UNIT-1-ENTREPRENENURIAL DEVELOPMENT

1 . What does it take for an entrepreneur to manage a business?

Ans- Risk

2. entrepreneur are the once who undertakes an enterprise especially a

contractor acting as an intermediary between________.

Ans- Capital and labour

3. Who says entrepreneurship is “being someone who tries to organize,

manage and take risks in business?

Ans-Kuratko & Hodgetts

4. what do u call a person who combines capital and labour for purpose of
production is known as____.

Ans- entrepreneur

5. The word ' entrepreneur ' comes from the French word _______ which
means to "undertake ".

Ans- entreprendre

6. According to whom, “Entrepreneurship is a dynamic process of wealth

creation?

Ans-Histrich and Peter

7. entrepreneurship as “the process of innovation and creation through the

_____ of the individual, the organization, the environment.

Ans- four dimensions

8. The success of an entrepreneurial venture largely depends on _____.

Ans-the personality of the entrepreneur.

9. What is the main task of an entrepreneur to identify and exploit?

Ans-the opportunities
10. What is influences the growth of entrepreneurship and the viability of the
enterprise?

Ans)Environment

12.An organization is the _______ setting in which creative and

entrepreneurial work takes place.

Ans-immediate.

13)______ is the process of creating, developing and communicating ideas

that are abstract,concrete,or visual.

A) Idea generation
B) Strategic planning
C) Leadership
D) Evaluation
Answer: A

14)Which of the following is not included in fruitful sources of ideas .

A)Consumer
B)Government
C)Research and development
D)Test marketing stage
Answer : D

15)The idea or need to have a ______ market to support a new venture.

A)Large
B)Small
C)Insufficient
D)Large enough
Answer: D

16)Potential and nascent entrepreneur should always pay close

attention to____
A)Potential consumer
B)Potential supplier
C)Potential product
 D)Potential retailer
Answer : A

17)Potential entrepreneur should also establish a method for ____ and

____ of competitive products /service on the market.

A)Distribution&marketing
B)Evaluating &monitoring
C)Research & Development
D)Opportunity &Evaluation
Answer: B

18) Which analysis uncovers the way to improve the product with more
market appeal and sales and profit potential.

A) Existing products and services

B) Research and development
C) Distribution channels
D) Consumers
Answer: A

Q19).Members of distribution channels can not help with…

A) Suggestions for new products

B) Marketing for new products
C) New ideas reflecting familiarity with needs of market
D) Monitoring potential ideas
Answer : D

Q20).An opportunity assessment plan is done to see if ________ is worth

pursuing.

A) Ideal/opportunity
B) Competition
C) New product
D) Marketing idea
Answer: A
 Q21).Compared to a business plan opportunity assessment plan is not____.

A)Shorter
B)Focuses on opportunity
C)Focused on profit
D)Has no computer based spreadsheet
Answer: C

Q22).How many sections does opportunity assessment plan has.

A) 2
B)3
C)1
D)4
Answer: D

Q23).Which of the following are major sections in opportunity assessment

plan.

A)First, second
B)Second ,third
C)First, third
D)Final, third
Answer: A

Q24).Which of the following are minor sections in opportunity assessment

plan.

A)First, second
B)Second, third
C)First, third
D)Final, third
Answer: D

Q25).How many stages are there in Establishing evaluation criteria.

A) 2
 B) 3
C) 5
D) 4
Answer: D

Q26)The criteria in Establishing evaluation criteria should be broad, yet

______ enough to screen .

A)Qualitative
B)Quantitative
C)Developed
D)Adequate
Answer: B

Q27).In which stage new products ideas are identified and impractical ones
are eliminated.

A)Idea stage
B)Concept stage
C)Product development stage
D)Test marketing stage
Answer: A

Q28).Which of the following attributes are not focused on determining the

need of product in the market .

A) Type of need
B)Timing of need
C)Users involved
D)Requirement of personnel
Answer: D

Q29).In which stage the relative advantage of the new product versus
competitors should be determined

A)Idea stage
B)Concept stage
C)Product development stage
D)Test marketing stage
Answer: B

Q30).In which stage the refined idea is tested to determine consumer

acceptance without manufacturing it.
A) Idea
B)Concept
C)Product development
D)Test marketing
Answer: B

Q31).In which stage , consumer reaction is determined often through a

consumer panel. A)Idea stage

B)Concept stage

C)Product development stage

D)Test marketing

Answer: C

Q32).In _____ consumers' are provided competitor product and sample

product to determine consumer preference.
A) Consumer panel

B)Test marketing

C)Need determination

D)Conversational interview

Answer: A

Q33).The ______ stage, provides actual sales results which indicate the
acceptance level of consumers
A)Idea

B)Concept

C)Product development

D)Test marketing
Answer : D

Q34)._____ is done to increase the certainly of successful

commercialization.
A)Consumer panel
B)Test marketing
C)Need determination
D)Conversational interview
Answer: B

Q35)To initiate any _______________an entrepreneur has to select a form of

business ownership.

ANS) Entrepreneurial activity.

Q36) The forms of businesses are associated with ownership which determines
the ___________________of the owners.

ANS) Authority and responsibility.

Q37) The forms of business ownerships are those legal forms according to
which an enterprise/business is______________.

ANS) Organised and run.

Q38) The _____form of business ownership is called the form of business

ownership.

ANS) legal.

Q39) The ____________________defines the rights and liabilities of

entrepreneur(s), control, life span, and financial structure, etc.

ANS) Form of business ownership.

Q40) What is the full form or LLP?

ANS) Limited Liability Partnership (LLP).

Q41) ________________is one of the simplest, oldest and least expensive
forms of business ownership in the world of entrepreneurship.

ANS) Sole Proprietorship.

Q42) Sole trade business is established by a ______individual.

ANS) single.

Q43)___________is free to change his business at any point of time as he is

the only owner of business.

ANS) Sole trader.

Q44) __________can maintain personal relations with customers to know

more about their tastes, like and dislikes etc.

ANS) Sole trader.

Q45) The biggest disadvantage of ________________ is unlimited liability.

Owner’s personal property can also be utilized to meet the debts of the
business.

ANS) Sole Proprietorship.

Q46) Due to _______________ limited capital and sources are available for
business.

ANS) Individual ownership.

Q47) _______________of business ownership is that form in which two or

more than two individuals willingly join together and start some lawful
entrepreneurial activity.

ANS) Partnership form.

Q48) A _______________ is an association of two or more persons who run

business together for the objective of profit earning.

ANS) Partnership firm.

Q49) A ___________is very easy to form. All that is require agreement among
the partners. Even the expenses to be incurred for registration are-not much.
ANS) partnership.

Q50) A ___________commands more financial resources compared to sole

proprietorship. This helps in expanding business and earning more profits.

ANS) partnership.

Q51) A partnership facilitates pooling of ____________of all its partners. This

leads to ____________in business operations.

ANS) Managerial skills, Greater efficiency.

Q52)In a partnership firm,decisions are taken _________after considering all

the major aspects of a problem.

ANS) Unanimously.

Q53) Unlike sole proprietary organization, the risks of _________________are

shared by partners on a predetermined basis. This encourages partners to
undertake risky but profitable business activities.

ANS) Partnership business.

Q54) The existence of a partnership firm is very ________. The retirement,

death, bankruptcy or lunacy of any partner can put an end to the partnership.

ANS) Uncertain.

Q55) It is true that like the sole proprietor each partner has unlimited liability.
But his liability may arise not only from his own acts but also from the act sand
mistakes of ___________over whom he has no control.

ANS) co-partners.

Q56) In partnership, since decisions are taken unanimously, it is essential that

all partners ________their views for the common good of the organization.

ANS) Reconcile.

Q57) It is difficult for a _________firm to undertake modernization of

expansion of its operations. This is because of its inability to raise
_______funds for the purpose.
ANS) Partnership, adequate.

Q58). The dictionary defines _______ as,” A group organized to work

together.”

A.Leadership B. Team C.Committee D.Organization

Ans: B

Q59). _____ is a collection of people with complementary skills who are

committed to a common purpose, performance goals, and approach for which
they are mutually accountable.

A.Team B.Group C.Squad D.Leadership

Ans: A

Q60).________ is a process that helps a work group evolves into a cohesive

unit.

A.Training B. RecruitmentC. Team Building D. Organizing

Ans: C

Q61). Who forms team to accomplish tasks that are too large or complex for an
individual to complete?

Ans: Organization

Q62). The role of an ______ as a team builder is to lead the team towards
cohesiveness and productivity.

A.Land B.Labour C. Capital D.Entrepreneur

Ans: D
Q63). Team Building can lead to

i. Good communication with participants as team members and individuals.

ii. A climate of co-operation and collaborative problem solving.

iii. Diverse co-workers working well together.

iv. Clear work objectives.

A. (i) and (iii) B. (ii) and (iv) C. (iii) and (iv) D. All four

Ans: D

Q64). What refers to the various activities undertaken to motivate the team
members and increase the overall performance of the team?

A. Training B. Recruitment C. Team Building D. Organizing

Ans: C

Q65). While building successful team each team member must clearly
understand the _____ & _____ of the organization.

Ans: Missions and objectives

Q66). _____ need people who speak up and express their thoughts and ideas
clearly, honestly and directly.

Ans: Team

Q67). Effective team works only when _____ are manage successfully.

A. Conflicts B. Plan C. Programs D. Ideas

Ans: A
Q68). _______ planning is the process of documenting and establishing a
direction of your small business by assessing both where we are and where
were going.

A. Operational B. Strategic C. Single Use D. Contingency

Ans: B

Q69). Who tells us and our employees how best to respond to opportunities
and challenges?

Ans: Strategic Plan

Q70). In the year _____ Constant Contact Survey of 1005 small business
owners, 63% said they plan only a year in advance.

A. 2019 B. 2020 C. 2012 D. 2018

Ans: D

Q71). The _____ success depends on effective strategic planning.

A. Present B. Future C. Past D. Plan

Ans: B

Q72). In the year 2018 Constant Contact Survey of 1005 small business owners,
___% said they plan only a year in advance.

A. 63 B.89 C.73 D. 97

Ans: A
Q73). How many steps are there in strategic planning?

A. 2 B. 4 C. 3 D. 5

Ans: C

Q74). Strategy formulation involves identifying the organization’s ______

analysis.

Ans: SWOT

Q75). Strategy Implementation is also known as _____ stage.

Ans: Action

Q76). The success of the ______ stage is determined by the firm’s ability to
nurture an environment and a culture that motivates employees to work.

Ans: Implementation

Q77). Strategy evaluation involves three crucial activities. Which are they?

i. Reviewing the internal and external factors affecting the implementation of

the strategies.

ii. Measuring performance.

iii. Identity conflicts.

iv. Taking corrective steps

A. (i),(ii) and (iii) B. (i),(ii) and (iv) C. (ii),(iii) and (iv) D. (i),(iii) and (iv)
Q78). All the three steps in strategic planning occur in three ______ levels.

Ans: Hierarchical

Q79) The Capital of company consist of transferable share, and members

having _______

Ans - Limited Liability.

Q80) Capital can raise capital by _______ to a larger number of person.

Ans - Issuing shares.

Q81) Which of the following is merit of the company.

A) Public confidence B) social benefits

C) Limited Liability D) All of these

Ans - D - All of these.

Q82) Which of the following is merit of the company.

A) Conflict of interest B) Speculation

C) Growth & expansion D) All of these.

Ans - C - Growth & expansion.

Q83) From the following options company offer which of the social benefits?

A) Democratisation of management B) Dispersal of ownership

C) Assumption of social responsibilities D) All of these

Ans - D - All of these.

Q84) Which of the following is limitation of company ?

A) Speculation B) Oligarchic management

C) Lengthy and expensive large producers D) All of these.

Ans - D - All of these.

Q85) Limited Liability Partnership was noticed on _______ ?

Ans - 31st March, 2009.

Q86) Which of the following is advantages of the LLP ?

A) Ownership is limited by certain state laws B) No minimum alternate tax

C) Both A & B D) All of these.

Ans - B - No minimum alternate tax.

Q87) which of the following is disadvantage of the LLP ?

A) Beginning an LLP has high costs due to legal and filing fees B) Ownership is
limited by certain state laws

C) Both A & B D) Lower cost of formation.

Ans - C - Both A & B.

Q88). What is Essential For business whether it's small or Big?

Ans:Growth

Q89).Which stage refers to the birth or emergence of business enterprise in

the economy?
Ans:Startup stage
Q90).At which stage the enterprise tries to change its strategy from "By my
product to try my product!"?
Ans:Growth stage

Q91).Business activities at which stage are diversified to reap the best benefits
from the available business opportunities?
Ans :Expansion Stage

Q92).During Maturity stage due to keen competition sales Increases but at

which rate?
Ans : Decreasing Rate

Q93).At which situation Marginal Enterprise start leaving The Scene/Market?

Ans:Maturity Period

Q94).In which stage sales drops abruptly?

Ans:Decline stage

Q95).____Is natural growth of business enterprise taking place in course of

time?
Ans:Expansion

Q96). What is evolved to overcome the limitation of business growth through

expansion?
Ans:Diversification

Q97).In which type of diversification the products are of same type?

Ans:Horizontal diversification

Q98).In which Type Of diversification the products are complementary?

Ans:Vertical diversification

Q99). Products like "Maggie Noodles" and "Tomato Ketchup" are related to
which type of diversification?
Ans:Concentric
Q100).Which Type Of diversification is just to contrary to concentric
diversification?
Ans:Conglomerate diversification

Q101)._____is a restricted or a temporary partnership between two or more

firms to undertake jointly to complete a specific venture?
Ans:Joint Venture

Q102).What provides benefits of economic of scale in terms of production and

scale?
Ans:Mergers And Acquisition

Q103).Which system is mutually beneficial commercial relationship between

the 2 companies?
Ans:Sub Contracting

Q104).What is very much akin to branching?

Ans: Franchising

Q105.) ____ is the process used by entrepreneur and inventors to gain the
value of a business when the get out of it
Ans- Existing/harvesting

Q106.) For a small business point of view which strategy is a plan that allow the
owners and investors in a small business to walk away with what they want
Ans- variable exit strategy

Q107.) Transferring in to a family member is also known as

Ans- Family succession

Q108.) You can choose and prepare the person you want to continue your
business when you leave is pros of
Ans- transferring in to a family
Q109.) Employees, business partners, investors may not support the individual
in your family you choose is cons of
Ans- family succession

Q110.) Sale to internal management or employee are also known as

Ans- management buyout or MBO

Q111.) In which process many entrepreneurs dream of one day selling their
business to the public for a large profit?
Ans- Initial public offering

Q112.) Initial public offering is very difficult and rare especially for which
business
Ans - small and medium business

Q113.) which is probably one of the most difficult exit strategy?

Ans- Initial public offering

Q114.) Out of all the business exit strategy out there, which is probably the
one that's most likely to earn a substantial profit?
Ans- Initial public offering

Q115.) As an exit strategy business plan goes, which is the most final step?
Ans- Liquidation the business

Q116.) In which exit Strategy you'll never have to worry about the business
again?
Ans- Liquidation the business

Q117.) As far as small business strategy planning goes on which would be the
last method that you can't really plan for
Ans- File for bankruptcy

Q118)_______is the undesirable things happens in to organization

Ans- File for bankruptcy
Q119) This process will likely mean the ultimate end of relationship with
anyone involved with running your business,as well as clients and customers
Ans- File for bankruptcy

Q120). Corporate Enterpreneurship is also known as_________.

Ans.:- Interpreneurship

Q121). Employees with______vision and______are encouraged to identify

opportunities and develop ideas which lead to innovative new products,
services or even new lines of business.
Ans.:- right ; skills
Q122. Their are______types of enterpreneur activites.
Ans.:- three

Q123). The process of creating new business within established firms to

improve oraganisational profitability and enhance a firm's competitive position
or the strategic renewal of existing business is known as_____.
Ans.:- Corporate Enterpreneurship
Q124). _______ is the need for Corporate Enterpreneurship.
Ans.:-International competition
Q125). ______ culture is the internal factor of influencing corporate
enterpreneurship.
Ans.:- Organization
Q126). _______ is the process whereby an individual or group of individuals
acting independently, create a new organization.
Ans.:- Independent Enterpreneurship
Q127). _______ is the process whereby an individual or a group of individuals
in association with an existing oraganization, create a new oraganization .
Ans.:- Corporate Enterpreneurship
Q128). Corporate Enterpreneurship is of _______ type.
Ans.:- Two

Q129). ______ is the defined as the production of novel and useful ideas in
any domain.
Ans.:- Creativity

Q130). ______ is the defined as successful implementation of creative ideas in

any oraganization.
Ans.:- Innovation
Q131)_____ is a system for selectively distributing goods and services through
outlets owned by the retailer or dealer.
Ans. Franchising
Q132)What is known as a patent or trademark license,entitling the holder to
market particular products or services under a brand name or trademark
according to pre-determined terms and conditions.
Ans. Franchise
Q133).Who has defined franchising as a form of business ownership created by
contract whereby a company grants a buyer the rights to engage in selling or
distributing its products or services under a prescribed business format in
exchange for royalties or shares of profits?
Ans. David D. Settz
Q134)The buyer is called ____ in Franchising.
Ans. Franchisee
Q135).The company that sells rights to its business concept is called ____ in
franchising.
Ans. Franchiser
Q136).The licencing company in the franchise agreement is known as ____.
Ans. Franchisor
Q137).The independent owner of a franchise outlet who enters into an
agreement with their franchisor is known as ____.
Ans. Franchisee
Q138).The right to use specific business name and sell its goods or services in a
specific city, region or country is known as ____.
Ans.Franchise
Q139).Into how many types franchising arrangementsare broadly classified?
Ans. Three
Q140).Which is the earliest type of franchising?
Ans.Product Franchising
Q141).In which franchising dealers were given the right to distribute goods for
a manufacturer?
Ans. Product Franchising
Q142).Under whicharrangements the franchisor (manufacturer) gives the
dealer (bottler) the exclusive right to produce and distribute the product in a
particular area?
Ans. Manufacturing Franchising
Q143).Coco-Cola and Pepsi are the popular examples of which type of
franchising?
Ans. Manufacturing Franchising
Q144)Which is the recent type of franchising and is the most popular one at
present?
Ans. Business format Franchising
Q145).Under which arrangement, the franchisor offers a wide range of services
to the franchisee, including marketing, advertising,strategic planning, training,
production of operations manuals and standards and quality control guidance?
Ans. Business format Franchising
Q146)Under which franchise, franchisee has the right to open more than one
unit during a specific time, within a specific area?
Ans. Area Development Franchise
Q147).Under which agreement,the franchisor grants a franchisee the right to
open and operate more than one in it?
Ans. Multi-Unit Franchise
Q148)Under Which arrangement, the franchisor grants of franchisee the rights
to open and operate one franchise unit?
Ans. Single-Unit Franchise
Q149).Which is the simplest and most common type of franchise?
Ans. Single-Unit Franchise
Q150)Under which franchise, a specific operating system; consist mainly of
retail and service businesses?
Ans. Business Format Franchise
Q151).Franchises that develop from supplier relationship in ways similar to
distributorship agreement is known as ____.
Ans. Trade Name Franchise
Q152).Franchised outlets sold by area franchisees to other business people in
their areas is known as ____.
Ans. Sub Franchise
Q153).Two or more Franchised businesses that share space to offer a more
comprehensive product or service to customers is known as ____.
Ans. Piggyback Franchise
Q154).Independent business that become franchised unit of existing franchises
is known as ____.
Ans. Convention Franchise
Q155).Franchisees that distribute products manufactured by franchisor or
some other source is known as ____.
Ans. Distributorships
 Q156).Which capital is invested in short termand current assets?
Ans. Working capital

Q157).Which capital is invested in fixed ordurable assets ?

Ans. Fixed capital

Q158).Working capital is also called______

Ans. RevolvingCapital or Circulating Capital.

Q159).“Manufacturingindustries requires huge amount of investment

where as tradingrequires lesser investment."(True or False)
Ans. True

Q160).Financial requirements on the basis of period of use are classified

into hiw many types?
Ans. Three (Long team, Medium Team, Short Team)

Q161).Which of the following is false?

a.Long term capital - more than 5 years.

b.Medium term capital - 2 to 5 years.
c.Shortterm capital- less than 1 year.
d.None of these.
Ans. None of these (d)

Q162).Which is/are the sources of long team capital?

a. Share capital
b. Term loans
c. Debt Financing
d. All of the above
Ans. All of the above (d)
 Q163).Which one is not a reason for requirement of long team capital?

a)Diversification
b)Renovation of building
c)Technological innovation
d)Expansion
Ans. Renovation of building

Q164).______ is method of raising funds by selling common and preferred

stock of the the enterprise to the investors.

Ans. Equity Financing

Q165).Which is the source to raise debt capital?

a. Equity share

b. Debentures

c. Public Deposits
d. Preference shares
Ans. Debentures (b)

Q166).Debentureholdersare_______ of an enterprise while equity share

holders are_________ of an enterprise.
AnsCreditors, Owners/Investors.

Q167).hich of the following statement is false?

a)Term loans are raised for 3 to 5 years.

b)Term loans carries floating rate of interest.
c).Term loans have predetermined maturity period.
d)None of these.
Ans. None of these (d)
 Q168).At the end of each financial year, the undistributed profits that is left
with the enterprise is transferred to reserve fund, it is known as
__________.

Ans. Retained Earnings

Q169).In lease financing method, the ownership of the assets remains

with _____ while the possession is transferred to_______.
Ans. Lessor, Lessee

Q170).In hire purchase, the payment mode by hirer to hiree is divided

into which two parts?
Ans. Capital repayment and interest.

Q171)._____ refers to funds and loans raised from general public,

employees and other kind of depositors.

Ans. Public deposits

Q172).______ is also called risky capital.

Ans. Venture Capital Financing

Q173).A venture capitalist acts as a ______.

Ans. Partner, Manager, Advisor

Q174).__________ is provided to an enterprise to bridge the gap between

income and expenditure for a short period of time.

Ans. Short term financing

Q175).“Buy now, pay later” is related to _____.

Ans. Trade Credit
 Q176).In which source,amount borrowed is repaid with interest in equal
installments?
Ans. Installment Credit/ Hire Purchase Plan

Q177).______ is defined as an agreement between bank and customers to

withdraw cash exceeding account limit for less than one year.

Ans. Cash Credit

Q178)._____ can be sold only by large enterprises that have strong

goodwill.

Ans. Commercial papers

Q179)” Commercial papers are unsecured promisory notes.” (True or False)

Ans. True

Q180).The individual who writes the bill is _____, whereas the individual
who receives the bill is ______.
Ans. Drawer , Drawee

Q181).“Drawee of the bill may or may not be the payee of the bill.” (True or
False)

Ans. True

Q182).CBD stands for _______.

Ans. Cash Before Delivery

Q183).Choose the odd one out.

a).Commercial papers, bank overdraft, cash credit.

b).Customer advance, trade credits, short term bank loan.
c).Installment credit, factoring, bills of exchange.
d).Lease finance, public deposits, retained earnings.earnings

Ans. Lease Finance, public deposits, retained earningsearnings (d)

Q184).The availability _____ ensures sufficient liquidity in the

enterprise.
Ans. Short term funds

Q185).How many types of financial requirements does an enterprise

have ?
Ans. 2 (fixed capital and working capital)