ENTREPRENEURSHIP MULTIPLE CHOICE QUESTIONS

1. A Business, Also Known As An

a. Enterprise
b. Activity
c. Action
d. Achievement

2. A business owned by multiple individuals may be referred to as a ---------

a. Company
b. Corporation
c. Organization
d. None of the above

3. Owners of--businesses create wealth for themselves and their families.

a. Failure
b. Successful
c. Malfunctioning
d. None of the Above

4. The owner's annual compensation can be than the salary he would earn working
for someone else
a. Higher
b. Normal
c. Lower
d. None of the above.

5. If the company is sold, there can be a payout to the owner when he exits the
business.
a. Substantial
b. Less
c. Moderate
d. None of the above.

6. Many people are drawn to entrepreneurship for the challenge involved in

starting a company
from
a. Ground level.
b. Toplevel
c. Middle Level
d. None of the above.

7. The opportunity to be your own boss has always been one of the motivations
for starting a business.
a. Primary
b. Secondary
c. Tertiary
d. None of the Above.
8. Many people who work a 9 to 5 job in a large company find it to be
a. Satisfying
b. Frustrating
c. Pleasing
d. None of the Above.

9. __feel tremendous pride when their startup venture turns into a thriving
enterprise.
a. Entrepreneurs
b. Government Employees
c. Private Employees
d. None of the Above

10. The primary purpose for starting a business is usually

a. Finance
b. Plant Layout
c. Both a& b
d. None of the Above

11. Successful businesspeople have the opportunity to earn far __ than they would
if they were working for someone else.
a. More money
b. Less money
c. Both a& b
d. None of the Above

12. People who are confident in their ability to handle their own affairs are often
happier when running their own business, even with the
a. Increased risks
b. Responsibilities
c. Stresses.
d. All A, B&C

13. Many jobs, even well-paid ones, are quite boring for a person who enjoys
a. Adventure.
b. Exploration
c. Journey
d. None of the above

14. -------------businesses are dedicated to working with the poor, the

disadvantaged and those stricken by disaster,
a. Non-profit
b. Profit
c. Both A&B
d. None of the Above.

15. Businesses are founded primarily for the purpose of serving the local
community or the world
at------
a. Small
b. Very Small
c. large
d. Medium

16. A Business plan is an essential-- for business success.

a. Roadmap
b. Route
c. Way
d. None of the above.

17.----------where entrepreneur discuss the industry, business structure, particular

product or service, how plan to make your business a success.
a. Business concept
b. Business Plan
c. Business Way
d. None of the above.

18. -------which describe and analyse potential customers

a. Market section
b. Market Segment
c. Market Plan
d. None of the above.

19. -----contains entrepreneur income and cash flow statement, balance sheet and
other financial ratios
a. financial section
b. Financial Concepts
c Financial Goals
d. None of the above.

20. A business plan is the formal written expression of the

a. Entrepreneurial vision
b. Entrepreneurial Mission
c. Entrepreneurship
d. None of the above.

21. -It explains the reader about the company, where the entrepreneur wants to
take it
a. Executive summary
b. Executive Page
c. Botha&b
d. None of the Above.

22. Company Description business plan provides a--review of the different

elements of business.
a. High level
b. Low level
c. Middle level
d. None of the Above.

23. The --section of business plan should illustrate about the industry and market
knowledge
a. Market analysis
b. Market Plan
c. Sales
d. Service

24. Organization and Management section should include about company's

a. Organizational structure
b. Organizational Plan
c. Both a&b
d. None of the Above.

25.------------line includes a description of product/service, details about product

life cycle, Intellectual property, etc.
a. Service & Product
b. Organizational Plan
c. Market Plan
d. None of the above

26. Marketing and Sales: In this section, the first thing the entrepreneur what to
do is define his overall
a. Service
b. Sales
c. Marketing strategy
d. None of the Above

27. Funding request should include How entrepreneur intend to use the funds he
receives:
a. Neck
b. Shoulder
c. Butt
d. Shank

28. ------In economics, competition is the rivalry among sellers trying to achieve
such goals as increasing profits, market share, and sales volume by varying the
elements of the marketing mix
a. Business Competition
b. Business Plan
c. Business Concept
d. None of the Above

29. many companies competing and nobody has a significant part.

a. Pure Competition
b. Business Competition
c. Monopoly Competition
d. Oligopoly Competition
30. Very similar products, few sellers, small firms follow lead of big firms, fairly
inelastic demand
a. Oligopoly Competition
b. Pure Competition
c. Monopoly Competition
d. None of the above

31. -----one single large seller with no close competition and no alternate
substitutes examples
a. Monopoly Competition
b. Pure Competition
c. Oligopoly Competition
d. Monopolistic Competition

32. sellers feel they do have some competition

a. Monopolistic Competition
b. Oligopoly Competition
c. Pure Competition
d. Monopoly Competition

33. --led organizations always buck the trend and tend to produce more revenues
and profits than their competitors.
a. Marketing
b. Merchandising
c. Both a&b
d. None of the above

34. ----effectively with others is a skill that successful business owners possess
a. Communicating
b. Coordinating
c. Cooperating
d. None of the Above

35.-----------is the lifeblood of any business and profitable businesses

a. Cash
b. Coordination
c. Cooperation
d. None of the Above
36.should also be aware of some of the details in business such as the selling price
of each product, the cost of each product and, therefore, the margin.
a. Entrepreneur
b. Marketer
c. Merchandiser
d. None of the Above

37.-----------is the sum total of all external and internal factors that influence a
business.
a. Business environment
b. Political environment
c. Social environment
d. None of the Above

38. External Factors are __

a. Organizational Culture
b. Innovation
c. Financial status
d. Political factors

39. Internal Factors are----

a. Macroeconomic factors
b. Technological factors
c. Social factors
d. Organizational Culture

40. In the case of a whole skin, the cutter begins on the

a. Right Shank
b. left shank
c. Butt
d. Belly

41. The Micro, Small and Medium Enterprise Development Act, was started in
the year
a. 2006
b. 2007
c. 2008
d. 2009

42. A micro enterprise, where the investment in plant and machinery doesn't'
exceed
a. Twenty five lakh rupees
b. Thirty five lakh rupees
c. Twenty two lakh rupees
d. None of the Above

43. A small enterprise, where the investment in plant and machinery is more than
twenty-five lakh rupees but doesn't exceed __
A. Five crore rupees
b. Two crore rupees
c. Seven crore rupees
d. None of the Above

44. A medium enterprise, where the investment in plant and machinery is more
than five crore rupees but doesn't exceed
a. Ten crore rupees
b. Eleven crore rupees
c. Fifteen crore rupees
d. None of the Above
45. A micro enterprise, where the investment in equipment doesn't exceed
a. Ten lakh rupees,
b. Eleven lakh rupees,
c. Twelve lakh rupees,
d. None of the Above

46. A small enterprise, where the investment in equipment is more than ten lakh
rupees but doesn't exceed
a. Two crore rupees
b. Three crore rupees
c. Four crore rupees
d. None of the Above

47. The entrepreneur would become an entrepreneur only when he owns an

enterprise.
a. NonPotential
b. Potential
c. Possible
d. None of the Above

48. the site selection should be on the basis of the availability of ----------and
market potential of the chosen product
a. Raw materials
b. Machinery
c. Manpower
d. None of the above

49. An entrepreneur has to obtain ----depending upon the nature of his unit and
several products manufacture.
a. Permissions
b. Clearances
c. Approvals
d. None of the above.

50. One need---------- to make money.

a. Money
b. Manpower
c. Material
d. None of the above

51.------------is the lifeline of business.

a. Plant Layout
b. Manpower
c. Finance
d. None of the above.

52. For importing machinery and equipment, the Government ---------have to be

followed.
a. Rules
b. Regulations
c. Both a&b
d. None of the above

53.--is deputed for evaluation of application to factory site, after which the load is
sanctioned.
a. An electrical inspector
b. Electrical Section Engineer
c. Electrical Chief Engineer
d. None of the above

54. The new entrepreneur will have to ensure timely flow of --in anticipation of
actual requirement before launching his new product into the market.
a. Raw materials
b. Money
c. Machinery
d. None of the above

55. Promotional activities comprise

a. Direct promotion techniques
b. Indirect promotion techniques
c. Both a&b
d. None of the above

56. Prices are set by a firm by taking into consideration factors like
a. Costs
b. Profit targets
c. Competition
d. All a,b &c

57. Organizations use innovative ideas from others as a spring board to come up
with
a. Unique application
b. Mass Commercialization
c. Mass Production
d. None of the above

58. Creativity is a function of knowledge,-

a. Curiosity
b. Imagination
c. Evaluation
d. All a,b &c

59. The lower level of creativity is

a. Discovery.
b. Innovation
c. Knowledge
d. None of the above
60. Innovation is the process of
a. Creating
b. Implementing
c. Both a &b
d. None of the above

61. A higher level of creativity is

---a new idea.
a. Invention.
b. Discovery.
c. Knowledge
d. None of the above

62. Creation is the highest level of

a. Creativity.
b. Discovery.
c. Innovation
d. None of the above

63. The ability to manage--is an essential part of a manager's competencies

a. Innovation
b. Change
c. Both a&b
d. None of the above

64. Technical innovation involves creation of

a. New goods
b. Services.
c. Both a&b
d. None of the above

65. Process innovation involves creating a new way of

a. Producing
b. Selling
c. Both a&b
d. None of the above

66. Administrative innovation occurs when creation of a new organisation design

better supports the
a. Creation
b. Production
c. Delivery of goods and services.
d. ALL a,b&c

67. A positive cash flow occurs when a business receives

a. More money
b. Less money
c. Average money
d. None of the above
68. A negative cash flow means the business is
a. More money
b. Less money
c. Average money
d. None of the above

69. --expenses as also of or a shortfall in expected inflows that causes the

derailment of a business.
a. Unforeseen
b. Emergency
c. Starting
d. None of the above

70. A------can close a business for weeks or months.

a. Natural disaster
b. Shortfall in the cash inflow
c. Less Money
d. None of the above

71.-----is an idle stock of physical goods that contain economic value

a. Inventory
b. Raw Material
c. Goods
d. None of the above

72. -----both cause financial impact and health of the business as well as effect
business opportunities.
a. Over inventory
b. Under inventory
c. Both a&b
d. None of the above
73. ---business plan will help the enterprise respond to the risks of an economic
downturn
a. Reviewing
b. Updating
c. Both A&B
d. None of the above

74. A--------is a management tool that can help to assess the business
performance:
A. SWOT analysis
b. ABC analysis
c. Both a&b
d. None of the above

75. __also helps an enterprise to assess the performance

a. Financial analysis
b. SWOT Analysis
c. ABC Analysis
d. None of the above.

76.---ratios that can be extract from financial statements.

a. Financial ratios
b. Non fiscal ratios
c. Non Monetary ratios
d. None of the above

77. Benchmarking uses information collected from a number of businesses within

the
a. Same industry
b. Different industry c. Both a &b
d. None of the above

78. The process of---------to manage risks is known as risk management.

a. Identifying risks,
b. Assessing risks and
c. Developing strategies
d. All a,b&c

79. The first step in preparing a risk management plan is to identify ---risks to the
business.
a. potential
b. Non Potential
c. Both a & b
d. None of the above

80. Brainstorming with different people, such as -- will help get many different
perspectives on risks to the business.
a. Accountant
b. Financial adviser
c. Staff, suppliers and other interested parties,
d. All a,b&c

81. level of risk =

a. consequence x likelihood
b. likelihood x consequence
c. Both a& b
d. None of the above

82. Level of risk is often described as

a. low, medium
b. high or very high.
c. Both a&b
d. None of the above

83. Unacceptable risks range in

a. Severity
b. Avoidable Risk
c. Both a&b
d. None of the above

84.. When developing a plan for treating the risks, consider the-----------
a. method of treatment
b. costs involved
c. ways to measure the success of treatments
d. All a,b,c

83. Risk can be reduced by reducing the likelihood of the

a. risk happening
b. Safety
c. Protection
d. None of the above

86. Enterprise may be able to shift some or all of the responsibility for the risk to
another party through
a. Insurance
b. Outsourcing
c. Joint ventures
d. All a,b&c

87. Enterprise may accept a risk if it can't be

a. Avoided,
b. Reduced
c. Transferred
d. All a,b&c

88. The seed stage of the business focus is on matching the business opportunity
with
a. Skills
b. Experience
c. Passions.
d. All a,b&c

89. The main source of -----------is available form Owner, friends, family,
suppliers, customers,
grants and banks.
a. Money
b. Manpower
c. Material
d. None of the above

90. Profits are---but competition is surfacing.

a. Strong
b. Week
c. Both a&b
d. None of the above
91. Sales growth is not --------but manageable.
a. Explosive
b. Calm
c. Peaceful
d. None of the above

92. Businesses in the mature stage of the life cycle will be challenged with ------
a. Dropping sales
b. Profits
c. Negative cash flow.
d. All a,b&c

93. business is very crucial because it determines the ----------of the entrepreneur
a. power
b. control
c. risk and responsibility
d. All a,b &c

94. A sole proprietorship is a one-man organisation where a---owns, manages and

controls the business.
a. Single individual
b. Married couple
d. Both a&b

95. A general partnership is composed of 2 or more persons who agree to

contribute money, labour or skill to a business.
a. None of the above
b. Usually not a married couple
c. Married couple
d. Single individual

96. In the absence of any agreement to the ---------all partners have a right to
participate the activities of the business.
a. Contrary
b. Similar
c. Alike
d. None of the above

97. A------company is a voluntary association of members which is incorporated

and therefore has a separate legal existence and the liability of whose members is
limited.
a. Public limited
b. Private limited
c. Franchise
d. None of the above
98. A --company is a voluntary association of not less than two and not more than
fifty members, whose liability is limited, the transfer of whose shares is limited to
its members.
a. private limited
b. Public Company
c. Franchise
d. None of the above

99. The shares of a public limited company are-----and that too without prior
consent of other shareholders.
a. Freely transferable
b. Not Free Transferrable
c. Both a&b
d. None of the above

100. The shares allotted to it's members are also-----between them. These
companies are not allowed to invite public to subscribe to its shares and
debentures.
a. not freely transferable
b. Freely Transferable
c. Both a&B
d. None of the above

101.--------organisation is a society which has as its objective the promotion of the

interests of its members in accordance with the principles of cooperation.
a. Co-operative
b. Partnership
c. Sole proprietor
d. None of the above

102. A --- is composed of one or more general partners and one or more limited
partners.
a. limited partnership
b. Limited liability Partnership
c. Both a&b
d. None of the above

103. A------ ---) is similar to a General partnership except that normally a partner
doesn't have personal liability for the negligence of another partner.
a. Limited liability Partnership
b. limited partnership
c. Joint venture
d. None of the above

104. A------------can help business grow faster, increase productivity and generate
greater profits
a. joint venture
b. limited partnership
c. .Limited liability Partnership
d. None of the above

105. ---literally means whether some idea will work or not

a. Feasibility
b. Probability
c. Possibility
d. None of the above

106. A market analysis It is a study of knowing who all comprise your customers,
for this require information on
a. Consumption trends
b. Past and present supply position
c. Cost structure
d. All a,b&c

107. The objective of financial analysis is to ascertain whether the proposed

project will be financially viable. While conducting a financial analysis looked
into like:---
a. Break - even poin
b. Cash flows of the project
c. Projected profitability
d. All a,b&c

108. The issues involved in the assessment of technical analysis of the proposed
may be classified into those pertaining to
a. inputs
b. throughputs
c. outputs
d. Alla,b&c

109. Input analysis is mainly concerned with--of project inputs, that is machinery
and materials
a. the identification
b. quantification
c. evaluation
d. All a,b &c

110.---: This involves product specification in terms of physical features - colour,

weight, length, height functional features, chemical material properties; as well as
standards to be complied with such as BIS, ISI, etc.
a. Output Analysis
b. Input Analysis
c. Throughput Analysis
d. None of the above
111.---Input analysis is mainly concerned with the identification, quantification
and evaluation of project inputs, that is machinery and materials.
a. Input Analysis
b. Throughput Analysis
c. Output Analysis
d. None of the above

112. -----It refers to the production/operations that you would perform on the
inputs to add value.
a. Throughput Analysis
b. Output Analysis
c. Input Analysis
d. None of the above

113.-is the study of cost and benefits

a. Commerce
b. Finance
c. Economics
d. None of the above

114. Once a person has decided to start his own business, the first major problem
is to select---
a. The line of business
b. The Raw Material
c. The Man Power
d. None of the above

115. Another startup problem is the choice of the particular--to be manufactures.

a. product
b. Place
c. Promotion
d. None of the above

116. The main Start up Problem is to find out a suitable ------for the factory.
a. location
b. Promotion
c. Profit
d. None of the above

117. Construction of factory building involves several problems

a. Acquisition of land in the chosen locality
b. Architectural design of the building
c. Appointment of engineers and contractors
d. All a,b&c

118. ---have Min. 2; Max unlimited Members

a. Public Limited Company
b. Private Limited Company
c. Sole Proprietor
d. None of the above

119. -----have Min. 2; Max 50 Members

a. Public Limited Company
b. Private Limited Company
c. Sole Proprietor
d. None of the above

120. -----Public are invited to buy share

a. Public Limited Company
b. Private Limited Company

127.--Liability limited to the amount invested

a. Public Limited Company
b. Private Limited Company
c. Sole Proprietor
d. None of the above

128. In a joint venture, each of the participants is responsible for ---associated

with it.
a. Profits
b. Losses
C. costs
d. All a,b &c

129. In---The partners don't provide sufficient leadership and support in the early
stages.
a. Joint Ventures
b. Private Limited Company
c. Sole Proprietor
d. None of the above
finance.

130. Access to greater resources, including specialised staff, technology and

finance.
a. Joint Ventures
b. Private Limited Company
c. Sole Proprietor
d. None of the above

131. Registration of a----is compulsory.

a. Cooperative enterprise
b. Private Limited Company
c. Sole Proprietor
d. None of the above

132. In---The minimum numbers of members is 10, but there is no limit to the
maximum number of members. However, the members must be residing or
working in the same locality.
a. Cooperative enterprise
b. Private Limited Company
c. Sole Proprietor
d. None of the above

133. Owner alone enjoys the benefits or profits of the business and he alone bears
the losses.
a. Sole Proprietorship
b. Private Limited Company
c. Sole Proprietor
d. None of the above

134. --------has Limited life and unlimited liability & Limited managerial ability
a. Sole Proprietorship
b. Private Limited Company
c. Sole Proprietor
d. None of the above

135. Many people who work a 9 to 5 job in a large company find it to be

a. Frustrating
b. Tedious
c. Both a & b
d. None of the above

136. Entrepreneur also describe the -----------and how entrepreneur will position
himself to beat it.
a. competition
b. Unity
c. Concord
d. None of the above

137. ----many companies competing and nobody has a significant

a. Pure Competition
b. Oligopoly Competition
c. Monopoly Competition
d. Monopolistic Competition

138.--------very similar products, few sellers, small firms follow lead of big firms,
fairly inelastic demand
a. Pure Competition
b. Oligopoly Competition
c. Monopoly Competition
d. Monopolistic Competition

139. --the definition of a Monopoly, some say, is that it is bigger than all other
competition combined
a. Pure Competition
b. Oligopoly Competition
c. Monopoly Competition
d. Monopolistic Competition

140. -------sellers feel they do have some competition

a. Pure Competition
b. Oligopoly Competition
c. Monopoly Competition d.
d. Monopolistic Competition

141. External Factors are

a. Political factors
b. Macroeconomic factors
c. Microeconomic factors
d. All a,b &c

142. Internal Factors are

a. Organizational Culture
b. Innovation & Creativity
c. Financial status
d. All a,b &c

143. The new entrepreneur can arrive at a worthwhile decision after taking into
account Availability of ----
a. Adequate infrastructure facilities,
b. Cost of transport for procuring raw materials
c. Dispatching finished goods
d. All a,b&c

144. Entrepreneur Memorandum - Part 1 entitles the new entrepreneurs to---

a. Apply for a shed or plot in an industrial estate or a developed area
b. Apply for Corporation/Municipality for other licenses.
c. Apply for power/water connection
d. All a,b &/c

145. Entrepreneur Memorandum - Part 2.After the party has taken all steps to
establish the unit-----
a. Product Specific Clearances
b. Environment & Pollution Related Clearances
c. Registration under Sales Tax Act - Commercial Tax officer of area concerned
d. All a,b &c

146.--for starting a business begins with estimating the total amount of capital
required by the firm for the various need of the business.
a. Financial planning
b. Economic Planning
c. Botha &b
d. None of the above

147. After obtaining the, the power supply will be given to the industry
a. power feasibility
b. sanction certificate
c. Both a &b
d. None of the above

148. In Marketing and pricing policy Those who want to augment their sales
volume should take cognizance of---
a. established demand and
b. potential demand (newly created)
c. Both a &b
d. None of the above

149. The ability to manage innovation and change is an essential part of a

a. Manager's competencies.
b. Managerial Technique
c. Managerial Concept
d. None of the above

150. SWOT Means.

a. Strength,
b. Weakness,
c. Opportunities and Strength
d. All a,b &c