XEP 701 Entrepreneurship MCQ

XEP 701 Entrepreneurship MCQ
Portion - Mid Sem

Unit - I
1. Entrepreneur is a____________.
A. Employee
B. Supervisor
C. Manager
D. Employer
Ans: D
Explanation: -
Question Type: Moderately Easy
2. Porters 5 forces model explains___________.

A. Economic factors
B. Social factor
C. competitive factors
D. fighting factor
Ans: A
Explanation: -
Question Type: Moderate
3. An entrepreneur is a person with a high need for achievement which is said by_________
A. Kilby
B. J.B.Say
C. David McClleland
D. none of the above
Ans: C
Explanation: -
Question Type: Moderately Difficult
4. Which one is not in the context of employment generation
A. Income generation
B. Self employment
C. Entrepreneurship
D. innate traits
Ans: C
Explanation: -
Question Type: Difficult
5. An individual’s need to be recognized is called_________

A. Need for independence
B. Need for affiliation
C. Need of fame
D. Need for achievement
Ans: A
Explanation: -
6. Thechief motivational factor for ________ entrepreneurs to leave jobs is the frustration of not
being allowed to perform at the level of which they are capable.
A. Male
B. Female
C. Young
D. All the above
Ans: C
Explanation: -
7. 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
Ans: A
Explanation: -
Question Type: Easy
8. Which of the following was NOT one of the classifications of entrepreneurs presented in our
text?
A. Franchiseentrepreneur
B. Classicentrepreneur
C. Multipreneur
D. Intrapreneur
Ans: C
Explanation: -
9. The primary reason entrepreneurs start companies is to

A. prove they could do it
B. Recover from a layoff
C. create something new
D. Make money
Ans: C
Explanation: -
10. Entrepreneur is another name of____________.

A. Contracting
B. Outsourcing
C. Specializing
D. Risk Taker
Ans: D
Explanation: -
11. Risk taker is referred to as:
A. Contracting
B. Outsourcing
C. Specializing
D. Entrepreneurs
Ans: D
Explanation: -
Question Type: Easy
12. According to____________, Entrepreneur is “ one who assumes the risk and
management of business”
A. Robert Owen
B. Joseph Schumpeter
C. Richard Cantillon
D. Noah Webster
Ans: D
Explanation: -
13. According to ___________achievement motivation can be developed through

training and experience.
A. Robert Owen
D. McClellan
Ans: D
Explanation: -
14. According to_________, “Entrepreneur is an Economic agent to unites all the means of
production”
A. Robert Owen
D. J.B.say
Ans: D
Explanation: -
15. Women sector occupies nearly 45% of the Indian population.

A. 55
B. 65
C. 45
D. 90
Ans: C
Explanation: -
16. .____________________applied the word entrepreneur to business for the first time
A. Robert Owen
C. Richard
Cantillon
D. Max Weber
Ans: C
Explanation: -
17. .______________________is the drive to achieve a goal.

A. Motivation
B. Need for Achievement
C. Competency
D. None of These
Ans: B
Explanation: -
18. .__________entrepreneurs are extremely task oriented.
A. Technical
B. Fabian
C. Competency
D. None of These
Ans: A
Explanation: -
19. .____________entrepreneurs neither introduce new changes nor adopt new

methods innovated by others.
A. Technical
B. Fabian
C. induced
D. Business
Ans: B
Explanation: -
20. The term intrapreneur was coined by __________________ .

A. Robert Owen
D. Gifford Pinchot
Ans: D
Explanation: -
21. According to Schumpeter, Is the most important function of a modern entrepreneur.

A. Innovation,
B. invention
C. skill
D. creativity.
Ans: A
Explanation: -
22. Knowledge + Skill + Traits = __________________

A. Innovation.
B. Skill.
C. Competency
D. Creativity.
Ans: B
Explanation: -
23. Social attitude is one of the important problems of a __________________

Entrepreneur.
A. Drone.
B. Business.
C. Women.
D. Adoptive.
Ans: C
Explanation: -
24. The capacity to develop new ideas, concepts and processes is known as :
A. Innovation,
B. invention,
C. skill,
D. creativity.
Ans: A
Explanation: -
25. Which of the following risks is borne by the entrepreneur:

A. Financial risks,
B. personal risks,
C. psychological risks,
D. all of these.
Ans: D
Explanation: -
26. 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.
Ans: C
Explanation: -
27. 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.
Ans: A
Explanation: -
28. Person who works within an organization and having entrepreneurial capabilities is:
A. entrepreneur,
B. intrapreneur,
C. manager,
D. chief executive.
Ans: B
Explanation: -
29. 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
Ans: A
Explanation: -
30. 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
Ans: B
Explanation: -
31. . A medium enterprise is one in which the investment in plant and machinery is
more than Rs ____________ But does not exceed Rs ____________.
Ans: C
Explanation: -
32. 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
Ans: D
Explanation: -
33. A small enterprise is one in which the investment in plants and machinery is
more than Rs ____________But does not exceed Rs ____________ .
Ans: A
Explanation: -
34. A medium enterprise is one in which the investment in plant and machinery is
more than Rs ____________ but does not exceed Rs____________
Ans: D
Explanation: -
35. .__________Units provide inputs to other industries.
A. Export
B. small
C. ancillary
D. none of these
Ans: C
Explanation: -
36. ________________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
Ans: A
Explanation: -
37. A micro manufacturing enterprise is one in which the investment in plant and
machinery does not exceed____________
A. Rs. 5 lakhs.
B. Rs. 10 lakhs.
C. Rs.20 lakhs.
D. None of these.
Ans: D
Explanation: -
38. A small manufacturing enterprise is one in which the investment in plant and
machinery should not exceed____________
A. Rs.25 lakhs.
B. Rs. 1 crore.
C. 5 crores.
D. None of these.
Ans: C
Explanation: -
39. A micro service is one in which the investment in plant and machinery does not
exceed____________
A. Rs. 5 lakhs.
B. Rs.10 lakhs.
C. Rs 25 lakhs.
D. None of these.
Ans: B
Explanation: -
40. A small service enterprise is one in which the investment in plant and machinery
does not exceed____________
A. Rs. 25 lakhs.
B. 1 crore.
C. 2 crores.
D. None of these.
Ans: C
Explanation: -
41. The investment in plant and machinery in ancillary units should not exceed____________
A. Rs.25 lakhs.
B. 2 crores.
C. 5 crores.
D. 10 crores.
Ans: C
Explanation: -
42. 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.
Ans: A
Explanation: -
43. 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.
Ans: C
Explanation: -
44. Indian women are considered as______, which means source of power.
. .
A. sargam
B. sakthi.
C. Confused
D. None of these.
Ans: C
Explanation: -
45. .___________________are always on the move, full of energy and highly motivated.
A. Innovation.
B. Skill.
C. Entrepreneurs.
D. Creativity
Ans: B
Explanation: -
46. .__________________ are driven to succeed and expand their business.
A. Innovation.
B. Entrepreneurs.
C. Skill.
D. Creativity
Ans: B
Explanation: -
Question Type: Easy
47. ._______________ set massive goals for themselves and stay committed to achieving them
regardless of the obstacles that get in the way.
A. a)Innovation.
B. b) Entrepreneurs.
C. c) Skill.
D. d) Creativity
Ans: B
Explanation: -
48. All successful ________________ have a similar way of thinking and posses several key
personal qualities that make them so successful in business
A. Innovation.
B. Entrepreneurs.
C. Skill.
D. Creativity.
Ans: B
Explanation: -
49. ._______________ can command deference and respect of his immediate family and friends.
It is a kind of intangible reward.
A. Entrepreneurs
B. Manager
C. Supervisor
D. Employer
Ans: A
Explanation: -
50. Instead of depending on others, _______________ generates employment for others.
A. Entrepreneurs
B. Manager
C. Supervisor
D. Employer
Ans: A
Explanation: -
51. ._____________ can make significant contribution to the development of the country and be
proud of taking part in nation building activities.
A. Entrepreneurs
B. Manager
C. Supervisor
D. Employer
Ans: A
Explanation: -
Question Type: Easy
52. .__________________ can be a great achiever realising his goals and proving his
achievements to the world. He can be recognised for his outstanding efforts.
A. Entrepreneurs
B. Manager
C. Supervisor
D. Employer
Ans: A
Explanation: -
53. According to_________, “Entrepreneur is an Economic agent to unites all the means of
production”
A. J.B.say
B. Mannet
C. Swant
D. Emfly
Ans: A
Explanation: -
54. An ______________is an individual who takes moderate risks and brings innovation.
A. Entrepreneur
B. Manager
C. Supervisor
D. Employer
Ans: A
Explanation: -
Question Type: Easy
55. An _______________is a person who has possession of a new enterprise, venture or idea and
assumes significant accountability for the inherent risks and the outcome.
A. Entrepreneur
B. Manager
C. Supervisor
D. Employer
Ans: A
Explanation: -
56. An _______________is "one who undertakes an enterprise, especially a contractor, acting as

intermediately between capital and labour."
A. Entrepreneur
B. Manager
C. Supervisor
D. Employer
Ans: A
Explanation: -
57. ____________________is essentially the act of creation requiring the ability to recognize an
opportunity, shape a goal, and take advantage of a situation.
A. Entrepreneurship
B. Manager
C. Supervisor
D. Employer
Ans: A
Explanation: -
58. .____________________ is the process by which other new ventures are born within the
confines of an existing corporation.
A. Intrapreneurship
B. Manager
C. Supervisor
D. Employer
Ans: A
Explanation: -
59. The ____________________is the basic unit for economic organization. It transacts with
other unit in the economy, it produces a product worth more than the resources used.
A. entrepreneur,
B. manager,
C. enterprise ,
D. chief executive.
Ans: B
Explanation: -
60. _____________ involves expansion by exploring new

opportunities through new combinations of existing resources
A. entrepreneur,
B. manager,
C. intrapreneurship ,
D. chief executive.
Ans: B
Explanation: -
61. ____________may be defined as the inner state of our mind that moves or activates or
energies and directs our behaviour towards our goal
Motive
A. entrepreneur,
B. motive ,
C. manager,
D. chief executive.
Ans: B
Explanation: -
62. .___________________ may have to face frustration since the scope of his operations is
limited by his limited resources.
A. Entrepreneur
B. Manager
C. Supervisor
D. Employer
Ans: A
Explanation: -
63. _______________________ has to work long and hard hours from morning to dusk and his
venture tends to absorb all his energy
A. Entrepreneur
B. Manager
C. Supervisor
D. Employer
Ans: A
Explanation: -
64. At times ____________________may have to face disappointments and frustrations since

everything in his venture may not always work the way he would like it to.
A. Entrepreneur
B. Manager
C. Supervisor
D. Employer
Ans: A
Explanation: -
65. ________________-has to always work with tension since there is always the risk of failure.
A. Entrepreneur
B. Manager
C. Supervisor
D. Employer
Ans: A
Explanation: -
66. ____________ Is the work of entrepreneurs.
A. invention
B. innovation
C. both
D. none
Ans: A
Explanation: -
Question Type: Easy
67. ____________ is the work of scientists.
A. invention
B. innovation
C. both
D. none
Ans: B
Explanation: -
68. 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
Ans: B
Explanation: -
69. Which of these is a social barrier to entrepreneurship
A. low status
B. custom of people
C. both
D. none
Ans: C
Explanation: -
70. ____________is a combination of knowledge, skills and appropriate motives that an

individual must possess to perform a given task.
A. persistence
B. initiative
initiative
C. competency
D. creativity.
Ans: C
Explanation: -
71. The capacity to take repeated and different actions to overcome obstacles is
called____________
A. persistence
B. initiative
C. competency
D. creativity.
Ans: A
Explanation: -
72. An inner urge in an individual to do something is called____________

A. persistence
B. initiative
C. competency
D. creativity.
Ans: B
Explanation: -
73. ____________is the ability of an entrepreneur to successfully convince others.
A. persistence
B. initiative
C. competency
D. persuasion
Ans: D
Explanation: -
Question Type: Easy
74. Which of the following is not included in utilities.
A. raw materials
B. water
C. power
D. effluent disposal
Ans: A
Explanation: -
Question Type: Easy
75. Ability to make clear decisions on the merits of a case is called____________skill.
A. communication
B. decision-making
C. project development
D. management
Ans: B
Explanation: -
76. ____________skill helps an entrepreneur to establish an enterprise.
A. communication
B. decision-making
D. management
Ans: C
Explanation: -
77. ________________skill relates to accounting and financing control, marketing, production

planning and inventory control and to manage people who work in the enterprise.
A. communication
B. decision-making
D. management
Ans: D
Explanation: -
78. ____________skills are necessary for an entrepreneur to deal with many people.
A. communication
B. decision-making
D. management
Ans: A
Explanation: -
Question Type: Easy
79. Incubators organised by the government are called____________
A. government sponsored
B. non-profit organizations sponsored
C. university sponsored
D. privately sponsored
Ans: A
Explanation: -
Question Type: Easy
80. ____________are incubators sponsored and managed through associations, chambers of

commerce etc
Ans: B
Explanation: -
81. ____________incubators transit the findings of research and development into new
products and technologies.
Ans: C
Explanation: -
82. ____________incubators are organised and managed by private firms or companies or

corporations
Ans: D
Explanation: -
83. ____________incubators create employment.
A. general purpose
B. technology
C. specialist
D. none
Ans: A
Explanation: -
84. ____________incubators seek to commercialize new product or service
A. general purpose
B. technology
C. specialist
D. none
Ans: B
Explanation: -
85. ____________incubators focus on specific industry areas like art and craft.
A. general purpose
B. technology
C. specialist
D. none
Ans: C
Explanation: -
86. which of these is not a criteria for choosing right incubator.
A. success rates
B. quality
C. site
D. space
Ans: C
Explanation: -
87. .____________is made up of a core group of highly specialized firms the same industry.
A. ED clubs
B. Business clubs
C. chamber of commerce
D. Business Clusters
Ans: D
Explanation: -
88. Which of these is a problem of MSMEs
A. bogus units
B. inadequate finance
C. lack of managerial experience
D. all of these
Ans: D
Explanation: -
89. The slogan “innovate or evaporate” was given by____________
A. Robert Owen
D. Philip Kotler
Ans: D
Explanation: -
90. The first and foremost industrial estate was established at____________
A. Rajkot
B. Ahmadabad
C. Patna
D. Gurgaon
Ans: A
Explanation: -
91. ____________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
Ans: C
Explanation: -
92. . The word”Entrepreneur‟ has been taken from the __________word.
(d) france
A. Italy
B. French
C. english
D. france
Ans: B
Explanation: -
93. ____________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
C. company
D. none of these
Ans: B
Explanation: -
94. The word "adventure" is derived from the word meaning "to venture")
A. Latin
B. French
C. French
D. france
Ans: A
Explanation: -
95. ______________is the process by which other new ventures are born within the
confines of an existing corporation.
A. Entrepreneur
B. Manager
C. Intrapreneurship
D. Employer
Ans: C
Explanation: -
96. Who introduced the term intrapreneur:

,
A. Schumpeter,
B. Peter Drucker
C. David McClelland,
D. Gifford Pinchot
Ans: D
Explanation: -
97. Amarket survey analysis helps the entrepreneurs to know the characteristics of
the market.
A. Entrepreneur
B. Manager
C. Market
D. Employer
Ans: C
Explanation: -
98. ._________________ is the capital required by business to carry out day to day
activities.
A. cost
captial
B. Market captial
C. Working capital
D. Employer
Ans: C
Explanation: -
99. ___________________helps in executing statutory and legal requirements, land tax,

sales tax, commercial tax, and transport license and pollution control certificate have also to be
obtained on the basis of project report.
A. Entrepreneur
B. Manager
C. Goverment
D. Employer
Ans: C
Explanation: -
100. .The Periyar TBI was started in the year______________.
A. 2008
B. 2007
C. 2006
D. 2009
Ans: C
Explanation: -
Portion - Mid Sem

Unit - II
1. Society for innovation and development is related with____.
A. IISC Bangalore
B. IIT Bombay
C. IIT Kanpur
D. BITS pilani.
Ans: D
Explanation: -
2. Which of the following might be termed a disadvantage faced by the small business
A. Greater flexibility
B. Greater ability to serve specialized markets
C. Extreme personal commitment of owner
D. More personal service
Ans: D
Explanation: -
3. _________is a network of academic institutions across India performing research and

developing and delivering world class education, skill-building programs, high growth
entrepreneurs.
A. State entrepreneurial network(SEN)

B. National entrepreneurial network(NEN)
C. UGC
D. AIEEE
Ans: B
Explanation: -
4. IBRD (International Bank for Reconstruction and Development) also known as

A. Exim Bank
B. World Bank
C. International Monetary fund
D. International Bank
Ans: B
Explanation: -
5. ._______will be made for community development of effected Districts, in reference to Mega

Projects.
A. Prime Minister Community Development Fund

B. MLA’s Development Fund
C. Chief Minister Community Development Fund
D. MP’s Community Development Fund
Ans: D
Explanation: -
6. Industrial units will have to conduct _______and arrange for “Rain water Harvesting” facility.
A. Energy Audit
B. Information Systems Audits
C. Investigative Audits or Reviews
D. Follow-up Audits
Ans: B
Explanation: -
7. The Theory of Absolute Cost Advantage is given by
A. David Ricardo
B. Adam Smith
C. F W Taylor
D. Ohlin and Heckscher
Ans: A
Explanation: -
8. Which is not an Indian Multinational Company?
A. Hindustan Unilever
B. Asian Paints
C. Piramal
D. Wipro
Ans: C
Explanation: -
9. Subsidiaries consider regional environment for policy / Strategy formulation is known as
A. PolycentricApproach
B. Regiocentric Approach
C. Ethnocentric Approach
D. Geocentric Approach
Ans: D
Explanation: -
10. ._______________is application of knowledge which redefine the boundaries of global

business
A. Cultural Values
B. Society
C. Technology
D. Economy
Ans: C
Explanation: -
11. The MSME Development Act came into force in ____________

A. 2005
B. 2006
C. 2010
D. 2001
Ans: B
Explanation: -
12. Capital investment subsidy was introduced in ____________
A. 1973
B. 1971
C. 1972
D. 1970
Ans: B
Explanation: -
13. ____________ 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
Ans: B
Explanation: -
14. ____________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
C. company
D. none of these
Ans: B
Explanation: -
15. 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
Ans: A
Explanation: -
16. 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
Ans: C
Explanation: -
17. _____________ directly market the MSME produce in the domestic and overseas market.
A. IDBI.
B. DFG
C. KFC.
D. NSIC.
Ans: D
Explanation: -
18. Periyar Technology Business Incubator a grant in aid project of ____________.
A. KSIDC
B. DIC
C. NSTEDB
D. KINFRA
Ans: B
Explanation: -
19. Single window scheme is instituted through____________
A. IDBI.
B. SIDCO.
C. KFC.
D. DIC.
Ans: D
Explanation: -
20. 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. Softloan.
B. Seed capital.
C. Capital subsidy.
D. Bridge loan.
Ans: D
Explanation: -
21. The MSME Development Act came into force in the year____________
A. 2005.
B. 2006.
C. 2007.
D. None of these.
Ans: B
Explanation: -
22. Offering single window clearance facility is the most fascinating feature of ____________
A. KSIDC
B. KITCO
C. DIC
D. KINFRA
Ans: C
Explanation: -
23. In ________ Periyar TBI has also received the Rural Innovation Fund from NABARD to
develop a semi automated buffing machine for the Stainless steel vessel manufacturers cluster in
Kumbakonam,the design is patented.
A. 2000
B. 2010
C. 1996
D. 1999
Ans: B
Explanation: -
24. Who won first prize also won the innovative project award for its honey based rural enterprise
idea from TAHDCO, HR organisation ma-foi and Rural TBI of IIT-Madras through Periyar
TBI,Vallam.
A. M.Gowrishanker, B.Tech (IT)

B. KISHOR
C. KUMAR
D. KINFRA
Ans: A
Explanation: -
25. ____________Is a National level apex organization of young entrepreneurs
A. NAYE
B. TCO
C. SIDO
D. NSIC
Ans: A
Explanation: -
26. ____________ provides consultancy services to small and medium enterprises at

reasonable cost
A. NAYE
B. TCO
C. SIDO
D. NSIC
Ans: B
Explanation: -
27. ______________an undertaking of Government of Tamilnadu, functions with the specific

objective of playing catalytic role in the promotion and development of Small Scale Industries
and hastening the industrial dispersal throughout Tamilnadu.
A. 1970
B. 1973
C. TANSIDCO
D. 1975
Ans: C
Explanation: -
28. . ____________is an area where applied research on high tech projects is

conducted
A. STEP
B. SWOT
C. EPST
D. None of these
Ans: A
Explanation: -
Question Type: Easy
29. Small Industries Development Bank of India (SIDBI) has been established as the apex
institution for financing the_____________.
A. KITCO
B. KSIDC
C. MSME
D. SIDCO
Ans: C
Explanation: -
30. The Head Office of TANSIDCO is located at____________
A. Chennai
B. Kozhikode
C. Ernakulum
D. Kannur
Ans: A
Explanation: -
Question Type: Easy
31. ____________refers to any investment opportunity which is to be exploited for profit.
A. product
B. project
C. share
D. none of these
Ans: B
Explanation: -
32. ____________ 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
Ans: C
Explanation: -
33. The process of evaluating the project ideas with a view to select the best and
promising idea after eliminating the unprofitable ideas is called____________
Of the project ideas.
A. Screening
B. appraisal
C. identification
D. none
Ans: A
Explanation: -
34. After screening the ideas, they are translated into project____________.
A. portfolio
B. profiles
C. proposal
D. none
Ans: B
Explanation: -
Question Type: Easy
35. SWOT stands for strength, weakness, opportunity, and ____________
A. Treat
B. threat
C. tort
D. none
Ans: B
Explanation: -
36. Project formulation means ____________.Study.
A. profitability
B. liquidity
C. feasibility
D. viability
Ans: C
Explanation: -
Question Type: Easy
37. ____________Analysis is primarily concerned with the identification,

quantification and evaluation of project resources.
A. Network
B. financial
C. techno-economic
D. input
Ans: D
Explanation: -
38. .____________analysis is done to ascertain financial viability of a project.
A. Network
B. financial
C. techno-economic
D. input
Ans: B
Explanation: -
Question Type: Easy
39. .____________technology refers to that technology which is suitable to

local, economic, social and cultural conditions.
A. Indigenous
B. imported
C. advanced
D. appropriate
Ans: D
Explanation: -
40. The term ____________ refers to the plan for a particular type of building,
arrangement of machinery and equipment and provision of facilitation in the
building.
A. factory building
B. factory design
C. factory layout
D. factory premises
Ans: B
Explanation: -
41. ____________ Analysis is one of the most popular techniques used for
planning, scheduling, monitoring and co-ordinating projects comprising a
number of activities.
A. Network
B. financial
C. techno-economic
D. input
Ans: A
Explanation: -
42. ____________ is the difference between sales and variable cost.

A. margin of safety
B. fixed cost
C. contribution
D. profit
Ans: C
Explanation: -
Question Type: Easy
43. .____________is a network technique of scheduling and controlling the

project where activity times cannot be precisely estimated.
A. PERT
B. CPM
C. BEP
D. SWOT
Ans: A
Explanation: -
44. ____________analysis is a technique commonly used to assess expected product

profitability.
A. PERT
B. CPM
C. BEP
D. SWOT
Ans: C
Explanation: -
45. A series of related activities which result in some product or service is called____________
A. event
B. task
C. network
D. slack
Ans: C
Explanation: -
46. The element of job to be completed in a specific time is known as____________
A. event
B. activity
C. network
D. slack
Ans: B
Explanation: -
47. ____________represents the activities and events of a project in a logical

sequence.
A. network diagram
B. project graph
C. arrow diagram
D. all of these
Ans: A
Explanation: -
48. .____________represents the start and end of an activity.
A. event
B. activity
C. network
D. slack
Ans: A
Explanation: -
49. Node represents____________

A. slack
B. activity
C. network
D. event
Ans: A
Explanation: -
50. ____________is the unbroken chain of activities from start event to end event in the
network diagram.
A. slack
B. activity
C. network
D. path
Ans: D
Explanation: -
51. Critical path is the longest ____________.in the network
A. slack
B. activity
C. event
D. path
Ans: D
Explanation: -
52. Activities lying on the critical path are known as____________activities.
A. critical
B. preceding
C. succeeding
D. concurrent
Ans: A
Explanation: -
53. ____________are activities that must be completed immediately prior to the start of
another activity.
A. critical
B. preceding
C. succeeding
D. concurrent
Ans: B
Explanation: -
54. Activities that cannot be started until one or more of other activities are
completed but immediately follow are called____________
A. critical
B. preceding
C. succeeding
D. concurrent
Ans: C
Explanation: -
55. Activities that can be accomplished simultaneously are called____________activities.
A. critical
B. preceding
C. succeeding
D. concurrent
Ans: D
Explanation: -
56. ____________is the earliest time an activity can begin
A. EFT
B. LST
C. LFT
D. EST
Ans: D
Explanation: -
57. The sum of earliest start time and estimated time to perform the project is
called____________
A. EFT
B. LST
C. LFT
D. EST
Ans: A
Explanation: -
58. The latest possible time an activity can finish without delaying the project is
called____________
A. EFT
B. LST
C. LFT
D. EST
Ans: C
Explanation: -
59. Difference between latest finish time and estimated time to perform the project
is called
A. EFT
B. LST
C. LFT
D. EST
Ans: B
Explanation: -
60. ____________ is the difference between the actual sales and break even sales.
A. Margin of safety
B. fixed cost
C. contribution
D. profit
Ans: A
Explanation: -
61. ____________study is a systematic method adopted to find out the possibility

and practicability of starting a project.
A. profitability
B. liquidity
C. feasibility
D. viability
Ans: C
Explanation: -
62. Margin of safety is the difference between the _______________ and break even sales.
A. actual sales
B. fixed cost
C. contribution
D. profit
Ans: C
Explanation: -
63. Which of the following is not a phase in the project life cycle:
.
.
A. Pre- investment phase.

B. Constructionphase
C. Normalization phase
D. Growth phase.
Ans: D
Explanation: -
64. Which of the following is a technique of project identification:
A. Desk research.
B. Sensitivity analysis.
C. CVP analysis.
D. None of these.
Ans: A
Explanation: -
Question Type: Easy
65. Decision regarding factory design is part of :
A. Network analysis.
B. Financial analysis.
C. Technical analysis.
D. Social cost benefit analysis.
Ans: C
Explanation: -
66. Which of the following is not a network technique :
A. CPM.
B. PERT.
C. SWOT.
D. LOB.
Ans: C
Explanation: -
67. Shortest possible time to complete an activity is ____________

A. pessimistic time
B. optimistic time
C. most likely time

D. none of these
Ans: B
Explanation: -
Question Type: Easy
68. Maximum possible time to complete an activity is ____________
A. pessimistic time
B. optimistictime
C. most likely time
D. none of these
Ans: A
Explanation: -
69. . Estimated time required in normal conditions complete an activity is ____________
A. pessimistic time
B. optimistictime
C. most likely time
D. none of these
Ans: C
Explanation: -
70. ____________shows the changes in assets, liabilities and net worth between two
balance sheet dates.
A. cash flow
B. fund flow
C. fund flow
D. breakeven
Ans: B
Explanation: -
71. Department of industries and commerce formulated a scheme to set up____________ to

inculcate entrepreneurial culture amongst youth.
A. ED clubs
B. youth clubs
C. lion clubs
D. none
Ans: A
Explanation: -
72. The scheme of ED Clubs will be implemented by ____________
A. Business incubators.
B. Industrial estates.
C. DIC.
D. None of these
Ans: C
Explanation: -
73. . A grant of ____________ Will be given to each ED club by the department of Commerce
and industry.
A. 20000
B. 15000
C. 18000
D. 12000
Ans: D
Explanation: -
74. A ____________ is an organization designed and success of entrepreneurial

companies through an array of business support resources and services.
C. DIC.
D. None of these.
Ans: A
Explanation: -
75. ____________ Skill refers to the ability to conceive new ideas and products.
A. diagnostic
B. conceptual
C. technical
D. human relation
Ans: B
Explanation: -
Question Type: Easy
76. The skill to handle people and to influence their behaviour is known as
A. diagnostic
B. conceptual
C. technical
D. human relation
Ans: D
Explanation: -
77. ____________ Skill refers to the ability to understand problems from visible symptoms.
A. diagnostic
B. conceptual
C. technical
D. human relation
Ans: A
Explanation: -
78. Ability to use techniques ,procedures and tools of a specific field is called____________
A. diagnostic
B. conceptual
C. technical
D. human relation
Ans: C
Explanation: -
79. Entrepreneurship development is slow in Tamil Nadu because:

.
A. Natural resources are limited.

B. Poor quality of man power
C. Instable govt.
D. none of these.
Ans: D
Explanation: -
80. The minimum numbers to form an ED club is:
A. 20.
B. 25.
C. 50.
D. None of these.
Ans: B
Explanation: -
81. Which one of the following is not a function of ED club:
A. Organic workshop.
B. Interaction with promotional agencies.
C. Provide infrastructure.
D. Organic industrial visits.
Ans: C
Explanation: -
Question Type: Easy
82. Which of the following provides services and advices to start up firms:
C. DIC.
D. None of these.
Ans: A
Explanation: -
83. ____________analysis is concerned with identification of project demand

potential and selection of optimal technology:
A. techno-economic
B. network
C. financial
D. social cost-benefit
Ans: A
Explanation: -
84. District Industries Centres/Small Industries service Institutes/Technical consultancy agencies

like __________at Karaikudi, for specialised products.
A. CECRI
B. CERSY
C. SERI
D. BERI
Ans: A
Explanation: -
85. NSIC stands for

A. National Small Industries Corporation
B. National Single Industries Corporation
C. National Single Institute Corporation
D. None of these.
Ans: A
Explanation: -
86. Centre for Innovation, Incubation&Entrepreneurship (CIIE) - IIM Ahmedabad was Set up in
A. Set up in 2001
B. Set up in 2002
C. Set up in 2003
D. Set up in 2004
Ans: A
Explanation: -
87. Society for Innovation and Entrepreneurship (SINE)- IIT Bombay was Set up in
A. Set up in 2004
B. Set up in 2003
C. Set up in 2002
D. Set up in 2001
Ans: A
Explanation: -
88. Cell for Tech Innovation, Development & entrepreneurship support- IIT Chennai was Set up
in
A. Set up in 2000
B. Set up in 2002
C. Set up in 2003
D. Set up in 2004
Ans: A
Explanation: -
89. Society for Innovation and Development (SID) - IISc, Bangalore was Set up in
A. Set up in 2006
B. Set up in 2002
C. Set up in 2003
D. Set up in 2004
Ans: A
Explanation: -
90. In association with DST, BITS has established Technology Business Incubator in the area of
embedded systems and VLSI design back in _______________.
A. Set up in 2004
B. Set up in 2002
C. Set up in 2003
D. Set up in 2001
Ans: A
Explanation: -
91. Technology Incubation and Entrepreneurial Training Society (TIETS) - IIT Kharagpur was
Set up in
A. Set up in 2005
B. Set up in 2002
C. Set up in 2003
D. Set up in 2004
Ans: A
Explanation: -
92. Delhi Technical University announced the setting up of water technology and management
centre with the support of______________.
A. UNESCO
B. UNO
C. WHO
D. URO
Ans: A
Explanation: -
93. MSME units with a turnover of Rs._____________ or less per year have been exempted from
payment of Excise Duty.
A. 1crore
B. 10crore
C. 100 crore
D. 1000 crore
Ans: A
Explanation: -
94. On the State level finance is available loans can be availed from ________
A. SSIC.
B. SISI.
C. SIDC.
D. SSCCS
Ans: C
Explanation: -
95. ______is engaged in direct financing of the industrial activities
A. SSIC.
B. SISI.
C. IDBI.
D. SSCCS
Ans: C
Explanation: -
96. The main financial institutions available for loans for entrepreneurs on the (federal/ all India
level).
. .
A. SSIC.
B. SISI.
C. IDBI
D. SSCCS
Ans: C
Explanation: -
97. There are two main financial institutions available for loans for entrepreneurs on the (federal/
all India level).
. .
A. SSIC
B. SISI.
C. IFCI
D. SSCCS
Ans: C
Explanation: -
98. Transportation subsidies to promote industries in areas that are not easily accessible, like
remote hilly areas. A subsidy of _______on transportation costs is available under this scheme.
A. 5% to 9%
B. 15% to 19%
C. 50% to 90%
D. 20% to 30%
Ans: C
Explanation: -
99. Government of India runs a scheme for giving National Awards to micro, small and medium
scale entrepreneurs providing quality products in __________selected industry groups of
consumer interest.
A. 5
B. 15
C. 11
D. 20
Ans: C
Explanation: -
100. Credit Guarantee Fund for micro, small and medium enterprises has been set up to provide
guarantee for loans to MSME up to_______ lakhs extended by Commercial Banks and some
Regional Rural Bank.
A. Rs5 lakhs
B. Rs15 lakhs
C. Rs25 lakhs
D. Rs 20 lakhs
Ans: C
Explanation: -
Portion - Mid Sem

Unit - III
1. Business Plan should be prepared by__________
b)Entrepreneur
A. Government
B. Entrepreneur
C. Driver
D. Worker
Ans: B
Explanation: -
Question Type: Easy
2. ._________Should be considered in preparing business plan.
A. Marketing.
B. Government
C. Foreign Exchange.
D. Money.
Ans: A
Explanation: -
3. . __________shows movement of cash into and out of the firm and its net effect on
balance sheet.
A. cash flow
B. fund flow
C. ratio
D. breakeven
Ans: A
Explanation: -
4. Which of the following is not a technique of financial analysis:
A. Ratio analysis.
B. Risk analysis.
C. cash flow analysis.

D. Fund flow analysis.
Ans: B
Explanation: -
5. Mathematical relationship between two figures taken from financial statements

is called__________
A. cash flow
B. fund flow
C. ratio
D. breakeven
breakeven
breakeven
Ans: C
Explanation: -
6. __________.ratio establishes relationship between contribution margin and
total sales.
A. P/V
B. current
C. profitability
D. none
Ans: A
Explanation: -
7. __________ Is also known as marginal profit ratio
A. P/V
B. current
C. profitability
D. none
Ans: A
Explanation: -
8. Raising capital from multiple sources is known as__________
A. venture capital
B. layered financing
C. deferred credit
D. lease financing
Ans: B
Explanation: -
Question Type: Easy
9. Arrangement where payments to suppliers are made in agreed installments over

a specified period of time at some agreed rate of interest on the outstanding
balance.
A. venture capital
B. layered financing
C. deferred credit
D. lease financing
Ans: C
Explanation: -
10. Project appraisal is usually done by a __________ Institution.
A. Marketing
B. financial
C. production
D. none of these
Ans: B
Explanation: -
11. Project__________ is done after the project is implemented.
A. management
B. appraisal
C. evaluation
D. none
Ans: C
Explanation: -
Question Type: Easy
12. The main object of project appraisal is__________.
A. To find whether the project is technically feasible.

B. To ascertain whether the project is financially feasible.
C. To decide whether to accept or reject a project.
D. To know whether the project is eco-friendly.
Ans: C
Explanation: -
13. Project appraisal is done by__________.
A. Government.
B. Financial institution only.
C. Entrepreneur only
D. Both financial institution and entrepreneur.
Ans: D
Explanation: -
14. Which one is not an element of project appraisal__________?

.
A. Technical
feasibility.
B. Network analysis
C. Economical viability.
D. Commercial viability.
Ans: B
Explanation: -
15. In case of mutually exclusive projects, the project with __________ PI is to be

selected.
A. higher
B. lower
C. negative
D. positive
Ans: A
Explanation: -
16. Accept a project if it’s IRR is__________when compared to desired minimum
A. higher
B. lower
C. negative
D. positive
Ans: A
Explanation: -
17. Reject a project if it’s IRR is__________when compared to desired minimum
A. higher
B. lower
C. negative
D. positive
Ans: B
Explanation: -
18. __________report is a document wherein all the details obtained from

technical analysis, financial analysis, profitability analysis etc. are put together.
A. feasibility
B. project
C. both
D. none
Ans: C
Explanation: -
19. __________is an essential document for procuring assistance from

financial institutions and for fulfilling other formalities for the implementation of
the project.
A. feasibility
B. project
C. progress
D. none
Ans: B
Explanation: -
20. __________ analysis is concerned with the development of detailed work

plan of the project and its time profile.
A. techno-economic
B. network
C. financial
Ans: B
Explanation: -
21. __________ analysis involves estimation of project costs and revenues and funds
required for the project:
A. techno-economic
B. network
C. financial
Ans: C
Explanation: -
22. __________refers to the board area where the enterprise is to be established:
A. Plant capacity.
B. Plant location.
C. Plant layout
D. Process layout.
Ans: B
Explanation: -
Question Type: Easy
23. __________ refers to the arrangement of machines, equipments and

other physical facilities within factory premises:
.
A. Plant capacity.
B. Plant location
C. Plant layout.
D. Process layout.
Ans: C
Explanation: -
24. In __________similar machines are placed in one place according to

operations they perform:
A. Process layout.
B. Combined layout.
C. Stationary layout.
D. Cellular layout.
Ans: A
Explanation: -
Question Type: Easy
25. . In __________Men and equipment are moved to the material which remains in
one place:
A. Process layout.
B. Combined layout.
D. Cellular layout.
Ans: C
Explanation: -
26. __________ is possible where in item is made in different types and sizes:
A. Process layout.
B. Combined layout.
D. Cellular layout.
Ans: B
Explanation: -
27. In __________ machines dedicated to sequences of production are grouped

into cells:
A. Process layout.
B. Combined layout
D. Cellular layout.
Ans: D
Explanation: -
28. Line layout is also called __________
A. Process layout.
B. Combined layout.
D. product layout
Ans: D
Explanation: -
29. In __________ machines are arranged in sequence in which they are used:
A. Process layout.
B. Combined layout.
C. Stationary layout
D. product layout
Ans: D
Explanation: -
30. There is a continuous flow of materials in process towards the finished product
stage in__________
A. Process layout.
B. Stationarylayout.
C. Combined layout.
D. p
roduct layout
Ans: D
Explanation: -
31. __________ is the best suited in mass production:
A. Process layout.
B. Combined layout.
D. product layout
Ans: D
Explanation: -
32. __________ is referred to as group layout:
A. Process layout.
B. Combined layout.
D. Cellular layout.
Ans: A
Explanation: -
33. __________ is called fixed position layout:
A. Process layout
B. Stationary layout.
C. Combined layout.
D. Cellular layout.
Ans: C
Explanation: -
34. __________ is also called functional layout:
A. Process layout.
B. Combined layout.
D. Cellular layout.
Ans: A
Explanation: -
35. __________is a post investment decision report.
A. feasibilityreport
B. interim report
C. project report
D. progress report
Ans: C
Explanation: -
36. __________provides clues to pertinent questions like “what, why, how, when and where of
the project.
B. interim report
C. project report
D. progress report
Ans: C
Explanation: -
37. __________.is the master report
A. feasibility
B. interim report
C. project report
D. progress report
Ans: C
Explanation: -
38. __________is the final report
B. interim report
C. project report
D. progress report
Ans: C
Explanation: -
39. The most influential way of doing the Analyzing the Business is to perform a ___________
analysis of the company.
A. SROT
B. SSMT
C. SWOT
D. SRIT
Ans: C
Explanation: -
Portion - End Sem

Unit - IV
1. ............ is the
place where the sellers and buyers meet to exchange their products/services for
money
A. Market
B. bustand
C. railwaystation
D. airport
Ans: A
Explanation: -
2. ..................way of marketing focus on sellers and not on customers

A. conventional
B. modern
C. traditional
Ans: C
Explanation: -
3. In traditional marketing ............... should be beware

A. sellers
B. buyers
C. customers
D. both b and c
Ans: B
Explanation: -
4. marketing concept has changed time to time

A. True
B. False
C. -
D. -
Ans: A
Explanation: -
5. In.................... way of marketing the customers looks in the quality,durability,service of the

product
A. traditional
B. modern
C. conventional
D. none
Ans: B
Explanation: -
Question Type: Easy
6. modern concept of marketing focusses on ...............

A. both b and d
B. sellers beware
C. none
D. buyers beware
Ans: B
Explanation: -
7. .....................
are the problems faced in marketing small industry products
A. i) competition ii) lack of sale promotion iii)weak in bargaining
B. i) high cost ii) low end iii) new to the market
C. both a and b
D. none
Ans: A
Explanation: -
8. .................is involved in market assesment

A. selling price
B. purchaseforecasting
C. market potential
D. demand forecasting
Ans: D
Explanation: -
9. ................ refers to willingness and ability of customers to buy a product/service

A. price
B. demand
C. technique
D. none
Ans: B
Explanation: -
Question Type: Easy
10. Demand refers to willingness and ability of customers to buy products/services
A. True
B. False
C. -
D. -
Ans: A
Explanation: -
Question Type: Easy
11. the potential customers willingness and ability to buy a product/service is termed as .............
A. demand
B. none
C. total market
D. full market
Ans: C
Explanation: -
12. ................
technique is used for demand forecasting
A. survey method and statistical method
B. both a and c
C. indicator method
Ans: A
Explanation: -
13. .................. is the subdividing of market into homogeneous subsets of customers

A. market segmentation
B. none
C. market assesment
D. pricing
Ans: A
Explanation: -
15. the four factors of Ps for market mix are ...............

A. product,price,promotion,place
B. purchase,price,promotion,place
C. none
D. both a and b
Ans: A
Explanation: -
16. ............. is the name,time,sign or combination of them intended to identify the products of seller
A. make
B. brand
C. telecom
D. company
Ans: B
Explanation: -
Question Type: Easy
17. ................ is the art of science and technology of preparing goods fior transport and sales
A. market assesment
B. pakaging
C. transport
D. none
Ans: B
Explanation: -
18. .............. is the money that the customer must pay for the product/services
A. loss
B. selling price
C. cost price
D. price
Ans: D
Explanation: -
Question Type: Easy
19. ..............
are the factors that affects pricing
A. product characteristics,product cost
B. demand for the company,govt regulation
C. none
D. both a and b
Ans: D
Explanation: -
20. government regulation will not affect the pricing of the product
A. True
B. False
C. -
D. -
Ans: B
Explanation: -
21. government regulation will affect the pricing of the product

A. True
B. False
C. -
D. -
Ans: A
Explanation: -
22. demand for the product affects the pricing of the product
A. True
B. False
C. -
D. -
Ans: A
Explanation: -
23. .....................
affects the pricing of the product
A. product cost
B. customer behaviour
C. both a and b
Ans: C
Explanation: -
24. .................. is one of the pricing method

A. pricing
B. costpricing
C. skipping
D. skimming pricing
Ans: D
Explanation: -
25. the equation for cost plus method of pricing is

A. total cost + profit = selling price
B. total cost - profit = cost price
C. total cost + loss = selling price
D. total cost - loss= cost price
Ans: A
Explanation: -
26. the total cost in the cost plus method is

A. fixed cost - variable cost
B. none
C. variable cost - fixed cost
D. fixed cost + variable cost
Ans: D
Explanation: -
27. skimming pricing is contradict to penetration pricing

A. True
B. False
C. -
D. -
Ans: A
Explanation: -
28. the skimming pricing of product is for ..............

A. high profile customers
B. low profile customers
C. none
D. both a and b
Ans: A
Explanation: -
29. The penetrate pricing of product is set ............... to attaract ..............customer

A. lower,more
B. higher,minimum
C. higher,maximum
D. none
Ans: A
Explanation: -
30. ................... pricing method is used to fix the rate of crude oils
A. skimming
B. costplus method
C. market rate policy
D. penetratre
Ans: C
Explanation: -
31. market rate policy pricing method is used to fix the rate of oils,couriers,tailoring and repairig
works
A. True
B. False
C. -
D. -
Ans: A
Explanation: -
33. theproduct will move from ............... to ................ in zero level channel
A. customer -----> producer
B. producer----->retailer------>customer
C. producer ------> customer
D. none
Ans: C
Explanation: -
34. In zero channel marketing the movement of the product is from the producer to customer
A. True
B. False
C. -
D. -
Ans: A
Explanation: -
35. Producer -------> retailer ------> customer is .............. method of marketing

A. one level
B. zero level
C. two level
D. three level
Ans: A
Explanation: -
36. producer ----->wholesaler ---->retailer -------> customer is ........... method of marketing

A. zero level
B. one level
C. two level
D. three level
Ans: C
Explanation: -
37. working capital management =

A. current assets x current laibilities
B. current assets - current laibilities

C. current assets / current laibilities
D. current assets + current laibilities
Ans: B
Explanation: -
38.
............... is concerned with making sure that the right amount of money and lines of credit available to
the business at all times
A. Working capital management

B. cash management
C. inventory management
D. none
Ans: A
Explanation: -
39. working capital

managemt includes ..............
A. inventorymanagement
B. cash managemet,receivables management
C.
cash managemet,receivables management,Inventory Management
D. none
Ans: C
Explanation: -
40. ..............Identifies the cash balance which allows for the business to meet day to day expenses
A. employer
B. cash management
C. employee
D. receivables management
Ans: B
Explanation: -
41. ...............
Money which is owed to a company by a customer for products and services provided on
credit
A. Cash Management
B. Receivables Management
C. Inventory Management
D. none
Ans: B
Explanation: -
42. ................ Identifies the appropriate credit policy

A. none
B. Inventory Management
C. Receivables Management
D. Cash Management
Ans: C
Explanation: -
43. .............Identifies the level of inventory which allows for uninterrupted production
A. Receivables Management
B. Inventory
Management
C. Cash Management
D. none
Ans: B
Explanation: -
44. ...............
Reduces the investment in raw materials, minimizes reordering costs and hence increases
cash flow
A. Inventory Management
B. Cash Management
C. Receivables Management
D. none
Ans: A
Explanation: -
46. Basic objective of every investment is to ...............

A. nomarginn
B. maximise the profit and loss
C. minimize the profit
D. maximise the profit
Ans: C
Explanation: -
47. ............... are the tools for investment analysis

A. NPV, IRR
B. Benefit cost Ratio
C. Payback Period, ARR
D. both a, b and c
Ans: D
Explanation: -
48. Ratio analysis established ................... between two relavant figures

A. additional relationship
B. arthimetical relationship
C. divisional relationship
D. none
Ans: B
Explanation: -
49. Return on proprietor’s fund( Equity) =

A. Net Profit after tax and interest / Proprietors fund X 100
B. Net Profit after tax and interest X Proprietors fund / 100
C. Net Profit after tax and interest X Proprietors fund

D. Net Profit after tax and interest X Proprietors fund / 250
Ans: A
Explanation: -
50. Return on Capital Employed =
A. (net profit before interest and tax + Capital Employed ) /100
B. (net profit before interest and tax -Capital Employed ) X 1000
C. (net profit before interest and tax / Capital Employed ) X 100
D. (net profit before interest and tax - Capital Employed ) X 100
Ans: C
Explanation: -
51. Return on Total Investment =

A. Net Profit after interest and tax - Total Asset + 100
B. Net Profit after interest and tax / Total Asset X 100
C. Net Profit after interest and tax X Total Asset / 100
D. none
Ans: B
Explanation: -
52. ................Involves
investment decision balancing the sources and uses of funds for acquiring fixed
assets like plant and machinery
A. both b and c
B. inventory budgeting
C. capital budgeting
D. none
Ans: C
Explanation: -
53. ............is one of the Techniques of Capital Budgeting

A. Pay Back
B. Payout Period
C. none
D. both a and b
Ans: D
Explanation: -
54. ARR is................

A. average rate of running
B. average rate of return
C. average running rate
D. none
Ans: B
Explanation: -
55. ARR =
A. (Average net income after tax /Average investment over the life of the project ) X 100
B. (Average net income after tax + Average investment over the life of the project ) X 100
C. (Average net income after tax - Average investment over the life of the project ) X 100
D. (Average net income after tax + Average investment over the life of the project ) X 1000
Ans: A
Explanation: -
56. ................. refers to the birth of a business enterprise in the economy

A. growth
B. startup
C. expansion
D. decline
Ans: B
Explanation: -
57. The production takes place in limited scale ............. stage of small scale business
A. growth
B. decline
C. start up
D. none
Ans: C
Explanation: -
58. Profits may not be earned during the ........... stage

A. end
B. startup
C. decline
D. growth
Ans: B
Explanation: -
59. .................. is the internal growth strategies of small business enterprise

A. expansion
B. none
C. joint ventures
D. mergers
Ans: A
Explanation: -
60. diversification is the one of most popular growth strategy small business enterprise
A. True
B. False
C. -
D. -
Ans: A
Explanation: -
61. ............... is increase in the same line of activity

A. expansion
B. diversification
C. joint ventures
D. mergers
Ans: A
Explanation: -
62. .............. is an approach to growth by adding new products to the existing product line
A. expansion
B. diversification
C. joint venture
D. merger
Ans: B
Explanation: -
65. In horizontal diversification ............

A. the same type of product is added to the existing one
B. the different type of product is added to the new one
C. the entirely different product
D. none
Ans: A
Explanation: -
74. The purties who enter into agreement are called as ............
A. co ventures
B. joint ventures
C. merger
D. none
Ans: A
Explanation: -
Portion - End Sem

Unit - V
1. ............ is the
place where the sellers and buyers meet to exchange their products/services for
money
A. Market
B. bustand
C. railwaystation
D. airport
Ans: A
Explanation: -
2. ..................way of marketing focus on sellers and not on customers

A. conventional
B. modern
C. traditional
Ans: C
Explanation: -
3. In traditional marketing ............... should be beware

A. sellers
B. buyers
C. customers
D. both b and c
Ans: B
Explanation: -
4. marketing concept has changed time to time

A. True
B. False
C. -
D. -
Ans: A
Explanation: -
5. In.................... way of marketing the customers looks in the quality,durability,service of the

product
A. traditional
B. modern
C. conventional
D. none
Ans: B
Explanation: -
Question Type: Easy
6. modern concept of marketing focusses on ...............

A. both b and d
B. sellers beware
C. none
D. buyers beware
Ans: B
Explanation: -
7. .....................
are the problems faced in marketing small industry products
A. i) competition ii) lack of sale promotion iii)weak in bargaining
B. i) high cost ii) low end iii) new to the market
C. both a and b
D. none
Ans: A
Explanation: -
8. .................
is involved in market assesment
A. sellingprice
B. purchase forecasting
C. market potential
D. demand forecasting
Ans: D
Explanation: -
9. ................ refers to willingness and ability of customers to buy a product/service

A. price
B. demand
C. technique
D. none
Ans: B
Explanation: -
Question Type: Easy
10. Demand refers to willingness and ability of customers to buy products/services

A. True
B. False
C. -
D. -
Ans: A
Explanation: -
Question Type: Easy
11. the potential customers willingness and ability to buy a product/service is termed as .............
A. demand
B. none
C. total market
D. full market
Ans: C
Explanation: -
12. ................
technique is used for demand forecasting
A. survey method and statistical method
B. both a and c
C. indicator method
Ans: A
Explanation: -
13. .................. is the subdividing of market into homogeneous subsets of customers

A. market segmentation
B. none
C. market assesment
D. pricing
Ans: A
Explanation: -
14. ............... variable is used in market segmentation

A. finance
B. geographic and demographic variable
C. both b and d
D. education and income
Ans: C
Explanation: -
14. ............... variable is used in market segmentation
A. finance
B. geographic and demographic variable

C. both b and d
D. education and income
Ans: C
Explanation: -
15. the four factors of Ps for market mix are ...............

A. product,price,promotion,place
B. purchase,price,promotion,place
C. none
D. both a and b
Ans: A
Explanation: -
16. ............. is the name,time,sign or combination of them intended to identify the products of a on
seller
A. make
B. brand
C. telecom
D. company
Ans: B
Explanation: -
Question Type: Easy
17. ................
is the art of science and technology of preparing goods fior transport and sales
A. market assesment
B. pakaging
C. transport
D. none
Ans: B
Explanation: -
32. the price of the same product will vary cutomer to customer in .............
A. variable pricing policy
B. resale price maintenance
C. none
D. both a and b
Ans: A
Explanation: -
Question Type: Easy
45. Inventory turnover Ratio

A. (Cost of goods consumed or sold during year / Average inventory during the year ) x 100
B. (Cost of goods consumed or sold during year / Average inventory during the year ) x 1000
C. (Cost of goods consumed or sold during year / Average inventory during the year )
D. none
Ans: A
Explanation: -
63. L&T an engineering company also inviolved in cement manufacturing is an example of ........
A. expansion
B. none
C. diversification
D. merger
Ans: C
Explanation: -
64. the same line of product is added to the existing product line is .............. diversification
A. concentric
B. conglometrate
C. vertical
D. horizontal
Ans: D
Explanation: -
66. Complementary products or service are added to the existing product or service line of the enterprise
is ............
A.
Horizontal
B.
Vertical
C.
Concentric
D.
Conglomerate
Ans: B
Explanation: -
67. AVT manufacturing start producing picture tube sugar will may develop a sugarcane farm to supply
raw material or input for it is an example of ...............
A.
Horizontal
B.
Vertical
C.
Concentric
D.
Conglomerate
Ans: B
Explanation: -
68. in vertical diversification ............... are added to the existing one

A. Same
B. none
C. complementary
D. both a and c
Ans: C
Explanation: -
69. An enterprise enter into the business related to its present one in terms of technology, marketing or
both is ...........
A. vertical diversification
B. Concentric diversification
C. horizontal diversification
D. none
Ans: B
Explanation: -
70. Nestleoriginally baby food producer entered into related product like tomato ketchup magi is an
example of .............. diversification
A. horizontal
B. vertical
C. concentric
D. conglometrate
Ans: C
Explanation: -
71. an enterprise diversifies into the business which is not related to its existing business neither in terms
of technology nor marketing is termed as ............... diversification
A. horizontal
B. vertical
C. concentric
D. conglometrate
Ans: D
Explanation: -
72. Godrej manufacturing steel safes & showing creams is an example of ............... diversification
A. conglometrate
B. concentric
C. vertical
D. horizontal
Ans: A
Explanation: -
73. temporary partnership b/w two or more firms is called as .................

A. jointventure
B. venture
C. merger
D. none
Ans: A
Explanation: -
75. .................
are the combination of 2 or more existing enterprise into one
A. jointventure
B. merger
C. co venture
D. none
Ans: B
Explanation: -
76. An enterprise or enterprises may be acquired by another enterprise is called as .................

A. management
B. absorption
C. merger
D. joint venture
Ans: B
Explanation: -
77. When two or more existing enterprises merge into one to form a new enterprise is called as ............
A. merger
B. joint venture
C. amalgamation
D. none
Ans: C
Explanation: -
78. .....................
Defined as a form of contractual arrangement in which a retailer enter into an agreement
with a producer to sell the producer‟s goods or services for a specified fee or commission.
A. franchising
B. subcontracting
C. merging
D. amalgamation
Ans: A
Explanation: -
79. ............
relationship exists when a company places on order with another company for the production
of parts components.
A. Sub-contracting system
B. contracting system
C. merger
D. none
Ans: A
Explanation: -
80. Dealerswere given the right to distribute goods for a manufacturer is .............
A. product franchising
B. customer franchising
C. none
D. supplier
Ans: A
Explanation: -

XEP 701 Entrepreneurship MCQ

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XEP 701 Entrepreneurship MCQ

Portion - Mid Sem

2. Porters 5 forces model explains___________.

4. Which one is not in the context of employment generation

5. An individual’s need to be recognized is called_________

9. The primary reason entrepreneurs start companies is to

10. Entrepreneur is another name of____________.

11. Risk taker is referred to as:

13. According to ___________achievement motivation can be developed through

15. Women sector occupies nearly 45% of the Indian population.

17. .______________________is the drive to achieve a goal.

18. .__________entrepreneurs are extremely task oriented.

19. .____________entrepreneurs neither introduce new changes nor adopt new

20. The term intrapreneur was coined by __________________ .

21. According to Schumpeter, Is the most important function of a modern entrepreneur.

22. Knowledge + Skill + Traits = __________________

23. Social attitude is one of the important problems of a __________________

25. Which of the following risks is borne by the entrepreneur:

26. Which of the following is a psychological factor affecting entrepreneurial growth:

35. .__________Units provide inputs to other industries.

36. ________________Registration helps the entrepreneur to take necessary steps

43. A bonus or financial aid which is given by a govt. to an industry to help it

46. .__________________ are driven to succeed and expand their business.

50. Instead of depending on others, _______________ generates employment for others.

56. An _______________is "one who undertakes an enterprise, especially a contractor, acting as

60. _____________ involves expansion by exploring new

64. At times ____________________may have to face disappointments and frustrations since

66. ____________ Is the work of entrepreneurs.

67. ____________ is the work of scientists.

68. Which of these is not a environmental barrier to entrepreneurship

A. lack of skilled labour

69. Which of these is a social barrier to entrepreneurship

70. ____________is a combination of knowledge, skills and appropriate motives that an

72. An inner urge in an individual to do something is called____________

73. ____________is the ability of an entrepreneur to successfully convince others.

74. Which of the following is not included in utilities.

75. Ability to make clear decisions on the merits of a case is called____________skill.

77. ________________skill relates to accounting and financing control, marketing, production

79. Incubators organised by the government are called____________

80. ____________are incubators sponsored and managed through associations, chambers of

82. ____________incubators are organised and managed by private firms or companies or

83. ____________incubators create employment.

84. ____________incubators seek to commercialize new product or service

86. which of these is not a criteria for choosing right incubator.

88. Which of these is a problem of MSMEs

89. The slogan “innovate or evaporate” was given by____________

91. ____________means organising, housing and servicing industry, a planned clustering

92. . The word”Entrepreneur‟ has been taken from the __________word.

93. ____________means organising, housing and servicing industry, a planned clustering

96. Who introduced the term intrapreneur:

99. ___________________helps in executing statutory and legal requirements, land tax,

100. .The Periyar TBI was started in the year______________.

Portion - Mid Sem

3. _________is a network of academic institutions across India performing research and

A. State entrepreneurial network(SEN)

4. IBRD (International Bank for Reconstruction and Development) also known as

5. ._______will be made for community development of effected Districts, in reference to Mega

A. Prime Minister Community Development Fund

7. The Theory of Absolute Cost Advantage is given by

8. Which is not an Indian Multinational Company?

9. Subsidiaries consider regional environment for policy / Strategy formulation is known as

10. ._______________is application of knowledge which redefine the boundaries of global