CUET Entrepreneurship MCQs Unit 4 Enterprise Growth Strategies

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

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. A small 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 : B

Question. The MSME Development Act came into force in __________
a) 2005
b) 2006
c) 2010
d) 2001
Answer : B

Question. Element affecting growth rate is:
a) Competition
b) Change in technology
c) Creativety
d) All of these

Answer : D

Question. The initial capital that is required to obtain loans from the financial institutions is called __________
a) Seed capital
b) incentive
c) subsidy
d) None of these
Answer : A

Question. A bonus or financial aid which is given by a govt. to an industry to help it compete with other units in home market or in a foreign market is known as __________
a) subsidy
b) Concession
c) Bounties
d) None of these
Answer : A

Question. Under market penetration:
a) An asset ‘scooter’ is exchange for another
b) An old asset ‘scooter’ is exchanged for new one
c) An asset ‘scooter’ is sold for cash
d) An asset ‘scooter’ is sold on line purchase system.
Answer : C

Question. __________ provides consultancy services to small and medium enterprises at reasonable cost.
a) NAYE
b) TCO
c) SIDO
d) NSIC
Answer : B

Question. A __________ is an organization designed and success of entrepreneurial companies through an array of business support resources and services.
a) Business incubators
b) Industrial estates
c) DIC
d) None of these
Answer : A

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 : B

Question. Integration means:
a) Expending internally
b) Expending externally
c) Expending internally and externally
d) None of the above

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

Question. The entrepreneur was distinguished from capital provider in:
a) Middle ages
b) 17th century
c) 18th century
d) 19th and 20th century
Answer : C

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. Conglomeration is a technique to :
a) Expand in the same industry
b) Diversify in other areas
c) Taking over other units
d) Divide the organisation in sub-units
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. __________ implies the availability or otherwise of plant and machinery and technical know how to produce the product.
a) Economic viability
b) Financial feasibility
c) Technical feasibility
d) Managerial competence
Answer : C

Question. 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
Answer : D

Question. Under franchising:
a) Control on the product remains in the hands of franchisor
b) Control on the product remains in the hands of franchisee
c) Above a) and b) both
d) None of these
Answer : A

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

Question. Seed Capital Scheme” is being operated by?
a) IDBI
b) SIDC
c) ICICI
d) IFCI
Answer : A

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. 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. Who take the lead to extend financial assistance to small-scale industries
a) SBI
b) IFCI
c) IRBI
d) None of the above
Answer : A

Question. Generally diversification is classified in :
a) Two ways
b) Combination of two or more business
c) Four ways
d) None of the above
Answer : C

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. __________ type of entrepreneurs are particularly important for underdeveloped countries because they contribute significantly to the development of such nations.
a) Innovative
b) Adoptive
c) Fabian
d) Drone
Answer : B

Question. Entrepreneurial management is noted for its ability to react quickly and effectively to new ___________.
a) Market
b) Business opportunities
c) Product
d) Technology
Answer : B

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. Merger means:
a) Taking over one organisation by another organisation
b) Three ways
c) Acquiring controlling interest in other organisation.
d) Five ways
Answer : B

Question. SIDBI was set up in the year____________.
a) 1987
b) 1988
c) 1989
d) 1990
Answer : C

Question. The MSME sector in India has maintained a consistent growth rate of ______ per cent.
a) 8%
b) 10%
c) 5%
d) 7%
Answer : B

Question. Out of which of these activities one of it is supporting growth of MSME sector in India?
a) ISO Standards
b) Management Education
c) IT revolution
d) Cluster based activities
Answer : D

Question. In service sector, a medium enterprise is an enterprise where the investment in equipment is more than Rs. 2 crore but does not exceed ______
a) Rs. 5 crore
b) Rs. 10 crore
c) Rs. 15 crore
d) Rs. 20 crore
Answer : A

Question. At decline stage of growth :
a) The enterprise finds it difficult to survive
b) The enterprise starts incurring losses at an increas- ing rate
c) The enterprise prefers to close its shutters
d) All of the above
Answer : D

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. _____________ entrepreneurs neither introduce new changes nor adopt new methods innovated by others.
a) Technical
b) Fabian
c) induced
d) Business
Answer : B

Question. Person who works within an organization and having entrepreneurial capabilities is:
a) entrepreneur
b) intrapreneur
c) manager
d) chief executive
Answer : B

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

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. In the expansion stage:
a) Business activities are diversified
b) Enterprise opens new branches
c) The enterprise finds itself in a good earning position
d) All of the above
Answer : D

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

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

Question. Which of these is not a environmental barrier to entrepreneurship
a) lack of skilled labour
b) custom of people
c) lack of fund
d) lack of infrastructure
Answer : B

Question. SIDBI was set up as a subsidiary of _________.
a) IDBI
b) IFCI
c) ICICI
d) SFC
Answer : A

Question. In the maturity stage:
a) Profit is loss
b) Profit has an increasing trend
c) Profit remains constant
d) All of these
Answer : A

Question. EDP (Entrepreneurship Development Programmes) is required to help:
a) Existing entrepreneurs
b) First generation entrepreneurs
c) Future generation entrepreneurs
d) None of the above
Answer : B

Question. 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
Answer : D

Question. The application for registration of a small scale unit should be submitted to the _______.
a) General Manager, DIC
b) Director, DIC
c) General Manager. NSIC
d) Director, NSIC
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. Why the majority of women are unaware of technological developments?
a) Low-risk bearing ability
b) Low mobility
c) Lack of education
d) Low need for achievement
Answer : C

Question. Production in the start-up stage is in :
a) Limited quantity
b) Large quantity
c) Both
d) None of these
Answer : A

Question. According to Frederick Harbison, which of the following is not a function of a women entrepreneur?
a) Explore the prospects of starting new enterprises.
b) Co-ordination, administration and control
c) The power to resist criticism
d) Supervision and providing leadership in all aspects of the business
Answer : C

Question. EGB stands for ___
a) Enterprise Development Bureau
b) Entrepreneurial deli censing Bank
c) Entrepreneurial Development Bureau
 d) Entrepreneur Development Bureau
Answer : C

Question. Institutional agencies grant financial assistance to small scale industries for _________.
a) participation in equity capital only
b) acquisition of fixed assets
c) working capital assistance
d) All of the above
Answer : D

Question. ______________ type of entrepreneurs are very cautious and skeptical while practicing any change.
a) Innovative
b) Imitative
c) Fabian
d) Drone
Answer : C

Question. The term EDP refers to _____________.
a) Entrepreneurship Development Programme
b) Entrepreneurial Development Programme
c) Entrepreneur Development Programme
d) Entrepreneuring Development Programme
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 : A

Question. Generally, MSME contributes to _________ % exports from India.
a) 20%
b) 25%
c) 30%
d) 40%
Answer : D

Question. In service sector, a micro enterprise is an enterprise where the investment in equipment does not exceed ______
a) Rs 10 lakh
b) Rs 15 lakh
c) Rs 20 lakh
d) Rs 25 lakh
Answer : A

Question. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) was set up by Government of India and which of the following bank?
a) RBI
b) NABARD
c) SIDBI
d) MUDRA
Answer : C

Question. Knowledge + Skill + Traits = _____________
a) Innovation
b) Competency
c) Skill
d) Creativity
Answer : B

Question. A micro enterprise is one in which the investment in plant and machinery does not exceed Rs. __________
a) 25 Lakhs
b) 50 Lakhs
c) 1 Crore
d) 10 Lakhs
Answer : A

Question. __________ is the financial and promotional assistance provided by the Govt. to the industries for boosting up industrial development in all regions particularly in backward areas.
a) Seed capital
b) incentive
c) subsidy
d) None of these
Answer : B

Question. A single lump sum which is given by a govt. to an entrepreneur to cover the cost is known as __________
a) subsidy
b) Concession
c) Bounties
d) None of these
Answer : A

Question. __________ the process of collection, compilation and analysis of economic data for the purpose of finding out possible opportunities for investment.
a) project screening
b) project appraisal
c) project identification
d) None of these
Answer : C

Question. Which of these is a social barrier to entrepreneurship
a) low status
b) custom of people
c) both
d) None of these
Answer : C

Question. 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
Answer : D

Question. What is the process by which individuals pursue opportunities without regard to resources they currently control:
a) Startup management
b) Entrepreneurship
c) Financial analysis
d) Feasibility planning
Answer : B

Question. Seed capital assistance is ___________.
a) A long-term assistance
b) Initial assistance
c) A help for the purchase of seeds
d) A short-term assistance
Answer : B

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 : B

Question. What provides all the necessary information of the unit proposed to be set-up for the manufacture of a product or rendering a service?
a) Project description
b) Project appraisal
c) Project implementation schedule
d) Project report
Answer : D

Question. NIESBUD stands for ___
a) National Institution for Entrepreneurship & Small Business Development
b) National Institute for Enterprise & Small Business Development
c) National Institute for Entrepreneurship & Small Business Development
d) National Institute for Entrepreneurship & Small Businessman Development
Answer : C

Question. Refusal to adopt and use opportunities to make changes in production entrepreneurs.
a) Fabian
b) Imitative
c) Innovative
d) Drone
Answer : D

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 : C

Question. The word entrepreneurship has been derived from a _____ which means ' to undertake'.
a) French root
b) Greek root
c) Roman root
d) Italian root
Answer : A

Question. The MSME sector employs about _________ % workforce of India, which is roughly 6 crore people.
a) 30%
b) 40%
c) 45%
d) 50%
Answer : B

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. Social attitude is one of the important problems of a __________ Entrepreneur.
a) Drone
b) Business
c) Women
d) Adoptive
Answer : C

Question. __________ registration helps the entrepreneur to take necessary steps to bring industrial units into existence.
a) Provisional
b) permanent
c) both of these
d) None of these
Answer : A

Question. The advance given to cover the finance requirement during the time lag between the sanctioning and disbursement of term loan by financial institutions is known as __________
a) Soft Loan
b) Seed capital
c) Capital subsidy
d) Bridge loan
Answer : D

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

Question. __________ 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
Answer : A

Question. 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
Answer : C

Question. The entrepreneur who does not change the method of production already introduced is:
a) Drone entrepreneur
b) Fabian entrepreneur
c) classical entrepreneur
d) None of these
Answer : A

Question. __________ offers comprehensive consultancy services to MSMEs in Kerala.
a) KSIDC
b) KITCO
c) DIC
d) KINFRA
Answer : B

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 : D

Question. The purpose of soft loan scheme is to encourage units to undertake ___________.
a) Modernization of plant and machinery
b) Replacement of plant and machinery
c) Renovation of plant and machinery
d) All the above
Answer : D

Question. Which type of entrepreneurs utilizes a chance to introduce a new technique or new product?
a) Innovative entrepreneur
b) Instigated entrepreneur
c) Initiative entrepreneur
d) Fabian entrepreneur
Answer : A

Question. The main objective of setting up DICs was to promote under a single roof all the services & support required by small & village entrepreneurs. This scheme was introduced in May__________
a) 1970
b) 1975
c) 1978
d) 1979
Answer : C

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

Question. _________ is a full service credit rating agency exclusively set up for micro, small and medium enterprises (MSME) in India.
a) Dun & Bradstreet Information
b) ADFIAP
c) SMERA
d) MUDRA
Answer : C

Question. A composite loan limit of ______ can be sanctioned by banks to enable the MSME entrepreneurs to avail of their working capital and term loan requirement through Single Window.
a) Rs 10 lakh
b) Rs 25 lakh
c) Rs 50 lakh
d) Rs 1crore
Answer : D

Question. Under the single roof of the __________ all the services and support required by small and village entrepreneurs are provided.
a) KSIDC
b) KITCO
c) DIC
d) KINFRA
Answer : C

Question. __________ is a combination of knowledge, skills and appropriate motives that an individual must possess to perform a given task.
a) persistence
b) initiative
c) competency
d) creativity
Answer : C

Question. A corporate manager who starts a new initiative for their company which entails setting up a new distinct business unit and board of directors can be regarded as:
a) Ecopreneur
b) Technopreneur
c) Intrapreneur
d) Social Entrepreneur
Answer : C

Question. Which phase is the phase of real training?
a) Initial phase
b) Training phase
c) Post-training phase
d) Follow up phase
Answer : B

Question. An ___ in a tract of land which is subdivided and developed according to a comprehensive plan for the use of a community of industrial enterprises.
a) Industrial plan
b) Industrial Estate
c) Industrial unit
d) None of the above
Answer : B