Principles of Entrepreneurship (VIISEM) - MT721 -OE

UNIT -1: MODEL BITS

MCQs
1. Which of the following most aceurately defines an "entrepreneur"?
A) Aperson who manages day-to-day operations of a large firm
B) An individualwho organizes and operates a new business, bearing most of the risk
C)A manager appointed by shareholders to run a company
D) Aprofessional who consults multiple businesses
Answer: B
2. Entrepreneurship primarily involves:
A) Maintaining stability in existing systems
B)Taking calculated risks to create newvalue
C) Ensuring compliance with organizational rules
D) Executing orders given by upper management
Answer: B
3. Which trait is most commonly associated with successful entrepreneurs?
A) Risk-avoidance
B) Resistance to change
C) Vision and initiative
D) Preference for routine
Answer:C
4. An entrepreneur differs from a manager because anentrepreneur:
A) Avoids taking any risks
B) Focuses on creating new opportunities, rather than managing established processes
C) Always works within a structured hierarchy
D) Prioritizes standard operating procedures
Answer: B easyexamnotes.com
5. Which of the following is NOT considered an entrepreneurial trait?
A) Creativity
B) Self-motivation
C) Strict adherence to hierarchy
D) Resilience
Answer: C
6. Which source is least likely to inspire new business ideas?
A)Customer feedback and pain points
B) Emerging technologies
C) Internal process inefficiencies
D) Unrelated unrelated corporate mandates with no market relevance
Answer: D
7. Which method is commonly used for generating new business ideas?
A)Brainstorming
B) Routine clerical work
C) Copying competitors without adaptation
D) Ignoring market trends
Answer: A

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 8. Creative problem-solving often involves:
A) Accepting the first solution that comes to mind
B) Reframing the problem to gain new perspectives
C) Repeating the same approach even when it fails
D) Avoiding risk at allcosts
Answer: B
9. The main purpose of a business plan isto:
A) Serve only as a marketing brochure
secure funding
B) Chart financial projections and strategies. and help
C) Replace actual businessoperations
D) Display technical specifications only
Answer: B
part ofa formal business plan?
10. Which of the following is NOT a typical
A) Executive summary
B) Market analysis
C) Finance plan
D) Daily staff lunch schedule
Answer: D
plan is best described as:
II. The «executive summary" of abusiness
A) Adetailed technical specification
B) A brief overview that encapsulates the full plan
C)A section dedicated to legal disclaimers only
D) A place to include personal biography
Answer: B
should ideally complete a:
12. Before writing a business plan, an entrepreneur
A)Competitor's business plan review
B) Feasibility study
C) Full-fledged marketing campaign
D)Press release
Answer:B
key aspect?
13. In evaluating a business plan, investors often focus on which
A)Number of colors in the design
B) Financial viability and market potential
C) Length of the document only
D) Quantity of technical jargon
Answer: B
14.Which is a correct statement about entrepreneurs versus managers?
A)Managers typically spearhead new ventures more than entrepreneurs
B) Entrepreneurs initiate and innovate; managers optimize and sustain
C) Both roles have identical goals and scope
D) Entrepreneurs avoid planning; managers plan extensively
Answer: B easyexamnotes.com
15.Which of the following is a recognized method of generating business ideas?
A)SCAMPER technique
B) Ignoring user input
C) Avoiding technological trends
D) Waiting passively for opportunities
Answer: A

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 l6. Akey entrepreneurialtrait that involves bouncing back from failure:
A) Vision
B)Resilience
) Complacency
D)Conformity
Answer: B
17. Which idea source reflects noticing problems and designing solutions?
A) Random copying
B) Market gaps/pain points
C) Rigid adherence topast business models
D) Avoiding feedback from users
Answer: B
18.Which section of a business plan describes how the company willreach customers?
A)Operations plan
B) Marketing strategy
C) Financial projections
D)Appendices
Answer: B
19. A formal step in launching a venture includes:
A) Registering legalentity
B) Only designing the logo
C) Ignoring tax compliance
D) Skipping regulatory permissions
Answer: A
20. One of the seven key elements of a business plan is:
A) Company description
B) Employee weekly timesheet
C) Daily maintenance log
D) Irrelevant trivia
Answer: A uagc.edu
21. Which of the folowing best describes an entrepreneur's approach to risk?
A) Avoid all risk
B)Take calculated, marnaged risks to pursue opportunity
C)Gamble without planning
D) Ignore risk completely
Answer: B
22. Which section of the business plan includes income statements, cash flows, and balance
sheets?
A) Executive summary
B) Market analysis
C) Financial plan
D) Appendix
Answer: C
23. Entrepreneurs are often distinguished from managers by their:
A)Reluctance to take initiative
B) Strong desire to innovate and create ventures
C) Strict reliance on existing operations
D) Preference toavoid uncertainty
Answer:B
 problem-solving?
e:
is NOT a conmponent of ereative
24 Which of these viewpoints
from different
A)Reframe the issuealternatives
B) Explore multiple idea without questioning
C)Stick with the first
feedback
D)Iterate based on
stimulated by:
Answer: C
entrepreneurship, idea
generation can be
25. Inspaces like
A)Market rescarch
B)Customer interviews
C)Trend analysis
D)All of the above
Answer: D the:
investor reads in a business plan is usually
26. The firstsection an
A) Finance section
B) Executive summary
C)Operational details
D) Staff directory
Answer: B
clear long-term goal is called:
27. A criticalentrepreneurial trait: havinga
A)Conformity
B)Vision
C)Disinterest
D) Rigidity
Answer: B
proprietorship or LLC) is typically found in
28. The legalform of organization (like sole
the:
A) Executive summary
B) Company description
C) Financial plan
D) Marketing plan
Answer: B
statement" in a business plan?
29. Which of the following is true of the mission
aspirations
A) It describes why the company exists and its
B)It details cash flows
C) It provides employee shift schedules
D) It includes personal hobbies of founders
Answer: A
generally include:
30. Launching formalities for a new venture necessary licenses
A)Choosing a business entity and obtaining
B)Immediately hiring staff without planning
C) Avoiding tax registration
D)Ignoring industry regulations
Answer: A

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 NOT acomponent of creative problem-solving?
24.Which of these is
from different viewpoints
A)Reframe the issueaternatives
B)Explore multiple without questioning
C)Stick with the first idea
feedback
D) lterate based on
Answer: C
entrepreneurship, idea generation can be stimulated by:
25. In spaces like
A) Market research
B)Customer interviews
C) Trend analysis
D) All of the above
Answer: D
business plan is usually the:
26. The first section an investor reads in a
A)Finance section
B) Executivesummary
C) Operational details
D) Staff directory
Answer: B
27. A critical entrepreneurial trait: having a clear long-term goal is called:
A)Conformity
B)Vision
C) Disinterest
D) Rigidity
Answer: B
28. The legal form of organization (like sole proprietorship or LLC) is typically found in
the:
A)Executive summary
B)Company description
C) Financial plan
D) Marketing plan
Answer: B
29. Which of the following is true of the mission statement" in a business plan?
A)It describes why the company exists and its aspirations
B) It details cash flows
C) It provides employee shift schedules
D) It includes personal hobbies of founders
Answer: A
30. Launching formalities for a new venture generally include:
A) Choosing a business entity and obtaining necessary licenses
B) Immediately hiring staff without planning
C) Avoiding tax registration
D) Ignoring industry regulations
Answer: A

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 Prineiples of Entrepreneurship (VlSEM)
UNIT-21 MODEL BITS
Which oftthe tottowing an internaf source of tinance for a new venturel
a) Bank loans
b) Retained eanings
OVentufe capitat
) Angel investors
Answer b) Retained eamings
Angel investors usually provide.
a) Debt inancing
b) Equity fnaning
) Government subsidies
)Grants only
Answer b) Equity financing
Venture capitalists typically invest in:
a) Startups with no growth potential
b) Mature businesses with high cash flow
O New ventures with high growth potential
d) Non profit orqanizations
Answer. () New ventures with high growth potential
Which is not a feature of bootstrapping in entrepreneurship?
a) Using personal savings
b) Borrowing from friends and family
) Minimizing operational costs
d) Large scale bank borrowings
Answer. d) Large-scale bank borrowings
5 Government grants to entrepreneurs are generally:
a) Repayable with interest
b) Not repayable
)Convertible debt
d) Always equity
Answer: b) Not repayable
6. The main purpose of bookkeeping is to:
a) Hire employees
b) Record financial transactions
c) Expand into new markets
d) Advertise the business
Answer: b) Record financial transactions
7. Which of the following is a financial control tool?
a) SwoT analysis
b)Cash flow statement
c) Brainstorming
d) Benchmarking employees
Answer: b) Cash flow statement
8. Ratio analysis mainly helps in:
a) Recruitment
b)Employee motivation
c) Performance measurement

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 Principles of Entrepreneurship (VIISEM)
UNIT -2: MODEL BITS
Which of the following is an internal source of finance for a new venture?
a) Bank toans
b) Retained earnings
)Venture capital
d) Angel investors
Answer. b) Retained earnings
Angel investors usually provide
a) Debt financing
b) Equity financing
) Government subsidies
d) Grants only
Answer. b) Equity financing
3 Venture capitalists typically invest in:
a) Start-ups with no growth potential
b) Mature businesses with high cash flow
c) New ventures with high growth potential
d) Non-profit organizations
Answer: c) New ventures with high growth potential
4 Which is not a feature of bootstrapping in entrepreneurship?
a) Using personal savings
b) Borrowing from friends and family
c) Minimizing operational costs
d) Large-scale bank borrowings
Answer. d) Large-scale bank borrowings
5 Government grants to entrepreneurs are generally:
a) Repayable with interest
b) Not repayable
c) Convertible debt
d) Always equity
Answer: b) Not repayable
6 The main purpose of bookkeeping is to:
a) Hire employees
b) Record financial transactions
c) Expand into new markets
d) Advertise the business
Answer: b) Record financial transactions
7 Which of the following is a financial control tool?
a) SWoT analysis
b)Cash flow statement
) Brainstorming
d) Benchmarking employees
Answer: b) Cash flow statement
8. Ratio analysis mainly helps in:
a) Recruitment
b) Employee motivation
c) Performance measurement

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 expenses?

and
d) Product design measurement

company
revenues

Performance

Answer: c) details of all

keeps
Which document
a) Journal
b) Ledger
c) Trial balance
d) Marketing plan
Answer: b) Ledger determine:
Break-even analvsis is used to
10.
a) Recruitment needs
profits
b) The point of no losses or
c) Internet marketing strategy
d) Cash recording methods
profits
Answer: b) The point of no losses or challenging due to:
11. Recruitment in a start--up is often
a) Unknown brand image
b) Large budgets for salaries
c) High levels of bureaucracy
d) Job security guarantees
Answer: a) Unknown brand image
known as:
12. The process of filling future job positions is
a) Selection
b)Recruitment planning
c) Human resource planning
d) Task allocation
Answer: ) Human resource planning
13. Motivation theories such as Maslow's hierarchy are used to:
a) Calculate revenues
b) Lead and inspire employees
c) Improve accounting systems
d) Select distribution channels
Answer: b) Lead and inspire employees
14. Leadership in entrepreneurship mainly involves:
a) Command and control
b) Influence and direction
c) Only financial planning
d) Policy drafting
Answer: b) Influence and direction
15. Ademocratic leadership style encourages:
a) Participation of the team
b) Autocratic decision-making
) lgnoring employee input
d) Centralized control
Answer: a) Participation of the team
16. Which of the following is asales control tool?
a) Budget variance analysis
b) Employee job description
c) Leadership training
d) Patent registration
Answer: a) Budget variance analysis
 a) Reducing taxes helps entrepreneurs in:
b) Predicting
) Conductingfuture sales
interviews trends
d) Improving bookkeeping
Answer: b) Predicting
18. Key future sales trends
pertormance indicators
a) Employee satisfaction (KPIs) in
b) marketing measure:
Customer loyalty and sales
c) Equipment maintenance growth
d) Supplier contracts
Answer: b)
19, Which is notCustomer loyalty and sales growth
an element of the sales process?
a) Prospecting
b) Closing
) Employee payroll
d) Follow-up
Answer: ) Employee
20. Customer Relationshippayroll
a) Track tax obligations Management (CRM) systenms are used to:
b) Manage interactions with
c)
Calculate recruitment costs customers
d) Prepare feasibility
reports
Answer: b) Manage interactions with
21. Which of the following is a customers
benefit of e-commerce?
a) Limited customer reach
b) High physical location costs
c) Global market access
d) Lack of convenience
Answer: c) Global market access
22. Pay-per-click (PPC) is associated with:
a) Offline advertisements
b) Performance-based online advertising
c) Employee performance
d) Cash flow ratios
Answer: b) Performance-based online advertising
23. In online marketing, SEO stands for:
a) Standard Enterprise Operations
b) Search Engine Optimization
) Sales and Equity Offerings
d) Strategic Expansion Options
Answer: b) Search Engine Optimization
24. Banner ads represent:
a) Online display advertising
b) Direct offline sales
c) Recruitment costs
d) Accounting controls
Answer: a) Online display advertising because:
especially useful for start-ups
25. Social media marketing is
a) It ensures instant profits
reach
b) It offers low-cost wide
 customer engagement
c) It avoids
financial controls
d) It replaces low-cost wide reach
Answer: b) It offers
strategy focuses on:
|26. Market penetration existing markets
Selling more existing products in
a) markets
b) Introducing new products in new
c) Mergers and acquisitions
d) Diversification
products in existing markets
Answer: a) Selling more existing
27. Franchising is a form of expansion where:
under their brand
a) Businesses allowothers to operate
b) Only equity financing is used
c) Recruitment is eliminated
d) Accounts are not required
brand
Answer: a) Businesses allow others to operate under their
28. Diversification involves:
a) Selling same products in same market
b) Expanding into unrelated business areas
) Decreasing product line
d) Limiting employee recruitment
Answer: b) Expanding into unrelated business areas
29. Strategic alliances are formed to:
a) Increase competition between firms
b) Share resources and reduce risk
c) Avoid cooperation with others
d) Maintain secrecy in operations
Answer: b) Share resources and reduce risk
30. One key issue in new venture expansion is:
a) Managing limited resources
b) Reducingcustomer base
c) Eliminating advertisement
d) lgnoringemployees
Answer: a) Managing limited resources
31. Which of the following helps in both marketing and financial control?
a) Sales budget
b) Balance sheet
c) Recruitment policy
d) Leadership style
Answer: a) Sales budget
32. Which financial statement shows profit or loss during a period?
a) Balance sheet
b) Income statement
c) Trial balance
d) Ledger
Answer: b) Incomne statement
33. The term "burn rate" in new ventures refers to:
a) Recruitment speed
b) Rate at which capital is spent
c) Product obsolescence rate
d) Advertising frequency
Answer: b) Rate at which capital is spent
 34 in recruitment, issuing a formal job offer comes after
a) Training
b) Selection process
) Payroll distribution
) Budget approval
Answer: b) Selection process
35 Which isa method to motivate a start-up team without high costs?
a) Offering equity sharing
b) Large fixed salaries
) High bank loans
d) Expensive advertising
Answer: a) Offeringequity sharing
36. Google Ads is an example of:
a) Display advertising
b) Search engine advertising
c) Recruitment tool
d) Record keeping software
Answer.: b)Search engine advertising
involves acquisition of competitors?
37. Which expansion strategy
a) Vertical integration
b) Market penetration
c) Horizontal integration
d) Diversification
Answer:c) Horizontal integration
38. Crowdfunding is:
financing
a) Traditional bank money from many people
online
small amounts of
b) Raising
funding
)Only governmernt suppliers
d) Borrowing from local amounts of money from many people online
Answer: b) Raising small new ventures is:
of financial controls in
39. The primary goal
employee satisfaction
a) Maximizing managing financial
performance
b) Monitoring and
recruitment needs
) Eliminating research
d) Avoiding market managing financial
performance
Answer: b) Monitoring and is:
advantage of e-commerce for entrepreneurs
40. The biggest
a) Limited working hours
b) Reduced global reachcustomers
c) 24/7 accessibility for
costs
d) High marketingaccessibility for customers
Answer: c) 24/7