CUET Business Studies MCQs Unit XIII Entrepreneurship Development

Question. An individual who starts, creates and manages a new business can be called as _________________
a) A leader
b) A manager
c) A Professional
d) An entrepreneur.

Answer : D

Question. _____________ entrepreneurs are extremely task oriented.
a) Technical
b) Fabian
c) induced
d) Business

Answer : A

Question. The term ‘Entrepreneur’ was derived from French word ____________
a) Enterpurpose
b) Enterprise
c) Enterprocedure
d) Enterprendre

Answer : D

Question. Which of the following is a psychological factor affecting entrepreneurial growth:
a) Legitimacy of entrepreneurship
b) social status
c) need for achievement
d) None of these

Answer : C

Question. The idea generation process of entrepreneurship are ______________
a) Germination
b) Preparation
c) Incubation
d) All of these

Answer : D

Question. A medium enterprise is one in which the investment in plant and machinery is more than Rs __________ But does not exceed Rs __________
a) 10 lakhs / 2 crores
b) 25 lakhs /5crores
c) 5 crores/ 10 crores
d) 2 crores/5 crores

Answer : C

Question. Which industrial sector promotes small-scale business & entrepreneurship and has low barriers to market entry?
a) Service
b) Manufacturing
c) Distribution
d) Agriculture

Answer : A

Question. __________ is the place where the required facilities and factory accommodation are provided by the government to the entrepreneurs to establish their industries there.
a) industry
b) industrial estate
c) company
d) None of these

Answer : B

Question. Which of the following is not considered as one of the following blocks of the model entrepreneur?
a) Technical skills
b) Managerial competencies
c) Business competencies
d) Personal attributes

Answer : C

Question. Single window scheme is instituted through __________
a) IDBI
b) SIDCO
c) KFC
d) DIC

Answer : B

Question. “I really believe that entrepreneurship is about being able to face failure and succeed after failure”. Who said this?
a) Kiran Mazumdar Shaw
b) Ekta Kapoor
c) Dr. Swati Piramal
d) Aishwarya Nair

Answer : A

Question. Which of these is not a state level promotional institutions
a) KITCO
b) KSIDC
c) NIESBUD
d) SIDCO

Answer : C

Question. Fiscal and monetary measures to stimulate investment in private & public sector includes ______________
a) Lowering the rate of interest
b) Tax reduction & Public Expenditure
c) Price policy & Abolition of monopoly
d) All of these

Answer : D

Question. The first and foremost industrial estate was established in the year __________
a) 1960
b) 1962
c) 1955
d) 1950

Answer :4

Question. __________________ are the informal associations of people who choose to come together to find ways to improve their living condition
a) NGO
b) Self-Help Groups
c) Private companies
d) None of these

Answer : B

Question. To provide financial assistance to entrepreneurs the government has set up a number of ___________.
a) financial advisors
b) financial intermediaries
c) Industrial estates
d) financial institutions

Answer : D

Question. ‘Angels’ usually provides which type of financing?
a) Debt
b) Equity
c) Stock
d) None of these

Answer : B

Question. _____________ can be defined as a specifically evolved work plan to achieve a specific objective within a specific period of time.
a) Idea generation
b) Opportunity Scanning
c) Project
d) Strategy

Answer : C

Question. Which of the following shows the process of creating something new:
a) Business model
b) Modeling
c) Creative flexibility
d) Innovation

Answer : B

Question. Entrepreneurs are __________________
a) Moderate risk takers
b) High risk takers
c) Avoidance
d) Both (a) & (b)

Answer : D

Question. As a business grows, time management continues to be an issue, but the entrepreneur’s major concern usually becomes:
a) Setting goals
b) Finding, retaining, and motivating qualified employees
c) Measuring performance
d) All of the above

Answer : B

Question. The entrepreneur distinguished themselves from capital provider in __________________
a) Middle Ages
b) 17th Century
c) 18th Century
d) 19th Century

Answer : C

Question. Why should an entrepreneur do a feasibility study for starting a new venture?
a) To identify possible sources of funds
b) To see if there are possible barriers to success
c) To estimate the expected sales
d) To explore potential customers

Answer : C

Question. The feasibility study process of entrepreneurship are _____________
a) Illumination
b) Verification
c) Both (a) & (b)
d) None of these

Answer : C

Question. Entrepreneurship is a creative activity – Said by:
a) Frederick Harbison
b) B. F. Hoselitz
c) B. Higgins
d) Joseph Schumpeter

Answer : D

Question. Which of these statements best describes the context for entrepreneurship?
a) Entrepreneurship takes place in small business
b) Entrepreneurship takes place in large business
c) Entrepreneurship takes place in a wide variety of context (small, medium & large)
d) Entrepreneurship takes place in social enterprises

Answer : C

Question. Which type of industrial estates is called conventional industrial estates?
a) General type of industrial estate
b) Special type industrial estate
c) Ancillary industrial estate
d) Workshop bay

Answer : A

Question. According to MSMEDC (Micro, Small & Medium Enterprises Development) Act 2006, Micro, Small & Medium Enterprise are classified into two classes such as ________________
a) Manufacturing & Service Enterprise
b) Automobile & Electronic Enterprise
c) Research & Development Sector
d) None of these

Answer : A

Question. SIDO stands for ______
a) Small Industries Developing Organization
b) Small Industries Development Organization
c) Short Industries Development Organization
d) Small Industries Deployment Organization

Answer : B

Question. Think big, Think fast, Think Ahead. Ideas are no one’s monopoly” is given by _________________
a) Azim Premjee
b) Mukesh Ambani
c) Vijay Mallya
d) Dhirajlal Hirachand Ambani

Answer : D

Question. National Alliance of Young Entrepreneurs (NAYE) Sponsored an Entrepreneurial Development scheme with Bank of India in______________.
a) January 1970
b) August 1970
c) January 1972
d) August 1972

Answer : D

Question. In terms of innovative business the five policy includes ____________
a) Private sources of funding, Debt financing, Venture capital, Business angels, subsidies and grants from governments
b) Equity shares, Preference shares, debentures, mutual fund and Insurance
c) Equity shares, private sources, preference shares, debentures and capital investment
d) None of these

Answer : A

Question. In small scale sector ______________ are dominant.
a) Institutional entrepreneurs
b) Entrepreneurs by inheritance
c) Technologist entrepreneurs
d) Forced entrepreneurs

Answer : A

Question. Which of the following possible financing options has become a popular choice for entrepreneurs?
a) Angel investor
b) Credit cards
c) Venture capital
d) Public offering

Answer : B

Question. EDPs are conducted by _____________.
a) Entrepreneurs
b) Specialised institutions
c) Business community
d) Government

Answer : B

Question. _________ has been recognized as the nodal agency to support the small scale industry export promotion.
a) SIDO
b) TDC
c) NSIC
d) IFSC

Answer : C

Question. One of the biggest threats Indian MSME sector faces is _________ .
a) Lack of financial assistance
b) Lack of Marketing Skills
c) Quality of products still to meet International standards
d) lack of bilateral trade

Answer : D

Question. High potential venture _______________
a) has the same growth potential as a life-style firm
b) starts out like life-style firm+
c) drawing interest of private investors only
d) None of these

Answer : D

Question. In service sector, a small enterprise is an enterprise where the investment in equipment is more than Rs.10 lakh but does not exceed _______
a) Rs 2 crore
b) Rs 3 crore
c) Rs 5 crore
d) Rs 10 crore

Answer : A

Question. _____________ is the process through which individual perceives opportunities without regard to resources they possess.
a) Start-up Management
b) Entrepreneurship
c) Financial Analysis
d) Feasibility Planning

Answer : B

Question. Micro or Small Enterprise (as defined in the MSMED Act 2006) may be said to have become Sick, if
a) Any of the borrowal account of the enterprise remains NPA for ten months or more
b) Any of the borrowal account of the enterprise remains NPA for eight months or more
c) Any of the borrowal account of the enterprise remains NPA for five months or more
d) Any of the borrowal account of the enterprise remains NPA for three months or more

Answer : D

Question. Entrepreneurship is useful to the organization because of __________
a) Development of managerial capabilities
b) Creation of organization
c) Improving standard of living & economic development
d) All of these

Answer : D

Question. ____________ entrepreneurs neither introduce new changes nor adopt new methods innovated by others.
a) Technical
b) Fabian
c) induced
d) Business

Answer : B

Question. Entrepreneurial Guidance Bureau (EGB) was set up by
a) SISI
b) SIPCOT
c) IIC
d) SIDCO

Answer : C

Question. __________ Units provide inputs to other industries.
a) Export
b) small
c) ancillary
d) None of these

Answer : D

Question. “Winners never quit and quitters never win”. Who said this?
a) Kalpana Saroj
b) Harsh Bhaskar
c) Adam Smith
d) Vince Lombard

Answer : D

Question. What are the policies that influence access to finance in context of Innovative entrepreneurship?
a) Debt financing
b) Venture capital
c) Business Angels
d) All of these

Answer : B

Question. The term Entrepreneur was first defined by Irish-French economist _____________
a) Richard William
b) Richard Cantillon
c) James Bernard
d) W.B. Gartner

Answer : B

Question. _________ means organising, housing and servicing industry, a planned clustering of industrial enterprises offering standard factory buildings erected in advance of demand and a variety of services and facilities to the occupants.
a) industry
b) industrial estate
c) company
d) None of these

Answer : D

Question. The application for registration of a small scale unit should be submitted to _________________
a) General Manager, DIC
b) Director, DIC
c) General Manager, NSIC
d) Director, NSIC

Answer : A

Question. Which of the following is a function of SIDBI?
a) Extension of seed capital
b) Discounting of bills
c) Providing factoring services
d) All of the above

Answer : A

Question. Characteristics of Self-Help Groups are _____________
a) SHG comprises 15-20 members & non-partisan in nature
b) Members should belong to same economic strata of society
c) Rational leadership should be encouraged for distribution of power
d) All of these

Answer : D

Question. An individual who initiates, creates and manages a new business can be called _____________.
a) A leader
b) A manager
c) A professional
d) An entrepreneur

Answer : D

Question. Importance of Entrepreneurship includes _________________
a) Economic & dynamic activity
b) Innovation & Profit potential
c) Risk bearing
d) All of these

Answer : D

Question. Decisions taken by an entrepreneur on behalf of his enterprise are known as _________.
a) Organizational decisions
b) Personal decisions
c) Routine decisions
d) Strategic decisions

Answer : A

Question. “The best way to predict the future is to create it”, said by __________
a) F.W. Taylor
b) Flippo
c) Ruskin Bond
d) Peter F. Drucker

Answer : D

Question. The term “Entrepreneur” has been derived from the word “entreprendre” which means:
a) To give
b) To undertake
c) To choose
d) To decide

Answer : D

Question. Sustainability of entrepreneur development depends on factors like _______________
a) Technical skills
b) Technology
c) Organizational sustainability
d) All of these

Answer : D

Question. Government industrial estates come under which type of classification?
a) Variant
b) Objective
c) Functional
d) Organizational

Answer : B

Question. The process of Entrepreneurship is divided into two parts & they are _________________
a) Idea Generation and Feasibility study
b) Innovation generation and Distribution Channel
c) Creativity and Development
d) Profit and Economic Development.

Answer : A

Question. What are 6 Cs that motivate entrepreneur to establish their own business are ________________
a) Change, challenge, creativity, control, curiosity and cash
b) Customer, challenge, creation, control, curiosity and cash
c) Contact, connect, conversation, consideration, consumption and community.
d) Commitment, culture, continuous, cooperation, customer and control

Answer : A

Question. Which one among the following is considered as one of the important economic factor which determine entrepreneurial growth?
a) Government
b) Politics
c) Market
d) Private

Answer : A

Question. 13 Why are small business important to a country’s economy?
a) They give an outlet to entrepreneurs
b) They can provide specialist support to larger companies
c) They can be innovators of new product
d) All of these

Answer : D

Question. __________ is an apex Institute in the area of Entrepreneurship and Small Business Development under the Ministry of Micro, Small and Medium Enterprises Government of India.
a) NIESBUA
b) NIESBUB
c) NIESBUC
d) NIESBUD

Answer : D

Question. Entrepreneurship development programme is helpful for
a) Existing entrepreneurs
b) First-generation entrepreneurs
c) Future generation entrepreneurs
d) All of the above

Answer : B

Question. Knowledge + skill + traits =
a) innovation
b) competency
c) skill
d) creativity

Answer : B

Question. One of the competencies of entrepreneur is
a) taking initiative
b) close attention
c) influencing environment
d) All of these

Answer : D

Question. In India, the need of entrepreneurship development arises due to
a) employment requirements
b) capital formation
c) develop backward areas
d) All of the above

Answer : D

Question. Functions of entrepreneurship include which of the following?
a) Innovation and creativity
b) Risk taking and achievement
c) Research
d) All of the above

Answer : D

Question. Characteristics of entrepreneurship include
a) ability to take risk
b) open minded
c) flexible
d) All of these

Answer : D

Question. Which of the following is not involved in entrepreneurial development programme?
a) Identification of entrepreneurs for training
b) Selection of entrepreneurs for training
c) Developing entrepreneurial capabilities
d) Arranging infrastructural facilities

Answer : D

Question. Which of these statements best describes the context for entrepreneurship?
a) Entrepreneurship takes place in small businesses.
b) Entrepreneurship takes place in large businesses.
c) Entrepreneurship takes place in a wide variety of contexts.
d) Entrepreneurship does not take place in social enterprises.

Answer : C

Question. ................ is the means of enhancing the knowledge and skill of entrepreneurs.
a) Entrepreneurship development
b) Intrapreneurship
c) Both (a) and (b)
d) None of the above

Answer : A

Question. Entrepreneurial development is the key to achieve all round ………… through acceleration of
industrial and entrepreneurial activities.
a) economic development
b) increase in profits
c) shareholders value
d) business development

Answer : A

Question. Which of the following attitudes is not generally associated with successful entrepreneurship?
a) Competition and co-operation
b) Desire to influence others
c) Innovation and product improvement
d) Status quo in business

Answer : D

Question. ............. makes a fortune out of ideas.
a) Entrepreneurship
b) Trader
c) Engineer
d) None of these

Answer : A

Question. The main point of the development process is to
a) strengthen and increase the number of entrepreneurs
b) stimulate sales of business
c) increase demand for the product
d) None of the above

Answer : A

Question. The process that activates the entrepreneurs to exert a high level of effort for the achievement of his/her goals is called
a) Attitude
b) Values
c) Motivation
d) None of these

Answer : C

Question. Which of the following behaviours is not associated with a successful entrepreneurship?
a) R & D
b) Running your business on a day-to-day basis
c) Continuous innovation and urgency
d) Production as per customer’s requirement

Answer : B

Question. Which of the following is not a characteristic of entrepreneurship?
a) Risk taking
b) Innovation
c) Creative activity
d) Managerial training

Answer : D

Question. Social attitude is one of the important problems of ………… entrepreneur.
a) drone
b) business
c) women
d) adoptive

Answer : C

Question. Which of the following is inconsistent in the context of entrepreneur?
a) He is the owner of the business
b) He is the risk taker
c) He only operates the production activities
d) He searches out for the business opportunities

Answer : C

Question. Set of beliefs that provide standards which guide behavior is known as
a) Attitude
b) Values
c) Motivation
d) None of these

Answer : B

Question. The function of entrepreneur includes
a) to imagine a business idea
b) to study project feasibility
c) to setup enterprise
d) All of the above

Answer : D

Question. What is the main purpose of entrepreneurship development?
a) To increase foreign trade
b) To increase number of entrepreneurs
c) To increase GDP
d) To increase literacy

Answer : B

Question. What is the hallmark of a successful entrepreneur?
a) Risk bearing capacity
b) Persistence
c) Flexibility
d) Self-confidence

Answer : C

Question. According to sociological approach, entrepreneurship is the ............... .
a) process of sensitivity
b) process of role performance
c) process of economic change
d) All of the above

Answer : B

Question. An entrepreneur is
a) born
b) made
c) Either born or made
d) All of these

Answer : B

Question. Which of the following risks is borne by the entrepreneur?
a) Financial risk
b) Personal risk
c) psychological risk
d) All of these

Answer : D

Question. Entrepreneurs are motivated by ………….. .
a) money
b) personal values
c) pull influences
d) All of these

Answer : D

Question. Name the process by which individuals pursue opportunities without regard to resources they currently control.
a) Start-up management
b) Entrepreneurship
c) Financial analysis
d) Feasibility planning

Answer : B

Question. An important psychological attribute of individuals which shape their behavior is called
a) Attitude
b) Values
c) Motivation
d) None of these

Answer : A

Question. Which of the following cannot be considered as a quality of a successful entrepreneur?
a) He is endowed with unusual creativeness
b) He has a high degree of ambition
c) He is enriched by a high propensity
d) He also has a strong need for achievement

Answer : B

Question. Sustainability of entrepreneurship development depends on factors like ……………… .
a) technical skills
b) technology
c) organisational sustainability
d) All of the above

Answer : D