PCODE: 0500042 (ENTREPRENEURSHIP)

1. What is an entrepreneur?
(A) Someone who invests time and money to start a business.
(B) Someone who makes a lot of money.
(C) Someone who takes a risk to make a profit.
(D) Both A & C.

2. Define Free Enterprise:

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

3. Capital is:
(A) Money available to invest.
(B) Prohibitive cost of entry.
(C) A guarantee that a company will be successful.
(D) A & B.

4. The following are included in a business plan

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

5. Quality Control is defined as:

(A) How many & what types of people are shopping at a store.
(B) Tells you what the customer will buy
(C) Tells you how much the customer will pay for the product.
(D) All of the above.

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

(A) How many & what types of people are shopping at a store.
(B) Tells you what the customer will buy.
(C) Tells you how much the customer will pay for the product.
(D) All of the above

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

(A) Consumer shopping.
(B) A warranty.
(C) Impulse buying.
(D) Comparison shopping.
 PCODE: 0500042 (ENTREPRENEURSHIP)
8. Product planning tells you:
(A) Where you will produce your product.
(B) Cost to produce your product.
(C) Your Net profit
(D) Total revenues

9. Cost per serving means:

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

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

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

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

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

12. Which one of the following is a barrier to new product creation and development?
(A) Trial and error
(B) Opportunity parameter
(C) Opportunity cost
(D) Intrapreneurship culture

13. _________ is commonly used to measure the short-term solvency of the venture?
(A) Debt to equity ratio
(B) Current ratio
(C) Profitability ratio
(D) Activity ratio

14. Which one of the following should consider in economy while conducting environmental analysis?
(A) GNP
(B) Disposable income
(C) Unemployment
(D) Channel of distribution
 PCODE: 0500042 (ENTREPRENEURSHIP)
15. Which two work environments should be good for spawning the new enterprises?
(A) Finance and marketing
(B) Finance and R&D
(C) Marketing and R&D
(D) Marketing and IT

16. Which of the following is NOT an example of collecting primary data?

(A) Internet
(B) Focus Group
(C) Interview
(D) Observation

17. LLC is more flexible than

(A) S Corporation
(B) Limited Partnership
(C) Sole Proprietor
(D) All of the above

18. The resistance of employees in an organization against flexibility, growth, and diversification can
be overcome by developing:
(A) Entrepreneurship
(B) Intrapreneurship
(C) Managerial domain
(D) Administrative domain

19. For the success of business plan the goals should be

(A) Limitless
(B) Generalized
(C) Specific
(D) Imaginary

20. LMM stands for:

(A) Locally Manufactured Machinery
(B) Locally Manufactured Marble
(C) Local Marble Market
(D) Local Meat Market
PCODE: 0500042 (ENTREPRENEURSHIP)

21. Which of the following is NOT essential part of the contract?

(A) All the parties involved should be named
(B) Transaction should be described in detail
(C) Obtain signatures of the persons involved
(D) Place where contract takes place

22. Normally sponsor links are used in which of the following type of promotion?
(A) Publicity
(B) Trade shows
(C) Personal selling
(D) Internet advertising

23. The Grameen Bank model is affectively used by which of the following institute?
(A) Education sector
(B) Finance Sector
(C) Rural Sector
(D) NGOs

24. Which one of the factors should be considered while assessing the space for business?
(A) Parking
(B) Access from roadways to facility
(C) Delivery rates
(D) All of the given options

25. An actor and a person who managed large project were termed as the entrepreneur in the _________.
(A) Earliest period
(B) Middle ages
th
(C) 17 century
th th
(D) 19 and 20 century

26. Which of the following usually is NOT deducted to the salaries?

(A) Provident fund
(B) Income Tex
(C) Insurance
(D) Zakat
PCODE: 0500042 (ENTREPRENEURSHIP)

27. LLC is more flexible than

(A) S Corporation
(B) Limited Partnership
(C) Sole Proprietor
(D) All of the above

28. Which of the following is NOT an example of collecting primary data?

(A) Internet
(B) Focus Group
(C) Interview
(D) Observation

29. Which two work environments should be good for spawning the new enterprises?
(A) Finance and marketing
(B) Finance and R&D
(C) Marketing and R&D
(D) Marketing and IT

30. Which one of the following should consider in economy while conducting environmental analysis?
(A) GNP
(B) Disposable income
(C) Unemployment
(D) Channel of distribution

31. __________ is commonly used to measure the short-term solvency of the venture?
(A) Debt to equity ratio
(B) Current ratio
(C) Profitability ratio
(D) Activity ratio

32. Which one of the following is a barrier to new product creation and development?
(A) Trial and error
(B) Opportunity parameter
(C) Opportunity cost
(D) Intrapreneurship culture
PCODE: 0500042 (ENTREPRENEURSHIP)

33. What is a target market?

(A) A group of customers a venture reaches by accident
(B) All consumers who purchase the venture’s product
(C) A specific group of potential customers toward which a venture aims its marketing
plan
(D) A chain of discount stores

34. In stage of responsibility allocation process the entrepreneur follows:

(A) Highly centralized decision making process
(B) Highly decentralized decision making process
(C) Somewhat centralized decision making process
(D) No particular standard

35. Which one of the following is the process of entrepreneurs developing new products that over time
make current products obsolete?
(A) Creative destruction
(B) New business model
(C) Anatomization
(D) None of the given options

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

(A) Government
(B) Finance
(C) High interest rates
(D) Role models

37. Which one of the following gives suggestions for new product but also helps to market new
product in the market?
(A) Existing products and services
(B) Distribution channels
(C) Federal government
(D) Consumers
PCODE: 0500042 (ENTREPRENEURSHIP)

38. The chief motivational factor for _________________ entrepreneurs to leave jobs is the
frustration of not being allowed to perform at the level of which they are capable.
(A) Male
(B) Female
(C) Young
(D) All of the given options

39. Which of the following is the most important for the entrepreneur, while starting a
new venture, to make an assessment of?
(A) Risk
(B) Profit
(C) Market
(D) Competitors

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

(A) International entrepreneurship
(B) Intrepreneurship
(C) Domestic entrepreneurship
(D) Imports

41. A typical inventor is usually ________________________.

(A) Highly creative & in love with the invention
(B) Does not encourage change
(C) Willing to modify the invention in order to augment commercial benefit
(D) None of the given options

42. According to the governing bodies of common laws, the life of trade secret is:
(A) 12 years
(B) 17 years
(C) 20 years
(D) As long as it remains confidential

43. A contract must be signed by:

(A) At least one party
(B) Both the parties
(C) Not necessary to sign
(D) By third party
PCODE: 0500042 (ENTREPRENEURSHIP)

44. Selling goods to another country by taking care of transactions is called:

(A) Indirect exporting
(B) Direct exporting
(C) Importing
(D) Management contract

45. 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

46. In USA Public Limited Companies may have ______ Director/s

(A) 1
(B) 2
(C) 3
(D) 4

47. 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

48. In which of the following situation the company is considered to be on breakeven point?
(A) No Profit no lose
(B) Profits are higher then expenses
(C) Expenses are higher then profits
(D) None of the given options

49. Which of the following shows the example of collateral?

(A) Real State
(B) Shares
(C) Tangible property
(D) All of the given options
PCODE: 0500042 (ENTREPRENEURSHIP)

50. Tourism entrepreneur means starting an enterprise by a tourist.

(A) True
(B) False

51. The difference in the entrepreneurial and managerial domains has contributed towards an increase
interest in:
(A) Forming new firms
(B) Partnership
(C) Intrapreneurship
(D) Private firms

52. Rural tourism means tourism activity started by people living in rural areas.
(A) True
(B) False

53. India did not have any tourism policy so for to develop tourism activity in the country.
(A) True
(B) False

54. Which of the following is NOT a requirement of Disclosure Document?

(A) Description of the invention
(B) Claims for invention’s usefulness
(C) Photos of invention
(D) Cover letter

55. Professional support network includes following EXCEPT:

(A) Personal affiliations
(B) Mentor
(C) Trade associations
(D) Friends

56. India lacks opportunities for developing agri-preneurship.

(A) True
(B) False
PCODE: 0500042 (ENTREPRENEURSHIP)

57. 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

58. 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

59. 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.

60. 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.

61. Which of the following shows the process of creating something new?
(A) Business model
(B) Modeling
(C) Innovation
(D) Creative flexibility

62. 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
PCODE: 0500042 (ENTREPRENEURSHIP)

63. 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.

64. Someone who improves an existing business can be called _________

(A) An intrapreneur
(B) A professional
(C) A co-worker.
(D) A changeling.

65. 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

66. 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.

67. Someone who improves an existing business can be called _________

(A) An intrapreneur
(B) A professional
(C) A co-worker.
(D) A changeling.

68. 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
PCODE: 0500042 (ENTREPRENEURSHIP)

69. 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.

70. 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

71. Entrepreneurs are motivated by _________

(A) money.
(B) personal values
(C) pull influences.
(D) All the above.

72. 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.

73. 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

74. 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.
PCODE: 0500042 (ENTREPRENEURSHIP)

75. Which one of the following actions by an entrepreneur is most likely to contribute to creative
destruction?
(A) Development of a new product
(B) Take-over of a competitor
(C) Issuing shares
(D) Reducing prices

76. An advantage of the small firm in the innovation process?

(A) Ability to carry out R&D
(B) Ability to raise finance
(C) Ability of the entrepreneur to carry out multiple tasks
(D) Ability of the entrepreneur to act on new ideas or product development

77. External links may provide incentives to:

(A) Raise finance
(B) Introduce new working practices
(C) Introduce improvements to products
(D) Attend business exhibitions

78. Firms located on science parks compared to those located off science parks are:
(A) More innovative
(B) Less innovative
(C) No more or less innovative
(D) More growth orientated

79. Innovative small firms are more likely in:

(A) Knowledge-based sectors
(B) Biotechnology
(C) Automobile manufacture
(D) Aerospace manufacture

80. Schumpeter considered that innovative entrepreneurs would:

(A) Thrive
(B) Disappear
(C) Be absorbed within large innovative firms
(D) Be absorbed within non-innovative firms
PCODE: 0500042 (ENTREPRENEURSHIP)

81. Innovative entrepreneurs face special issues in raising:

(A) Development capital
(B) Structured capital
(C) Human capital
(D) Seed capital

82. Innovative entrepreneurs may have to pay high insurance premiums due to the:
(A) The need to protect patents
(B) Greater employee liability
(C) Greater customer liability
(D) Greater trading risks

83. Networking by innovative entrepreneurs may be most encouraged by?

(A) Science parks
(B) Business incubators
(C) Chambers of Commerce
(D) Business associations

84. The most likely problem encountered by innovative entrepreneurs in raising finance is:
(A) Limited security since R&D is an intangible asset
(B) The costs of the patenting system
(C) The exhaustion of personal equity in R&D
(D) Inability of potential external funders to understand technology

85. All of the following are characteristics of small businesses EXCEPT:

(A) Small businesses are independently owned, operated, and financed.
(B) Small businesses have fewer than 100 employees.
(C) Small businesses emphasize new or innovative practices.
(D) Small businesses have little impact on industry.

86. Which of the following is NOT on of the three areas in which the importance of entrepreneurship
can be shown?
(A) Innovation
(B) Number of new start-ups
(C) Job creation and employment
(D) bureaucracy
PCODE: 0500042 (ENTREPRENEURSHIP)

87. 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

88. 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.

89. Someone who improves an existing business can be called _________

(A) An intrapreneur
(B) A professional
(C) A co-worker.
(D) A changeling.

90. Where individual skills are collectively integrated into a group, this is known as __
(A) Collective entrepreneurship
(B) Intrapreneurship.
(C) Team entrepreneurship
(D) Dual innovation.
91. 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

92. Which industrial sector tends to naturally promote small-scale businesses and entrepreneurship,
and generally has lower barriers to market entry
(A) Service.
(B) Manufacturing.
(C) Distribution.
(D) Agriculture
PCODE: 0500042 (ENTREPRENEURSHIP)

93. Where there is no legal separation between the assets and liabilities of a business, and the assets
and liabilities of an individual, the business is _________
(A) A sole trader.
(B) A limited company
(C) A cooperative.
(D) A partnership.

94. 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.
95. 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.

96. 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

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

Entrepreneurs are motivated by _________

(A) money.
(B) personal values
(C) pull influences.
(D) All the above.

99. 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.
PCODE: 0500042 (ENTREPRENEURSHIP)

100. 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.

101. 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

102. Decisions taken by an entrepreneur for himself and not on behalf of the firm are known as _________
(A) Organizational decisions.
(B) Personal decisions.
(C) Routine decisions
(D) Strategic decisions.

103. Decisions which are taken repetitively in accordance to the day to day operations of the
organizations are called as __________

(A) Organizational decisions

(B) Personal decisions.
(C) Routine decisions.
(D) Strategic decisions.

104. Decisions which are concerned with policy matters and exercise fundamental influence on
the objectives of the organization are called as____________
(A) Organizational decisions.
(B) Personal decisions.
(C) Routine decisions.
(D) Strategic decisions.
PCODE: 0500042 (ENTREPRENEURSHIP)

105. Decisions which are concerned with systematic procedures are called as _________
(A) Programmed decisions.
(B) Non programmed decisions.
(C) Routine decisions.
(D) Strategic decisions

106. Decisions which are non-repetitive and novel nature and required to solve unstructured problem
is called as
(A) Programmed decisions.
(B) Non programmed decisions.
(C) Routine decisions.
(D) Strategic decisions.

107. Which of the following is NOT a characteristic of a marketing plan?

(A) It should be flexible
(B) It should be long and detailed
(C) It should be based on facts and valid assumptions
(D) It should provide a strategy

108. Social entrepreneurship and social activism are the synonymous.

(A) True
(B) False

109. The Grameen Bank model is affectively used by which of the following institute?
(A) Education sector
(B) Finance Sector
(C) Rural Sector
(D) NGOs

110. Which one of the factors should be considered while assessing the space for business?
(A) Parking
(B) Access from roadways to facility
(C) Delivery rates
(D) All of the given options
PCODE: 0500042 (ENTREPRENEURSHIP)

111. An actor and a person who managed large project were termed as the entrepreneur in the _________.
(A) Earliest period
(B) Middle ages
(C) 17th century
(D) 19th and 20th century

PCODE: 0500042 (ENTREPRENEURSHIP)

112. Which of the following usually is NOT deducted to the salaries?
(A) Provident fund
(B) Income Tex
(C) Insurance
(D) Zakat

113. LLC is more flexible than

(A) S Corporation
(B) Limited Partnership
(C) Sole Proprietor
(D) All of the above

114. Degree of influence and control on other people is called:

(A) Locus of control
(B) Locomotion of control
(C) Locust of control
(D) Loss of control

115. Social entrepreneurship and social activism are the synonymous.

(A) True
(B) False

116. Normally sponsor links are used in which of the following type of promotion?
(A) Publicity
(B) Trade shows
(C) Personal selling
(D) Internet advertising

117. Which of the following is essential if your business deals with the Paper production?.
(A) Operational Plan
(B) Bank loan
(C) Production plan
(D) Organizational plan
PCODE: 0500042 (ENTREPRENEURSHIP)

118. Which one of the following is NOT an internal factor?

(A) New technology
(B) Manufacturing
(C) Marketing
(D) Personnel

119. The longest lasting trade agreement with the objective of liberalizing trade by eliminating or
reducing tariffs, subsidies and quotas is:
(A) Free trade area – FTA
(B) European community – EC
(C) General agreement on tariffs and trade – GATT
(D) The North American free trade agreement – NAFTA

120. In which of the following business, the records are needed to be maintained on the basis of
monthly charges paid by the customers?
(A) Pharmaceutical
(B) Service venture
(C) Online venture
(D) Auto industry

121. Which of the following is the previous name of SME?

(A) SPCC
(B) SMEDA
(C) SBFC
(D) FMBC

122. The entrepreneur’s_______________ depends on his perception of the opportunity.

(A) Commitment to opportunity
(B) Commitment of resources
(C) Control of resources
(D) Strategic orientation

123. Which of the following are the key factors for choosing the type of financing?
(A) Availability of funds
(B) Assets of the venture
(C) Prevailing interest rates
(D) All of the above options
PCODE: 0500042 (ENTREPRENEURSHIP)

124. The difference between the value of a country’s imports and exports over time is called:
(A) Deficit exports
(B) Deficit imports
(C) Balance of payment
(D) Balance of debt

125. Licensing is a significant marketing strategy to:

(A) Use intellectual property of others
(B) Pirate others’ patents
(C) Grow the business in new markets
(D) Control the costs

126. Normally sponsor links are used in which of the following type of promotion?
(A) Publicity
(B) Trade shows
(C) Personal selling
(D) Internet advertising

127. The _________ plan should contain control points to ascertain progress.
(A) Business
(B) Marketing
(C) Financial
(D) Operational

128. Which one of the following method shows the term which is related to starting from scratch to
a bigger picture?
(A) Upward movement method
(B) Incremental method
(C) Downward movement method
(D) None of the above options

129. Which is one of the most important leadership qualities among managers and employees in the
organization?
(A) Entrepreneurship
(B) Communication
(C) Motivation
(D) Staffing
PCODE: 0500042 (ENTREPRENEURSHIP)

130. Which of the following contains large number of new ideas?

(A) Files of Patent office
(B) Official Gazette
(C) Government patent Board
(D) All of the given option

131. Which of the following firm achieves modest growth:

(A) High potential growth firm
(B) Foundation firm
(C) Life style
(D) Public company

132. Which of the following is representing a single expense account?

(A) Depreciation
(B) Cash account
(C) Wages & Salaries
(D) Utilities account

133. Social entrepreneurship and social activism are the synonymous.

(A) True
(B) False

134. Normally sponsor links are used in which of the following type of promotion?
(A) Publicity
(B) Trade shows
(C) Personal selling
(D) Internet advertising

135. Which one of the following is a barriers to new product creation and development?
(A) Trial and error
(B) Opportunity parameter
(C) Opportunity cost
(D) Intrapreneurship culture

136. Targeting the market consists of ______ Procedures

(A) 1
(B) 2
(C) 3
(D) 4
PCODE: 0500042 (ENTREPRENEURSHIP)

137. Which one of the following is important for international business to avoid trade barriers?
(A) Protectionist attitude
(B) Entrepreneurial partnering
(C) Free trade areas
(D) None of the given options

138. Which of the following ratio will be helpful for assessing the firm’s capital structure?
(A) Current ratio
(B) Acid test ratio
(C) Profitability ratio
(D) Debt to equity ratio

139. A typical inventor is usually ________________________.

(A) Highly creative & in love with the invention
(B) Does not encourage change
(C) Willing to modify the invention in order to augment commercial benefit
(D) None of the given options

140. Following are the types of non equity arrangements EXCEPT:

(A) Licensing
(B) Management contracts
(C) Direct export
(D) Turnkey projects

141. Which of the following is representing a single expense account?

(A) Depreciation
(B) Cash account
(C) Wages & Salaries
(D) Utilities account

142. In terms of chronological age, most entrepreneurs initiate their entrepreneurial carrier between ages
of:
(A) 15 and 22
(B) 22 and 45
(C) 45 and 57
(D) 57 and 63
PCODE: 0500042 (ENTREPRENEURSHIP)

143. Which of the following is included in the description of the business?

(A) Location
(B) Products offered
(C) History
(D) All of the given options

144. Companies identify their assets with the date of purchase, because it can be helpful in
determining depreciation for:
(A) Goodwill
(B) Trade rebate
(C) Tax purposes
(D) Capital structuring

145. What is the primary concern of founders who trade equity for capital for their growing venture?
(A) Capitalization
(B) Investor capabilities
(C) Valuation
(D) Control

146. The creative process for problem solving that involves making the strange familiar in first step and
then making the familiar strange through personal, direct or symbolic analogy is called:
(A) Synectics
(B) Gordon method
(C) Checklist method
(D) Scientific method

147. Capital rising entirely depends on the entrepreneur in which of the following entity?
(A) Corporation
(B) Sole Proprietorship
(C) Partnership
(D) All of the above

148. Which of the following is another exit to the equity partnership arrangement?
(A) Impartial partnership
(B) General partnership
(C) Royalty partnership
(D) Minor partnership
PCODE: 0500042 (ENTREPRENEURSHIP)

149. Selling goods to another country through a person in the entrepreneur’s home country is known as:
(A) Trading
(B) Direct export
(C) Indirect export
(D) Domestic sales

150. Developing a new idea through inquiry and testing is called:

(A) Heuristics
(B) Forced relationship
(C) Scientific method
(D) Value analysis

151. What can be the effect on cash flows due to delays in payments by the clients?
(A) Positive cash flows
(B) Negative cash flows
(C) No effect on cash flows
(D) None of the given options

152. The Marketing Plan section should focus for the strategies of
(A) First Year
(B) First two years
(C) First Three Years
(D) First four years

153. The business plan should be prepared by:

(A) Entrepreneurs
(B) Consultants
(C) Engineers
(D) All of above options

154. All of the following are essential to maintain secrecy EXCEPT:

(A) Train employees to refer sensitive questions to one person
(B) Discuss business in public places
(C) Provide escorts for all office visitors
(D) Use simple security such as locked file cabinets
PCODE: 0500042 (ENTREPRENEURSHIP)

155. Assessment of the needed resources by the entrepreneur starts with:

(A) An appraisal of the entrepreneur’s present resources
(B) An assessment of economic conditions of the country
(C) A scanning of friends and family for funds
(D) A survey of banks and other financial institutions in the area

156. The former USSR received technology and syrup from Pepsi and provided it with Soviet vodka
and rights to distribute it in the US. This is an example of:
(A) Economic development
(B) Barter system
(C) Balance of payment
(D) International trade

157. Health insurance premium is less expensive if there is:

(A) One insured participants
(B) Ten participants
(C) Large group of participants
(D) Very small group of participants

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

159. The resources acquired from others(creditors, banks etc) are usually:
(A) Easily available
(B) Difficult to obtain
(C) Very useful
(D) Very cheap

160. Lenders are primarily interested in the:

(A) Personal relationship
(B) Ability to pay back loan
(C) Progress of the venture
PCODE: 0500042 (ENTREPRENEURSHIP)

161. The entrepreneur utilizes the resources through:

(A) Identifying and evaluating the opportunity
(B) Developing a business plan
(C) Implementing the business plan
(D) Manage the enterprise

162. Focus group discussion carries in

(A) Formal Way
(B) Informal Way
(C) Both of the above
(D) Problemat way

163. Which one of the following best represents the environment of an entrepreneurial
oriented organization?
(A) Corporate culture
(B) Entrepreneurial culture
(C) Intrapreneurial culture
(D) Traditional culture

164. Which one of the following is a longest lasting trade agreement with the objective of liberalizing
trade by eliminating or reducing tariffs, subsidies and quotas?
(A) Free trade area – FTA
(B) European community – EC
(C) General agreement on tariffs and trade – GATT
(D) The North American free trade agreement – NAFTA

165. Which of the following grants protection to owner from anyone else making, using and selling
the identified innovation?
(A) Utility patent
(B) Design patent
(C) Plant patent
(D) International patent
PCODE: 0500042 (ENTREPRENEURSHIP)

166. Which one of the followings statements is NOT true about trademarks?
(A) The entrepreneur can not file after the mark already been in use
(B) A trademark could be a slogan or a particular sound
(C) Some trademarks have no relationship with the product
(D) The filing date for the trademark becomes the first date use of the mark

167. Companies identify their assets with the date of purchase, because it can be helpful in determining
depreciation for:
(A) Goodwill
(B) Trade rebate
(C) Tax purposes
(D) Capital structuring

168. Why should an entrepreneur do a feasibility study for starting a new venture?
(A) To see if there are possible barriers to success
(B) To identify possible sources of funds
(C) To estimate the expected sales
(D) To explore potential customers

169. Which of the following are the key factors for choosing the type of financing?
(A) Availability of funds
(B) Assets of the venture
(C) Prevailing interest rates
(D) All of the above options

170. Which of the following is representing a single expense account?

(A) Depreciation
(B) Cash account
(C) Wages & Salaries
(D) Utilities account

171. Which one of the following is a barriers to new product creation and development?
(A) Trial and error
(B) Opportunity parameter
(C) Opportunity cost
(D) Intrapreneurship culture
PCODE: 0500042 (ENTREPRENEURSHIP)

172. Which one of the following should consider in economy while conducting environmental analysis?
(A) GNP
(B) Disposable income
(C) Unemployment
(D) Channel of distribution

173. Following are the problems in developing the economies EXCEPT:

(A) Gap of knowledge
(B) Variable rate of return
(C) Same communication style
(D) Different accounting system

174. Entrepreneurs are concerned about basic issues of:

(A) Sales, costs and benefits
(B) Customers, sales and costs
(C) Risk, costs and benefits
(D) None of the above

175. A set of reasons for engaging in a particular behavior, especially human behavior is known as
_____________.
(A) Values
(B) Vision
(C) Entrepreneurship
(D) Motivation

176. Entrepreneurial success has been significant because of the culture and the political and economic
systems in _________.
(A) European countries
(B) Asian countries
(C) Transition economies
(D) Middle east

177. 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.
PCODE: 0500042 (ENTREPRENEURSHIP)

178. ______________ may be defined as the excess of present value of project cash inflows over that of
out flows
(A) Net present value technique.
(B) Average rate of return.
(C) Benefit-Cost ratio.
(D) Internal rate of return

179. Estimated sale value of the asset at the end of its economic life is known as _____.
(A) purchase value.
(B) market value.
(C) written down value.
(D) residual value.
180. The value of asset can be reduced to zero under this method _____.
(A) straight line method.
(B) written down value method.
(C) annuity method.
(D) depreciation fund method.

181. Depreciation applies to_______.

(A) current assets .
(B) wasting assets.
(C) intangible assets.
(D) fixed assets

182. Depletion applies to _____.

(A) current assets .
(B) wasting assets.
(C) intangible assets.
(D) fixed assets.

183. Amortization applies to _____.

(A) current assets .
(B) wasting assets.
(C) intangible assets.
(D) fixed assets.

184. Depreciation is charged on _____.

(A) continuous basis.
(B) temporary basis.
(C) daily basis.
(D) monthly basis.
PCODE: 0500042 (ENTREPRENEURSHIP)

185. Depreciation is charged on the _______.

(A) market value.
(B) book value.
(C) purchase value.
(D) sale value.
186. Depreciation is provided on _____.
(A) current asset.
(B) fixed assets.
(C) fictitious assets.
(D) investment.

187. The permanent, continuing and gradual shrinkage in the book value of a fixed asset is called
(A) depreciation.
(B) appreciation.
(C) reduction.
(D) computation.

188. The main objective of providing depreciation is ______.

(A) to calculate true profit.
(B) to calculate financial position.
(C) to reduce tax burden .
(D) to reduce profit.

189. Under the straight line method of charging depreciation, depreciation _____.
(A) increases every year.
(B) decreases every year.
(C) is constant.
(D) fluctuate every year.

190. Under the diminishing balance method depreciation is calculated on _______.

(A) original value
(B) written down value.
(C) scrap value.
(D) market value.

191. Overhead cost is the total of ________.

(A) all indirect costs.
(B) all direct costs.
(C) indirect and direct costs.
(D) all specific costs.
PCODE: 0500042 (ENTREPRENEURSHIP)

192. Cost classification can be done in ________.

(A) two ways.
(B) three ways.
(C) four ways.
(D) several ways.

193. Wages paid to a labour who was engaged in production activities can be termed as _______.
(A) direct cost.
(B) indirect cost.
(C) sunk cost.
(D) imputed cost.

194. Direct expenses are also called ________.

(A) major expenses.
(B) chargeable expenses.
(C) overhead expenses.
(D) sundry expenses.

195. Cost of sales plus profit is _______.

(A) selling price.
(B) value of finished product.
(C) value of goods produced.
(D) value of stocks.

196. Prime cost includes _______.

(A) direct materials, direct wages and indirect expenses.
(B) indirect materials and indirect labour and indirect expenses.
(C) direct materials, direct wages and direct expenses.
(D) direct materials, indirect wages and indirect expenses

197. Total of all direct costs is termed as _________.

(A) prime cost.s
(B) works cost.
(C) cost of sales.
(D) cost of production.

198. Depreciation of plant and machinery is a part of _________.

(A) factory overhead.
(B) selling overhead.
(C) distribution overhead.
(D) administration overhead.
PCODE: 0500042 (ENTREPRENEURSHIP)

199. One of the most important tools in cost planning is _______.

(A) direct cost.
(B) budget.
(C) cost sheet.
(D) marginal costing.

200. Fixed cost per unit increases when ____.

(A) variable cost per unit increases.
(B) variable cost per unit decreases.
(C) production volume increases.
(D) production volume decreases

201. Variable cost per unit __________.

(A) varies when output varies.
(B) remains constant.
(C) increase when output increases
(D) decreases when output decreases

202. Increase in total variable cost is due to ___________.

(A) increase in fixed cost.
(B) increase in sales.
(C) increase in production.
(D) increase in efficiency.

203. Expenditure over and above prime cost is known as __________.

(A) overhead.
(B) factory cost.
(C) cost of sales.
(D) cost of production.

204. Actual loss is more than the predetermined normal loss, it is _________.
(A) normal loss.
(B) abnormal loss.
(C) seasonal loss.
(D) standard loss.
PCODE: 0500042 (ENTREPRENEURSHIP)

205. The process of selecting from alternative long-term investment projects is called:
(A) Net cash inflow maximization.
(B) Capital budgeting.
(C) Discounting cash inflows.
(D) Cash flow management.

206. The time value of money refers to:

(A) The earning power of an investment or stream of investments over time.
(B) The opportunity cost of capital.
(C) The interest rate earned on an investment.
(D) The discount rate used to calculate the present value of an investment.

207. Future value may be defined as:

(A) The discounted value of future cash flows.
(B) The interest rate earned on future cash flows.
(C) The compounded value of future cash flows.
(D) The opportunity costs of future cash flows.

208. Present value may be defined as:

(A) The discounted value of future cash flows.
(B) The interest rate earned on future cash flows.
(C) The compounded value of future cash flows.
(D) The opportunity costs of future cash flows.

209. The payback period is:

(A) The number cash-flow periods of an capital investment project.
(B) The number of years that it takes to earn a profit of a capital investment project.
(C) The number of periods required to pay for the original investment.
(D) The number of periods required to calculate the net present value of an
investment project.

210. An advantage of the payback period method of evaluating a capital investment project is that it:
(A) Does not consider the time value of money.
(B) Ignores cash flows beyond the payback period.
(C) Provides a rough approximation of a projects liquidity and risk.
(D) Provides a rough approximation of the present value of net cash flows.
PCODE: 0500042 (ENTREPRENEURSHIP)

211. Two projects are independent if:

(A) Acceptance of one project means rejection of the other.
(B) Their cash flows are unrelated.
(C) They have different hurdle rates.
(D) They have different discounted payback periods.

212. ___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.

213. 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.

214. ____________ 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.

215. _____________ 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

216. PIR stands for_____________

(A) Pre- investment report.
(B) Post-investment report.
(C) Pre- infrastructure report.
(D) Post-infrastructure report
PCODE: 0500042 (ENTREPRENEURSHIP)

217. According to the governing bodies of common laws, the life of trade secret is:
(A) 12 years
(B) 17 years
(C) 20 years
(D) As long as it remains confidential

218. Which one of the following is the main problem for the entrepreneur in the beginning stages of
creating a new venture?
(A) Lack of experience
(B) Limited resources
(C) Lack of education
(D) None of the given options

219. Which one of the following protects continuity of the business (specially in partnership)?
(A) Property insurance
(B) Casualty insurance
(C) Life insurance
(D) Bonding

220. Legally binding agreement between two parties is called:

(A) A contract
(B) Licensing
(C) Insurance
(D) A copyright

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

(A) Location
(B) Promotion
(C) Raw materials
(D) Labor skills

222. Which of the following is NOT studied in industry analysis?

(A) Economic conditions
(B) Technology advancements
(C) Organizational culture
(D) Legal concerns
PCODE: 0500042 (ENTREPRENEURSHIP)

223. Which one of the factors should be considered while assessing the location for business?
(A) Parking
(B) Access from roadways to facility
(C) Delivery rates
(D) All of the given options

224. Which one of the following is NOT included in four C’s evaluation by lender?
(A) Character
(B) Cost
(C) Continuity
(D) Contribution

225. Which of the following is a characteristic of a good partner?

(A) Help to achieve goals
(B) Share entrepreneur’s vision
(C) Do not exploit the partnership
(D) All of the given options

226. Having more than 50% ownership position that provides the entrepreneur with managerial control
is called:
(A) Joint venture
(B) Majority interest
(C) Horizontal merger
(D) Diversified activity merger

227. Which one of the following is a sound strategic option for an entrepreneur when synergy is
present?
(A) Merger
(B) Joint venture
(C) Minority interest
(D) Majority interest
PCODE: 0500042 (ENTREPRENEURSHIP)

228. Which of the following is a method of selling goods to another country by taking
care of transactions?
(A) Indirect exporting
(B) Direct exporting
(C) Importing
(D) Management contract

229. Following are the types of non-equity arrangements EXCEPT:

(A) Licensing
(B) Management contracts
(C) Direct export
(D) Turnkey projects

230. Andrew Carnegie is an example of entrepreneur of which century

(A) Earliest period
(B) Middle ages
(C) 17th century
(D) 19th and 20th century

231. 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

232. In some countries, point of purchase displays are not allowed in retail stores. Such differences are
studied by international entrepreneurs under __________.
(A) Economic Environment
(B) Political Environment
(C) Cultural Environment
(D) Technological Environment

233. Which of the following factor is most important in forming a new business?
(A) Finance
(B) Marketing
(C) Government support
(D) Family support
PCODE: 0500042 (ENTREPRENEURSHIP)

234. Most of the finance for the new firm comes from following resources EXCEPT:
(A) Friends
(B) Foreign aid
(C) Relatives
(D) Personal savings

235. The intersection of knowledge and a recognized social need to start a product
development process is called which of the following?
(A) Iterative synthesis
(B) Product-evolution process
(C) Ordinary innovation
(D) Situation analysis

236. A foundation company is formed through which of the following?

(A) Fashion
(B) Most popular business
(C) A winding up company
(D) Research and development

237. 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

238. Individuals influencing an entrepreneur’s career choice and style are known as which of
the following?
(A) Role model
(B) Moral-support network
(C) Professional support network
(D) Support system

239. Individuals who help the entrepreneur in business activities are called:
(A) Role models
(B) Moral support networks
(C) Professional support networks
(D) Business support networks
PCODE: 0500042 (ENTREPRENEURSHIP)

240. Following are the problems in developing the economies EXCEPT:

(A) Gap of knowledge
(B) Variable rate of return
(C) Same communication style
(D) Different accounting system

241. Which one of the following is a business arrangement in which someone else is allowed to use
something of the company?
(A) Patent
(B) Trade mark
(C) Copy right
(D) Licensing

242. Which of the following method entrepreneur can use to do international business with least risk?
(A) Turnkey projects
(B) Joint venture
(C) Merger
(D) Synergy

243. Combination of at least two firms at different market levels is called:

(A) Joint venture
(B) Synergy
(C) Horizontal merger
(D) Vertical merger

244. A patent is granted for a specified amount of time because of the assumption:
(A) That during this time firm will cover its development costs
(B) That firm will earn a sufficient profit during this period
(C) To limit the monopoly of the firm
(D) That it will stimulate idea and development of a better product

245. A/an ______ is an online connection between the company and its customers.
(A) Internet advertising
(B) Website
(C) E-Commerce
(D) World Wide Web
PCODE: 0500042 (ENTREPRENEURSHIP)

246. 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

247. Which of the followings give the owners a negative right, preventing anyone from making, using,
or selling the invention?
(A) Patent
(B) Copyright
(C) Trade mark
(D) Trade secret

248. Which one of the following is a longest lasting trade agreement with the objective
of liberalizing trade by eliminating or reducing tariffs, subsidies and quotas?
(A) Free trade area – FTA
(B) European community – EC
(C) General agreement on tariffs and trade – GATT
(D) The North American free trade agreement – NAFTA

249. Which of the following grants protection to owner from anyone else making, using and selling
the identified innovation?
(A) Utility patent
(B) Design patent
(C) Plant patent
(D) International patent

250. Which one of the followings statements is NOT true about trademarks?
(A) The entrepreneur can not file after the mark already been in use
(B) A trademark could be a slogan or a particular sound
(C) Some trademarks have no relationship with the product
(D) The filing date for the trademark becomes the first date use of the mark

251. According to the governing bodies of common laws, the life of trade secret is:
(A) 12 years
(B) 17 years
(C) 20 years
(D) As long as it remains confidential
PCODE: 0500042 (ENTREPRENEURSHIP)

252. Which one of the following is the main problem for the entrepreneur in the beginning stages of
creating a new venture?
(A) Lack of experience
(B) Limited resources
(C) Lack of education
(D) None of the given options

253. Which one of the following protects continuity of the business(specially in partnership)?
(A) Property insurance
(B) Casualty insurance
(C) Life insurance
(D) Bonding

254. A legally binding agreement between two parties is called:

(A) A contract
(B) Licensing
(C) Insurance
(D) A copyright

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

(A) Location
(B) Promotion
(C) Raw materials
(D) Labor skills

256. Which of the following is NOT studied in industry analysis?

(A) Economic conditions
(B) Technology advancements
(C) Organizational culture
(D) Legal concerns

257. Which one of the factors should be considered while assessing the location for business?
(A) Parking
(B) Access from roadways to facility
(C) Delivery rates
(D) All of the given options
PCODE: 0500042 (ENTREPRENEURSHIP)

258. Which one of the following is NOT included in four C’s evaluation by lender?
(A) Character
(B) Cost
(C) Continuity
(D) Contribution

259. Which of the following is a characteristic of a good partner?

(A) Help to achieve goals
(B) Share entrepreneur’s vision
(C) Do not exploit the partnership
(D) All of the given options

260. Having more than 50% ownership position that provides the entrepreneur
with managerial control is called:
(A) Joint venture
(B) Majority interest
(C) Horizontal merger
(D) Diversified activity merger

261. Which one of the following is a sound strategic option for an entrepreneur when synergy is
present?
(A) Merger
(B) Joint venture
(C) Minority interest
(D) Majority interest

262. Which of the following is a method of selling goods to another country by taking care of
transactions?
(A) Indirect exporting
(B) Direct exporting
(C) Importing
(D) Management contract

263. Following are the types of non-equity arrangements EXCEPT:

(A) Licensing
(B) Management contracts
(C) Direct export
(D) Turnkey projects
PCODE: 0500042 (ENTREPRENEURSHIP)

264. Andrew Carnegie is an example of entrepreneur of which century:

(A) Earliest period
(B) 19th and 20th century
(C) Middle ages
(D) 17th century

265. 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

266. In some countries, point of purchase displays are not allowed in retail stores. Such differences
are studied by international entrepreneurs under __________.
(A) Economic Environment
(B) Political Environment
(C) Cultural Environment
(D) Technological Environment

267. Which of the following factor is most important in forming a new business?
(A) Finance
(B) Marketing
(C) Government support
(D) Family support

268. Most of the finance for the new firm comes from following resources EXCEPT:
(A) Friends
(B) Foreign aid
(C) Relatives
(D) Personal savings

269. The intersection of knowledge and a recognized social need to start a product development process
is called which of the following?
(A) Iterative synthesis
(B) Product-evolution process
(C) Ordinary innovation
(D) Situation analysis
PCODE: 0500042 (ENTREPRENEURSHIP)

270. A foundation company is formed through which of the following?

(A) Fashion
(B) Most popular business
(C) A winding up company
(D) Research and development

271. 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

272. Individuals influencing an entrepreneur’s career choice and style are known as which of
the following?
(A) Role model
(B) Moral-support network
(C) Professional support network
(D) Support system

273. An entrepreneur is also successful in international business as well if he understands:

(A) Difference of domestic and international business
(B) Domestic business
(C) International business
(D) None of the given options

274. Which of the following is NOT an important aspect of international success?

(A) Planning
(B) Diversification
(C) Reporting
(D) Control

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

(A) Government
(B) Finance
(C) High interest rates
(D) Role models
PCODE: 0500042 (ENTREPRENEURSHIP)

276. Which of the following is the most important for the entrepreneur, while starting a new venture,
to make an assessment of?
(A) Risk
(B) Profit
(C) Market
(D) Competitors

277. 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

278. Which of the following factor is most important in forming a new business?
(A) Finance
(B) Marketing
(C) Government support
(D) Family support

279. Most of the finance for the new firm comes from following resources EXCEPT:
(A) Friends
(B) Foreign aid
(C) Relatives
(D) Personal savings

280. 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

281. Members of distribution channels are excellent sources for new ideas because:
(A) They are familiar with the needs of the market
(B) They earn a handsome profit from new business
(C) They do not bother if entrepreneur bears a loss
(D) They have well-developed sales force
PCODE: 0500042 (ENTREPRENEURSHIP)

282. Why should an entrepreneur do a feasibility study for starting a new venture?
(A) To see if there are possible barriers to success
(B) To identify possible sources of funds
(C) To estimate the expected sales
(D) To explore potential customers

283. Which of the following is idea generation method that focuses on parameters?
(A) Brainstorming
(B) Reverse brainstorming
(C) Creative problem solving
(D) Synoptic

284. Which of the following factor is most important in forming a new business?
(A) Finance
(B) Marketing
(C) Government support
(D) Family support

285. Which is the most common cause of business failure?

(A) Insufficient capital
(B) Unstable market
(C) Insufficient experience
(D) Poor entrepreneurship

286. Entrepreneurial experience becomes increasingly important as

(A) Work load increases
(B) Complexity of venture increases
(C) Complexity of wok increases
(D) None of the above

287. Joint ventures have been used by entrepreneur:

(A) When the entrepreneur wants to purchase local knowledge
(B) When rapid entry in to the market is needed
(C) Both of the options given
(D) None of the above
PCODE: 0500042 (ENTREPRENEURSHIP)

288. Which of the following statements about the intrepreneurial climate is (are) true?
(A) Trial and error are discouraged.
(B) Resources of the firm need to be available and easily accessible
(C) A multidisciplinary approach is discouraged.
(D) Failures are not allowed

289. The entrepreneur must possess the abilities:

(A) Creative
(B) Conceptualization
(C) Understanding environment
(D) All of the given options

290. There is evidence that an entrepreneur usually has _______________ parents.

(A) Self employed
(B) Discouraged
(C) Non supportive
(D) Strict

291. Which one of the following is the primary cause of failure in small businesses?
(A) Poor financial control
(B) Poor location
(C) Management mistakes
(D) Improper inventory control

292. Which of the following techniques is an excellent method for initial screening of ideas and concepts?
(A) Focus group
(B) Problem inventory analysis
(C) Brain storming
(D) Reverse brainstorming

293. Which one of the following may need the business plan?
(A) Employees
(B) Investors
(C) Advisors
(D) All of the given options
PCODE: 0500042 (ENTREPRENEURSHIP)

294. 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

295. The management of resources in a small firm is largely __________ concerned with
(A) Operations.
(B) Finance.
(C) Marketing.
(D) All the above.

296. A cash flow forecast will form part of which section of the business plan ______
(A) Operations.
(B) Marketing.
(C) Finance.
(D) Executive summary

.
297. The entrepreneur must possess the abilities:
(A) Creative
(B) Conceptualization
(C) Understanding environment
(D) All of the given options

298. There is evidence that an entrepreneur usually has _______________ parents.

(A) Self employed
(B) Discouraged
(C) Non supportive
(D) Strict

299. Which one of the following is the primary cause of failure in small businesses?
(A) Poor financial control
(B) Poor location
(C) Management mistakes
(D) Improper inventory control
PCODE: 0500042 (ENTREPRENEURSHIP)

300. Which of the following techniques is an excellent method for initial screening of ideas and concepts?
(A) Focus group
(B) Problem inventory analysis
(C) Brain storming
(D) Reverse brainstorming

301. Which one of the following may need the business plan?
(A) Employees
(B) Investors
(C) Advisors
(D) All of the given options

302. 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

303. The management of resources in a small firm is largely __________ concerned with
(A) Operations.
(B) Finance.
(C) Marketing.
(D) All the above.

304. A cash flow forecast will form part of which section of the business plan ______
(A) Operations.
(B) Marketing.
(C) Finance
(D) Executive summary

297. The Markets and Competitor section of a business plan should contain ____________
(A) A statement of the target market.
(B) The size of each market segment.
(C) The key characteristics of buyers in each business segment.
(D) All the above.
PCODE: 0500042 (ENTREPRENEURSHIP)

298. 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

299. As a new company grows, the entrepreneur will need to _________

(A) be responsive to changes in the market
(B) ensure financial controls are maintained.
(C) build a management team.
(D) all the above.

300. 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.

301. 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.

302. Entrepreneurs are motivated by _________

(A) money.
(B) personal values
(C) pull influences.
(D) All the above.

303. 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.
PCODE: 0500042 (ENTREPRENEURSHIP)

304. 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..

305. 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

306. _______________ 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.

307. _______________ is granted to small scale industry under section 32

(A) Depreciation Allowance.
(B) Development Rebate.
(C) Investment Allowance.
(D) Rehabilitation Allowance

308. 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 .

309. ______________ 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.
PCODE: 0500042 (ENTREPRENEURSHIP)

310. Under section 80J of the income tax act 1961 small-scale industries are exempted from the
payment of income tax on their profits at ___________
(A) 6% p.a.
(B) 6% p.m.
(C) 5% p.a.
(D) 5% p.a.

311. The policy which stressed the role of cottage and small-scale industries for balanced
industrial development of the country is ___________
(A) IPR 1940.
(B) IPR 1948.
(C) IPR 1956.
(D) IPR 1977.

312. The policy which emphasized the need of promoting small-scale industries through integrated
indus-trial development is_____________
(A) IPR 1948
(B) IPR 1956.
(C) IPR 1977.
(D) IPR 1980.

313. The small scale unit wishing to export has to obtain exporters code number from _________
(A) The Reserve Bank of India.
(B) The Central Bank of India.
(C) Any Regional Bank.
(D) Any International Bank.

314. The expenses incurred on the setting up of the enterprise are called as _________
(A) Cost of financing.
(B) Cost of promotion..
(C) Cost of fixed assets.
(D) Cost of current assets.

315. Over capitalization arises due to___________

(A) excess of assets over the liabilities.
(B) excess of liabilities over the assets.
(C) actual earnings are lower than the expected earnings
(D) actual earnings are higher than the expected earnings.
PCODE: 0500042 (ENTREPRENEURSHIP)

316. Under-capitalization arises due to __________

(A) excess of assets over the liabilities.
(B) excess of liabilities over the assets.
(C) actual capitalization is higher than the proper capitalization.
(D) actual capitalization is lower than the proper capitalization

317. 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.

318. Which of the following leads to under-capitalization?

(A) raising of more money by issue of shares.
(B) acquiring fixed assets on excessive amounts.
(C) over-estimation of earnings for enterprise.
(D) under-estimation of initial rate of earnings.

319. Business means ________.

(A) Commerce.
(B) industry and commerce.
(C) trade and commerce.
(D) selling and buying of goods

320. A valid definition of a business purpose is to ______.

(A) create a customer.
(B) maximize profits
(C) serve the society.
(D) increase the wealth of the firm.

321. Reserve bank of India is a/an _______.

(A) a statutory corporation.
(B) company limited by guarantee.
(C) company limited by shares.
(D) unlimited company.
322. Memory unit performs the function of ________.
(A) calculations at a very high speed.
(B) giving out the end product.
(C) controlling at the operating units.
(D) storing the data.
PCODE: 0500042 (ENTREPRENEURSHIP)

323. Business risks can be ______.

(A) avoided.
(B) reduced.
(C) ignored.
(D) erased.

324. The oldest form of business organization is ______.

(A) Partnership.
(B) sole proprietorship.
(C) joint stock company.
(D) co-operative undertaking.

325. Most of the finance for the new firm comes from following resources EXCEPT:
(A) Friends
(B) Foreign aid
(C) Relatives
(D) Personal savings

326. The intersection of knowledge and a recognized social need to start a product development process
is called which of the following?
(A) Iterative synthesis
(B) Product-evolution process
(C) Ordinary innovation
(D) Situation analysis

327. A foundation company is formed through which of the following?

(A) Fashion
(B) Most popular business
(C) A winding up company
(D) Research and development

328. 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
PCODE: 0500042 (ENTREPRENEURSHIP)

329. Individuals influencing an entrepreneur’s career choice and style are known as which of the
following?
(A) Role model
(B) Moral-support network
(C) Professional support network
(D) Support system

330. Individuals who help the entrepreneur in business activities are called:
(A) Role models
(B) Moral support networks
(C) Professional support networks
(D) Business support networks

331. Following are the problems in developing the economies EXCEPT:

(A) Gap of knowledge
(B) Variable rate of return
(C) Same communication style
(D) Different accounting system

332. Which one of the following is a business arrangement in which someone else is allowed to use
something of the company?
(A) Patent
(B) Trade mark
(C) Copy right
(D) Licensing.

333. Which of the following method entrepreneur can use to do international business with least risk?
(A) Turnkey projects
(B) Joint venture
(C) Merger
(D) Synergy

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

(A) Color, Attracts attention, ingredients in product.
(B) Name of product, price, location, attractive.
(C) Easy to read, price, color, location, why customers should buy it.
(D) Nutritional information, price, color, where to buy it, easy to read.
PCODE: 0500042 (ENTREPRENEURSHIP)

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

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

336. Which one of the following is a barrier to new product creation and development?
(A) Trial and error
(B) Opportunity parameter
(C) Opportunity cost
(D) Intrapreneurship culture

337. _________ is commonly used to measure the short-term solvency of the venture?
(A) Debt to equity ratio
(B) Current ratio
(C) Profitability ratio
(D) Activity ratio

338. which one of the following should consider in economy while conducting environmental analysis?
(A) GNP
(B) Disposable income
(C) Unemployment
(D) Channel of distribution

339. Which two work environments should be good for spawning the new enterprises?
(A) Finance and marketing
(B) Finance and R&D
(C) Marketing and R&D
(D) Marketing and IT

340. Which of the following is NOT an example of collecting primary data?

(A) Internet
(B) Focus Group
(C) Interview
(D) Observation
341. LLC is more flexible than
(A) S Corporation
(B) Limited Partnership
(C) Sole Proprietor
(D) All of the above
PCODE: 0500042 (ENTREPRENEURSHIP)

342. The resistance of employees in an organization against flexibility, growth, and diversification can
be overcome by developing:
(A) Entrepreneurship
(B) Intrapreneurship
(C) Managerial domain
(D) Administrative domain

343. For the success of business plan the goals should be

(A) Limitless
(B) Generalized
(C) Specific
(D) Imaginary

344. LMM stands for:

(A) Locally Manufactured Machinery
(B) Locally Manufactured Marble
(C) Local Marble Market
(D) Local Meat Market

345. Which of the following is NOT essential part of the contract?

(A) All the parties involved should be named
(B) Transaction should be described in detail
(C) Obtain signatures of the persons involved
(D) Place where contract takes place

346. Normally sponsor links are used in which of the following type of promotion?
(A) Publicity
(B) Trade shows
(C) Personal selling
(D) Internet advertising

347. The Grameen Bank model is affectively used by which of the following institute?
(A) Education sector
(B) Finance Sector
(C) Rural Sector
(D) NGOs
PCODE: 0500042 (ENTREPRENEURSHIP)

348. Which one of the factors should be considered while assessing the space for business?
(A) Parking
(B) Access from roadways to facility
(C) Delivery rates
(D) All of the given options

349. An actor and a person who managed large project were termed as the entrepreneur in the_________.
(A) Earliest period
(B) Middle ages
(C) 17th century
(D) 19th and 20th century

350. Which of the following usually is NOT deducted to the salaries?

(A) Provident fund
(B) Income Tex
(C) Insurance
(D) Zakat

351. LLC is more flexible than

(A) S Corporation
(B) Limited Partnership
(C) Sole Proprietor
(D) All of the above

352. Which of the following is NOT an example of collecting primary data?

(A) Internet
(B) Focus Group
(C) Interview
(D) Observation

353. Which two work environments should be good for spawning the new enterprises?
(A) Finance and marketing
(B) Finance and R&D
(C) Marketing and R&D
(D) Marketing and IT
PCODE: 0500042 (ENTREPRENEURSHIP)

354. Which one of the following should consider in economy while conducting environmental analysis?
(A) GNP
(B) Disposable income
(C) Unemployment
(D) Channel of distribution

355. _________ is commonly used to measure the short-term solvency of the venture?
(A) Debt to equity ratio
(B) Current ratio
(C) Profitability ratio
(D) Activity ratio

356. Which one of the following is a barrier to new product creation and development?
(A) Trial and error
(B) Opportunity parameter
(C) Opportunity cost
(D) Intrapreneurship culture

357. What is a target market?

(A) A group of customers a venture reaches by accident
(B) All consumers who purchase the venture’s product
(C) A specific group of potential customers toward which a venture aims its marketing
plan
(D) A chain of discount stores

358. In stage of responsibility allocation process the entrepreneur follows:

(A) Highly centralized decision making process
(B) Highly decentralized decision making process
(C) Somewhat centralized decision making process
(D) No particular standard

359. Which one of the following is the process of entrepreneurs developing new products that over
time make current products obsolete?
(A) Creative destruction
(B) New business model
(C) Anatomization
(D) None of the given options
PCODE: 0500042 (ENTREPRENEURSHIP)

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

(A) Government
(B) Finance
(C) High interest rates
(D) Role models

361. Which one of the following gives suggestions for new product but also helps to market new
product in the market?
(A) Existing products and services
(B) Distribution channels
(C) Federal government
(D) Consumers

362. The chief motivational factor for _________________ entrepreneurs to leave jobs is the
frustration of not being allowed to perform at the level of which they are capable.
(A) Male
(B) Female
(C) Young
(D) All of the given options

363. Which of the following is the most important for the entrepreneur, while starting a
new venture, to make an assessment of?
(A) Risk
(B) Profit
(C) Market
(D) Competitors

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

(A) International entrepreneurship
(B) Intrepreneurship
(C) Domestic entrepreneurship
(D) Imports

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

(A) International entrepreneurship
(B) Intrapreneurship
(C) Domestic entrepreneurship
(D) None of the given options
PCODE: 0500042 (ENTREPRENEURSHIP)

366. The chief motivational factor for _________________ entrepreneurs to leave jobs is the frustration
of not being allowed to perform at the level of which they are capable.
(A) Male
(B) Female
(C) Young
(D) All of the given options

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

(A) International entrepreneurship
(B) Intrapreneurship
(C) Domestic entrepreneurship
(D) Imports

368. The entrepreneur’s_______________ depends on his perception of the opportunity.

(A) Commitment to opportunity
(B) Commitment of resources
(C) Control of resources
(D) Strategic orientation

369. Which one of the following is important for international business to avoid trade barriers?
(A) Protectionist attitude
(B) Entrepreneurial partnering
(C) Free trade areas
(D) None of the given options

370. Selling goods to another country through a person in the entrepreneur’s home country is known as:
(A) Trading
(B) Direct export
(C) Indirect export
(D) Domestic sales

371. Assessment of the needed resources by the entrepreneur starts with:

(A) An appraisal of the entrepreneur’s present resources
(B) An assessment of economic conditions of the country
(C) A scanning of friends and family for funds
(D) A survey of banks and other financial institutions in the area
PCODE: 0500042 (ENTREPRENEURSHIP)

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

(A) Financial status
(B) Qualification
(C) Social status
(D) Achievement

373. Which of the following method entrepreneur can use to do international business with least risk?
(A) Turnkey projects
(B) Joint venture
(C) Merger
(D) Synergy

374. Which one of the following is the main problem for the entrepreneur in the beginning
stages of creating a new venture?
(A) Lack of experience
(B) Limited resources
(C) Lack of education
(D) None of the given options

375. Having more than 50% ownership position that provides the entrepreneur with managerial
control is called:
(A) Joint venture
(B) Majority interest
(C) Horizontal merger
(D) Diversified activity merger

376. Individuals influencing an entrepreneur’s career choice and style are known as which of
the following?
(A) Role model
(B) Moral-support network
(C) Professional support network
(D) Support system
PCODE: 0500042 (ENTREPRENEURSHIP)

377. Which of the following is a method of selling goods to another country by taking care of
transactions?
(A) Indirect exporting
(B) Direct exporting
(C) Importing
(D) Management contract

378. An entrepreneur is also successful in international business as well if he understands:

(A) Difference of domestic and international business
(B) Domestic business
(C) International business
(D) None of the given options

379. Which of the following is NOT an important aspect of international success?

(A) Planning
(B) Diversification
(C) Reporting
(D) Control

380. In some countries, point of purchase displays are not allowed in retail stores. Such differences
are studied by international entrepreneurs under __________.
(A) Economic Environment
(B) Political Environment
(C) Cultural Environment
(D) Technological Environment

381. An entrepreneur is also successful in international business as well if he understands:

(A) Difference of domestic and international business
(B) Domestic business
(C) International business
(D) None of the given options

382. Which of the following is NOT an important aspect of international success?

(A) Planning
(B) Diversification
(C) Reporting
(D) Control
PCODE: 0500042 (ENTREPRENEURSHIP)

383. Which of the following geographical area is of least interest to U.S entrepreneurs?
(A) Europe
(B) The Far East
(C) Central Asia
(D) Transition economies

384. Which of the following areas are preferred by women entrepreneurs?

(A) Administration
(B) Utilities
(C) Manufacturing
(D) None of the above

385. Which of the following factors does not affect a person for being an entrepreneur?
(A) Family background
(B) Education
(C) Personal values
(D) Gender

386. The UK government has implemented a number of policies to encourage entrepreneurship in

schools. One such initiative is _________
(A) Young Enterprise
(B) Youth venture
(C) Young Business
(D) Young Initiative.

387. A business centre that offers working space and specialised support for new ventures is called
_____
(A) isolator.
(B) injector.
(C) incubator.
(D) integrator.

388. 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
PCODE: 0500042 (ENTREPRENEURSHIP)
389. 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

390. SFC stands for____________

(A) State financial committee.
(B) State funding corporation
(C) State finance corporation.
(D) State funding committee.

391. State Industrial corporations engage in the development of__________

(A) industrial estates.
(B) institutional estates.
(C) individual investors.
(D) agricultural entrepreneurs

392. 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.

393. SIDBI was set up in the year__________

(A) 1987.
(B) 1988.
(C) 1989.
(D) 1990.

394. SIDBI was set up as a subsidiary of_________

(A) IDBI.
(B) IFCI.
(C) ICICI.
(D) SFC.
PCODE: 0500042 (ENTREPRENEURSHIP)

395. The initial authorized capital of SIDBI is________

(A) Rs. 350 crores.
(B) Rs. 450 crores.
(C) Rs. 250 crores.
(D) Rs. 150 crores.

396. 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

397. SIDC stands for __________

(A) State industrial development corporation.
(B) Small industries development corporation
(C) State institutional development corporation.
(D) Small institutional development corporation

398. SIDC was set up under the__________

(A) Co-operative societies Act.
(B) Companies Act.
(C) Industries Act.
(D) Partnership Act.

399. 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.

400. SIDO stands for____________

(A) State Travel Industries Development Organization.
(B) Service Industries Development Organization.
(C) Small Industries Development Organization.
(D) Small Institution Development Organization.
PCODE: 0500042 (ENTREPRENEURSHIP)

401. 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.

402. SISI was established in _____________

(A) 1956.
(B) 1965.
(C) 1970.
(D) 1972.

403. IIC stands for____________

(A) Indian Industries Centre.
(B) Indian Investment Centre.
(C) Indian Investment Corporation.
(D) indian Industries Corporation.

404. Entrepreneurial Guidance Bureau(EGB) was set up by____________

(A) SISI.
(B) SIPCOT.
(C) IIC.
(D) SIDCO.

405. 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.

406. Khadi & Village Industries Commission was established in ___________

(A) 1953.
(B) 1950.
(C) 1947.
(D) 1942.
PCODE: 0500042 (ENTREPRENEURSHIP)

407. NEDS stands for __________

(A) New Enterprise Development Agency.
(B) New Entrepreneur Development Agency.
(C) New Employees Development Agency.
(D) New Employers Development Agency

408. __________ denotes a single lump sum which is given by a government to an industry
(A) Incentive.
(B) Subsidy.
(C) Bounty.
(D) Financial Aid

409. 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.

410. 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

411. Which of the following factors does the macro-environment not include
(A) political and regulatory factors
(B) customer needs in a given market
(C) social and demographic factors
(D) technological changes

412. 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
PCODE: 0500042 (ENTREPRENEURSHIP)

413. 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

414. 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