37.

What is a key challenge that startups often face due to their early stage of
development?

a) High level of financial stability

b) Established customer base
c) High scalability potential
d) Uncertainty and risk

Answer: d) Uncertainty and risk

38. What is the primary focus of startups in terms of growth?

a) Expanding to new markets

b) Establishing a monopoly in the industry
c) Minimizing risks
d) Rapidly increasing market share

Answer: d) Rapidly increasing market share

39. How do startups typically approach product or service development?

a) By releasing a fully developed product or service from the beginning

b) By making continuous improvements based on user feedback and
iteration
c) By using the same product offered by established competitors
d) By outsourcing the development process entirely

Answer: b) By making continuous improvements based on user

feedback and iteration

40. What is the main goal of startups in the early stages of development?

a) Maximizing profits and dividends

b) Establishing a long-standing presence in the market
c) Achieving sustainability and stability
d) Validating the business model and gaining traction

Answer: d) Validating the business model and gaining traction

41. How do startups typically differentiate themselves from competitors in the

market?

a) By offering lower prices and discounts

b) By using traditional marketing channels
c) By providing innovative and unique value propositions
d) By imitating the business models of successful companies
 Answer: c) By providing innovative and unique value propositions

42. How do startups typically gather feedback to improve their product or service?
a. By conducting focus group discussions
b. By avoiding any interaction with customers
c. Through online surveys and user testing
d. By limiting product exposure to a select group of people

Answer: c) Through online surveys and user testing

43. Rata Tata has provided funding to which of the following startups?
a. Dogspot
b. Cashkaro
c. Tracxn
d. All of the above

Answer: d) All of the above

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

Answer: a) They are familiar with the needs of the market

45. The business plan should be prepared by:

a. a.Entrepreneurs
b. b.Consultants
c. c.Engineers
d. d.Small business administration services

Answer: a) Entrepreneurs
46. Government can help in forming new venture by providing:
a. a.finance
b. b.technology
c. c.infrastructure
d. d.funds

Answer: c) infrastructure

47. Which one of the Following is not the way by which an entrepreneur can enter into
international business?

a. Export
b. Non equity arrangements
c. Direct foreign investment
 d. Communication

Answer:d) Communication

48. Which of the following factors does not affect a person for being an entrepreneur?

a. Gender
b. Education
c. Family background
d. Values

Answer: c) Family background

47. Which of these is the first activity of a new business?

a. Departure point
b. Goal Orientation
c. Business skill development
d. None of the above

Answer: a) Departure point

50. Who should be involved in preparing a firm’s business plan?

a. Accountant
b. Engineer
c. Entrepreneur
d. None of the above

Answer: c) Entrepreneur

51. Ownership position of less than 50 per cent in a business is known as:
a. Majority Interest
b. Joint Venture
c. Minority Interest
d. None of the above

Answer: c) Minority Interest

52. An entrepreneur who is the owner of more than one business is called:
a. Portfolio Entrepreneur
b. Intrapreneur
c. Corporate Entrepreneur
d. None of the above

Answer: a) Portfolio Entrepreneur

53. Which of these is not a type of entrepreneurship?
a. Small business entrepreneurship
b. Scalable entrepreneurship
c. Large scale entrepreneurship
d. Entrepreneurship

Answer: d) Entrepreneurship

54. Which Indian city is often referred to as the "Startup Capital of India"?

a. Mumbai

b. Bangalore

c. Delhi

d. Hyderabad

Answer: c) Delhi

55. Which popular Indian e-commerce giant started out as a small online bookstore in the
late 1990s?

a. Flipkart

b. Myntra

c. Snapdeal

d. Amazon

Answer: d) Amazon

56. Which Indian city is famously known as the "Cyber City," playing a significant role
in fostering IT and startup initiatives?

a. Chennai

b. Gurgaon

c. Jaipur

d. Pune

Answer: b) Gurgaon

57. What does MVP stand for in the context of startups?

 a. Most Valuable Product
b. Minimum Viable Product
c. Maximum Viable Product
d. Main Venture Product

Answer: b) Minimum Viable Product

58. Which term refers to the ability to take risks and manage uncertainty?
a. Risk aversion
b. Entrepreneurship
c. Risk management
d. Risk tolerance

Answer: d) Risk tolerance

59. What does the term "lean startup" refer to?

a. A startup with minimal resources and funding
b. A startup that emphasizes rapid experimentation and customer feedback
c. A startup focused on slow and steady growth
d. A startup with a large team and extensive infrastructure

Answer: b) A startup that emphasizes rapid experimentation and customer

feedback

60. Which of the following is NOT a common source of startup funding?

a. Venture capital
b. Angel investors
c. Grants
d. Traditional bank loans

Answer: d) Traditional bank loans

61. Which term refers to the process of adapting to changes in the market or business
environment?
a. Innovation
b. Adaptation
c. Flexibility
d. Pivoting

Answer: d) Pivoting

62. What is the term for the process of generating multiple streams of income within a
single business?
a. Diversification
b. Monetization
c. Scalability
d. Bootstrapping
 Answer: a) Diversification

63. Which of the following is NOT typically considered a characteristic of successful

entrepreneurs?
a. Creativity
b. Persistence
c. Fear of failure
d. Resilience

Answer: c) Fear of failure

64. What is the term for the process of identifying and attracting potential customers for a
product or service?
a. Marketing
b. Sales
c. Promotion
d. Branding

Answer: a) Marketing

65. Which term refers to the process of acquiring funding from multiple investors, often
in smaller amounts?
a. Crowd sourcing
b. Crowd funding
c. Angel investing
d. Venture capital

Answer: b) Crowd funding

66. What is the term for a document outlining a startup's business model, target market,
and financial projections?
a. Mission statement
b. Vision statement
c. Business plan
d. Executive summary

Answer: c) Business plan

67. Where is the country's largest startup incubator to be set up?

a. Hubballi
b. Bengaluru
c. Mysuru
d. None of the above

Answer: a) Hubballi

68. GE aims to start AI capabilities to compete with which company?

a. IBM
b. HCL
c. Apple
d. None of the above

Answer: a) IBM