance of employees in an organization against flexibility, growth and diversification can be overc

    

A.  Entrepreneurship

B.  Intrapreneurship

C.  Managerial domain

D.  Administrative domain
  4.  Entrepreneurs are never satisfied with traditional or existing sources of materials due to their _____

    

A.  unimaginative nature

B.  habitual nature

C.  traditional nature

D.  innovative nature     Correct answer


  5.  An individual who has prior business ownership experience is called a(n) ____________ entrepreneur.

    

A.  Novice

B.  Habitual

C.  Serial

D.  Portfolio
  6.  Which of the following is not one of the four phases of entrepreneurial development?

    

A.  The growth of the business

B.  The closure of businesses that are not sufficiently attractive

C.  The development of a business to exploit the opportunity

D.  The development of superior relationships with customers and suppliers


  7.  __________ is the ability to bring something new into existence from either an existing or new idea

    

A.  reality

B.  ability

C.  creativity     Correct answer

D.  capacity
  8.  Task presentation , Preparation , Incubation, Idea generation, Idea validation, Outcome assessment are all

    

A.  stages of creativity

B.  arena of creativity

C.  result of creativity

D.  loops of creativity
  9.  entrepreneurs are ________ in need-achievement
    

A.  low

B.  high

C.  average

D.  nutral
 10.  which of these is not a characteristic of an entrepreneur

    

A.  dependence

B.  vision

C.  value addition

D.  optimism
 11.  Entrepreneurs do not shoot in dark, they are not gamblers, Yes they do take risks but only __________ .

    

A.  calculated risk

B.  unspecified risk

C.  vague risk

D.  uncertain risk
 12.  entrepreneurship procedure is in which of these sequence ??
1. They see opportunities where others don’t. 
2. They have a ‘vision’, a clear understanding of the concept and of what they’re trying to do. 
3. They persuade others of their vision, they can communicate the concept effectively. 
4. They gather resources to make their vision become a reality (money, people, things). 
5. They organize these resources to create a new venture, product or market (leadership, teams). 
6. They constantly change/adapt themselves according to the changing demands of the market. 

    

A.  5>4>3>2>1>6

B.  1>3>2>5>4>6

C.  3>2>5>6>4>1

D.  1>2>3>4>5>6
 13.  What are the benefits of franchising?
    

A.  Overseas expansion with a minimum investment

B.  Franchisees’ profits tied to their efforts

C.  Availability of local franchisees’ knowledge

D.  All of these
 14.  Mc Donald is an example of _______.

    

A.  Contract

B.  Franchising

C.  Joint venture

D.  Agreement
E.
 15.  The combination of skills permits _______ in dealing with local market conditions and yet provides the pa
reasonable degree of control.

    

A.  Flexibility     Correct answer

B.  Non flexibility

C.  Only Non flexibility

D.  Both (Flexibility) and (Non flexibility)


 16.  What are the challenges in new product development?

    

A.  All of these

B.  Idea Generation

C.  Idea screening

D.  Commercialization

E.  Testing New Products in National Markets


 17.  Which of the following was used by Sunbeam Appliance Company to assist in redesigning its many lines o
appliances?
    

A.  consumer usage and attitude survey

B.  consumer attribute and benefit survey

C.  product line sales and market share simulations

D.  conjoint analysis

E.  All of these
 18.  ______ Is the starting point of the technology transfer process.

    

A.  Valorisation

B.  Detection

C.  Protection

D.  Exploitation
 19.  TTO stands for

    

A.  Technology Transfer offices

B.  Technological Transfer officers

C.  Transfer Technology offices

D.  None of these
 20.  Which theory assumes that the consumer is a rational decision maker with well-defined, stable preferences
skills to calculate which option will maximize his or her value and will choose on this basis?

    

A.  dual coding theory

B.  attribution theory

C.  rational choice theory     Correct answer

D.  calculated theory

E.  affect theory
 21.  A metagoal refers to _________ .

    
A.  None of these

B.  the overall amount of energy devoted to any given purchase

C.  the conscious thinking of all decision processes

D.  using nonfinancial criteria to make purchase decisions

E.  the general nature of the outcome being sought     Correct answer


 22.   A limited capacity for processing information is known as _____.

    

A.  bounded processing

B.  working memory

C.  bounded memory

D.  bounded rationality     Correct answer


 23.  In the context of public service, ________ aims at bringing the result of research laboratories to public use

    

A.  Technology transfer

B.  Inter regional exchange

C.  Detection

D.  Exploitation
 24.  ________ detection should also involve a first assessment of the commercial potential before taking the fu

    

A.  None of these

B.  Quality

C.  Quantity

D.  Both of these
 25.   Which of the following is a type of consumer choice process?

    

A.  attribute-based choice

B.  affective choice
C.  attitude-based choice

D.  (affective choice), (attitude-based choice) and (attribute-based choice)     Correct answer

E.  (affective choice) and (attitude-based choice)

1. 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

2. In some countries, points of purchase displays are not allowed in retail stores. Such differences
are studied by international entrepreneurs under __________ environment.
a)      Economic

b)      Political

c)      Cultural

d)     Technological

3. 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 merge

4. The development of a new venture based on an inventor's work often requires   ________.
a)      Expertise of an entrepreneur

b)      Heavy investment from financers

c)      Skilled human resources

d)     Highly educated staff


5. A business where an individual is both the owner and conductor of the business affairs is
called__________________.
a)      Sole Proprietorship

b)      Partnership

c)      Corporation

d)     None of the above

6. In __________________, the entrepreneur has the right to sell any assets.


a)      Proprietorship

b)      Partnership

c)      Limited Liability Company

d)     None of the given options

7. The idea and actions that explain how a firm will make its profits refers to
a)      Mission

b)      Goal

c)      Strategy

d)     Objective

8. Entrepreneurs are best as ________________

a)      Managers

b)      Venture capitalists

c)      Planners

d)     Doers

9. Entrepreneurs and ventures capitalists:

a)      Get along well

b)      Are the best friends

c)      Are cordial friends

d)     Are in conflict
10. _________________ is one method of stimulating, and then capitalizing on, individuals in an
organization who think that something can be done differently and better.
a)      Strategic Orientation

b)      Capitalization

c)      Intrapreneurship

d)     Management

11. The _______ plan shows whether the business is economically feasible or not. a. Financial

b. Business

c.  Economic

d.  Marketing

12. In which of the following, the ownership of venture is reflected by ownership of shares of
stock?

a)      Partnership

b)      Limited partnership

c)      Corporation

d)     Proprietorship

13. 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

14. The small business ‘owner-manager’ is always the founder of the business:


a)      True

b)     False (A management buyout is an example of a business where the owner-manager


would probably not have been the founder)
15. Which of these statements best describes the context for entrepreneurship:
a)      Entrepreneurship takes place in small businesses

b)      Entrepreneurship does not take place in social enterprises

c)      Entrepreneurship takes place in a wide variety of contexts

d)     Entrepreneurship takes place in large businesses

16. Which of the following are described as one of the ‘Big Five’ personality traits?
a)      propensity to leadership

b)     need for achievement

c)      extravert personality

d)     tolerance of others

17. 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.

18. 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.

19. MSMED stands to ___________


a)      Micro, Small & Medium Enterprises Development

b)      Mini, Small & Medium Enterprises Development

c)      Micro, Small & Medium Entrepreneurship Development


d)     Micro, Small & Medium Enterprises Department

20. Which of the following is an internal factor that influences entrepreneurs?


a)      Technological Capacity

b)      Social environment

c)      Political environment

d)     Economic condition

21.__________________ requires proper review and reconsideration of the selected alternative


before implementing it.
a)      Developing possible alternatives

b)      Selecting the best alternative

c)      Checking the decision

d)     Exploring the developed alternatives

22. Which one of the following is an economic barrier to an entrepreneur?


a)      Emotional blocks

b)     Labour

c)      Lack of sustained motivation

d)     lack of vision

23. Which of the following enterprises was found by Akio Morita?


a)      Samsung

b)      Apple

c)      Panasonic

d)     Sony

24. ________________ can be defined as psychological features that enable an individual to take
action toward a desired goal?
a)      Motive

b)      Trait

c)      Attitude

d)     Ego
25. ___________ implies that women entrepreneurs are now economically independent and
take decisions independently.

a)      Better utilization of resources

b)     Improved quality life

c)      Economic development

d)     Employment generation

26. Financial feasibility analysis can be done by comparing ______________ with the estimated
sales figure.
a)      cash flow statement

b)     balance sheet

c)      break-even point

d)     profit and loss statement

27. Which of the following is not considered while selecting the region?


a)      Law and order

b)     Price of land

c)      Availability of raw materials

d)     Proximity to the product market

28. Which one of the following is the step involved in setting up a new enterprises?
a)      Creating a business plan

b)      Making a product choice

c)      Selecting the location

d)     Setting up infrastructure

29. The parties involved in franchise business are ___________.


a)      1

b)     2

c)      3

d)     5

30. If someone starts a new business that is a service station, this is an example of a(n):
a)      new concept/new business.

b)      new concept/existing business

c)      existing concept/new business.

d)     existing concept/existing business.

Question No: 1
Which of the following shows the process of creating something new?
a) Business model
b) Modeling
c) Creative flexibility
d) Innovation

Question No: 2
Which one of the following gives suggestions for new product and also help to market new
products?
a) Existing products and services
b) Federal government
c) Distribution Channels
d) Consumers

Question No: 3
Which of the following is used by entrepreneurs to acquire experience in an international market
before making a major commitment?
a) Merger
b) Minority Interest
c) Joint venture
d) Majority interest

Question No:4
GATT is established in 1947, under:
a) German leadership
b) U.S. leadership
c) French leadership
d) U.K. leadership

Question No: 5
The entrepreneur was distinguished from capital provider in:
a) Middle ages
b) 17th century
c) 18th century
d) 19th and 20th century
Question No: 6
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

Question No: 7
What is the process by which individuals pursue opportunities without regard to resources they
currently control?
a) Startup management
b) Entrepreneurship
c) Financial analysis
d) Feasibility planning

Question No: 8
Having less than 50 percent of equity share in an international venture is called:
a) Joint Venture
b) Majority interest
c) Minority interest
d) Exporting

Question No: 9
Having more than 50% ownership position that provides the entrepreneur with managerial control
is called:
a) Joint venture
b) Majority interest
c) Horizontal merger
c) Diversified activity merger

Question No: 10 –
Which one of the following is the process of entrepreneurs developing new products that over
time make current products obsolete?
a) New business model
b) Anatomization
c) None of the given options
d) Creative destruction

Question No: 11
Which of the following factors is the most important in forcing U.S companies to focus on new
product development and increased productivity?
a) Entrepreneurship
b) Hyper competition
c) Governmental laws
d) Organizational culture

Question No: 12
Which of the following is alternatively called corporate venturing?
a) Entrepreneurship
b) Intrapreneurship
c) Act of stating a new venture
d) Offering new products by an existing company

Question No: 13
Individuals influencing an entrepreneur’s career choice and style are known as which of the
following?
a) Moral-support network
b) Role model
c) Professional support network
d) Support system

Question No: 14
The activity which occurs when the new venture is started is called:
a) Motivation
b) Business skills
c) Departure point
d) Goal orientation

Question No: 15
The level at which an individual is viewed by society is called:
a) Financial status
b) Qualification
c) Social status
d) Achievement

Question No: 16
Which one of the following is an important source of idea generation due to their familiarity with
the needs of market?
a) Existing products and services
b) Distribution channels
c) Federal government
d) Consumers

Question No: 17
Members of distribution channels are excellent sources for new ideas because:
a) They earn a handsome profit from new business
b) They are familiar with the needs of the market
c) They do not bother if entrepreneur bears a loss
d) They have well-developed sales force

Question No: 18
Which one of the following is the most important characteristic of a successful business website?
a) Innovation
b) Speed
c) Graphics
d) Products

Question No: 19

Which one of the following is the next stage to the Concept Stage of Product Planning and
Development Process?
a) Idea Stage
b) Product Planning Stage
c) Product Development Stage
d) Test Marketing Stage

Question No: 20
SBA stands for:
a) Small business accountants
b) Small business administration
c) Small business adequacy
d) Small business advisors

Question No: 21
Why should an entrepreneur do a feasibility study for starting a new venture
a) To identify possible sources of funds
b) To see if there are possible barriers to success
c) To estimate the expected sales
d) To explore potential customers

Question No: 22
Information regarding all of the following is related to operations, EXCEPT:
a) Location
b) Promotion
c) Raw materials
d) Labor skills
Question No:23
A performance and credit rating scheme has been launched by the MSME Ministry to assess
creditworthiness and capabilities of industries in the sector. What is it called?

(a) Performance and Credit Rating Scheme


(b) Zero Defect Zero Effect Certification
(c) Performance and Economy Rating Scheme
(d) None of the above

Question No: 24
A Micro Enterprise is an enterprise where investment in plant and machinery does not exceed
(According to MSMED Act, 2006):
(a) Rs. 15 Lakh
(b) Rs. 20 Lakh
(c) Rs. 25 Lakh
(d) Rs. 30 Lakh

Question No: 25
EDP (Entrepreneurship Development Programmes) is required to help:
(a) Existing entrepreneurs
(b) First generation entrepreneurs
(c) Future generations entrepreneurs
(d) None of the above

Question No: 26
A corporate manager who starts a new initiative for their company which entails setting up a new
distinct business unit and board of directors can be regarded as?
(a) Ecopreneur
(b) Technopreneur
(c) Intrapreneur
(d) Social Entrepreneur

Question No: 27
A women entrepreneur is supposed to have a minimum financial interest in share capital of
entrepreneur’s enterprise:
(a) 35 per cent
(b) 51 per cent
(c) 25 per cent
(d) None of the above
Question No: 28
Family business always interested to handover the change of his business to:
(a) Indian Administration Officers
(b) Professional Managers
(c) Next generation
(d) None of the above

Question No: 29
A corporate manager who starts a new initiative for their company which entails setting up a new distinct
business unit and board of directors can be regarded as?
(a) Ecopreneur
(b) Technopreneur
(c) Intrapreneur
(d) Social Entrepreneur

Question No: 30
Venture capital is concerned with:

(a) New project having potential for higher profit


(b) New project of high technology
(c) New project having high risk
(d) All the above.

13-1. 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.

The question was not answered. The correct answer is "d".

13-2. 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.

The question was not answered. The correct answer is "b".

13-3. It is estimated that approximately _____ percent of small businesses fail within
the first five years.

a. 10.
b. 25.
c. 50.
d. 75.

The question was not answered. The correct answer is "d".

13-4. Which of the following is not a personal characteristic often found in an


entrepreneur?

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

The question was not answered. The correct answer is "d".

13-5. 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.

The question was not answered. The correct answer is "b".

13-6. 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.

The question was not answered. The correct answer is "d".


13-7. 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.

The question was not answered. The correct answer is "c".

13-8. According to the textbook, which of the following management functions is the
least well done?

a. planning.
b. organizing.
c. leading.
d. controlling.

The question was not answered. The correct answer is "a".

13-9. 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.

The question was not answered. The correct answer is "c".

13-10. 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.

The question was not answered. The correct answer is "d".

13-11. 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.
The question was not answered. The correct answer is "c".

13-12. A person within a company who takes a leadership role and is positioned to
help ensure the success of an idea or innovation is often referred to as a:

a. supporter.
b. champion.
c. leader.
d. evangelist.

The question was not answered. The correct answer is "b".

13-13. 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.

The question was not answered. The correct answer is "d".

13-14. Who said that the job of the entrepreneur is "creative destruction"?

a. Peter Drucker.
b. Pierre Trudeau.
c. Joseph Schumpeter.
d. Brian Mulroney.

The question was not answered. The correct answer is "c".

13-15. All of the following were invented by a Canadians except:

a. IMAX multiscreen projection.


b. snowmobile.
c. twin engine airplane.
d. post-it note.

The question was not answered. The correct answer is "d".

Question No: 1
Which of the following shows the process of creating something new?
► Business model
► Modeling
► Innovation
► Creative flexibility
Reference:
(page # 4)
Innovation, the act of introducing something new,
Question No: 2

Which one of the following gives suggestions for new product and also help to market new
products?
► Existing products and services
► Distribution channels
► Federal government
► Consumers
Reference & Explanation:
(Page # 39 of handouts)
Consumers Potential entrepreneurs should pay close attention to the final focal point of a new product-
the customer. This can be an informal or formal survey of consumers expressing their opinions. Care
should be taken to ensure that the idea represents a large enough market.
Existing Companies Entrepreneurs should establish a formal method for monitoring and evaluating the
products and services in the market. This may uncover ways to improve on present products, resulting in
new product ideas.
Distribution Channels
Members of distribution channels are also excellent sources for new ideas because they are familiar with
the needs of the market. Not only do channel members frequently have suggestions for new product,
but they can also help in marketing the entrepreneur’s newly developed products.
Federal Government
The federal government can be source of new product ideas in two ways. First the files of the Patent
Office contain numerous new product possibilities. Although the patents may not be feasible new
product introduction, they can suggest other marketable product ideas. Several government agencies and
publications are helpful in monitoring patent applications. Second new product ideas can come in
response to government regulations. For example the Occupational Safety and Health Act (OSHA),
aimed at eliminating unsafe working condition in industry, mandated that first aid kits be made available
in business establishments employing more than three people. The kit had to contain specific item that
varied according to the company and the industry. In response to OSHA, both established and newly
formed ventures marketed a wide variety of first aid kits.
Question No: 3

Which of the following is used by entrepreneurs to acquire experience in an international market


before making a major commitment?
► Merger
► Joint venture
► Minority interest
► Majority interest
Reference & Explanation:
(http://books.google.com.pk/books?
id=s01P0agnLPUC&pg=PA94&lpg=PA94&dq=Which+of+the+following+is+used+by+entrepreneurs+t
o+acquire+experience+in+an+international+market+before+making+a+major+commitment&source=bl
&ots=rCNwzr1ZA_&sig=jOefpOz349LldzTxKVQZ_kLb1fg&hl=en&ei=L47FS6i5OaXCmgP_r_XLDg
&sa=X&oi=book_result&ct=result&resnum=4&ved=0CBMQ6AEwAw#v=onepage&q&f=false )
(http://books.google.com.pk/books?id=Uvdw6E2-
1aIC&pg=PA203&lpg=PA203&dq=minority+interest+is+used+by+entrepreneurs+to+acquire+experienc
e+in+an+international+market+before+making+a+major+commitment&source=bl&ots=3tA-
y_kn4K&sig=Nt4k8-ZGwnTlYndb9RkicLgYlF8&hl=en&ei=9JvFS-
ncIsnbsAbfuPzAAQ&sa=X&oi=book_result&ct=result&resnum=6&ved=0CBoQ6AEwBQ#v=onepage
&q=minority%20interest%20is%20used%20by%20entrepreneurs%20to%20acquire%20experience
%20in%20an%20international%20market%20before%20making%20a%20major
%20commitment&f=false )
Note: Sorry we are unable to copy the reference text,
Question No:4

GATT is established in 1947, under:


► German leadership
► French leadership
► U.S. leadership
► U.K. leadership
Reference and Explanation:

GATT 1947 in the US

The GATT, as an international agreement, is a treaty. Under United States law it is classified as a
congressional-executive agreement. Based on the Reciprocal Trade Agreements Act it allowed the
executive branch negotiating power over trade agreements with temporary authority from Congress. At
the time it functioned as a provisional, but promising trade system.

(http://en.wikipedia.org/wiki/General_Agreement_on_Tariffs_and_Trade)
Question No: 5

The entrepreneur was distinguished from capital provider in:


► Middle ages
► 18th century
► 17th century
► 19th and 20th century
Referece and Explanation:
(Page # 3 of handouts)
Middle Ages
In this age the term entrepreneur was used to describe both an actor and a person who managed large
production projects. In such large production projects, this person did not take any risks, managing the
project with the resources provided. A typical entrepreneur was the cleric who managed architectural
projects.
18th Century
In the 18th century the person with capital was differentiated from the one who needed capital. In other
words, entrepreneur was distinguished from the capital provider.
17th Century
In the 17th century the entrepreneur was a person who entered into a contract with the government to
perform a service Richard Cantillon, a noted economist of the 1700s, developed theories of the
entrepreneur and is regarded as the founder of the term. He viewed the entrepreneur as a risk taker who
"buy[s] at certain price and sell[s] at an uncertain price, therefore operating at a risk."
19th and 20th Centuries
In the late 19th and early 20th centuries, entrepreneurs were viewed mostly from an economic
perspective. The entrepreneur "contributes his own initiative, skill and ingenuity in planning, organizing
and administering the enterprise, assuming the chance of loss and gain."
Question No: 6

A person who managed large project was termed as the entrepreneur in the _________.
► Earliest period
► Middle ages
► 17th century
► 19th and 20th century
Referece and Explanation:
(Page # 3 of handouts)
Earliest Period
In this period the money person (forerunner of the capitalist) entered into a contract with the go-
between to sell his goods. While the capitalist was a passive risk bearer, the merchant bore all the
physical and emotional risks.
Middle Ages
In this age the term entrepreneur was used to describe both an actor and a person who managed large
production projects. In such large production projects, this person did not take any risks, managing the
project with the resources provided. A typical entrepreneur was the cleric who managed architectural
projects.
17th Century
In the 17th century the entrepreneur was a person who entered into a contract with the government to
perform a service Richard Cantillon, a noted economist of the 1700s, developed theories of the
entrepreneur and is regarded as the founder of the term. He viewed the entrepreneur as a risk taker who
"buy[s] at certain price and sell[s] at an uncertain price, therefore operating at a risk."
19th and 20th Centuries
In the late 19th and early 20th centuries, entrepreneurs were viewed mostly from an economic
perspective. The entrepreneur "contributes his own initiative, skill and ingenuity in planning, organizing
and administering the enterprise, assuming the chance of loss and gain."
Question No: 7

What is the process by which individuals pursue opportunities without regard to resources they
currently control?
► Startup management
► Entrepreneurship
► Financial analysis
► Feasibility planning
Reference & Explanation:
Entrepreneurship is a process by which individuals - either on their own or inside organizations - pursue
opportunities without regard to the resources they currently control. (Stevenson & Jarillo, 1990, p. 23)
(http://findarticles.com/p/articles/mi_hb6648/is_n3_v19/ai_n28666393/)
Stevenson's definition would be as follows: The continuous process by which individuals pursue
opportunities without regard to resources they currently control, with the intent of increasing value
and/or advantage. I have made the underlined additions because entrepreneurship should never be
considered a single event. It is a continuing, non–ending process in search of increasing value and ever
increasing advantage.
(http://www.babson.edu/entrep/fer/papers97/mitton/mit6.htm)

Question No: 8

Having less than 50 percent of equity share in an international venture is called:

► Minority interest
► Joint venture

► Majority interest

► Exporting

Reference:

(page # 36)

Minority interest

Having less than 50 percent ownership position

Question No: 9

Having more than 50% ownership position that provides the entrepreneur with managerial
control is called:

► Joint venture

► Majority interest

► Horizontal merger

► Diversified activity merger

Reference:

(Page # 34)

Majority interest

Having more than 50 percent ownership position

Question No: 10 - (

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 of the given options
Reference :
Creative destruction occurs when something new kills something older. A great example of this is
personal computers. The industry, led by Microsoft and Intel, destroyed many mainframe computer
companies, but in doing so, entrepreneurs created one of the most important inventions of this century
(http://www.investopedia.com/terms/c/creativedestruction.asp)

(http://wps.prenhall.com/bp_barringer_entrep_1/29/7476/1913875.cw/content/index.html)
Question No: 11

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
Reference:
(page # 16)
Hyper competition has forced U.S. companies to focus on new product development and increased productivity.
Question No: 12

Which of the following is alternatively called corporate venturing?


► Entrepreneurship
► Intrapreneurship
► Act of stating a new venture
► Offering new products by an existing company
Reference:
(Page # 21)
Intrapreneurship, also called corporate venturing,
Question No: 13
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
Reference:
(Page # 25)
Role models
Individuals influencing an entrepreneur’s career choice and style
Moral-support network
Individuals who give psychological support to an entrepreneur
Professional-support network
Individuals who help the entrepreneur in business activities
Question No: 14

The activity which occurs when the new venture is started is called:
► Motivation
► Business skills
► Departure point
► Goal orientation
Reference:
(Page # 23)
Departure points
The activities occurring when the venture is started
Question No: 15
The level at which an individual is viewed by society is called:
► Financial status
► Qualification
► Social status
► Achievement
Reference:
(Page # 25)
Social status
The level at which an individual in viewed by society
Question No: 16

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
Reference & Explanation:
(Page # 39 of handouts)
Consumers Potential entrepreneurs should pay close attention to the final focal point of a new product-
the customer. This can be an informal or formal survey of consumers expressing their opinions. Care
should be taken to ensure that the idea represents a large enough market.
Existing Companies Entrepreneurs should establish a formal method for monitoring and evaluating the
products and services in the market. This may uncover ways to improve on present products, resulting in
new product ideas.
Distribution Channels
Members of distribution channels are also excellent sources for new ideas because they are familiar
with the needs of the market. Not only do channel members frequently have suggestions for new
product, but they can also help in marketing the entrepreneur’s newly developed products.
Federal Government
The federal government can be source of new product ideas in two ways. First the files of the Patent
Office contain numerous new product possibilities. Although the patents may not be feasible new
product introduction, they can suggest other marketable product ideas. Several government agencies and
publications are helpful in monitoring patent applications. Second new product ideas can come in
response to government regulations. For example the Occupational Safety and Health Act (OSHA),
aimed at eliminating unsafe working condition in industry, mandated that first aid kits be made available
in business establishments employing more than three people. The kit had to contain specific item that
varied according to the company and the industry. In response to OSHA, both established and newly
formed ventures marketed a wide variety of first aid kits.
Question No: 17

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
Reference & Explanation:
(Page # 39 of handouts)
Consumers Potential entrepreneurs should pay close attention to the final focal point of a new product-
the customer. This can be an informal or formal survey of consumers expressing their opinions. Care
should be taken to ensure that the idea represents a large enough market.
Existing Companies Entrepreneurs should establish a formal method for monitoring and evaluating the
products and services in the market. This may uncover ways to improve on present products, resulting in
new product ideas.
Distribution Channels
Members of distribution channels are also excellent sources for new ideas because they are familiar
with the needs of the market. Not only do channel members frequently have suggestions for new
product, but they can also help in marketing the entrepreneur’s newly developed products.
Federal Government
The federal government can be source of new product ideas in two ways. First the files of the Patent
Office contain numerous new product possibilities. Although the patents may not be feasible new
product introduction, they can suggest other marketable product ideas. Several government agencies and
publications are helpful in monitoring patent applications. Second new product ideas can come in
response to government regulations. For example the Occupational Safety and Health Act (OSHA),
aimed at eliminating unsafe working condition in industry, mandated that first aid kits be made available
in business establishments employing more than three people. The kit had to contain specific item that
varied according to the company and the industry. In response to OSHA, both established and newly
formed ventures marketed a wide variety of first aid kits.
Question No: 18

Which one of the following is the most important characteristic of a successful business website?
► Speed
► Innovation
► Graphics
► Products
Reference:
(Page # 44)
A successful website has three characteristics: speed, speed, and speed. Short download time should be the
primary concern of website developers.
Question No: 19

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
Reference:
(Page # 45)
Product planning and development process
Generally divided into five major stages: idea stage, concept stage, product development stage, test marketing
stage, and commercialization stage
Question No: 20 (

SBA stands for:


► Small business accountants
► Small business administration
► Small business adequacy
► Small business advisors
Reference:
(Page # 81, Lecture 32)
Small Business Administrative (SBA)
Question No: 21

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
Reference:
(Page # 56, Lecture # 22)
Before preparing a business plan, the entrepreneur should do a quick feasibility study to see if there are possible
barriers to success. The entrepreneur should clearly define the venture’s goals, which provide a framework for the
business plan. The business plan must reflect reasonable goals.
Question No: 22

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


► Location
► Promotion
► Raw materials
► Labor skills
Reference:
(Page # 56, Lecture # 22)
Operations Information Needs

The entrepreneur may need information on:

1. Location

2. Manufacturing operations

3. Raw materials

4. Equipment

5. Labor skills

6. Space

7. Overhead
Question No: 23

For which of the following copy right acquisition is desirable?


► Songs
► Poems
► Models
► All of the given options
Reference:
all above thing even downloading books form internet is protected by copy rights except vu past papers
.heheehe
Question No: 24

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
Reference:
(Page # 47)
Disclosure of the invention, giving recognition that he or she was the first to develop the idea.
Question No: 25 (

In the administrative domain, the commitment of resources is for which of the following?

► Periodic intervals
► Total amount needed
► For certain tasks
► For long time
Reference:
Commitment of Resources
An entrepreneur is used to having resources at periodic intervals that are often based on certain tasks or
objects being reached. These resources, often acquired from others, are usually difficult to obtain, forcing
the entrepreneur to maximize any resources used. This multistage commitment allows the resource
providers (such as venture capitalist or private investors) to have as small an exposure as possible at each
stage of business development and to constantly monitor and track record being established. Even though
the funding may also be implemented in stages in the administrative domain, the commitment of the
recourses is for the total amount needed. Administratively oriented individuals respond to the resources
of the rewards offered and receive personal rewards by effectively administering the resources under this
control.
(http://books.google.com/books?
id=s01P0agnLPUC&pg=PA42&lpg=PA42&dq=In+the+administrative+domain,
+the+commitment+of+resources+is+for+which+of+the+following&source=bl&ots=rCNwzs25w3&sig=
08Tdnkl46ViZSrIM4ti5s0QNRPk&hl=en&ei=JLzFS4bNJY-
TsQadsJHBAQ&sa=X&oi=book_result&ct=result&resnum=1&ved=0CAYQ6AEwAA#v=onepage&q&
f=false )

Question No: 26 ( Marks: 1 ) - Please choose one

Which of the following is a method of selling goods to another country by taking care of
transactions?

► Indirect exporting

► Direct exporting

► Importing

► Management contract

Reference:

(Page # 30)

Direct exporting  through independent distributors or through one’s own overseas sales office is another
entry method. An independent foreign distributor directly contacts foreign customers and takes care of
all technicalities.
Question No: 27 ( Marks: 1 ) - Please choose one

Gazelles are the firms with:

► High growth rate

► Moderate growth rate

► Zero growth rate

► Low growth rate

Reference:

(page # 7)

Gazelles

Very high growth ventures.

Question No: 28 ( Marks: 1 ) - Please choose one

Which of the following are the Fast-growth young companies?

► Gazelles

► Life style

► Foundation Company

► None of the given options

Reference:

(page # 8)

A venture has high growth potential and therefore receives great investor interest. The company may
start out like a foundation company, but its growth is far more rapid. After five to ten years the
company could employ around 500 employees. These firms are also called gazelles and are most
important for the economic development of an area

Question No: 29 ( Marks: 1 ) - Please choose one

Which of the following factor has allowed small companies to act like they are big ones?

► Technology

► Customers

► Economic development
► Competition

Reference:

(Page #21)

A company needs to use technology to make itself faster and more flexible. Technology has allowed
small companies to act like they are big ones. Large companies can use technology to make them
responsive and flexible

Dr.G.R.Damodaran College of Science (Autonomous, affiliated to the Bharathiar University, recognized


by the UGC)Reaccredited at the 'A' Grade Level by the NAAC and ISO 9001:2008 Certified CRISL
rated 'A' (TN) for MBA and MIB Programmes III B.COM (IT) [2017-2020] SEMESTER VI ELECTIVE
II- ENTREPRENEURIAL DEVELOPMENT- 615U1 Multiple Choice Questions. 1. An individual who
initiates, creates and manages a new business can be called_______ A. A leader. B. . A manager. C. A
professional. D. An entrepreneur ANSWER: D 2. A person owning and running a small firm, is known
as________ A. . A manager-owner. B. An owner-manager . C. A professional adapter. D. An enterprise
worker. ANSWER: B 3. Someone who improves an existing business can be called _________ A. An
intrapreneur B. A professional C. A co-worker. D. A changeling. ANSWER: A 4. Where individual
skills are collectively integrated into a group, this is known as __ A. Collective entrepreneurship B.
Intrapreneurship. C. Team entrepreneurship D. Dual innovation. ANSWER: C 5. An entrepreneur that
buys and sells collectibles such as ____________ antique furniture or art works, can be referred to as
what type of entrepreneur A. An innovator. B. A researcher C. A speculator. D. An acquirer. ANSWER:
C 6. 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 ANSWER: C 7. 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. . Being made redundant
from existing job D. All the above. ANSWER: D 8. The T in a PESTLE analysis refers to ___________
A. Time. B. Technology. C. Training. D. Talent. ANSWER: B 9. 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 10. Which of the following
government actions could contribute to a more entrepreneurial society A. Deregulation. B. Financial
start-up. C. Information and advice D. All the above. ANSWER: D 11. 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 12. Intellectual Property laws can protect _________ A. Trademarks. B. Copyright. C.
Patents. D. All the above. ANSWER: D 13. 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 14. The use of informal networks by entrepreneurs to gather information is known
as _______ A. Secondary research. B. Entrepreneurial networking. C. Informal parameters. D. Marketing
data. ANSWER: B 15. Acquiring the use of equipment such as machinery without owning it is known
as_________ A. Leasing B. Hire purchase. C. Factoring. D. Acquisition. ANSWER: A 16. Which type
of business should prepare a business plan for a new venture _________ A. Sole traders only. B. Limited
companies only. C. All businesses. D. Only those asked to by the bank. ANSWER: D 17. Which key
stakeholders will probably ask to view the business plan for a new Venture A. Bank. B. Investors. C.
Suppliers. D. All the above. ANSWER: D 18. A cash flow forecast will form part of which section of the
business plan ______ A. Operations. B. Marketing. C. Finance. D. Executive summary. ANSWER: C 19.
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
20. A business plan should be produced ___________ A. at a new business start-up. B. as part of an on-
going review. C. when the entrepreneur is faced with a major decision D. all the above. ANSWER: D 21.
business planning process sometimes fails because _______ A. the planning process is poorly managed
B. plans are impractical C. planners lack the appropriate skills. D. all the above. ANSWER: D 22. One of
the common mistakes when starting a new business venture is being overoptimistic about market size.
This could be a result of __________ A. proper planning B. poor market research C. diversifying too
soon. D. focusing on sales volume rather than profit. ANSWER: B 23. Which one of the following is not
a factor of production A. Capital. B. E-business. C. Physical resources. D. Labour. ANSWER: B 24. One
of the five factors of production, the term _____ refers to a company's employees A. human resources. B.
entrepreneurs. C. information resources. D. physical resources. ANSWER: A 25. 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 seekin work C. The number of people who are not
actively seekin work. D. The number of people actively seeking work who find work. ANSWER: B 26.
The importance of intellectual property should be understood by entrepreneur even before _________ A.
hiring a manager. B. . engaging an attorney. C. developing a product. D. establishing new venture.
ANSWER: C 27. 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 28. 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 29.
Entrepreneurs are motivated by _________ A. money. B. personal values C. pull influences. D. All the
above. ANSWER: D 30. The sociological theory of entrepreneurship refers to ________ A. Looking at
individuals personality traits. B. Understanding how our thought processes influence our entrepreneurial
capacity. C. Describing how different business-types influence entrepreneurial activity. D. Reviewing the
way in which the environment influences who becomes entrepreneurial. ANSWER: D 31. 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 32.
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 33. Which of
the following best describes the nature of a market A. a place where people talk to each other. B. the
various organisations that produce a particular product or service. C. . existing or potential customers for
a given product or service. D. the ways in which businesses reach their customers. ANSWER: C 34.
Which of the following is usually not a barrier to market entry for a small firm A. economy of scale. B.
good ideas. C. switching costs. D. access to distribution. ANSWER: B 35. 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 36. Which of the following statements most
accurately describes innovation A. Innovation is an absolute not a relative concept B. Innovation is easy
to measure. C. Innovation is much more important to small busineses than to large businesses. D.
Innovation is a relative not an absolute concept. ANSWER: D 37. Primary data is________ A. 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 38. 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 39. 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 40.
Which of the list below does not form Intellectual Property A. Trade marks. B. Patents. C. Tangible
assets D. Copyright. ANSWER: C 41. 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 42. An entrepreneur who runs a business sells it and moves onto another venture
in a relatively short time is called _______________ A. a failed entrepreneur. B. a serial entrepreneur. C.
a multiple entrepreneur D. secondary entrepreneur ANSWER: B 43. 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 44. SFC stands
for____________ A. State financial committee. B. State funding corporation C. State finance
corporation. D. State funding committee. ANSWER: C 45. State Industrial corporations engage in the
development of__________ A. industrial estates. B. institutional estates. C. individual investors. D.
agricultural entrepreneurs ANSWER: A 46. 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 47. IFCI was established in the
year___________ A. 1985. B. 1984. C. 1980. D. 1987. ANSWER: B 48. IFCI provides____________ A.
medium term credit. B. short term credit. C. medium and long term credit. D. long term credit.
ANSWER: C 49. IFCI has been converted into a________ A. joint stock company. B. co-operative
society. C. partnership firm. D. sole proprietorship. ANSWER: A 50. Assistance from IFCI is available
for_________ A. setting up of new industrial projects B. expansion of existing units. C. renovation and
modernization. D. All of the above. ANSWER: D 51. SIDBI stands for __________ A. Small institutions
development bank of India. B. Small industries development bank of India C. Small industries
derivatives bank of India. D. Small industries development bureau of India. ANSWER: A 52. SIDBI was
set up as a subsidiary of_________ A. IDBI. B. IFCI. C. ICICI. D. . SFC. ANSWER: A 53. The initial
authorized capital of SIDBI is________ A. Rs. 350 crores. B. Rs. 450 crores. C. Rs. 250 crores. D. Rs.
150 crores. ANSWER: C 54. 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 55. Financial
resources of SFCs consist of__________ A. paid up capital. B. reserve funds. C. borrowings from RBI.
D. All the above. ANSWER: D 56. SFCs assistance to technically qualified people without enough funds
is known as __________ A. seed capital scheme. B. capital assistance scheme. C. technical entrepreneurs
scheme. D. investment scheme. ANSWER: A 57. SFC Act was amended in the year __________ A.
1970. B. 1971. C. 1972. D. 1973. ANSWER: C 58. 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 59. The loans given by SFCs are usually for a period upto
__________ A. 8 or 10 years. B. 10 or 12 years. C. 12 or 14 years. D. 14 or 16 years. ANSWER: B 60. A
concessional rate of interest is charged by SFC in case of__________ A. small scale industries. B. . units
in backward areas. C. units set up by technical entrepreneurs D. All the above. ANSWER: D 61. SIDC
stands for __________ A. State industrial development corporation. B. Small industries development
corporation C. State institutional development corporation. D. Small institutional development
corporation. ANSWER: A 62. SIDC was set up under the__________ A. Co-operative societies Act. B.
Companies Act. C. Industries Act. D. Partnership Act. ANSWER: B 63. The financial resources of SIDC
consist of __________ A. paid-up capital. B. loans from State govt. C. refinance from RBI. D. All of the
above. ANSWER: D 64. SIPCOT stands for ___ A. Small industries promotion corporation of Tamil
Nadu limited B. Small institutes promotion corporation of Tamil Nadu limited. C. State industries
promotion corporation of Tamil Nadu limited. D. Small institutes promotion corporation of Tamil Nadu
limited. ANSWER: C 65. SIPCOT was set up in__________ A. 1970. B. 1971. C. 1972. D. 1973.
ANSWER: B 66. SIPCOT is wholly owned by the __________ A. Government of Karnataka. B.
Government of Andhra Pradesh. C. Government of Kerala. D. Government of Tamil Nadu. ANSWER: D
67. SIPCOT is a __________ A. public limited company B. private limited company C. co-operative
society. D. partnership firm. ANSWER: A 68. SIPCOTs 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 69. SIPCOT commenced its activities in __________ A. January 1972. B. February 1972.
C. March 1972. D. April 1972. ANSWER: A 70. SIPCOT has set up a ________ to provide guidance to
entrepreneurs A. data bank. B. . information bank. C. answer bank. D. Question bank. ANSWER: A 71.
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 72. TIIC
stands for __________ A. Tamil Nadu industrial investment corporation limited B. Tamil Nadu
institutional investment corporation limited C. Tamil Nadu industrial investment committee limited. D.
Tamil Nadu institutionall investment committee limited. ANSWER: A 73. 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 74. __________ is the first state level financial
institution in the country A. TIIC. B. SFC. C. SIDBI. D. SIDC. ANSWER: A 75. TIIC was started in
__________ A. 1946. B. 1947. C. 1948. D. 1949. ANSWER: D 76. There are __________ TIIC
branches in Tamil Nadu A. 15. B. 20. C. 18. D. 17. ANSWER: A 77. TIIC offers assistance to
__________ A. tiny units. B. small scale units. C. medium scale units. D. all the above. ANSWER: D 78.
TIIC will not consider financial assistance when the project cost exceeds __________ A. 1crore. B.
3crores. C. 5crores. D. 6crores. ANSWER: B 79. TIIC does not provide loan for __________ A. working
capital B. acquisition of land. C. expansion and diversification D. modernization. ANSWER: A 80. RCI
stands for __________ A. Re-investment corporation of India. B. Re-investment committee of India. C.
Refinance corporation of India. D. Refinance committee of India. ANSWER: C 81. 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 82. Refinance to commercial banks
is granted only for loans ranging between __________ A. 1 and 5 years. B. 3 and 6 years. C. 3 and 10
years. D. 4 and 9 years. ANSWER: C 83. 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 84. Term financing is mainly availed by entrepreneurs for the
establishment of _______ A. a. new industrial units B. b. acquisition of fixed assets. C. b. expansion in
plant capacity D. c. all the above. ANSWER: D 85. In case of medium scale units TIIC normally permits
the debt-equity ratio of__________ A. 1:2. B. 2:1. C. 1:3. D. 3:1. ANSWER: B 86. In case of small sale
units TIIC normally permits the debt-equity ratio of___________ A. 1:2. B. 2:1. C. 1:3. D. 3:1.
ANSWER: D 87. The first step in starting a new business venture is _________ A. . Idea generation. B.
Scanning of ideas. C. Preparing a business plan. D. Project implementation ANSWER: A 88. EDPs
course contents contains ___________ A. a. General introduction to entrepreneurs B. b. Motivation
training. C. b. Managerial skills. D. b. All the above. ANSWER: D 89. The main functions of DIC is
__________ A. a. To collect data on consumer items. B. a. Identification of entrepreneurs. C. a. To
prepare model schemes. D. a. To secure reservation of certain products for the SSIS. ANSWER: B 90.
SIDO stands for____________ A. State Travel Industries Development Organization. B. Service
Industries Development Organization. C. Small Industries Development Organization. D. Small
Institution Development Organization. ANSWER: C 91. The main function of SIDO is _________ A. a.
To provide SSI with machines on hire purchase basis. B. a. To assist small industries with marketing
facilities. C. a. To distribute basic raw materials through their depots. D. a. To secure reservation of
certain products for the SSIS. ANSWER: D 92. SISI was established in _____________ A. 1956. B.
1965. C. 1970. D. 1972. ANSWER: A 93. IIC stands for____________ A. Indian Industries Centre. B.
Indian Investment Centre. C. Indian Investment Corporation. D. indian Industries Corporation.
ANSWER: B 94. Entrepreneurial Guidance Bureau(EGB) was set up by____________ A. SISI. B.
SIPCOT. C. IIC. D. SIDCO. ANSWER: C 95. 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 96. TCO stands for
_____________ A. TamilNadu Consultancy Organization. B. Technical Consultancy Organization C.
TamilNadu Counseling Organization. D. a. Technical Counseling Organization . ANSWER: B 97.
Industries producing complete articles for direct consumption & also processing industries is called
as_______________ A. a. Manufacturing industries B. b. Feeder Industries. C. b. Service Industries. D.
b. Mining or Quarrying ANSWER: A 98. _____________ 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.
Opportunity Scanning. C. Project. D. Strategy. ANSWER: C 99. ___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. ANSWER: B 100. 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 101. Projects involving large number of human
resources will be termed as __________ A. Capital Intensive. B. Labour Intensive. C. Product Intensive.
D. Market Intensive. ANSWER: B 102. 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 103. _____________
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 104.
Proposed Project is also called as __________ A. En-ante analysis. B. Post-ante analysis. C. Strategic
analysis. D. Future forecast. ANSWER: A 105. Executed Project is also called as __________ A. En-
ante analysis. B. Post-ante analysis. C. Strategic analysis. D. Future forecast. ANSWER: B 106.
______________ 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 107. Buildings consist of several floor is termed as __________ A. Horizontal Buildings. B. Vertical
Buildings. C. Multi storey buildings. D. Double storey buildings. ANSWER: B 108. ___________ refers
to the arrangement of machines equipment and other physical facilities within the factory premises A. a.
Factory Layout B. b. Product Layout C. c. Process Layout. D. c. Combined Layout. ANSWER: A 109.
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 110. In _______ all similar machines and equipments are arranged together in the
same work area A. factory Layout B. product Layout. C. process Layout. D. combined Layout.
ANSWER: C 111. A provisional SSI registration certificate is valid for a period of __________ A. four
Years B. three Years. C. two Years. D. one year. ANSWER: D 112. An industrial unit which has
commenced productions or is found to be in readiness to go into production is eligible to get the
__________ A. Permanent Registration Certificate. B. Provisional Registration Certificate C. . Municipal
License. D. Statutory License. ANSWER: A 113. NEDS stands for __________ A. New Enterprise
Development Agency. B. New Entrepreneur Development Agency. C. New Employees Development
Agency. D. New Employers Development Agency. ANSWER: B 114. __________ denotes a single
lump sum which is given by a government to an industry A. Incentive. B. Subsidy. C. Bounty. D.
Financial Aid ANSWER: B 115. 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 116. 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 117. 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. ANSWER: A 118. _______________ 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. ANSWER: D 119. 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 120. ______________ was introduced in 1976 and allowed rate of 25 % of the cost of
acquisition of new plant or machinery installed A. Development Allowance. B. Investment Allowance.
C. Rehabilitation Allowance. D. Tax holiday. ANSWER: B 121. New Industries set up anywhere in
TamilNadu are given a concession in power tariff for the first three years is______________ A. 85% of
HT Tariff. B. 90% of HT Tariff. C. 66% of Normal HT Tariff. D. 80% of Normal HT Tariff. ANSWER:
C 122. New industries set up in any of the backward areas and other notified areas of the state would be
permitted to draw water from public sources on payment of fixed amount of ________________ A. Rs.
300 P.A . B. Rs. 500 P.A. C. Rs. 600 P.A. D. Rs. 1000 P.A. ANSWER: A 123. TDF stands for
___________ A. . Tamil Nadu Development Fund. B. Technology Development Fund. C. Tax Deduction
Form. D. Tax Deferral Form. ANSWER: B 124. .____________ 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 125.
._____________ involves estimates about project costs and revenues and the funds required for the
project A. Techno-economic analysis. B. . Feasibility analysis. C. Input analysis. D. Financial analysis
ANSWER: D 126. PIR stands for_____________ A. Pre- investment report. B. Post-investment report.
C. Pre- infrastructure report. D. Post-infrastructure report . ANSWER: A 127. LOB stands
for____________ A. Line of Business. B. Line of Balance. C. a. Loss of Business. D. a. Loss of Balance
ANSWER: B 128. CPM stands for____________ A. . Continuous Path Method. B. Clear Path Method.
C. Critical Path Method. D. Critical Probabilistic Method . ANSWER: C 129. _____________ is a series
of related activities which resulted in some products or services which in turn contributes to the goal of a
business A. Activity. B. Network C. Event. D. Mode . ANSWER: B 130. _____________ 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 131. ____________ refers to the start or the completion
of some activity and as such consumes neither time nor resources A. A network. B. An Activity. C. An
event. D. A node ANSWER: C 132. _____________ 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 133. When an event is an ending event for more number of activities
such an event will be technically called as_____________ A. Burst. B. Node. C. Critical Path. D. Slack.
ANSWER: B 134. 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 135. An imaginary activity which consumes neither time nor resources is called
as__________ A. Preceeding Activities. B. Succeeding Activities. C. Concurrent Activities. D. Dummy
Activities. ANSWER: D 136. EST stands for ____________ A. Earliest Start Time. B. Event Start Time.
C. Effective Start Time. D. Essential Start Time. ANSWER: A 137. LST stands for __________ A.
Logical Start Time B. Latest Start Time C. Longest Start Time D. Loading Start Time ANSWER: B 138.
EFT stands for __________ A. Event Finish Time. B. Effective Finish Time. C. Earliest Finish Time. D.
Essential Finish Time. ANSWER: C 139. _______________ 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 140. The rate at which the
future cash flows are reduced to their present value is termed as _________________ A. Interest Rate. B.
Fixed Rate. C. Future Rate. D. Discount Rate. ANSWER: D 141. The wrong location of a project in
terms of accessibility to raw material sources leads to ____________ A. Time under run B. Cost under
run C. Time over run. D. Cost over run ANSWER: C 142. 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. a.Rs.15000 whichever is high ANSWER: A 143. 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 ANSWER: A 144.
_____________________ is the process of identifying opportunities for new business ventures A.
Project identification. B. Project formulation C. Project feasibility D. Project evaluation. ANSWER: A
145. 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 146. Which of the following leads to over-capitalization? A. acquiring fixed assets on
excessive amounts. B. under-estimation of initial rate of earnings. C. using lower-rate of capitalization.
D. under estimation of required funds. ANSWER: A 147. Reserve bank of India is a/an _______. A. a
statutory corporation. B. company limited by guarantee. C. company limited by shares. D. unlimited
company. ANSWER: A 148. The term Capitalization is used in relation to ______. A. sole-
proprietorship. B. Partnership. C. joint stock companies. D. co-operative societies ANSWER: C 149.
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 150. Investment in
which of the following is most risky? A. Equity shares. B. Preference shares. C. Debentures. D. Land.
ANSWER: C Staff Name Dr. T. C. Brindha.

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