81. Incubation stage deals with
A. Sample development
B. Idea development
C. Prototype Development
D. None of the above
Answer
C. Prototype Development
82. Product design defines
A. Micro activities of the project
B. Macro activities of the project
C. Allied activities of the project
D. Individual activities of the project
Answer
A. Micro activities of the project
83. Feasibility study is defined as
A. Formal investigation of profitable opportunity
B. Informal investigation of profitable opportunities
C. Intensive investigation of profitable opportunities
D. None of the above
Answer
A. Formal investigation of profitable opportunity
84. Project selection is
A. Product idea is used as a basis for project idea
B. Project idea is used as a basis for product idea
C. Both are the same
D. None of the above
Answer
A. Product idea is used as a basis for project idea
85. General criteria is concerned with
A. Entrepreneur’s own interests
B. Economic development of the country
C. Business environment of the country
D. None of the above
Answer
A. Entrepreneur’s own interests
86. A(n) ___ is defined as a form of business that is an association of two or more people acting as co-owners of a business.
A. proprietorship
B. partnership
C. INC
D. corporation
Answer
B. partnership
87. Which one of the following would not be considered an advantage to a partnership formation?
A. Potential for double taxation
B. Less governmental control
C. Ease of formation
D. Direct share of profits
Answer
A. Potential for double taxation
88. Which one of the following would not be considered a disadvantage of a corporation?
A. Limited continuality of life of enterprise
B. Extensive government regulations of activities
C. High incorporation fees
D. Corporate capital, profits, dividends, and salaries are double taxed
Answer
A. Limited continuality of life of enterprise
89. Entrepreneurships require financial backing in order to get started in the business world. Which of the following is not one of the methods commonly utilized to obtain the financial resources needed?
A. Equity
B. Commercial loans
C. Personal finances provided by friends
D. Venture capitalists
Answer
D. Venture capitalists
90. Of the following, which one would not be considered an alternative to independententrepreneurship?
A. Franchise
B. Spin-off
C. Intrapreneurship
D. Extrapreneurship
Answer
B. Spin-off
91. Of the following, which is best identified as an independent entrepreneurship thatproduces a product or service that originated in a large company?
A. Diversification
B. Intrapreneurship
C. Trade-off
D. Franchise
Answer
A. Diversification
92. Management tactics purported to maximize innovation for an entrepreneurship include allbut which of the following items?
A. Cutting of losses
B. Culture
C. Benchmarking
D. Customer orientation
Answer
B. Culture
93. In franchising, the entrepreneur assumes fewer risks because the franchise provides all but which one of the following?
A. Established market for the product
B. Management assistance in operating the business
C. Economies of scale for purchasing
D. Oversale of rights
Answer
A. Established market for the product
94. The ideas for new businesses that are obtained by entrepreneurs are derived from manysources. These various sources include all but ___
A. replication of an existing business
B. trade journals
C. trade shows
D. family members
Answer
A. replication of an existing business
95. The steps involved in an entrepreneurial endeavor include all but which one of the following?
A. Business plan formulation
B. Obtaining financing
C. Selecting the type of legal structure
D. Hiring a partner
Answer
D. Hiring a partner
96. Common reasons for entrepreneurial failure include all but which one of the following?
A. Poor implementation
B. Lack of capital
C. Adequate financial support
D. Faulty product design
Answer
C. Adequate financial support
97. A/An ___ is defined as the blueprint describing the business strategy for entering the
A. business alliance
B. spin-off
C. intrapreneurship
D. competitor analysis
Answer
C. intrapreneurship
98. A(n) ___ is defined as a form of business that is an association of two or more people acting as co-owners of a business.
A. proprietorship
B. partnership
C. INC
D. corporation
Answer
B. partnership
99. ___ is best described as doing something differently and has been described as discontinuous or complementary change.
A. Entrepreneurship
B. Innovation
C. Spin-off
D. Variance
Answer
B. Innovation
100. An opportunity assessment plan:
A. is the same thing as a business plan.
B. is longer than a business plan.
C. has a lot of computer-based spreadsheets.
D. focuses on the opportunity, not the venture.
Answer
D. focuses on the opportunity, not the venture.
101. All of the following are questions an opportunity assessment plan might answer except:
A. How much capital do I need?
B. What market need does it fill?
C. What business skills do I have?
D. Can a patent be obtained?
Answer
A. How much capital do I need?
102. Which of the following statements is (are) true?
A. The business plan describes both internal and external elements.
B. The preliminary business plan should be prepared by a lawyer.
C. Most business plan resources on the Internet are too complex and expensive to be of use to the new venture.
D. Once made, a business plan should not be changed.
Answer
A. The business plan describes both internal and external elements.
103. Which of the following interested parties should not have access to the venture’s business plan?
A. Competitors
B. Lenders
C. Investors
D. Suppliers
Answer
A. Competitors
104. The depth and detail of a business plan depend on:
A. The target audience.
B. The size and scope of the new venture.
C. The experience of the entrepreneur.
D. The amount of capital needed.
Answer
B. The size and scope of the new venture.
105. When evaluating business plans ___ are primarily concerned with the general guidelines of credit.
A. investors
B. employees
C. vendors
D. lenders
Answer
D. lenders
106. Equity investors often place more emphasis on the entrepreneur’s ___ than lenders do.
A. character
B. experience
C. financial records
D. personal viewpoint
Answer
A. character
107. Which of the following documents is not usually included in the Financial Plan?
A. Statement of cash flows
B. Income statement
C. Price lists from suppliers
D. Projected balance sheet
Answer
C. Price lists from suppliers
108. ___ identifies potential hazards and alternative strategies to meet business plan goals and objectives.
A. Assessment of risk
B. Financial planning
C. Alternative planning analysis
D. The financial plan
Answer
A. Assessment of risk
109. All of the following are questions that should be considered in the environmental and industry analysis section of the business plan except:
A. what are total industry sales over the past five years?
B. Who are the nearest competitors?
C. What is my promotional strategy?
D. What is anticipated growth in this industry?
Answer
C. What is my promotional strategy?
110. New small business owners have which of the following two common motivations?
A. Be their own bosses, greater reward potential
B. Achieve dependence, less reward potential
C. Achieves dependence, become a stakeholder
D. Be their own bosses, lower reward potential
Answer
A. Be their own bosses, greater reward potential
111. The other names for a small business include:
A. Entrepreneurial businesses
B. Small businesses
C. Small-to-medium-sized-businesses
D. none
Answer
D. none
112. According to development commissioner a sick company should have :
A. Less than 50% capacity utilization
B. More than 50% erosion in net worth
C. Unit has remained closed for a period of more than six months
D. Bank financing is restricted to 25% of networth.
Answer
D. Bank financing is restricted to 25% of networth.
113. Incipient sickness is not an indication of:
A. Continuous cash losses from year to year and trend is expected to continue in future
B. Continuous losses for last two years
C. Deterioration in the current ratio
D. Gradual erosion in the networth during the previous and current financial years
Answer
B. Continuous losses for last two years
114. Industrial sickness occurs as per Kapoor Committee if:
A. Cash losses to a minimum 50% of networth
B. Cash losses to a maximum 50% of peak networth
C. Accumulated cash losses to a minimum 50% of peak networth
D. Cash losses to a maximum 50% of networth
Answer
C. Accumulated cash losses to a minimum 50% of peak networth
115. BIFR became operational from:
A. 1st April, 1987
B. 15th May, 1987
C. 1st July, 1987
D. 30th Sept. 1987
Answer
B. 15th May, 1987
116. Committee concerned with industrial sickness is:
A. Kapoor committee
B. Nayak committee
C. Goswami committee
D. Gupta committee
Answer
C. Goswami committee
117. Tiny sector was launched by
A. IPR-1948
B. IPR- 1980
C. IPR- 1985
D. IPR- 1990
Answer
C. IPR- 1985
118. Number of items dereserved during 2001-02 was:
A. 45
B. 49
C. 50
D. 51
Answer
D. 51
119. Nayak Committee was concerned with:
A. Reservation of items
B. Subsidy and incentives
C. Investment ceiling
D. Institutional credit
Answer
D. Institutional credit
120. Which Committee has given focus on cluster system;
A. Kapoor committee
B. Nayak committee
C. Goswami committee
D. AbidHussain Committee
Answer
D. AbidHussain Committee
