Entrepreneurship Management Questions and Answers





Entrepreneurship Management solved MCQ Questions :

Entrepreneurship management is a structured approach to managing a business to help entrepreneurs launch, grow, and sustain their businesses. This section focus on all topics of the Entrepreneurship Management subject. Here you can get important mcq questions on Entrepreneurship Management with answers. These questions will help you to prepare for interviews, entrance exams, online tests, and semester exams. These Entrepreneurship Management multiple choice questions are for both freshers and experienced candidates.

Entrepreneurship Management MCQ Chapter Wise :

Here you will find a list of important questions and answers with detailed solution on entrepreneurship management in MCQ quiz style for competitive exams and interviews. Here, You can practice these MCQs chapter-wise for FREE.

Below section consists of important multiple choice questions on entrepreneurship management with answers -:

1. Which one of the following is NOT a condition of a contract?
a) An offer is made
b) Consideration is given
c) An acceptance of offer
d) Contract must be illegal

Answer: d

2. Government can help in forming new venture by providing:
a) Finance
b) Technology
c) Infrastructure
d) Subsidiaries

Answer: c

3. A contract must be signed by:
a) At least one party
b) Both the parties
c) Not necessary to sign
d) By third party

Answer: b

4. Which of the following areas are preferred by women entrepreneurs?
a) Administration
b) Organization
c) Utilities
d) Manufacturing

Answer: a

5. A typical inventor is usually ______________.
a) Highly creative & in love with the invention
b) Does not encourage change
c) Willing to modify the invention
d) Not enthusiastic

Answer: a

6. Which one of the following is the fourth step in the entrepreneurial process?
a) Developing successful business ideas
b) Initiating New rules
c) Deciding to become an entrepreneur
d) Growing the entrepreneurial firm

Answer: d

7. The commitment of administrative domain to the resources is for:
a) Periodic intervals
b) Total amount needed
c) For certain tasks
d) For long time

Answer: b

8. Developing a new idea through inquiry and testing is called:
a) Forced relationship
b) Heuristics
c) Scientific method
d) Value analysis

Answer: c

9. Which of the following is not a source of idea generation?
a) Consumers
b) Federal government
c) Brain storming
d) Training

Answer: d

10. Which of the following cannot be covered under the copyright protection?
a) Computer software
b) Poems and songs
c) Computer hardware
d) Models and sculpture

Answer: d

11. Gazelles are the firms with:
a) High growth rate
b) M moderate growth rate
c) Zero% growth rate
d) Low growth r

Answer: a

12. Professional support network includes following EXCEPT:
a) Personal affiliations
b) Mentor
c) Friends
d) Trade associations

Answer: c

13. The period in which the money person entered into a contract with the go-between to sell his goods is known as
a) Middle ages
b) 18th century
c) 17th century
d) Earliest period

Answer: d

14. Which one of the Following is not the way by which an entrepreneur can enter into international business?
a) Export
b) Non equity arrangements
c) Direct foreign investment
d) Communication

Answer: d

15. ______________ viewed the entrepreneur as a risk taker who "buy(s) at an uncertain price, therefore operating at a risk".
a) Eli Whitney
b) Edward hariman
c) Richard cantillon
d) Thomas Edison

Answer: c

16. Female entrepreneurs differ from male entrepreneurs in terms of all of the following EXCEPT:
a) Motivation
b) business skills
c) Departure point
d) Goal orientation

Answer: d

17. An entrepreneur into the hosiery business found out the reason his hosiery was not selling was due to its color. What could be the best source of this information?
a) Supplier
b) Retailer
c) Competition
d) Government bureau

Answer: b

18. Which of the following factors does not affect a person for being an entrepreneur?
a) Gender
b) Education
c) Family background
d) values

Answer: c

19. Which of the following factors does not affect a person for being an entrepreneur?
a) Work history
b) Nationality
c) Education
d) Personal values

Answer: b

20. The former USSR received technology and syrup from Pepsi and provided it with Soviet vodka and rights to distribute it in the US. This is an example of:
a) Economic development
b) Balance of payment
c) Barter system
d) International trade

Answer: c

21. Which one of the following theory has the attribute of moderate risk taking as a function of skill, not chance?
a) Need for independence
b) Need for achievement
c) Need for affiliation
d) Need for authority

Answer: b

22. Foundation companies are formed from:
a) Fashion
b) Research and development
c) Most popular business
d) winding up company

Answer: b

23. All of the following are the broad categories of External forces EXCEPT:
a) Economic forces
b) S Socioeconomic forces
c) Technological forces
d) Competitive forces

Answer: b

24. A ______________ is a professional money manager who makes risk investment from a pool of equity capital to obtain a high rate of return on investments.
a) venture capitalist
b) entrepreneur
c) businessman
d) buyer

Answer: a

25. Members of distribution channels are excellent sources for new ideas because:
a) They are familiar with the needs of the market
b) They earn a handsome profit from new business
c) They do not bother if entrepreneur bears a loss
d) They have well-developed sales force

Answer: a

26. Which of the following geographical area is having least interest to U.S. entrepreneurs?
a) Europe
b) The Far East
c) Central Asia
d) Transition economies

Answer: c

27. Andrew Carnegie is an example of entrepreneur of which century
a) Earliest period
b) 19th and 20th century
c) Middle ages
d) 17th century

Answer: b

28. The activity which occurs when the new venture is started are called:
a) Business skills
b) Motivation
c) Departure point
d) Goal orientation

Answer: c

29. The business plan should be prepared by:
a) Entrepreneurs
b) Consultants
c) Engineers
d) Small business administration services

Answer: a

30. What is the primary concern of founders who trade equity for capital for their growing venture?
a) Capitalization
b) Control
c) Valuation
d) Investor capabilities

Answer: a

31. 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

32. Intellectual Property laws can protect ______________.
a) Trademarks.
b) Copyright.
c) Patents.
d) All the above.

Answer: d

33. A new venture's business plan is important because ______________.
a) It helps to persuade others to commit funding to the venture.
b) Can help demonstrate the viability of the venture.
c) Provides a guide for business activities by defining objectives.
d) All the above.

Answer: d

34. Which of the following are described as one of the Big Five personality traits?
a) tolerance of others.
b) need for achievement.
c) propensity to leadership.
d) locus of control.

Answer: b

35. Someone legally appointed to resolve the financial difficulties of an insolvent firm is called ______________.
a) an administrator.
b) a predator.
c) an auditor.
d) a turnaround consultant.

Answer: a

36. IFCI stands for ______________.
a) Industrial finance corporation of India.
b) Institutional finance corporation of India.
c) Industrial funding corporation of India.
d) Indian finance corporation and institution.

Answer: a

37. SIPCOT's financial assistance is in the form of ______________.
a) term loan.
b) seed capital scheme.
c) underwriting the capital issues
d) All of the above.

Answer: d

38. EDPs course contents contains ______________.
a) General introduction to entrepreneurs.
b) Motivation training.
c) Managerial skills.
d) All the above.

Answer: d

39. ______________ is a form of financing especially for funding high technology, high risk and perceived high reward projects
a) Fixed capital.
b) Current capital.
c) Seed capital.
d) Venture capital.

Answer: d

40. ______________ 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

41. The policy which stressed the role of cottage and small-scale industries for balanced industrial development of the country is ______________.
a) IPR 1940.
b) IPR 1948.
c) IPR 1956.
d) IPR 1977.

Answer: b

42. Under-capitalization arises due to ______________.
a) excess of assets over the liabilities.
b) excess of liabilities over the assets.
c) actual capitalization is higher than the proper capitalization.
d) actual capitalization is lower than the proper capitalization.

Answer: d

43. A public corporation means ______________
a) public company.
b) government company.
c) statutory corporation.
d) department of union government

Answer: c

44. A project, which may not add to the existing profits, should be financed by ______________
a) debentures.
b) preference share capital.
c) equity capital.
d) public deposits.

Answer: a

45. The charter of a company is its ______________.
a) prospectus.
b) statement lieu of prospectus.
c) memorandum of association.
d) articles of association.

Answer: a

46. As a new company grows, the entrepreneur will need to ______________.
a) be responsive to changes in the market.
b) ensure financial controls are maintained.
c) build a management team.
d) all the above.

Answer: d

47. The minimum amount of __________ irrespective of such private participation,could be specified at a minimum 17.5 per cent of project costs by lending institutions.
a) bank loans
b) promotors contribution
c) fixed capital
d) working capital

Answer: b

48. The content of the final report typically includes the following topics ______________.
a) Executive summary
b) review and analysis
c) recommendations
d) If all the above are correct.

Answer: d

49. _____________ describes the direction, the enterprise is going in, what its goals are, where it wants to be,and how it is going to get there.
a) project report
b) technical anlaysis
c) market analysis
d) financial analysis

Answer: a

50. Someone who improves an existing business can be called ______________
a) A changeling.
b) A professional.
c) A co-worker.
d) An intrapreneur.

Answer: d

51. The UK government has implemented a number of policies to encourage Entrepreneurship in schools. One such initiative is ______________.
a) Young Enterprise.
b) Youth venture.
c) Young Business.
d) Young Initiative.

Answer: a

52. Innovation can best be defined as ______________.
a) the successful exploitation of new ideas.
b) the evolution of new ideas.
c) the opposite of creativity.
d) the generation of new ideas.

Answer: a

53. Which of the following statements is false?
a) Market segmentation is a useful process for small businesses to undertake.
b) Selling is essentially a matching process.
c) A benefit is the value of a product feature to a customer.
d) It is a good idea for small businesses to compete solely on price.

Answer: d

54. 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

55. IFCI has been converted into a ______________.
a) joint stock company.
b) co-operative society.
c) partnership firm.
d) sole proprietorship.

Answer: a

56. TIIC is sponsored by the ______________.
a) Government of Karnataka.
b) Government of Andhra Pradesh.
c) Government of Kerala.
d) Government of Tamil Nadu.

Answer: d

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

Answer: d

58. The term ______________ denotes bonus or financial aid which is given by a government to an industry to help it compete with other units
a) Incentive.
b) Subsidy.
c) Concession
d) Bounty.

Answer: d

59. ______________ is a graphical representation of the various activity and event relating to a project.
a) Network analysis.
b) Scheduling technique.
c) Logical Model.
d) Network Diagram

Answer: d

60. ______________ is an event-oriented approach.
a) CPM.
b) GERT.
c) WASP.
d) PERT.

Answer: d

61. EST stands for ______________.
a) Earliest Start Time.
b) Event Start Time.
c) Effective Start Time.
d) Essential Start Time.

Answer: a

62. ______________ may be defined as the excess of present value of project cash inflows over that of out flows.
a) Net present value technique.
b) Average rate of return.
c) Benefit-Cost ratio.
d) Internal rate of return

Answer: a

63. ______________ 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

64. Which of the list below does not form Intellectual Property?
a) Trade marks.
b) Patents.
c) Tangible assets.
d) Copyright.

Answer: c

65. Idea of new product is tested in potential consumers to determine consumer acceptance at ______________ stage.
a) Concept.
b) Product development.
c) Test marketing.
d) Commercialization.

Answer: c

66. Strategic entrepreneurial marketing has been summarised as the 4Is, identification of target markets, interactive marketing methods, informal intelligence gathering and - what is the fourth?
a) independence.
b) instructiveness.
c) innovation.
d) internet.

Answer: c

67. LOB stands for______________.
a) Line of Business.
b) Line of Balance.
c) Loss of Business.
d) Loss of Balance

Answer: b

68. Decisions which are non-repetitive and novel nature and required to solve unstructured problem is called as ______________.
a) Programmed decisions.
b) Non - programmed decisions.
c) Routine decisions.
d) Strategic decisions.

Answer: b

69. When a firm enters into some business which is related with its present business in terms of technology, marketing or both it is called as ______________.
a) conglomerate diversification.
b) horizontal integration.
c) vertical integration.
d) concentric integration.

Answer: d

70. EXIM bank is a ______________.
a) State-level institution.
b) Regional - level institution.
c) All India institution.
d) International institution

Answer: c

71. Which of the following leads to under-capitalization?
a) raising of more money by issue of shares.
b) acquiring fixed assets on excessive amounts.
c) over-estimation of earnings for enterprise.
d) under-estimation of initial rate of earnings.

Answer: d

72. The term Capitalization is used in relation to ______________.
a) sole-proprietorship
b) Partnership.
c) joint stock companies.
d) co-operative societies

Answer: c

73. O & M refers to ______________
a) overall efficiency of business.
b) efficiency of office and administrative work.
c) office work measurement.
d) office and management study.

Answer: d

74. Which of the following is a characteristic typical of ______________? Most entrepreneurs
a) Choose high risk ventures.
b) Choose low risk ventures.
c) Choose moderate (or calculated) risk ventures
d) Choose no risk ventures.

Answer: c

75. 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

76. Project management is ideally suited for a business environment requiring all of the following except ______________.
a) Flexibility
b) Innovation
c) speed
d) Repetability

Answer: d

77. what are the components of then project report ______________.
a) requirement of funds
b) location
c) manpower
d) all the above

Answer: d

78. Today, many companies are using managerial techniques that are designed to encourage ______________.
a) Ehical behaviour
b) legal compliances
c) increasing profits
d) shareholders value

Answer: a

79. Which could provide an individual with the motivation to start a new business venture?
a) The financial rewards.
b) A desire to be independent.
c) Risk taking
d) All the above.

Answer: d

80. Which of the following is the reason for business failure ______________.
a) Lack of market research.
b) Poor financial control.
c) Poor management.
d) All the above.

Answer: d

81. Which of the following factors would not be included in a PESTLE analysis?
a) Government re-cycling policy.
b) Proposed reduction in interest rates.
c) Demographic changes.
d) Competitor activity.

Answer: d

82. The use of informal networks by entrepreneurs to gather information is known as ______________
a) Entrepreneurial networking.
b) Secondary research.
c) Informal parameters.
d) Marketing

Answer: a

83. Entrepreneurs are motivated by ______________
a) money.
b) personal values.
c) pull influences.
d) All the above.

Answer: d

84. ______________ is the first development bank of the country.
a) ICICI.
b) IDBI.
c) SFC.
d) IFCI.

Answer: d

85. The business development department of SIPCOT guides entrepreneurs in ______________.
a) applying for licences.
b) approval on collaboration.
c) allocation of scarce raw materials.
d) All the above.

Answer: d

86. ______________ is used to accomplish the project economically in the minimum available time with limited resources
a) Project Scheduling.
b) Network Analysis.
c) Budget Analysis.
d) Critical Planning.

Answer: a

87. 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

88. Activities which must be finished before a given event can occur are termed as ______________
a) Preceeding Activities.
b) Succeeding Activities
c) Concurrent Activities
d) Dummy Activities.

Answer: a

89. 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

90. CPM stands for ______________.
a) Continuous Path Method.
b) Clear Path Method.
c) Critical Probabilistic Method.
d) Critical Path Method.

Answer: d

91. The 'T' in a PESTLE analysis refers to ______________.
a) Technology.
b) Time.
c) Training.
d) Talent.

Answer: a

92. Which one of the following describes unemployment?
a) The number of people who voluntarily choose not to work.
b) The number of people who are jobless and are actively seeking work.
c) The number of people who are not actively seeking work.
d) The number of people actively seeking work who find work.

Answer: b

93. Which of the following factors does the macro-environment not include?
a) political and regulatory factors.
b) customer needs in a given market.
c) social and demographic factors.
d) technological changes.

Answer: b

94. Industries producing complete articles for direct consumption & also processing industries is called as ______________.
a) Manufacturing industries.
b) Feeder Industries.
c) Service Industries.
d) Mining or Quarrying.

Answer: a

95. Section 80 HHB provides for a deduction of ____________________ of profits and gains earned by a resident Indian company.
a) 65%.
b) 60%.
c) 55%.
d) 50%

Answer: d

96. The type of diversification in which the company adds up same type of products at the same level of production is ______________.
a) conglomerate diversification.
b) horizontal integration.
c) vertical integration.
d) concentric integration.

Answer: b

97. Seed capital assistance ______________.
a) a long-term assistance.
b) initial assistance
c) a help for the purchase of seeds.
d) a short-term assistance.

Answer: b

98. The policy which emphasized the need of promoting small-scale industries through integrated industrial development is ______________.
a) IPR 1948.
b) IPR 1956.
c) IPR 1977.
d) IPR 1980.

Answer: c

99. A valid definition of a business purpose is to ______________.
a) create a customer.
b) maximize profits.
c) serve the society
d) increase the wealth of the firm.

Answer: b

100. Which of the following securities proves a burden on finances of the company, when company is not earning profits?
a) Equity shares.
b) Preference shares.
c) Redeemable preference shares.
d) Debentures.

Answer: d