PLAN FOR ENTREPRENEURIAL ACTIVITY

1) __________________ is an enterprise where investment in plant and machinery does not exceed
Rs 25 lakhs.

a) Medium enterprise b) Small enterprise c) Large enterprise d) Micro enterprise

2) What are the limits of number of members in a Private Company?

a) 50 b) 100 c) 200 d) 150

3) What type of entrepreneurship is aimed at identifying the needs of the customers and then align
resources and technology to satisfy customers needs ?

a) Small business entrepreneurship b) Trading entrepreneurship c) Social entrepreneurship

d) Manufacturing entrepreneurship

4) Grocery store is an example of ___________ type of entrepreneurship.

a) Trading entrepreneurship b) Technical entrepreneurship c) Small business entrepreneurship

d) Social entrepreneurship

5) McDonald’s is an example of :

a) Outsourcing b) Licensing c) Franchising d) Both a & b

6) Which of the following is an ecosystem available to an entrepreneur ?

a) Ideation b) Marketing assistance c) Marketing research d) Both a and b

7) Sole Proprietorship is most suitable for

a) Medium scale concerns b) Large scale concerns c) Small scale concerns d) None of the above

8) What is the partnership written agreement known as?

a) Partnership contract b) Agreement c) Partnership deed d) Partnership Act

9) What type of entrepreneurship is aimed at understanding social needs and problems and
developing products that caters to them ?

a) Technical entrepreneurship b) Social entrepreneurship c) Trading entrepreneurship

d) Manufacturing entrepreneurship

10) ________________ is an enterprise where the investment in plant and machinery is between
five crores to ten crores.

a) Micro enterprises b) Small enterprises c) Medium enterprises d) Large enterprises

11) Name the process by which information is transmitted and understood between two or more
people.

a) Communication b) Listening c) Learning d) Team building

12) In which type of communication spoken words are used to transfer information and
understanding from one person to another?
a) Written communication b) Non verbal communication c) Oral communication d) None of the
above

13) What forms the basis of non verbal communication ?

a) Body language and expression without words b) Grammer c) Literacy d) Syntax

14) Which type of communication uses letters and words to express the language we speak ?

a) Visual b) Verbal c) Written d) Non verbal communication

15) Verbal communication comprises :

a) A written or spoken messages b) Any message that uses words of any language c) Both a & b
d) None of the above

16) ------------------------- is the process of logically analysing the factors that are related to the
problem and then coming up with satisfactory alternatives.

a) Critical thinking b) Logical reasoning c) Problem solving d) Decision making

17) ---------------------- is a process whereby two or more parties working together on an issue want to
arrive at a solution that is acceptable to both.

a) Problem solving skills b) Negotiation skills c) Decision making skills d) Listening skills

18) What does teamwork mean?

a) Setting out alone b) Taking control of the team to do your work c) Working with the team to get
what everyone wants d) Creating problems for everyone

19) What is not an important factor in teamwork ?

a) The team must receive support and encouragement b) The team must have a results driven
structure c) The team must not help their team member d) Motivate and make people feel good

20) Successful entrepreneurs have the _____________ abilities :

a) They are confident b) They keep trying new ideas c) They are creative d) All of the above

21) Which of the following SWOT elements are internal factors for a business ?

a) Strength and weaknesses b) Opportunities and threats c) Strength and opportunities d)

Weaknesses and threats

22) In business, ____________ means exploring unknown territories to identify areas of growth that
could benefit the business, the customers and society at large.

a) Market research b) Opportunity c) Situation analysis d) None of the above

23) Evaluation of personal traits such as knowledge, skill sets, likes and dislikes is known as
_________________

a) Feasibility study b) Market research c) Competitor analysis d) Self-analysis

24) Name the process of identifying and gathering information about current and potential
competitors ?

a) Market research b) Self analysis c) Competition analysis d) Feasibility study

25) ________________ helps entrepreneurs make well informed decisions and provides insights into
the changing trends in the market, customers tastes and preferences etc.

a) Market research b) Self analysis c) Competition analysis d) Feasibility study

26) The purpose of market research includes :

a) To identify new markets b) To study market trends c) To determine the price of a product d) All
of the above

27) _____________ is used to determine if an idea, plan or project is possible or viable.

a) Market research b) Self analysis c) Competition analysis d) Feasibility study

28) What is the process of evaluating the internal and external conditions that affect a business or
project ?

a) Situation analysis b) Self analysis c) Competition analysis d) Feasibility study

29) Name the tool used to carry out situation analysis .

a) Self analysis b) SWOT Analysis c) Market analysis d) Diagnostic analysis

30) Which of the following could be a strength ?

a) Weather b) A new international market c) A price that is too high d) The location of the business

31) _______________ is a written description of the marketing, financial and operational plan of the
business.

a) Business plan b) Opportunity analysis c) Business Description d) Market research

32) Which of the following is not a component of the business plan ?

a) Executive summary b) Business description c) Financial plan d) None of the above

33) ________________ include a mission statement which explains the focus of the business .

a) Executive summary b) Business description c) Financial plan d) Management and employees

34) Which part of the business plan describes the business and how the products meets the end
needs of the market ?

a) Executive summary b) Business description c) Financial plan d) Management and employees

35) Which section of the business plan covers the course of action for the business to market its
products ?

a) Marketing strategy b) Business description c) Financial plan d) Management and employees

36) Number of employees, incentives and benefits to employees , proposed organisational structure
etc. are included in ______________ part of the business plan.

a) Executive summary b) Business description c) Financial plan d) Management and employees

37) _____________ is a statement prepared at the end of every month/ year to get clarity about the
income , expenses, profit and loss incurred by the business.

a) Profit and Loss Statement b) Cash flow Statement c) Fund flow statement d) Balance sheet
38) Name the study used to find out the point at which the business will start to make as much
money as it has spend on a certain product or activity ?

a) Break even point b) Sales forecast c) Breakeven analysis d) Feasibility analysis

39) ________________ in a business plan shows the estimated profit and expenses of the venture.

a) Financial plan b) Revenue model c) Accounts payable d) Operation plan

40) The Four Ps of marketing are :

a) Purpose, Product, Price, Promotion b) Plan, Purpose, Product, Price c) Purpose, Plan, Product,
Promotion d) Product, Price, Place, Promotion

41) Which of the plan outlines how much investment is required and how it can be sourced ?

a) Physical resource plan b) Financial resource plan c) Technical resource plan d) People resource
plan

42) ______________ is the potential loss to reputation of a business that gets translated into
decreased market shares , loss of revenue and reduction in the value of the business .

a) Financial risk b) Market risk c) Technological risk d) Reputational risk

43) Non payment of dues by customers, sudden increase in the price of raw materials by suppliers,
increase in the interest rates etc are all sources of ______________ risk for a business.

a) Financial risk b) Market risk c) Technological risk d) Reputational risk

44) Market risk can be reduced by :

a) Deliver on time b) Pay attention to customer complaints c) Follow ethical business practices d)
Make payments to suppliers on time .

45) Name the risk mitigation strategy in which an entrepreneur accept the risk and does nothing to
reduce it.

a) Avoidance b) Transfer c) Mitigation d) Acceptance

46) By taking an insurance on its stock, a business reduces its risk of damage due to floods. Mention
the risk mitigation strategy applied here.

a) Avoidance b) Transfer c) Mitigation d) Acceptance

47) Under ____________ strategy the business recognises the risk factors and take measures to
mitigate them.

a) Avoidance b) Transfer c) Mitigation d) Acceptance

48) Risk factors need immediate attention as they may affect profits significantly :

a) High risk b) Moderate risk c) Low risk d) None of the above

49) Steps needed to mitigate business includes :

a) Identify b) Analysis and assess the impact c) Develop a contingency plan d) All of the above

50) Plant and machinery, Generator, Furniture etc. comes under ____________ resources.

a) Physical resources b) Financial resources c) Technical resources d) People resources

51) ______________ are wealthy individuals who invest their own money into companies in
exchange of a convertible debt or ownership equity.

a) Venture capitalist b) Angel investor c) Crowdfunding d) Both a and b

52) Credit rating is concerned with :

a) Political relation of the concerned party

b) Rate of dividend

c) Repayment capacity of the borrower, provided by an approved agency

d) Non-Financial obligation

53) Risk associated with a specific sector at a particular juncture is known as

a) Business risk b) Industry risk c)Management risk d) Financial risk

54) Value proposition :

a) A small exercise to prove that the proposed project feasible

b) Attractive manner in which an entrepreneur presents his or her idea

c) It is a stage where you refine your initial ideas of the project

d) It states how your product is unique , solves customers problems

55) A simple chart to diagrammatically represents how the product works is an example of :

a) Value proposition b) Proof of concept c) Minimum viable product d) Pitch

56) MUDRA stands for

a) Micro Units Development and Refinance Agency b) Medium Units Development and Refinance
Agency c) Micro Units Development and Refinance Association d) Micro Units Development and
Restructuring Agency

57) The apex funding agency in India for providing rural credit is :

a) State Bank of India b) Regional rural banks c) National Bank for Agriculture and Rural
Development d) MUDRA

58) The duration of an AIC’s grant is a maximum of ______________ years.

a) Two years b) Three years c) Five years d) One year

59) SMILE is :

a) Credit benefits to agriculture as well as other cottage and village industries b) Funds micro and
small enterprises without collateral c) Conducting training and entrepreneurship workshops,
prototyping or research facilities as well as creating a group of mentors to guide the entrepreneurs
d) A soft loan provided to MSME units at a reasonable terms to meet the debt equity ratio of a
unit

60) STEP was launched by :

a) NABARD
b) Ministry of Women and Child Development for women

c) SIDBI

d) National Minorities Development and Finance Corporation

61) Income earned by a business as a result of undertaking some additional economic activities
which cannot be regarded as its core activities is termed as :

a) Income b) Operating income c) Non operating income d) None of the above

62) Expenses directly related to the manufacture of goods or the service being provided are known
as ____________

a) Trading expenses b) Operating Expenses c) Non operating expenses d) Expenses

63) Salaries , rent , insurances are examples of :

a) Fixed expenses b) Variable expenses c) Semi-variable expenses d) None of the above

64) Financial debts or obligations of the business that arise during the course of business operation
are termed as _________________.

a) Assets b) Liabilities c) Capital d) Revenue

65) Net profit is the difference between :

a) Sales revenue and trading expenses b) Gross profit and operating expenses c) Gross profit and
Non operating expenses d) Gross profit and operating and non operating expenses
66) The amount of inventory that was unsold and remaining with the business at the end of the
accounting period is ______________.

a) Closing stock b) Opening stock c) Provisions d) Working Capital

67) _______________ are amounts set aside to cover probable future expenditures.

a) Reserves b) Provisions c) Depreciation d) None of them

68) Real accounts records :

a) Dealings with creditors or debtors b) Dealings in assets c) Gains and losses d) All of the above

69) Profit and Loss account shows :

a) Profit earned or loss suffered by the business b) Total Capital Employed c) Profit and Loss
through the sale of assets d) None of the above

70) A statement which summarises cash inflow and outflow is referred to as :

a) Income statement b) Balance sheet c) Cash flow statement d) Trading account

71) An official document that gives permission to do, own or use something is known as
_____________

a) Licence b) Registration c) Government policy d) None of the above

72) GSTIN stands for :

a) Goods and Services Tax Identification Number b) Goods and Services Tax Identity Number
c) Goods and Sales Tax Identification Number d) Goods and Sales Tax Identity Number

73) The minimum age requirement to obtain a trade license is :

a) 21 years b) 18 years c) 25 years d) 20 years

74) FSSAI stands for :

a) Food Safety and Standards Authority of India b) Food Safety Satisfy All India c) Food Safely
Shortage Authority of India d) Food Storage Standards Authority of India.

75) _________________ is a comprehensive , multistage, destination based tax levied on the sale of
goods and services in the country.

a) Corporate tax b) Income tax c) GST d) VAT

76) Expand TAN :

a) Tax Account Number b) Tax Deduction and Collection Account Number c) Tax Deduction Account
Number d) Tax Collection and Deduction Account Number

77) Name the tax levied by the local municipality on the salary paid to every individual ?

a) Corporate tax b) Income tax c) GST d) Professional Tax

78) In order to register under the Start - up India scheme a start- up has to fulfil :

a) Annual turnover of the business for any financial year since its incorporation should not have
exceeded Rs.100 crores.

b) The business must be working towards innovation , development or improvement of product or

processes or services

c) It must be a business model with high potential for employment generation or wealth creation

d) All of the above

79) Income tax paid by the business unit from the revenue that they earn is known as
______________

a) Corporate tax b) Income tax c) GST d) Professional Tax

80) ESIC stands for

a) Employees State Insurance Corporation b) Employees State Insurance Council c) Employees

Safety Insurance Corporation d) Employees State Insurance Concern

81) _______________ is a business arrangement or trade between two businesses , rather than
between a business and the general public.

a) B2C b) B2B c) C2C d) C2B

82) __________________ involves the sale of product directly to customers rather than through
business.

a) B2C b) B2B c) C2C d) C2B

83) The difference between the price that consumer pays when he or she purchases a recognised
brands product over a lesser known one is termed as :
a) Key value proposition b) Brand Loyalty c) Brand awareness d) Brand Equity

84) The extend to which a brand is known to potential customers is called ______________

a) Key value proposition b) Brand Loyalty c) Brand awareness d) Brand Equity

85) A recognisable symbol, logo, name, word or sentence that represents a business or product and
differentiates it from other products is termed as _______________

a) Brand b) Brand Loyalty c) Brand awareness d) Brand Equity

86) ________________ includes all the policies and strategies that help a business to increase
customer loyalty and retention by building a relationship with its customers.
a) Strategic Management b) Customer Relationship Management c) Promotions d) None of the
above

87) In _______________ stage of CRM, satisfied customers continue using the product or continue
renewing their term for subscription-based offerings.

a) Reach b) Retention c) Conversion d) Loyalty

88) In which stage of the CRM the customer learn more about the offering of the business through
website visits, interactions with sales representatives .

a) Reach b) Retention c) Aquisition d) Loyalty

89) A targeted group of people with similar interests, geographical locations, income group etc. are
known as _________________

a) Customer base b) Customer acquisition c) Target marketing d) None of the above

90) A potential customer ; someone who shows interest in the business :

a) Loyals b) Lead c) Switchers d) Lookers

91) Expand NSDC

a) National Skill Development Council b) National Skill Development Centre c) National Skill
Development Corporation d) National Skill Development Committee

92) The basic segments of MEPSC’s skill development initiatives include :

a) Professional skills b) Entrepreneurship skills c) Office management skills d) All of the above

93) Which of the following could be an opportunity ?

a) Tough market conditions b) Inadequate finance c) Universal acceptance or need of the product

d) Opportunity to provide employment to many

94)In which method of accounting transactions are recorded only when payment exchanged ?

a) Accrual method b) Cash method C) Dual aspect method d) Matching concept

95) The value that is put for a product is known as:

a)Commission b) Price c)Profit d) Revenue
96)At break –even point
a)Total expense = Total revenue b) Total expense > Total revenue c)Total expense < Total
revenue d) Any of the above
97) ____________ is concerned with the buying and selling information, products and services over
computer communication networks

a) Commerce b) E-Commerce c) E-Business d) None of these

98) ________________is a method of raising capital through the collective effort of a large number
of individual investors.

a)Grants b) Business Contest c)Crowd funding d)Business loans

99) The value of a company ,divided into many equal parts owned by the shareholders is known as :

a) Capital b) Equity c) Debt d) Reserve

100 ) Money given as part of the cost of something to help is termed as :

a) Subsidy b) Grant c) Incentive d) Bonus