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Aaditya Gupta Classes- Entrepreneurship Development Mcqs
Aaditya Gupta Classes- Entrepreneurship Development Mcqs
Phone – 99035-03989
4 entrepreneurs neither introduce new changes nor adopt new methods innovated
by others.
A. technical
B. fabian
C. induced
D. business
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8. Social attitude is one of the important problems of a ............................ Entrepreneur.
A. drone.
B. business.
C. women.
D. adoptive.
11. 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.
12. Person who works within an organization and having entrepreneurial capabilities is:
A. entrepreneur,
B. intrapreneur,
C. manager,
D. chief executive.
14. 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
15. 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
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16. A medium enterprise is one in which the investment in plant and machinery ismore 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
17. 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
18. A small enterprise is one in which the investment in plants and machinery ismore 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
19. A medium enterprise is one in which the investment in plant and machinery ismore than Rs
……………… but does not exceed Rs……………………. ..
A. 10 lakhs / 2 crores
B. 25 lakhs /5crores
C. crores/ 10 crores
D. 2 crores/5 crores
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26. 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
27. 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
30. 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.
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31. A micro service is one in which the investment in plant and machinery does notexceed………..
A. rs. 5 lakhs.
B. rs.10 lakhs.
C. rs 25 lakhs.
D. none of these.
32. 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.
33. 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.
34. 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.
35. 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.
37. The advance given to cover the finance requirement during the time lag betweenthe
sanctioning and disbursement of term loan by financial institutions is known as…………..
A. soft loan.
B. seed capital.
C. capital subsidy.
D. bridge loan.
38. The MSME Development Act came into force in the year……………………………….
A. 2005.
B. 2006.
C. 2007.
D. none of these.
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39. Offering single window clearance facility is the most fascinating feature of ………
A. ksidc
B. kitco
C. dic
D. kinfra
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50. 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
51. After screening the ideas, they are translated into project………………………………….
A. portfolio
B. profiles
C. proposal
D. none
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57. 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
58 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
62. A series of related activities which result in some product or service is called……
A. event
B. task
C. network
D. slack
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67 ...... is the unbroken chain of activities from start event to end event in thenetwork diagram.
A. slack
B. activity
C. network
D. path
69. Activities lying on the critical path are known as… ......................activities.
A. critical
B. preceding
C. succeeding
D. concurrent
70 ............... are activities that must be completed immediately prior to the start ofanother
activity.
A. critical
B. preceding
C. succeeding
D. concurrent
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71. 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
74. The sum of earliest start time and estimated time to perform the project is called……..
A. eft
B. lst
C. lft
D. est
75. The latest possible time an activity can finish without delaying the project is called…….
A. eft
B. lst
C. lft
D. est
76. Difference between latest finish time and estimated time to perform the projectis called………..
A. eft
B. lst
C. lft
D. est
77 is the difference between the actual sales and break even sales.
A. margin of safety
B. fixed cost
C. contribution
D. profit
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79. Which of the following is not a phase in the project life cycle:
A. pre- investment phase.
B. construction phase.
C. normalization phase.
D. growth phase.
86 shows the changes in assets, liabilities and net worth between two balance sheet dates.
A. cash flow
B. fund flow
C. ratio
D. breakeven
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87 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
89. Mathematical relationship between two figures taken from financial statements is called……….
A. cash flow
B. fund flow
C. ratio
D. breakeven
90 is an equilibrium point.
A. cash flow
B. fund flow
C. ratio
D. breakeven
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96. Giving capital to enterprise that has risk and adventure is called………………………
A. venture capital
B. layered financing
C. deferred credit
D. lease financing
97. Arrangement where payments to suppliers are made in agreed instalments 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
98 ........ is a contract between the owner and user of the asset to use the asset for a consideration.
A. venture capital
B. layered financing
C. deferred credit
D. lease financing
99. Project appraisal is the process of estimating the costs and benefits of a projectto arrive at the
………………………decision.
A. investment
B. profitability
C. liquidity
D. none of these
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103. NPV, PI and ........................... are the three discounted cash flow techniques.
A. arr
B. irr
C. ntv
D. urgency
104. Original investment is divided by constant cash ............................ to get payback period.
A. inflows
B. outflows
C. balance
D. both (a)and (b)
106. The discount rate at which present value of cash inflows equals to the present value of cash
outflows is called …………………..
A. arr
B. irr
C. ntv
D. urgency
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112. Which one of the following is not a discounted cash flow technique:
A. arr
B. irr
C. npv
D. pi
113. The difference between the total present value of a stream of cash flows of a given rate of
discount and the initial capital outlay is known as the :
A. irr.
B. arr.
C. npv.
D. net profit.
114. The scientific technique of evaluation of capital expenditure decisions include the following
except:
A. npv.
B. pi.
C. irr.
D. payback period.
116. For discounted cash flow methods, the discount rate used is:
A. fixed arbitrarily
B. equivalent to bank rate.
C. equivalent to firm’s average cost of capital.
D. equivalent to final rate of dividend.
117. The process of measuring the progress and performance of a project is called:
A. project appraisal.
B. project evaluation.
C. project control.
D. project audit.
118. The excess of the present value over the cost of the project is ……………………..
A. irr
B. arr
C. npv
D. ntv
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119. In case of mutually exclusive projects, the project with ................. PI is to be selected.
A. higher
B. lower
C. negative
D. positive
121. Under Net Terminal Value Method, accept a project if it’s NTV is……………………
A. higher
B. lower
C. negative
D. positive
122. Under Net Terminal Value Method, reject a project if it’s NTV is ................... (a)higher (b)lower
(c)negative (d)positive125) Accept a project if it’s IRR is ..................when compared to desired
minimum
A. higher
B. lower
C. negative
D. positive
123. Reject a project if it’s IRR is ................. when compared to desired minimum
A. higher
B. lower
C. negative
D. positive
124 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
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128. 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
130 ................................ Skill refers to the ability to conceive new ideas and products.
A. diagnostic
B. conceptual
C. technical
D. human relation
131. The skill to handle people and to influence their behaviour is known as ……………
A. diagnostic
B. conceptual
C. technical
D. human relation
132 ............... Skill refers to the ability to understand problems from visible symptoms.
A. diagnostic
B. conceptual
C. technical
D. human relation
133. Ability to use techniques, procedures and tools of a specific field is called…………
A. diagnostic
B. conceptual
C. technical
D. human relation
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137. Which of the following provides services and advices to start up firms:
A. business incubators.
B. industrial estates.
C. dic.
D. none of these.
140 Analysis involves estimation of project costs and revenues and fundsrequired for
the project:
A. techno-economic
B. network
C. financial
D. social cost-benefit
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144 Refers to manner in which a company’s inputs are transferred into output
process:
A. process
B. method
C. technology
D. method
145 Give right to use patented technology and get related know-how on mutually
agreed basis:
A. technology licensing.
B. purchase of technology.
C. joint venture.
D. indigenous technology.
146. There is no need for technological support from the seller in ……………………………
A. technology licensing.
B. purchase of technology.
C. joint venture.
D. indigenous technology
147. The supplier may participate technically as well as financially in a .................... arrangement.
A. technology licensing.
B. purchase of technology.
C. joint venture.
D. indigenous technology
149 Refers to the volume that can be manufactured during a given period:
A. plant capacity.
B. plant location.
C. plant layout.
D. process layout.
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152. 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.
153. In ....................... Men and equipment are moved to the material which remains in one place:
A. process layout.
B. combined layout.
C. stationary layout.
D. cellular layout.
154 ................................... Is possible where in item is made in different types and sizes:
A. process layout.
B. combined layout.
C. stationary layout.
D. cellular layout.
155. In .......................... machines dedicated to sequences of production are grouped into cells:
A. process layout.
B. combined layout.
C. stationary layout.
D. cellular layout.
157. In .............................. Machines are arranged in sequence in which they are used:
A. process layout.
B. combined layout.
C. stationary layout.
D. product layout
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158. There is a continuous flow of materials in process towards the finished product stage
in…………
A. process layout.
B. combined layout.
C. stationary layout.
D. product layout
165 provides clues to pertinent questions like “what, why, how, when and where
of the project.
A. feasibility report
B. interim report
C. project report
D. progress report
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171. Ability to make clear decisions on the merits of a case is called ...............skill.
A. communication
B. decision-making
C. project development
D. management
173 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
C. project development
D. management
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174 skills are necessary for an entrepreneur to deal with many people.
A. communication
B. decision-making
C. project development
D. management
176 are incubators sponsored and managed through associations, chambers of commerce etc
A. government sponsored
B. non-profit organizations sponsored
C. university sponsored
D. privately sponsored
177 incubators transit the findings of research and development into new products and
technologies.
A. government sponsored
B. non-profit organizations sponsored
C. university sponsored
D. privately sponsored
178 incubators are organised and managed by private firms or companies or corporations
A. government sponsored
B. non-profit organizations sponsored
C. university sponsored
D. privately sponsored
181 incubators focus on specific industry areas like art and craft.
A. general purpose
B. technology
C. specialist
D. none
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183 .............. 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
186. The first and foremost industrial estate was established at…………………
A. rajkot
B. ahmadabad
C. patna
D. Gurgaon
187. The first and foremost industrial estate was established in the year…………………
A. 1960
B. 1962
C. 1955
D. 1950
188 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
189 is the advance given to cover the finance requirement during the time lag between
sanctioning and disbursement of term loan by financial institutions.
A. incentive
B. bridge capital
C. subsidy
D. venture capital
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194 ................. is a combination of knowledge, skills and appropriate motives that an individual
must possess to perform a given task.
A. persistence
B. initiative
C. competency
D. creativity.
195. The capacity to take repeated and different actions to overcome obstacles is called……………..
A. persistence
B. initiative
C. competency
D. creativity.
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199. Additional capital cost are incurred in............ projects to save time.
A. quantifiable
B. non-quantifiable
C. sectoral
D. crash
201 analysis helps in studying the impact of crucial variables like raw materials, sales
volume, sales price, degree of capacity utilization etc over the economic viability of an enterprise.
A. break-even
B. sensitivity
C. risk
D. ratio
203 analysis helps to compare current performance with the past and also in
measuring effectiveness and efficiency of the organization in the light of norms of performances
A. break-even
B. sensitivity
C. risk
D. ratio
204 analysis is a continuous process used to analyse the past and/or projected financial
data.
A. break-even
B. sensitivity
C. financial
D. ratio
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213. 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
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214. 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
215. The process of measuring the progress and performance of a project is called:
A. Project appraisal.
B. Project evaluation.
C. Project control.
D. Project audit.
217. 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.
218. 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.
219. 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.
220. 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
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221. 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. Soft loan.
B. Seed capital.
C. Capital subsidy.
D. Bridge loan.
222. The MSME Development Act came into force in the year……………………………….
A. 2005.
B. 2006.
C. 2007.
D. None of these.
224. 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
225. After screening the ideas, they are translated into project………………………………….
A. portfolio
B. profiles
C. proposal
D. none
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229. 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
232. The sum of earliest start time and estimated time to perform the project is called……..
A. EFT
B. LST
C. LFT
D. EST
233. The latest possible time an activity can finish without delaying the project is called…….
A. EFT
B. LST
C. LFT
D. EST
234. Difference between latest finish time and estimated time to perform the project is
called………..
A. EFT
B. LST
C. LFT
D. EST
236. Arrangement where payments to suppliers are made in agreed instalments 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
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242. For discounted cash flow methods, the discount rate used is:
A. Fixed arbitrarily
B. Equivalent to bank rate.
C. Equivalent to firm’s average cost of capital.
D. Equivalent to final rate of dividend.
243. 2120) The excess of the present value over the cost of the project is ……………………..
A. IRR
B. ARR
C. NPV
D. NTV
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245. Under Net Terminal Value Method, reject a project if it’s NTV is………………..
A. higher
B. lower
C. negative
D. positive
246. Accept a project if it’s IRR is ................. when compared to desired minimum
A. higher
B. lower
C. negative
D. positive
249. 3133)............................. Skill refers to the ability to conceive new ideas and products.
A. diagnostic
B. conceptual
C. technical
D. human relation
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256 .............. 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
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262. entrepreneur are very cautious and sceptical in adopting any change.
A. fabian
B. adoptive
C. innovative
D. drone
263. entrepreneur are laggards as they continue to operate in their traditional way and resist
changes
A. innovative
B. fabian
C. drone
D. adoptive
265. As per McCLELLAND' s psychological theory suggest the most important characteristics for an
entrepreneur is
A. need for power
B. need for affiliation
C. need for achivement
D. need for cooperation
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279. the entreneurial growth in india gain momentum after the launch of economic planning in
A. 1872
B. 1772
C. 1952
D. 1978
283. . describes the direction, the enterprise is going in, what its goals are, where it wants to be,
and how it is going to get there
A. project report
B. technical analysis
C. market analysis
D. financial analysis
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285. A business arrangement where one party allows another party to use a business Name and
sell its products or services is known as
A. A cooperative.
B. A franchise
C. An owner-manager business
D. A limited company
291. Which of the following factors should not be included in PESTLE analysis?
A. Government re-cycling policy
B. Proposed reduction in
C. Competitor activity.
D. Demographic changes.
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294. The process of preparing an inventory of skills needed for effective implementation of the
project is called as
A. Economic viability
B. Financial feasibility.
C. Technical feasibility
D. Managerial competence.
299. Which of the following factors does the macro-environment not include?
A. political and regulatory factors.
B. customer needs in a given market.
C. social and demographic factors.
D. technological changes
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301 ............describes the direction, the enterprise is going in, what its goals are, where it wants to
be, and how it is
A. project report
B. technical analysis
C. market analysis
D. financial analysis
302. A business arrangement where one party allows another party to use a business Name and
sell its products or services is known
A. A cooperative.
B. A franchise
C. An owner-manager business
D. A limited company
304. Which of these statements best describes the context for entrepreneurship?
A. Entrepreneurship takes place in small businesses.
B. Entrepreneurship takes place in large businesses.
C. Entrepreneurship takes place in a wide variety of contexts.
D. Entrepreneurship does not take place in social enterprises.
306. Entrepreneurial development is the key to achieve all-round ----------------- through acceleration
of industrial and entrepreneurial activities.
A. economic development
B. increase in profits
C. shareholders value
D. business development
308. Which of the following attitudes Is not generally associated with successful entrepreneurship:
A. Competition and co-operation
B. Desire to influence others
C. Innovation and product improvement
D. Status quo in business
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314. In under developed countries, local mobile phone companies use the same technology used
by big companies to manufacture their products. Which of the following type of Entrepreneurs is
highlighted above:
A. Trading Entrepreneurs
B. Imitative Entrepreneurs
C. First generation Entrepreneurs
D. Innovative Entrepreneurs
315. All but which of the following is considered to be a myth associated with entrepreneurship?
A. Successful entrepreneurs are born not made
B. First ventures are always successful
C. All entrepreneurs must willingly invest significant sums of money
D. Successful entrepreneurs must have a break-through invention
316. Entrepreneurial culture and growth orientation consists of all of the following except:
A. Encouraging employees to generate ideas
B. Focusing on opportunities.
C. The desire to grow at a slow and controlled pace.
D. Being creative.
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318. A is a professional money manager who makes risk investment from apool
of equity capital to obtain a high rate of return on investments.
A. venture capitalist
B. entrepreneur
C. businessman
D. buyer
319. A business plan is important for all of the following reasons EXCEPT:
A. a business plan forces a firm's founders to systematically think through each aspect of their new
venture.
B. a business plan provides lenders and investors assurance that they will earn a decent return.
C. a business plan provides an investor with something to react to.
D. a business plan is a selling document that enables a company to present itself to potential
suppliers and business partners.
321. To provide financial assistance to entrepreneurs the government has set up a number
of .
A. financial advisors.
B. financial intermediaries.
C. Industrial estates.
D. financial institutions.
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324. is a form of financing especially for funding high technology, high riskand
Perceived high reward projects
A. Fixed capital.
B. Current capital.
C. Seed capital.
D. Venture capital.
325. is a favourable set of circumstances that creates a need for a new product, service, or
business.
A. A niche
B. A venture
C. A trend
D. An opportunity
327. Entrepreneurs can recognize problems and find ways to solve them through each of the
following EXCEPT:
A. recognizing problems in emerging trends.
B. identifying a currently available product or service and then building a business around a better
version.
C. framing a problem differently than it's been thought of before, and then proposing an appropriate
solution.
D. experiencing a problem in one's own life, and then realizing the solution represents a business
opportunity.
328. All of the following are characteristics shared by those who excel at recognizing opportunities
EXCEPT:
A. brainstorming.
B. prior experience.
C. entrepreneurial alertness.
D. social contacts and ties with others.
329. All of the following are suitable questions to ascertain Product/Service Desirability EXCEPT:
A. Does it make sense?
B. Is the product or service financially feasible?
C. Is this a good time to introduce the product or service in the market?
D. Are there any fatal flaws in the product or service's basic design or concept?
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332. Why is the executive summary perhaps the most important section of the business plan?
A. This section of the plan provides in-depth discussion of the major trends in the industry in which
the firm intends to compete.
B. This section of the plan summarizes the firm's key executives.
C. If this section of the plan fails to attract an investor's interest, he or she is unlikely to read the
remainder of the plan.
D. This section of the plan deals with the day-to-day operations of the company.
333. 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 the owner
D. More personal service
334. The financial assistance to small business provided by the Small Business Administration
takes the form of:
A. direct loans
B. guidance in locating lenders
C. loan guarantees
D. assistance in filling out paperwork
335. Key features of a well written business plan would include all of the following except:
A. financial plan
B. qualifications of the owner
C. an analysis of the market
D. a review of the advertising firms analyzed
338. MSMEs are important for the Nation's Economy because they significantly contribute to
A. Industrial Production
B. Exports
C. Employment
D. All of the above
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339. Investment Limit of a Micro Enterprise under manufacturing sector does not
exceed lakhs.
A. 10
B. 20
C. 25
D. 50
341. Which of the following is not considered while selecting the region?
A. Law and order
B. Price of land
C. Availability of raw materials
D. Proximity to the product market
342. Which one of the following is the step involved in setting up a new enterprises?
A. Creating a business plan
B. Making a product choice
C. Selecting the location
D. Setting up infrastructure
343. Which of the following is the key factor for choosing the type of financing?
A. Availability of funds
B. Assets of the venture
C. Prevailing interest rates
D. All of the given options
345. The distinction between an "entrepreneur" and "small business owner" , if made, revolves
around:
A. really nothing; they are truly one and the same
B. the Small Business Administration definitions
C. whether the business is an Internet based one or not
D. the risk taking or re-invention of a business vs. someone who "simply" starts a
346. Which of the following is not a main element of the project management process?
A. Estimation.
B. Schedule.
C. Monitor.
D. Systems design.
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358. The application for registration of a small scale unit should be submitted to the .
A. General manager, DIC.
B. Director, DIC.
C. General manager. NSIC.
D. Director, NSIC.
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