Question Option 1

Estimating capital requirements is important for the: Break-even analysis

Which should NOT be included in an executive summary? Exhibits
The 4Ps are also known as: Promotions
How long should a typical business plan project for? 8-10 years
What is the first section in a traditional business plan? Marketing plan

Ownership stake in a public

What does Market Share mean? company

In a competitor analysis, no need to focus on_______. Barriers to entry

Who are the most important readers of a business plan? Employees

Summary Provided To Bank

What is the Executive Summary of a Business Plan? Executives
Sales targets should be: Measurable
Strengths, Weakness, Origination,
SWOT Stands for: Targets
The main reason that business fail is due to not having enough? Employees
The first thing to assess in your market analysis is the: Competitive analysis
The section of your business plan that is similar to an "elevator pitch" is
the: Market Analysis
For a typical executive summary, what is the maximum length? Half a page

Which of the following is NOT mentioned as one of the purposes of a A business plan helps the
business plan? entrepreneur to be realistic
Which of the following elements is NOT included in a business plan? Market analysis

A strategy is a comprehensive plan which will not include_____ Determining long term objectives

According to a survey of 250 consumer packaged goods (CPG) companies

by a reputed firm, 75% of brand owners say they’re going to spend
significantly more on packaging as it is critical to their brand’s success.
Identify the type of plan being described in the above lines. Rule
It is a plan which quantifies future facts and figures Procedure
Shubham wants to increase the sale of his business by 15% in the next
quarter. Identify the type of plan being described in the above lines. Method

Based on National Common Mobility Card standards, India’s first

indigenously developed inter-operable transport card was launched in
March 2019 to make travel across various modes convenient. Identify the
type of plan being described in the above lines. Strategy
___________ in a business plan shows the estimated profit and expenses
of the venture. Financial Plan
______ is a initial component of the busieness plan Executive summary
Which of these business components help in understanding how the
business's plans to expand in the future? Competitor's analysis
Name the strategy which helps in understanding competitors' marketing
strategy. Marketing analysis

Which of the following is an advantage to a new business start-up of

producing a business plan? It will guarantee survival
In which section of the business plan would you expect to find details
about market size and market research? Objectives and key targets
The business, its objectives,
Which of the following best describes a business plan? A written document strategies, financial forecasts and
that describes: market
Reduces risk by providing a guide
Which of the following is a drawback of business planning? for the business
Focus on the business idea before
An existing business may use a business plan to: start-up
Which of the following is a functional area of a business? Outsourcing
Which of the following is a major problem that an entrepreneur might To explain the business idea and
encounter when writing a business plan for the first time? where it came from
Details regarding how many staff the business will need to employ, their
pay rates and job descriptions would be found in which section of a
business plan? Finance
A group of people working with common objectives or goals is known as a
_________ Team
Improved solutions to quality
Which of the following is not a benefit of teamwork? problems

Which of the following is not a classification of a team? Process improvement team

The team which focuses its attention on improvements of a process that is
already operating to a satisfactory level is called the ______________ Process improvement team

Cross-functional teams are _______ Temporary

What is the primary focus of Product Management? Maximizing profits for the company
Conduct market research and
What does a Product Manager do during the product development phase? gather customer feedback
Which stage of the product lifecycle focuses on gathering user feedback
and making product improvements? Introduction
In Product Management, what does MVP stand for? Most Valuable Player

It is the most advanced version of

What is the significance of a Minimum Viable Product (MVP) in Product the product with all features
Management? included.
Which stage of the product lifecycle is characterized by slow growth and
market saturation? Introduction
What does a Product Manager typically do during the product end-of-life Launch a new version of the
phase? product

What is the purpose of conducting a SWOT analysis? To identify potential suppliers

Which of the following shows the process of creating something new? Business model

EDP (Entrepreneurship Development Programmes) is required to help: Existing entrepreneurs

Which one of the following is an important source of idea generation due
to their familiarity with the needs of market? Existing products and services
Members of distribution channels are excellent sources for new ideas They earn a handsome profit from
because: new business
Why should an entrepreneur do a feasibility study for starting a new To identify possible sources of
venture
______ conducts entrepreneurship development programmes. funds
NIESBUD
Which of the following is not quality of a creative entrepreneur ? Fluency
Which of the following type of innovation involve the replication of already
existing product ? Innovation
Innovation
The idea germination stage in the creativity process is a ? Seeding Process

That during this time firm will cover

A patent is granted for a specified amount of time because of the its development costs
assumption:
Highly creative & in love with the
A typical inventor is usually ______________. invention
if arranged in chronological order, Which one of the following is the last Developing successful business
step in the entrepreneurial process? ideas
______________ is a form of financing especially for funding high
technology, high risk and perceived high reward projects Fixed capital
______________ is primarily concerned with the identification of the
project demand potential and the selection of the optimal technology. Techno-economic analysis
Which of the list below does not form Intellectual Property? Trade marks
Idea of new product is tested in potential consumers to determine
consumer acceptance at ______________ stage. Concept
Why should an entrepreneur do a feasibility study for starting a new To identify possible sources of
venture: funds
Seed capital assistance is ___________ A long-term assistance
____________ describes the direction, the enterprise is going in, what its project report
goals are, where it wants to be,and how it is going to get there.
When a firm enters into business which is unrelated to its existing business
both in terms of technology and marketing _____________ conglomerate diversification
A combination of 2 or more companies into one, in which the merging
entities lose their identity, is known as _____ Take Charge
______industries manufacture parts and components, Sub assemblies,
tooling or intermediaries. SMEs
_______ is a group method for obtaining new ideas and solutions. Brainstorming
______ is the process of designing a project in an orderly manner. Feasibilty study
_____ is prepared for submission to financial institution for the grant of
loans and other financial concessions. Feasibilty Report
_____ of a project means to find out its future prospects or its practical
utility. Feasibilty study
Providing permission to use technical know how by parent organization to
another individual is known as_______ Franchising
A business arrangement where one party allows another party to use a
business Name and sell its products or services is known as
______________ A cooperative
KPO stands for______ Knowledge process outsourcing
Which of the following is not the stage of entrepreneur firm Seed

All but which of the following is considered to be a myth associated with Successful entrepreneurs are born
entrepreneurship . and not made
What is the term that occurs when a business plans for possible but
unlikely events? Strategic Drift
Might be a waste of time because
the things being planned for may
What is a negative tradeoff of Contingency Planning? never happen
An imagined sequence of future
What is the definition of a scenario in scenario planning? events

A defined specified outcome to be

What is a definition of an objective? achieved in the long-term
Changes and events cannot be eliminated but they can be anticipated and
managerial response to them can be developed. Which importance of
planning is highlighted in the above statement? Planning provides direction.
Planning ensures clarity in thought and action, work is carried out smoothly
without interruptions.
Which importance of planning is highlighted in the above statement? Planning provides direction.
Planning involves setting targets and predicting future conditions, thus
helping in making a choice.
Which importance of planning is highlighted in the above statement? Planning provides direction.

What is the primary purpose of a business plan Securing funding

Which section of a business plan typically includes financial forecasts? Executive summary

Why is market analysis an important component of a Business Plan? To determine legal requirements
Demonstrating the company's
What role does a business plan play in attracting investors? profitability
Which section of a business plan describes the organizational structure and
key team members? Executive summary
To identify potential growth
What is the purpose of a risk analysis in a business plan? opportunities
A method to promote products
What is pricing strategy? through discounts
Which pricing strategy sets prices based on production costs and desired
profit margins? Market-Based Pricing
 Setting prices based on production
Market-Based Pricing involves: costs

Competing with rivals on price to

Value-Based Pricing focuses on: gain market share

Setting a low initial price to

Skimming Pricing is characterized by: penetrate the market quickly
To increase the profit margin of the
What is the main objective of promotional pricing strategies? product
Set different prices based on the
Geographic pricing is a strategy where companies: location of the customer
Which of the following best describes the term stakeholders? An Individual
or organisation that Owns part of the business

The entrepreneur will be able to

depend on the established brand
Why might an entrepreneur opening a hairdressing business stand a name, national marketing and
greater chance of success if they bought a franchise license than if they systems of the franchise for
attempted to establish an independent business? success.
Objectives provide the basis for
strategy, as strategy is the actions
What is the relationship between objectives and strategy? taken to achieve objectives.
Which of the following is NOT one of the criteria investors or venture
capitalists use in evaluating new venture proposals? Openness and honesty
Good executive summaries: Cannot sell ideas
The ultimate judge of product or service quality is All employees

The first stage in the life-cycle of a business is: Start-up

Which of the following does not take place during the start-up stage of the Initial screening of product and
business venture? business ideas
At which stage of a business venture does financial institutions and
investors traditionally show no interest in funding a business venture? Start-up

Which of the following tasks are typical of the Production and Market Identification and assembling the
Development stage of a business venture? management team
The entrepreneur has to let go of
Which statement describes the maturity and stability stage of a business power and control over key
venture the best? decisions and responsibilities

Banks are more likely to provide financing for a new product: once the product is developed
Setting mechanisms for information flow and processing, decision making
processes, conflict resolution, and risk sharing, are characteristics of which
stage of innovation network management? Set up stage
 A coalition of two or more
organizations, formed for achieving
significant goals that are mutually
Which of the following does not describe strategic alliances? beneficial to all members.

Mostly rich friends and family

members that save our business by
injecting money into it before the
The term Angel investors refers to _____________ venture collapses.

Right given to prevent others from

printing, copying or publishing any
Which of the following describes a trademark? original work of authorship.

Advantages to buying an existing business that you do not have with a

startup include: greater access to venture capital

Which of the following is a potential advantage of purchasing an existing The employees inherited with the
business? business may not be suitable
An individual who starts, creates and manages a new business can be
called Leader
Which industrial sector promotes small scale business and
entrepreneurship and has lower barriers to market entry? Service
_____________ is the process through which individual perceives
opportunities without regard to resources they possess. Start-up Management

What are 6 Cs that motivate entrepreneur to establish their own Change, challenge, creativity,
business are _____________ control, curiosity and cash
Sustainability of entrepreneur development does not depends on factors
like ___________ Technical skills

Microsoft by Bill Gates is an example of which type of entrepreneurship? Innovative

In which of the following types, does the entrepreneur work as a middle
man? Joint
______is the funding a project by raising money from large number of
people for a common goal. Boot straping
"To create a feeling of belongingness in the customers and for branding
purpose, they started to use 'Hat' as symbol on all their products" Which
IPR is highlighted in the line? Patent
Which is the most stable form of business organisation? Sole proprietorship
The following can be patented: Process

Working on the strategies reduces

What is the most important factor of planning in business? the chances of uncertainties.
Among the following documents, which are not mandatory to be
submitted to the registrar along with an incorporation application by a Address of registered office and
private company? undertaking

After incorporation but before the

Preliminary Contracts are signed ______. capital subscription

There is no limit to the number of

Which ONE of the following statements about a business partnership is people that can be involved in a
FALSE partnership

Indicate which one of the following is the LEAST important factor to

consider when deciding on a business ownership model: The start-up capital requirements

There exists a special form of partnership called a limited partnership.

Which one of the following statements concerning limited partnerships is Limited partners do not have
NOT true? power to bind the firm.
Which of the following documents is compulsory for incorporation of a
company? Memorandum of association

Evaluating alternative courses,

Identifying alternative course of
actions, Setting objectives,
Identify the correct sequence of steps involved in the planning process Developing premises
Which section lists research about customers, geographic region, &
competitors? Finance Plan
Opportunities for business/product expansion is addressed in which
section of the plan? The Organizational Plan

The purpose of including supporting documents in a business plan is to: make you look smart
Business structure two or more people share ownership is: Franchise
We need to build a __________ so we can show the new product to our
focus group and ask for their opinion. concept
Buying a whole company, a patent, or a license to produce someone else’s
product is known as ______ Turnover
Break from the plan whenever they
In effective teams, teammates are encouraged to want
Which of these is NOT in a business plan market research
Who doesn't look at a business plan? Banks
A patent grants exclusive rights to the inventor for a period of : 5 years
 Option 2 Option 3 Option 4
Product management Product design Marketing
Name of founders Dates Current investors
Marketing trends Market demographics Marketing mix
6 months 12 months 3-5 years
Financials Management profile Executive summary
The portion of a market
Opportunities to share in greater controlled by a particular Portion of ownership in
market profits company or product. industry by shareholders
number of emploees in
Component costs Prime customer motivators business
Customers Competitors Investors

A snapshot of your business

plan as a whole and touches
on your company profile and
Plan of Executive Orders goals. Summary of targeted sales
Specific Lofty Both specific and measurable
Strengths, Weaknesses, Simple wealthy operations
Opportunities, Threats Simple While On Target technology
Sales Leads Cash-flow Inventory On Hand
Industry outlook Target market Size of primary target market

Appendix Company Description Executive Summary

2 paragraphs 1 page 3 pages
A business plan is needed
A business plan sets out the when you register your A business plan describes the
business’s strategy company company to external audiences
Financial analysis Detailed technical plans Ownership details
The ends which the
Adopting a particular course of management seeks to achieve Allocating resources necessary
action by its operations to achieve the objective

Programme Strategy Method

Programme Rule Budget

Objective Strategy Programme

Programme Method Rule

Revenue model Acconts payable Acconts Recievable

Financial Plan Safety plan Opeartion Plan

Growth strategy Company description Revenue plan

Competitor's analysis Business Internal analysis Strength analysis

It will ensure sales targets are It will not need to be referred

It will help test financial viability met to again by the business owner
Forecast revenue, costs and
Cash flow forecast Market overview profit

The objectives and key targets How the business will produce
The marketing plan of the business of the business its products
The plan will need to be constantly It will help to secure any Allows the business to review
updated finance required its progress
Present to shareholders at the Secure external finance for To share with employees in the
AGM business expansion business
Operations Enterprise Capital
Forecasting product sales To include details about the To find an appropriate format
accurately owners to present the plan

Human resources Marketing Operations

Teamwork Group Club

Improved ownership of solutions Improved communications Decline in integration

Group-directed/group-
Cross-functional team Natural work team managed work team
Group-directed/group-
Cross-functional team Natural work team managed work team
Neither Temporary nor Either Temporary or
Permanent Permanent Permanent
Meeting customer needs and Improving employee
preferences Minimizing production costs performance
Set pricing strategies for the Manage the product supply
product Develop advertising campaigns chain

Growth Maturity Decline

Minimum Viable Product Maximum Value Proposition Market Validation Process

It is the basic version of the

It is the least expensive version of product with essential features
the product with limited It is the version of the product to gather feedback and
functionality. with the highest market value. validate the concept.

Growth Maturity Decline

Expand the product’s market
Analyze customer feedback Discontinue the product reach
To assess the market demand To evaluate the product’s
To determine the product price for the product internal and external factors
Modeling Creative flexibility Innovation
Future generations
First generation entrepreneurs entrepreneurs Established business houses

Distribution channels Government Consumers

They are familiar with the needs of They do not bother if They have well-developed sales
the market entrepreneur bears a loss force
To see if there are possible barriers
to success To estimate the expected sales To explore potential customers
RBI CARE SEBI
Sensitivity Rigidity Communication skills

Duplication extension Germination

Duplication extension Creativity
Trade Fairs Market Export
That it will stimulate idea and
That firm will earn a sufficient To limit the monopoly of the development of a better
profit during this period firm product

Does not encourage change Willing to modify the invention Not enthusiastic
Deciding to become an Growing the entrepreneurial
Initiating New rules entrepreneur firm

Current capital Seed capital Venture capital

Feasibility analysis Input analysis Financial analysis

Patents Tangible assets Copyright

Product development Test marketing Commercialization

To see if there are possible barriers
to success To estimate the expected sales To explore potential customers
Initial assistance A help for the purchase of seed A short-term assistance

technical anlaysis market analysis financial analysis

horizontal integration vertical integration concentric integration

Takeover Amalgamation Joint Venture

Ancillary Medium scale Large scale

Brain writing Focus Group Discussion
Project Planning market analysis Project Report

Project report Project plan Capital Plan

Planning Execution Reporting

Agency Marketing Dealership

A franchise An owner-manager business A limited company

Knowledge public organization Key public offer Know potential output
Start Growth Final stage
Successful entrepreneurs must
An entrepreneur faces have a break-through First ventures are always
extraordinary business risks invention successful

Contingency Planning Flux Emergent Strategy

A business will be able to
If an event occurs, the business will continue to successfully A business will need to wait
be ready and able to react quickly operate and see.

An unpredictable event A planned for event An unplanned for event

A clearly defined and

measurable outcome to be A set standard of performance
A clear set of goals to be attained achieved over a specified agreed by workers and
given a set number of resources timeframe managers

Planning reduces overlapping and Planning reduces the risk of Planning facilitates decision
wasteful activities. uncertainty. making.

Planning reduces overlapping and Planning reduces the risk of Planning facilitates decision
wasteful activities. uncertainty. making.

Planning reduces overlapping and Planning reduces the risk of Planning facilitates decision
wasteful activities. uncertainty. making.

Guiding decision-making Creatng marketing materials Establishing legal requirements

Market Analysis Operational Plan Finncial Projections
To outline operational To showcase the management
To identify potential competitors processes team
Detailing the company's legal Outlining the company's Providing a clear roadmap for
structure marketing strategy growth

Company description Operational plan Marketing and sales strategy

To showcase the company's To assess potential challenges To outline the company's
financial projections and mitigate risks marketing and sales strategy
A way to determine the production An approach to set the prices A strategy to allocate budgets
cost of goods of products or services for marketing campaigns

Skimming Pricing Cost-Based Pricing Value-Based Pricing

Offering products at a premium Analyzing competitor prices to Setting prices based on the
price compared to competitors determine the pricing strategy perceived value of the product
Capturing a premium price
Setting prices based on production based on the perceived value Offering discounts to attract
and distribution costs of the product price-sensitive customers
Setting an initially high price Setting a low initial price to
Offering discounts to encourage and gradually reducing it over attract cost-conscious
bulk purchases time customers
To encourage impulse buying and To maintain stable pricing over To compete with competitors
attract more customers time on price
Offer discounts to customers who Set prices based on the Set prices at regular intervals
purchase in bulk product’s perceived value throughout the year
is affected by, or has interest
provides a business with materials in, the activities of a business provides finance for a business

Sharing of revenue between

the franchisor and the
franchisee enables the Franchisors provide legal
Payment of franchise fees business to overcome representation to their
guarantees success. obstacles. franchisees.
There is no relationship
Strategy is meant to balance out Strategy is the starting point of between objectives and
objectives of a business. objectives. strategy

Realistic financials Exit plan Demonstrated market ability

Can sell ideas Can guarantee funding Predict the future
The worker The owner of the business The customer
Product and organisational
Seed or concept development Maturity

Completing and testing a prototype Identifying initial customers

of a product or service idea and suppliers Undertaking a market analyses
Product and organizational
Rapid expansion Seed or concept development
Developing strategies for
secondary and follow-up
Achieve market penetration Selling the venture products or services
The venture becomes self-
Potential for major success is Volume production and initial sufficient as far as financing
beginning to be apparent market penetration needs are concerned.
while the entrepreneur is banks are likely to provide
in the early stages of product researching the demand for financing at any stage of
development the product product development

Operating stage Sustaining stage Exit stage

An arrangement when a large firm
buys a small specialized technology Formal and informal Arrangements resulting from
firm, but allows it to run as arrangements including joint firm's long-term strategy for
autonomously, while both ventures, license agreements, improving or changing a
organizations share the small firm's R&D partnerships, joint company?s competitive
profit. distribution agreements, etc position.

Experienced independent
entrepreneurs who invest in new
venture with relative minimum The people that establish
intervention in daily business Banks providing loans to firms equity-based crowdfunding
practice. at low interest rates. platforms.

Right given to prevent others

from commercial and non-
commercial usage of a
distinguishing word, name,
Right given to prevent others from design, symbol, or Right given to prevent others
commercial and non-commercial combinations of which, that from commercial and non-
usage of a unique visual are used to identify a certain commercial exploitation of an
appearance and design. product. innovation.
easy implementation of
the opportunity to participate in a inventory is in place and trade innovations and changes from
national advertising campaign credit is established past policies
The previous owner may have
created ill will among the Equipment and facilities may inventory is in place and trade
company’s customers be obsolete or inefficient. credit is established

Manager Professional Entrepreneur

Manufacturing Distribution Agriculture

Entrepreneurship Financial Analysis Feasibility Planning

Contact, connect,
conversation, consideration, Commitment, culture,
Customer, challenge, creation, consumption and continuous, cooperation,
control, curiosity and cash community. customer and control

Technology Organizational sustainability Existing resources

Agricultural Social Joint

Private Social Trading

Crowdsourcing Venture Capitals Angel Investment

Copyright Trademark Trade secrets

Partnership Joint Stock Company Trust
Dance step Nowel Painting
Research the various alternatives
for achieving a particular task with Development of leadership Selection of the most suitable
less investment quality among the employees plan for the business
Statement of capital, address
Undertaking and statement of of the office, and list of List of directors and statement
capital directors of capital
After incorporation but before
the commencement of After commencement of
Before the incorporation business business

A partnership agreement should

include various details, including Business partners are jointly A partnership is a business that
the partners’ salaries and the liable for the debt of any is directly owned by two or
division of profits partnership they own more people

Ability of the business to exist

The management succession plan independently of its owners The name of the business

Limited partnerships are

formed by registering Limited partners have limited
A limited partnership must have at documents with the Registrar liability while taking part in the
least one general partner. of Companies. management of the firm.

Pre incorporation contracts Declaration Start up plan

Setting objectives, Developing Setting objectives, Developing

Setting objectives, Identifying premises, Identifying premises, Identifying
alternative course of actions, alternative course of actions, alternative course of actions,
Evaluating alternative courses, Evaluating Evaluating
Developing premises alternative courses alternative courses

Growth Plan Operational Plan Market Analysis

The Executive Summary The Growth Plan The Management Plan

explain your business idea make the plan lengthy provide additional information
Corporation Sole Proprietorship Partnership

patent prototype breakthrough

Acquisition Markteing Layout

Put themselves above the
Express their thoughts and ideas team Insult other teammates
profit and loss account key people competitors
The public Managers External investors
10 years 20 years 25 years