CUET Entrepreneurship MCQs Unit 6 Resource Mobilization

Question. The primary function of resource mobilization in entrepreneurship is:
a) To generate new product ideas.
b) To secure the necessary resources (financial, human, etc.) to start and run a business.
c) To manage customer relationships.
d) To conduct market research.
Answer : C

Question. Resources is the.. medium for one’s doing the work.
a) Essential
b) Not essential
c) Neither a) nor b) of the above
d) Both a) and b) above
Answer : A

Question. Human resources are vital for an entrepreneurial venture because they:
a) Provide financial backing.
b) Contribute the skills and knowledge needed to operate the business.
c) Conduct market research.
d) Manage customer complaints.
Answer : B

Question. Intellectual property (IP) can be a valuable resource for entrepreneurs. Examples of IP include:
a) Marketing strategies.
b) Patents, copyrights, and trademarks. 
c) Customer databases.
d) Business plans.
Answer : B

Question. Crowdfunding platforms enable entrepreneurs to:
a) Secure significant funding from a single investor.
b) Raise capital from a large pool of small investors. 
c) Obtain loans with favorable interest rates.
d) Access government grants easily.
Answer : B

Question. Which of the following is included in technical resources ?
a) Production
b) Marketing
c) Process of production
d) None of the above
Answer : C

Question. Effective training and development programs for employees can lead to:
a) Increased employee turnover.
b) Improved job satisfaction and productivity. 
c) Reduced need for innovation.
d) Difficulty adapting to market changes.
Answer : B

Question. Compared to debt financing, equity financing typically involves:
a) Lower upfront costs but higher potential returns for investors. 
b) Fixed interest rate payments and lower risk for investors.
c) Faster access to capital but limited control for entrepreneurs.
d) Shorter repayment terms and less flexibility for entrepreneurs.
Answer : A

Question. When negotiating with potential suppliers, an entrepreneur should aim to secure:
a) The lowest possible price regardless of quality.
b) Competitive pricing, reliable delivery, and good communication.
c) Exclusive rights to sell the supplier's products.
d) Short-term contracts with limited flexibility
Answer : B

Question. What is required for fixed capital and working capital of any enterprise ?
a) Finance
b) Marketing
c) Planning
d) None of the above
Answer : A

Question. Negotiating skills are valuable for entrepreneurs when:
a) Setting prices for their products or services.
b) Building relationships with customers.
c) Completing all business tasks independently.
d) There is no need to compromise or find solutions.
Answer : A

Question. Which of the following is NOT a common source of financial resources for entrepreneurs?
a) Personal savings.
b) Venture capitalists.
c) Bank loans.
d) Government grants.
Answer : B

Question. Which of the following is NOT a key aspect of effective human resource management for startups?
a) Building a strong company culture.
b) Implementing a competitive compensation and benefits package.
c) Focusing on hiring experienced professionals only.
d) Recruiting individuals with the right skills and passion for the venture.
Answer : C

Question. Which of the following is physical resources ?
a) Marketing
b) Finance
c) Resources
d) None of the above
Answer : C

Question. Which of the following is the MOST important step in the resource mobilization process?
a) Identifying all potential resource needs. 
b) Securing funding at any cost.
c) Selecting a marketing strategy.
d) Writing a detailed business plan.
Answer : A

Question. When building a strong team, an entrepreneur should prioritize:
a) Hiring individuals with the highest educational qualifications.
b) Finding people who share the company vision and values.
c) Focusing solely on technical skills and experience.
d) Offering the lowest possible salaries.
Answer : B

Question. Building strong relationships with suppliers can benefit an entrepreneur by:
a) Increasing production costs.
b) Ensuring reliable and timely delivery of materials. 
c) Limiting the product offering of the business.
d) Reducing the need for marketing efforts.
Answer : B

Question. NPV method relates with :
a) Present value of money
b) Time value of money
c) Inflated value of money
d) None of these
Answer : C

Question. When outsourcing tasks, entrepreneurs should consider factors like:
a) Cost savings only.
b) Expertise of the outsourcing partner and potential quality impact.
c) Location of the outsourcing provider.
d) The ability to outsource all business functions.
Answer : B

Question. When developing a business plan for resource mobilization, it's important to include:
a) A detailed personal biography of the entrepreneur.
b) A clear explanation of the target market, product/service offering, and financial projections.
c) Extensive technical specifications of the product/service.
d) A list of personal goals and aspirations.
Answer : B

Question. Bootstrapping refers to:
a) Raising capital from external investors.
b) Funding a business venture using personal savings, family, and friends. 
c) Taking out a large loan from a bank.
d) Issuing stocks on the public market.
Answer : B

Question. Gestation period is concerned with :
a) Idea creation period
b) Incubation period
c) Implementation period
d) Commercialisation period
Answer : C

Question. Technological resources can be crucial for entrepreneurs by:
a) Automating tasks and improving efficiency. 
b) Increasing fixed costs significantly.
c) Limiting the market reach of the business.
d) Reducing the need for skilled employees.
Answer : A

Question. When pitching to potential investors, entrepreneurs should focus on:
a) Their personal background and experiences only.
b) A clear explanation of the business opportunity and financial projections.
c) Highlighting potential risks without offering solutions.
d) Emphasizing emotional connections rather than data.
Answer : B

Question. Protecting intellectual property can provide entrepreneurs with a:
a) Competitive advantage in the market. 
b) Guarantee of high sales volumes.
c) Need to invest heavily in legal fees.
d) Limited ability to attract new investors.
Answer : A

Question. Project appraisal is an/a :
a) Export Analysis
b) Expert Analysis
c) Profitability Analysis
d) None of the above
Answer : C

Question. Incubators and accelerators are examples of resource mobilization support that provide:
a) Solely financial investments.
b) Mentorship, networking opportunities, and workspace.
c) Access to advanced manufacturing facilities.
d) Assistance with product development and prototyping.
Answer : B

Question. Government grants can be a source of funding for entrepreneurs who:
a) Seek large amounts of capital for high-risk ventures.
b) Align their business goals with government priorities. 
c) Offer products or services with limited market potential.
d) Require minimal startup capital.
Answer : B

Question. Angel investors typically invest in:
a) Established businesses with a proven track record.
b) Early-stage startups with high growth potential. 
c) Large corporations looking to expand.
d) Real estate projects.
Answer : B

Question. Which of the following statements is TRUE about networking for resource mobilization?
a) Networking is only useful for securing financial resources.
b) Building relationships with potential investors, partners, and customers can be beneficial. 
c) Networking events are a waste of time for new entrepreneurs.
d) Social media platforms are not effective tools for networking.
Answer : B

Question. Lease financing allows entrepreneurs to:
a) Obtain full ownership of an asset through a loan.
b) Acquire the use of an asset for a fixed period in exchange for payments. 
c) Secure funding for operational expenses.
d) Invest in research and development activities.
Answer : B

Question. Effective time management for entrepreneurs is crucial because:
a) It allows for more leisure time.
b) It enables them to prioritize tasks and maximize productivity. 
c) It reduces the need for delegation.
d) It eliminates the need for setting goals.
Answer : B

Question. When choosing a source of funding, entrepreneurs should consider factors such as:
a) Interest rates only.
b) The amount of funding available and the repayment terms. 
c) The investor's involvement in the business.
d) All of the above.
Answer : B

Question. The concept of bootstrapping emphasizes:
a) Utilizing creativity and resourcefulness. 
b) Seeking large investments from venture capitalists.
c) Reliant heavily on debt financing.
d) Focusing on rapid business expansion.
Answer : A

Question. Which of the following is NOT a common type of technological resource for entrepreneurs?
a) Project management software.
b) Customer relationship management (CRM) tools.
c) Accounting and financial software.
d) Communication and collaboration platforms.
Answer : B

Question. Bootstrapping can be a viable strategy for entrepreneurs who:
a) Need large amounts of capital to launch their business.
b) Value maintaining full ownership and control.
c) Have limited business experience and a risky idea.
d) Prioritize rapid growth over profitability.
Answer : B

Question. Social media platforms can be valuable tools for resource mobilization by helping entrepreneurs:
a) Secure large investments directly from users.
b) Build brand awareness and connect with potential customers and partners.
c) Access confidential market research data.
d) Obtain government grants for their ventures.
Answer : B

Question. Internal sources of finance include
a) trade credit
b) equity shares
c) public deposit
d) All of these

Answer : B

Question. Deepak Ltd. has been manufacturing cycles since 2015. Their market share in this field is 35%. They decided to introduce new cycles with advanced gear systems in 2022. For the same they estimated their financial requirements to be ` 15 crore. They decided to raise the same through a limited number of sophisticated investors. Identify this kind of issue.
a) Right issue
b) Public issue
c) Private placement
d) None of these

Answer : C

Question. Karma Limited needs finance to fund its expansion plans. However, it does not wants to issue its shares publicly, as it involves a number of legal formalities. What other options(s) are available for the company?
a) Rights issue
b) Private placement
c) Offer to employees
d) All of these

Answer : D

Question. Full form of IPO is
a) Initial Public Offer
b) Innovative Public Offer
c) Internal Public Offer
d) None of the above

Answer : A

Question. Which amongst the following is/are venture capital institutions in India?
a) Gujarat Venture Finance Limited
b) Technology Development and Information Company of India Limited
c) Risk Capital and Technology Finance Corporation Limited
d) All of the above

Answer : D

Question. In the capital market, funds are raised through
a) debt
b) equity
c) Both (a) and (b)
d) None of these

Answer : C

Question. At the ............ stage of financing, the venture achieves a certain amount of market share and has opportunities to develop and grow.
a) seed capital
b) pre-start-up
c) second
d) bridge

Answer : D

Question. ABC Ltd., decided to raise funds by issuing shares. The finance department felt that the company should offer the shares to existing shareholders on a pro-rata basis. Out of the following, identify the method of raising the funds beings suggested by the finance department.
a) public issue
b) right issue
c) private placement
d) offer to employees

Answer : B

Question. Which amongst the following is/are the feature(s) exhibited by angel investors?
a) They bear extremely high risk
b) They provide proactive advice and guidance
c) They are generally current or retired executives
d) All of the above

Answer : D

Question. Karuna is studying in Kanpur University. She got an idea to make a safety gadget for college going girls which will give alert message to the registered numbers as well as nearest policy stations, if the wearer is in any kind of danger. To execute her idea she requires finance. She convinced one of her teacher who has the knowledge of making such gadget to provide her finance for feasibility studies. Identify the source of funding used by Karuna.
a) Right issue
b) Funding
c) Angel investors
d) None of these

Answer : C

Question. ................. refers to the whole network of all organisations, institutions and instruments that provide medium and long-term funds to the government and industrial sector.
a) Capital market
b) Money market
c) Financial intermediation
d) New issue market

Answer : A

Question. ............ means the direct sale by a company of its securities to a limited number of institutional investors.
a) Public issue
b) Right issue
c) Private placement
d) Offer to employees

Answer : C

Question. Finance raised by issue of ADRs and GDRs is said to be raised from ................. .
a) internal sources
b) external sources
c) either internal or external sources
d) None of the above

Answer : A

Question. In primary market, ‘new issues’ may be issued by
a) new companies only
b) old companies only
c) Both (a) and (b)
d) None of the above

Answer : C

Question. The word ‘angel’ was originally coined by .............. in 1978 to describe the investors who supported entrepreneurs to raise seed capital.
a) William Wetzel
b) Louis Allen
c) Theo Haimann
d) Chester Barnard

Answer : A

Question. Angel investors provide ........... finance for product development and initial marketing but with no commercial sales.
a) long-term
b) short-term
c) start-up
d) growth stage

Answer : C

Question. ………… is an equity based investment in a growth-oriented, small to medium sized business, which in most cases would not qualify for receiving bank loans.
a) Angle funding
b) Venture capital
c) Public issue
d) Financial intermediation

Answer : B

Question. As per SEBI guidelines, if the company does not receive 90% of the issue amount from public subscription within ........... from the date of issue, the amount received is required to be refunded.
a) 60 days
b) 90 days
c) 120 days
d) 150 days

Answer : C

Question. Capital markets arethe most important source of raising finance for the entrepreneurs as this market can
a) secure the required foreign capital
b) mobilise the financial resources on a nationwide scale
c) ensure the most effective allocation of mobilised finanical resources
d) All of the above

Answer : D

Question. The role of transferring financial resources from the surplus units to the deficit units is known as ……
a) right issue
b) financial intermediation
c) new issue
d) access to capital

Answer : B

Question. Benefits of raising finance through public issue include
a) higher valuations
b) incentives
c) liquidity
d) All of these

Answer : D

Question. Divij is an innovative entrepreneur. He has decided to open an online portal which helps people to order groceries 24 × 7. But before launching his portal, he wants to investigate the marketability of his idea. He approached Tech Marts, a venture capital firm, to fund his investigation. Divij is looking for .......... finance.
a) start-up
b) second round
c) last stage
d) seed capital

Answer : D

Question. Under venture capital financing, early stage financing includes
a) seed capital finance
b) start-up finance
c) bridge finance
d) Both (a) and (b)

Answer : D

Question. …… is a method of raising additional financa from existing shareholders by giving them a right to purchase certain number of shares in proportion to the shares they are holding.
a) Public issue
b) Private placement
c) Rights issue
d) Offer to employees

Answer : C

Question. ……to employees enables them to become shareholders of the company and subsequently be able to share the profits of the company.
a) Private placement
b) Rights issue
c) Stock options
d) None of the above

Answer : C

Question. The whole process of issue of shares can be divided into
a) pre-issue activiites
b) post-issue activities
c) mid-issue activities
d) Both (a) and (b)

Answer : D

Question. Which of the following is not a step involved in public issue of shares?
a) Appointment
b) Subscription list
c) Checks on brokers
d) Allotment of shares

Answer : C

Question. An angle investor is also known as
a) Business angle
b) Informal investor
c) Angel funder
d) All of these

Answer : D

Question. Identify the factors required in the development of entrepreneurship.
a) Innovative ideas
b) Project financing
c) Competency in project preparation and implementation
d) All of the above

Answer : D

Question. Which of the following is/are the examples of venture capital institutions in India?
a) Gujarat Venture Finance Limited (GVFL)
b) Technology Development and Information Company of India Limited (TDICIL)
c) Andhra Pradesh Industrial Development Corporation
d) All of the above

Answer : D