201. ___ is a strategy designed for situations in which the organization’s performance problems are very serious, as reflected by its performance measures.
A. Retrenchment
B. Turnaround
C. Expansion
D. Diversification
Answer
B. Turnaround
202. ___ is a radical redesign of the organization’s business processes.
A. Reengineering
B. Downsizing
C. Bankruptcy
D. Expanding
Answer
A. Reengineering
203. Which of the following restructuring actions involves laying off employees from theirjobs?
A. Reengineering
B. Downsizing
C. Bankruptcy
D. Expanding
Answer
B. Downsizing
204. ___ involves dissolving or reorganizing a business under the protection ofbankruptcy legislations.
A. Reengineering
B. Downsizing
C. Bankruptcy
D. Expansion
Answer
A. Reengineering
205. Valuation techniques generally fall into any of the following categories EXCEPT:
A. Asset valuations
B. Earnings valuations
C. Cash flow valuation
D. Depreciation valuation
Answer
B. Earnings valuations
206. Which of the following agencies was created specifically to foster the creation, growth,and expansion of minority-owned businesses in the United States?
A. SCORE
B. Minority Business Development Agency
C. The World Trade Organization
D. The Federal Reserve
Answer
D. The Federal Reserve
207. 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
C. Personal finances provided by friends
208. ___ financing is raising money by selling part of the ownership of the business to investors.
A. Debt
B. Equity
C. Venture capitalist
D. Public offering
Answer
B. Equity
209. Of the following, which one would not be considered an alternative to independent entrepreneurship?
A. Franchise
B. Spin-off
C. Intrapreneurship
D. Extrapreneurship
Answer
D. Extrapreneurship
210. Of the following, which is best identified as an independent entrepreneurship that produces a product or service that originated in a large company?
A. Diversification
B. Intrapreneurship
C. Trade-off
D. Franchise
Answer
C. Trade-off
211. 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
D. Oversale of rights
212. Which of the following is the reason for business failure ___
A. Lack of market research.
B. Poor financial control.
C. Poor management.
D. All the above.
Answer
D. All the above.
213. Goods or services reach the market place through ___
A. marketing channels.
B. multilevel pyramids.
C. monopolies.
D. multiplication.
Answer
C. monopolies.
214. 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.
Answer
B. financial intermediaries.
215. State Industrial corporations engage in the development of ___
A. industrial estates.
B. institutional estates.
C. individual investors.
D. agricultural entrepreneurs
Answer
D. agricultural entrepreneurs
216. Competitor analysis begins with:
A. Gathering samples of the competitors’ product(s).
B. Discovering each competitors advertising budget.
C. Documenting the current strategy of each primary competitor.
D. Identifying which competitors are most successful.
Answer
C. Documenting the current strategy of each primary competitor.
217. Marketing research begins with:
A. Setting the advertising budget.
B. Definition of objectives or purpose.
C. Identifying direct marketing strategy.
D. Collecting a list of primary and secondary sources of information.
Answer
C. Identifying direct marketing strategy.
218. Which stage of marketing research is considered to be the most difficult for an entrepreneur due to lack of knowledge or experience in marketing?
A. Analyzing and interpreting the results
B. Gathering data from primary sources
C. Gathering data from secondary sources
D. Defining the purpose or objectives
Answer
B. Gathering data from primary sources
219. The major interacting components that enable a firm to successfully provide products to the marketplace are called the:
A. Marketing plan.
B. Marketing mix.
C. Marketing system.
D. Marketing structure
Answer
B. Marketing mix.
220. The marketing mix consists of:
A. Product, price, research, and promotion.
B. Product, research, distribution, and promotion.
C. Product, price, distribution, and promotion.
D. Product, price, distribution, and research.
Answer
B. Product, research, distribution, and promotion.
221. Market segmentation is the process of:
A. Describing market conditions.
B. Dividing the market into smaller homogeneous groups.
C. Presenting future opportunities.
D. Exploring new market opportunities.
Answer
A. Describing market conditions.
222. The management team of a new venture:
A. is encouraged to operate the business as a sideline.
B. must operate the business full-time.
C. can expect to draw a large salary.
D. should be employed elsewhere to assure adequate income.
Answer
D. should be employed elsewhere to assure adequate income.
223. The ___ budget is used to project cash flows for the cost of goods produced.
A. operating
B. production
C. capital
D. depreciation
Answer
B. production
224. Fixed expenses:
A. Are incurred regardless of sales volume.
B. Can be estimated by taking into consideration the production.
C. Includes labor, raw materials, and commissions.
D. Must be linked to strategy in the business plan
Answer
C. Includes labor, raw materials, and commissions.
1. ___ applied the word entrepreneur to business for the first time.
A. robert owen
B. joseph schumpeter
C. richard cantillon
D. max weber
Answer
C. richard cantillon
2. ___ is the drive to achieve a goal.
A. motivation
B. need for achievement
C. competency
D. none of these
Answer
B. need for achievement
3. ___ entrepreneurs are extremely task oriented.
A. technical
B. fabian
C. induced
D. business
Answer
A. technical
4. ___ entrepreneurs neither introduce new changes nor adopt newmethods innovated by others.
A. technical
B. fabian
C. induced
D. business
Answer
B. fabian
5. The term intrapreneur was coined by ___.
A. robert owen
B. joseph schumpeter
C. richard cantillon
D. gifford pinchot
Answer
D. gifford pinchot
6. According to Schumpeter, Is the most important function of a modern entrepreneur.
A. innovation,
B. invention,
C. skill,
D. creativity.
Answer
A. innovation,
7. Knowledge + Skill + Traits = ___
A. innovation.
B. competency.
C. skill.
D. creativity.
Answer
B. competency.
8. Social attitude is one of the important problems of a ___ Entrepreneur.
A. drone.
B. business.
C. women.
D. adoptive.
Answer
C. women.
9. The capacity to develop new ideas, concepts and processes is known as :
A. innovation,
B. invention,
C. skill,
D. creativity.
Answer
D. creativity.
10. Which of the following risks is borne by the entrepreneur:
A. financial risks,
B. personal risks,
C. psychological risks,
D. all of these.
Answer
D. all of these.
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.
Answer
A. drone entrepreneur,
12. Person who works within an organization and having entrepreneurial capabilities is:
A. entrepreneur,
B. intrapreneur,
C. manager,
D. chief executive.
Answer
B. intrapreneur,
13. Who introduced the term intrapreneur:
A. schumpeter,
B. peter drucker,
C. david mcclelland,
D. gifford pinchot 111.
Answer
D. gifford pinchot 111.
14. A micro enterprise is one in which the investment in plant and machinery doesnot exceed Rs. ___
A. 25 lakhs
B. 50 lakhs
C. 1 crore
D. 10 lakhs
Answer
A. 25 lakhs
15. A small enterprise is one in which the investment in plant and machinery is morethan 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
Answer
B. 25 lakhs /5crores
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
Answer
C. 5 crores/ 10 crores
17. A micro enterprise is one in which the investment in plant and machinery doesnot exceed Rs ___.
A. 25 lakhs
B. 50 lakhs
C. 1 crore
D. 10 lakhs
Answer
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
Answer
A. 10 lakhs / 2 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
Answer
D. 2 crores/5 crores
20. ___ Units provide inputs to other industries.
A. export
B. small
C. ancillary
D. none of these
Answer
C. ancillary
21. ___ Registration helps the entrepreneur to take necessary stepsto bring industrial units into existence.
A. provisional
B. permanent
C. both of these
D. none of these
Answer
A. provisional
22. The MSME Development Act came into force in ___
A. 2005
B. 2006
C. 2010
D. 2001
Answer
B. 2006
23. Capital investment subsidy was introduced in ___
A. 1973
B. 1971
C. 1972
D. 1970
Answer
B. 1971
24. ___ Is the financial and promotional assistance provided by the Govt. to the industries for boosting up industrial development in all regionsparticularly in backward areas.
A. seed capital
B. incentive
C. subsidy
D. none of these
Answer
B. incentive
25. ___ is the place where the required facilities and factoryaccommodation are provided by the government to the entrepreneurs to establish their industries there.
A. industry
B. industrial estate
C. company
D. none of these
Answer
B. industrial estate
26. The initial capital that is required to obtain loans from the financial institutionsis called ___
A. seed capital
B. incentive
C. subsidy
D. none of these
Answer
A. seed capital
27. Under the single roof of the ___ all the services and support requiredby small and village entrepreneurs are provided.
A. ksidc
B. kitco
C. dic
D. kinfra
Answer
C. dic
28. KITCO was set up in ___
A. 1973
B. 1971
C. 1972
D. 1970
Answer
C. 1972
29. ___ offers comprehensive consultancy services to MSMEs in Kerala.
A. ksidc
B. kitco
C. dic
D. kinfra
Answer
B. kitco
30. A micro manufacturing enterprise is one in which the investment in plant andmachinery does not exceed ___
A. rs. 5 lakhs.
B. rs. 10 lakhs.
C. rs.20 lakhs.
D. none of these.
Answer
D. none of these.
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.
Answer
B. rs.10 lakhs.
32. A small service enterprise is one in which the investment in plant and machinerydoes not exceed ___
A. rs. 25 lakhs.
B. 1 crore.
C. 2 crores.
D. none of these.
Answer
C. 2 crores.
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.
Answer
C. 5 crores.
34. A single lump sum which is given by a govt. to an entrepreneur to cover the costis known as ___
A. subsidy.
B. concession.
C. bounties.
D. none of these.
Answer
A. subsidy.
35. A bonus or financial aid which is given by a govt. to an industry to help itcompete with other units in home market or in a foreign market is known as ___
A. subsidy.
B. concession.
C. bounties.
D. none of these.
Answer
C. bounties.
36. Single window scheme is instituted through ___
A. idbi.
B. sidco.
C. kfc.
D. dic.
Answer
D. dic.
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.
Answer
D. bridge loan.
38. The MSME Development Act came into force in the year ___
A. 2005.
B. 2006.
C. 2007.
D. none of these.
Answer
B. 2006.
39. Offering single window clearance facility is the most fascinating feature of ___
A. ksidc
B. kitco
C. dic
D. kinfra
Answer
C. dic
40. KINFRA was setup in ___
A. 2000
B. 1993
C. 1996
D. 1999
Answer
B. 1993
41. Techno crafts is assistance is provided by ___
A. kfc
B. kitco
C. ksidc
D. kinfra
Answer
A. kfc
42. ___ Is a National level apex organization of young entrepreneurs
A. naye
B. tco
C. sido
D. nsic
Answer
A. naye
43. ___ provides consultancy services to small and medium enterprises atreasonable cost
A. naye
B. tco
C. sido
D. nsic
Answer
B. tco
44. KITCO was established in ___
A. 1970
B. 1973
C. 1972
D. 1975
Answer
C. 1972
45. ___ is an area where applied research on high tech projects isconducted
A. step
B. swot
C. epst
D. none of these
Answer
A. step
46. Which of these is not a state level promotional institutions
A. kitco
B. ksidc
C. niesbud
D. sidco
Answer
C. niesbud
47. The Head Office of KINFRA is located at ___
A. thiruvananthapuram
B. kozhikode
C. ernakulum
D. kannur
Answer
A. thiruvananthapuram
48. ___ refers to any investment opportunity which is to be exploited for profit.
A. product
B. project
C. share
D. none of these
Answer
B. project
49. ___ the process of collection, compilation and analysis of economic data for the purpose of finding out possible opportunities forinvestment.
A. project screening
B. project appraisal
C. project identification
D. none
Answer
C. project identification
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
Answer
A. screening
51. After screening the ideas, they are translated into project ___
A. portfolio
B. profiles
C. proposal
D. none
Answer
B. profiles
52. SWOT stands for strength, weakness, opportunity, and ___
A. treat
B. threat
C. tort
D. none
Answer
B. threat
53. Project formulation means ___ Study.
A. profitability
B. liquidity
C. feasibility
D. viability
Answer
C. feasibility
54. ___ Analysis is primarily concerned with the identification,quantification and evaluation of project resources.
A. network
B. financial
C. techno-economic
D. input
Answer
D. input
55. ___ analysis is done to ascertain financial viability of a project.
A. network
B. financial
C. techno-economic
D. input
Answer
B. financial
56. ___ technology refers to that technology which is suitable tolocal, economic, social and cultural conditions.
A. indigenous
B. imported
C. advanced
D. appropriate
Answer
D. appropriate
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
Answer
B. factory design
58. ___ Analysis is one of the most popular techniques used forplanning, scheduling, monitoring and co-ordinating projects comprising a number of activities.
A. network
B. financial
C. techno-economic
D. input
Answer
A. network
59. ___ is the difference between sales and variable cost.
A. margin of safety
B. fixed cost
C. contribution
D. profit
Answer
C. contribution
60. ___ is a network technique of scheduling and controlling theproject where activity times cannot be precisely estimated.
A. pert
B. cpm
C. bep
D. swot
Answer
A. pert
61. ___ analysis is a technique commonly used to assess expected productprofitability.
A. pert
B. cpm
C. bep
D. swot
Answer
C. bep
62. A series of related activities which result in some product or service is called ___
A. event
B. task
C. network
D. slack
Answer
C. network
63. ___ represents the activities and events of a project in a logicalsequence.
A. network diagram
B. project graph
C. arrow diagram
D. all of these
Answer
A. network diagram
64. The element of job to be completed in a specific time is known as ___
A. event
B. activity
C. network
D. slack
Answer
B. activity
65. ___ represents the start and end of an activity.
A. event
B. activity
C. network
D. slack
Answer
A. event
66. Node represents ___
A. slack
B. activity
C. network
D. event
Answer
D. event
67. ___ is the unbroken chain of activities from start event to end event in thenetwork diagram.
A. slack
B. activity
C. network
D. path
Answer
D. path
68. Critical path is the longest ___ in the network
A. slack
B. activity
C. event
D. path
Answer
D. path
69. Activities lying on the critical path are known as ___ activities.
A. critical
B. preceding
C. succeeding
D. concurrent
Answer
A. critical
70. ___ are activities that must be completed immediately prior to the start ofanother activity.
A. critical
B. preceding
C. succeeding
D. concurrent
Answer
B. preceding
71. Activities that cannot be started until one or more of other activities arecompleted but immediately follow are called ___
A. critical
B. preceding
C. succeeding
D. concurrent
Answer
C. succeeding
72. Activities that can be accomplished simultaneously are called ___ activities.
A. critical
B. preceding
C. succeeding
D. concurrent
Answer
D. concurrent
73. ___ is the earliest time an activity can begin
A. eft
B. lst
C. lft
D. est
Answer
D. est
74. The sum of earliest start time and estimated time to perform the project is called ___
A. eft
B. lst
C. lft
D. est
Answer
A. eft
75. The latest possible time an activity can finish without delaying the project is called ___
A. eft
B. lst
C. lft
D. est
Answer
C. lft
76. Difference between latest finish time and estimated time to perform the projectis called ___
A. eft
B. lst
C. lft
D. est
Answer
B. lst
77. ___ is the difference between the actual sales and break even sales.
A. margin of safety
B. fixed cost
C. contribution
D. profit
Answer
A. margin of safety
78. ___ study is a systematic method adopted to find out the possibilityand practicability of starting a project.
A. profitability
B. liquidity
C. feasibility
D. viability
Answer
C. feasibility
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.
Answer
D. growth phase.
80. Which of the following is a technique of project identification:
A. desk research.
B. sensitivity analysis.
C. cvp analysis.
D. none of these.
Answer
A. desk research.
81. Decision regarding factory design is part of :
A. network analysis.
B. financial analysis.
C. technical analysis.
D. social cost benefit analysis.
Answer
C. technical analysis.
82. Which of the following is not a network technique :
A. cpm.
B. pert.
C. swot.
D. lob.
Answer
C. swot.
83. Shortest possible time to complete an activity is ___
A. pessimistic time
B. optimistic time
C. most likely time
D. none of these
Answer
B. optimistic time
84. Maximum possible time to complete an activity is ___
A. pessimistic time
B. optimistic time
C. most likely time
D. none of these
Answer
A. pessimistic time
85. Estimated time required in normal conditions complete an activity is ___
A. pessimistic time
B. optimistic time
C. most likely time
D. none of these
Answer
C. most likely time
86. ___ shows the changes in assets, liabilities and net worth between twobalance sheet dates.
A. cash flow
B. fund flow
C. ratio
D. breakeven
Answer
B. fund flow
87. ___ shows movement of cash into and out of the firm and its net effect onbalance sheet.
A. cash flow
B. fund flow
C. ratio
D. breakeven
Answer
A. cash flow
88. Which of the following is not a technique of financial analysis:
A. ratio analysis.
B. risk analysis.
C. cash flow analysis.
D. fund flow analysis.
Answer
B. risk analysis.
89. Mathematical relationship between two figures taken from financial statementsis called ___
A. cash flow
B. fund flow
C. ratio
D. breakeven
Answer
C. ratio
90. ___ is an equilibrium point.
A. cash flow
B. fund flow
C. ratio
D. breakeven
Answer
D. breakeven
91. ___ is described as bread earning point.
A. cash flow
B. fund flow
C. ratio
D. breakeven
Answer
D. breakeven
92. ___ ratio establishes relationship between contribution margin andtotal sales.
A. p/v
B. current
C. profitability
D. none
Answer
A. p/v
93. Contribution margin ratio is better known as ___
A. p/v
B. current
C. profitability
D. none
Answer
A. p/v
94. ___ Is also known as marginal profit ratio
A. p/v
B. current
C. profitability
D. none
Answer
A. p/v
95. Raising capital from multiple sources is known as ___
A. venture capital
B. layered financing
C. deferred credit
D. lease financing
Answer
B. layered financing
96. Giving capital to enterprise that has risk and adventure is called ___
A. venture capital
B. layered financing
C. deferred credit
D. lease financing
Answer
A. venture capital
97. Arrangement where payments to suppliers are made in agreed installments over a specified period of time at some agreed rate of interest on the outstandingbalance.
A. venture capital
B. layered financing
C. deferred credit
D. lease financing
Answer
C. deferred credit
98. . ___ is a contract between the owner and user of the asset to use the asset for aconsideration.
A. venture capital
B. layered financing
C. deferred credit
D. lease financing
Answer
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
Answer
A. investment
100. Project appraisal is usually done by a ___ Institution.
A. marketing
B. financial
C. production
D. none of these
Answer
B. financial
101. Profitability index is also known as ___ ratio
A. roi
B. benefit- cost
C. debt-equity
D. none
Answer
B. benefit- cost
102. Payback period and ARR methods are ___
A. traditional
B. discounting
C. modern
D. none
Answer
A. traditional
103. NPV, PI and ___ are the three discounted cash flow techniques.
A. arr
B. irr
C. ntv
D. urgency
Answer
B. irr
104. Original investment is divided by constant cash ___ to get paybackperiod.
A. inflows
B. outflows
C. balance
D. both (a)and (b)
Answer
A. inflows
105. ___ is also called trial and error Method.
A. arr
B. irr
C. ntv
D. urgency
Answer
B. irr
106. The discount rate at which present value of cash inflows equals to the presentvalue of cash outflows is called ___
A. arr
B. irr
C. ntv
D. urgency
Answer
B. irr
107. Project ___ is done after the project is implemented.
A. management
B. appraisal
C. evaluation
D. none
Answer
C. evaluation
108. The main object of project appraisal is:
A. to find whether the project is technically feasible.
B. to ascertain whether the project is financially feasible.
C. to decide whether to accept or reject a project.
D. to know whether the project is eco-friendly.
Answer
C. to decide whether to accept or reject a project.
109. Project appraisal is done by:
A. government.
B. financial institution only.
C. entrepreneur only.
D. both financial institution and entrepreneur.
Answer
D. both financial institution and entrepreneur.
110. Which one is not an element of project appraisal:
A. technical feasibility.
B. network analysis.
C. economical viability.
D. commercial viability.
Answer
B. network analysis.
111. The discount rate must be determined in advance for the :
A. payback period.
B. time adjusted rate of return method.
C. irr
D. npv method.
Answer
D. npv method.
112. Which one of the following is not a discounted cash flow technique:
A. arr
B. irr
C. npv
D. pi
Answer
A. arr
113. The difference between the total present value of a stream of cash flows of agiven rate of discount and the initial capital outlay is known as the :
A. irr.
B. arr.
C. npv.
D. net profit.
Answer
C. npv.
114. The scientific technique of evaluation of capital expenditure decisions includethe following except:
A. npv.
B. pi.
C. irr.
D. payback period.
Answer
D. payback period.
115. Profitability index shows benefits from the proposal in :
A. absolute terms.
B. relative terms.
C. both of the above.
D. none of these.
Answer
B. relative terms.
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.
Answer
C. equivalent to firm’s average cost of capital.
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.
Answer
B. project evaluation.
118. The excess of the present value over the cost of the project is ___
A. irr
B. arr
C. npv
D. ntv
Answer
D. NTV
119. In case of mutually exclusive projects, the project with ___ PI is to beselected.
A. higher
B. lower
C. negative
D. positive
Answer
A. higher
120. In independent projects, accept a project if it’s NPV is ___
A. higher
B. lower
C. negative
D. positive
Answer
D. positive
121. Under Net Terminal Value Method, accept a project if it’s NTV is ___
A. higher
B. lower
C. negative
D. positive
Answer
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
Answer
C. negative
123. Reject a project if it’s IRR is ___ when compared to desired minimum
A. higher
B. lower
C. negative
D. positive
Answer
B. lower
124. ___ report is a document wherein all the details obtained fromtechnical analysis, financial analysis, profitability analysis etc. are put together.
A. feasibility
B. project
C. both
D. none
Answer
C. both
125. ___ Is an essential document for procuring assistance fromfinancial institutions and for fulfilling other formalities for the implementation of the project.
A. feasibility
B. project
C. progress
D. none
Answer
B. project
126. Department of industries and commerce formulated a scheme to set up ___ To inculcate entrepreneurial culture amongst youth.
A. ed clubs
B. youth clubs
C. lion clubs
D. none
Answer
A. ed clubs
127. The scheme of ED Clubs will be implemented by ___
A. business incubators.
B. industrial estates.
C. dic.
D. none of these.
Answer
C. dic.
128. A grant of ___ Will be given to each ED club by the department of Commerceand industry.
A. 20000
B. 15000
C. 18000
D. 12000
Answer
D. 12000
129. A ___ Is an organization designed and success of entrepreneurialcompanies through an array of business support resources and services.
A. business incubators.
B. industrial estates.
C. dic.
D. none of these.
Answer
A. business incubators.
130. ___ Skill refers to the ability to conceive new ideas and products.
A. diagnostic
B. conceptual
C. technical
D. human relation
Answer
B. conceptual
131. The skill to handle people and to influence their behaviour is known as ___
A. diagnostic
B. conceptual
C. technical
D. human relation
Answer
D. human relation
132. ___ Skill refers to the ability to understand problems from visible symptoms.
A. diagnostic
B. conceptual
C. technical
D. human relation
Answer
A. diagnostic
133. Ability to use techniques ,procedures and tools of a specific field is called ___
A. diagnostic
B. conceptual
C. technical
D. human relation
Answer
C. technical
134. Entrepreneurship development is slow in Kerala because:
A. natural resources are limited.
B. poor quality of man power.
C. instable govt.
D. none of these.
Answer
D. none of these.
135. The minimum numbers to form an ED club is:
A. 20.
B. 25.
C. 50.
D. none of these.
Answer
B. 25.
136. Which one of the following is not a function of ED club:
A. organic workshop.
B. interaction with promotional agencies.
C. provide infrastructure.
D. organic industrial visits.
Answer
C. provide infrastructure.
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.
Answer
A. business incubators.
138. ___ analysis is concerned with identification of project demandpotential and selection of optimal technology:
A. techno-economic
B. network
C. financial
D. social cost-benefit
Answer
A. techno-economic
139. ___ Analysis is concerned with the development of detailed workplan of the project and its time profile:
A. techno-economic
B. network
C. financial
D. social cost-benefit
Answer
B. network
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
Answer
C. financial
141. ___ analysis aims at analyzing the real contribution of an investmentproject towards welfare of country as a whole;
A. techno-economic
B. network
C. financial
D. social cost-benefit
Answer
D. social cost-benefit
142. ___ Helps to take investment decision:
A. techno-economic
B. technical
C. financial
D. pre-investment appraisal
Answer
D. pre-investment appraisal
143. ___ Analysis is carried out to ascertain technical soundness of the project:
A. techno-economic
B. technical
C. financial
D. pre-investment appraisal
Answer
B. technical
144. ___ Refers to manner in which a company’s inputs are transferredinto output process:
A. process
B. method
C. technology
D. method
Answer
C. technology
145. ___ Give right to use patented technology and get related know-how onmutually agreed basis:
A. technology licensing.
B. purchase of technology.
C. joint venture.
D. indigenous technology.
Answer
A. technology licensing.
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
Answer
B. purchase of 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
Answer
C. joint venture.
148. Technology developed within a country is called ___
A. technology licensing.
B. purchase of technology.
C. joint venture.
D. indigenous technology
Answer
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.
Answer
A. plant capacity.
150. ___ Refers to the board area where the enterprise is to be established:
A. plant capacity.
B. plant location.
C. plant layout.
D. process layout.
Answer
B. plant location.
151. ___ Refers to the arrangement of machines, equipments andother physical facilities within factory premises:
A. plant capacity.
B. plant location.
C. plant layout.
D. process layout.
Answer
C. plant layout.
152. In ___ Similar machines are placed in one place according tooperations they perform:
A. process layout.
B. combined layout.
C. stationary layout.
D. cellular layout.
Answer
A. process layout.
153. In ___ Men and equipment are moved to the material which remains inone place:
A. process layout.
B. combined layout.
C. stationary layout.
D. cellular layout.
Answer
C. stationary 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.
Answer
B. combined layout.
155. In ___ machines dedicated to sequences of production are groupedinto cells:
A. process layout.
B. combined layout.
C. stationary layout.
D. cellular layout.
Answer
D. cellular layout.
156. Line layout is also called ___
A. process layout.
B. combined layout.
C. stationary layout.
D. product layout
Answer
D. product 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
Answer
D. product layout
158. There is a continuous flow of materials in process towards the finished productstage in ___
A. process layout.
B. combined layout.
C. stationary layout.
D. product layout
Answer
D. product layout
159. ___ Is the best suited in mass production:
A. process layout.
B. combined layout.
C. stationary layout.
D. product layout
Answer
D. product layout
160. ___ Is an innovative layout:
A. process layout.
B. combined layout.
C. stationary layout.
D. cellular layout.
Answer
D. cellular layout.
161. ___ Is referred to as group layout:
A. process layout.
B. combined layout.
C. stationary layout.
D. cellular layout.
Answer
A. process layout.
162. ___ Is called fixed position layout:
A. process layout.
B. combined layout.
C. stationary layout.
D. cellular layout.
Answer
C. stationary layout.
163. ___ Is also called functional layout:
A. process layout.
B. combined layout.
C. stationary layout.
D. cellular layout.
Answer
A. process layout.
164. ___ is a post investment decision report.
A. feasibility report
B. interim report
C. project report
D. progress report
Answer
C. project report
165. ___ provides clues to pertinent questions like “what, why, how, whenand where of the project.
A. feasibility report
B. interim report
C. project report
D. progress report
Answer
C. project report
166. An in-depth study is not required in ___
A. feasibility report
B. interim report
C. project report
D. progress report
Answer
A. feasibility report
167. ___ is the master report
A. feasibility report
B. interim report
C. project report
D. progress report
Answer
C. project report
168. ___ is the final report
A. feasibility report
B. interim report
C. project report
D. progress report
Answer
C. project report
169. Which of the following is not included in utilities.
A. raw materials
B. water
C. power
D. effluent disposal
Answer
A. raw materials
170. Which of the these are not industries promotional institution
A. kfc
B. ksidc
C. ksetdc
D. ktc
Answer
D. ktc
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
Answer
B. decision-making
172. ___ skill helps an entrepreneur to establish an enterprise.
A. communication
B. decision-making
C. project development
D. management
Answer
C. project development
173. ___ skill relates to accounting and financing control, marketing, productionplanning and inventory control and to manage people who work in the enterprise.
A. communication
B. decision-making
C. project development
D. management
Answer
D. management
174. ___ skills are necessary for an entrepreneur to deal with many people.
A. communication
B. decision-making
C. project development
D. management
Answer
A. communication
175. Incubators organised by the government are called ___
A. government sponsored
B. non-profit organizations sponsored
C. university sponsored
D. privately sponsored
Answer
A. government sponsored
176. ___ are incubators sponsored and managed through associations, chambers ofcommerce etc
A. government sponsored
B. non-profit organizations sponsored
C. university sponsored
D. privately sponsored
Answer
B. non-profit organizations sponsored
177. ___ incubators transit the findings of research and development into newproducts and technologies.
A. government sponsored
B. non-profit organizations sponsored
C. university sponsored
D. privately sponsored
Answer
C. university sponsored
178. ___ incubators are organised and managed by private firms or companies orcorporations
A. government sponsored
B. non-profit organizations sponsored
C. university sponsored
D. privately sponsored
Answer
D. privately sponsored
179. ___ incubators create employment.
A. general purpose
B. technology
C. specialist
D. none
Answer
A. general purpose
180. ___ incubators seek to commercialize new product or service
A. general purpose
B. technology
C. specialist
D. none
Answer
B. technology
181. ___ incubators focus on specific industry areas like art and craft.
A. general purpose
B. technology
C. specialist
D. none
Answer
C. specialist
182. which of these is not a criteria for choosing right incubator.
A. success rates
B. quality
C. site
D. space
Answer
C. site
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
Answer
D. business clusters
184. Which of these is a problem of MSMEs
A. bogus units
B. inadequate finance
C. lack of managerial experience
D. all of these
Answer
D. all of these
185. The slogan “innovate or evaporate” was given by ___
A. robert owen
B. joseph schumpeter
C. richard cantillon
D. philip kotler
Answer
D. philip kotler
186. The first and foremost industrial estate was established at ___
A. rajkot
B. ahmadabad
C. patna
D. gurgaon
Answer
A. rajkot
187. The first and foremost industrial estate was established in the year ___
A. 1960
B. 1962
C. 1955
D. 1950
Answer
C. 1955
188. ___ means organising, housing and servicing industry, a planned clusteringof 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
Answer
B. industrial estate
189. ___ is the advance given to cover the finance requirement during the time lagbetween sanctioning and disbursement of term loan by financial institutions.
A. incentive
B. bridge capital
C. subsidy
D. venture capital
Answer
B. bridge capital
190. ___ Is the work of entrepreneurs.
A. invention
B. innovation
C. both
D. none
Answer
B. innovation
191. ___ is the work of scientists.
A. invention
B. innovation
C. both
D. none
Answer
A. invention
192. Which of these is not a environmental barrier to entrepreneurship
A. lack of skilled labour
B. custom of people
C. lack of fund
D. lack of infrastructure
Answer
B. custom of people
193. Which of these is a social barrier to entrepreneurship
A. low status
B. custom of people
C. both
D. none
Answer
C. both
194. ___ is a combination of knowledge, skills and appropriate motives that anindividual must possess to perform a given task.
A. persistence
B. initiative
C. competency
D. creativity.
Answer
C. competency
195. The capacity to take repeated and different actions to overcome obstacles iscalled ___
A. persistence
B. initiative
C. competency
D. creativity.
Answer
A. persistence
196. An inner urge in an individual to do something is called ___
A. persistence
B. initiative
C. competency
D. creativity.
Answer
B. initiative
197. ___ is the ability of an entrepreneur to successfully convince others.
A. persistence
B. initiative
C. competency
D. persuasion.
Answer
D. persuasion.
198. Projects for industrial development is an ___ project.
A. quantifiable
B. non-quantifiable
C. sectoral
D. crash
Answer
A. quantifiable
199. Additional capital cost are incurred in ___ projects to save time.
A. quantifiable
B. non-quantifiable
C. sectoral
D. crash
Answer
D. crash
200. Large scale projects are an example of ___ project
A. quantifiable
B. magnitude oriented
C. sectoral
D. crash
Answer
B. magnitude oriented
201. ___ analysis helps in studying the impact of crucial variables like rawmaterials, 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
Answer
B. sensitivity
202. ___ analysis presents he picture of profit at different levels of production.
A. break-even
B. sensitivity
C. risk
D. ratio
Answer
A. break-even
203. ___ analysis helps to compare current performance with the past and alsoin measuring effectiveness and efficiency of the organization in the light of norms of performances
A. break-even
B. sensitivity
C. risk
D. ratio
Answer
D. ratio
204. ___. analysis is a continuous process used to analyse the past and/or projectedfinancial data.
A. break-even
B. sensitivity
C. financial
D. ratio
Answer
C. financial
205. Crashing is applicable in ___
A. pert
B. cpm
C. map
D. lob
Answer
B. cpm
206. ___ entrepreneurs are extremely task oriented.
A. Technical
B. Fabian
C. induced
D. Business
Answer
A. Technical
207. The term intrapreneur was coined by ___.
A. Robert Owen
B. Joseph Schumpeter
C. Richard Cantillon
D. Gifford Pinchot
Answer
D. Gifford Pinchot
208. According to Schumpeter, Is the most important function of a modern entrepreneur.
A. Innovation,
B. invention,
C. skill,
D. creativity.
Answer
A. Innovation,
209. Knowledge + Skill + Traits = ___
A. Innovation.
B. Competency.
C. Skill.
D. Creativity.
Answer
B. Competency.
210. Social attitude is one of the important problems of a ___ Entrepreneur.
A. Drone.
B. Business.
C. Women.
D. Adoptive.
Answer
C. Women.
211. Which of the following risks is borne by the entrepreneur:
A. Financial risks,
B. personal risks,
C. psychological risks,
D. all of these.
Answer
D. all of these.
212. Which of the following is a psychological factor affecting entrepreneurial growth:
A. Legitimacy of entrepreneurship,
B. social status,
C. need for achievement,
D. none of these.
Answer
C. need for achievement,
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
Answer
A. 25 lakhs
214. A micro enterprise is one in which the investment in plant and machinery doesnot exceed Rs ___.
A. 25 lakhs
B. 50 lakhs
C. 1 crore
D. 10 lakhs
Answer
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.
Answer
A. Project appraisal.
216. Capital investment subsidy was introduced in ___
A. 1973
B. 1971
C. 1972
D. 1970
Answer
B. 1971
217. A micro manufacturing enterprise is one in which the investment in plant andmachinery does not exceed ___
A. Rs. 5 lakhs.
B. Rs. 10 lakhs.
C. Rs.20 lakhs.
D. None of these.
Answer
D. None of these.
218. 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.
Answer
B. Rs.10 lakhs.
219. A small service enterprise is one in which the investment in plant and machinerydoes not exceed ___
A. Rs. 25 lakhs.
B. 1 crore.
C. 2 crores.
D. None of these.
Answer
C. 2 crores.
220. A single lump sum which is given by a govt. to an entrepreneur to cover the costis known as ___
A. subsidy
B. Concession
C. Bounties
D. None of these
Answer
A. subsidy
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 knownas ___
A. Soft loan.
B. Seed capital.
C. Capital subsidy.
D. Bridge loan.
Answer
D. Bridge loan.
222. The MSME Development Act came into force in the year ___
A. 2005.
B. 2006.
C. 2007.
D. None of these.
Answer
B. 2006.
223. Techno crafts is assistance is provided by ___
A. KFC
B. KITCO
C. KSIDC
D. KINFRA
Answer
A. KFC
224. The process of evaluating the project ideas with a view to select the best andpromising idea after eliminating the unprofitable ideas is called ___ Of the project ideas.
A. Screening
B. appraisal
C. identification
D. none
Answer
A. Screening
225. After screening the ideas, they are translated into project ___
A. portfolio
B. profiles
C. proposal
D. none
Answer
B. profiles
226. SWOT stands for strength, weakness, opportunity, and ___
A. Treat
B. threat
C. tort
D. none
Answer
B. threat
227. Project formulation means ___ Study.
A. profitability
B. liquidity
C. feasibility
D. viability
Answer
C. feasibility
228. ___ Analysis is primarily concerned with the identification, quantification and evaluation of project resources.
A. Network
B. financial
C. techno-economic
D. input
Answer
D. input
229. The term ___ refers to the plan for a particular type of building, arrangement of machinery and equipment and provision of facilitation in thebuilding.
A. factory building
B. factory design
C. factory layout
D. factory premises
Answer
B. factory design
230. The element of job to be completed in a specific time is known as ___
A. event
B. activity
C. network
D. slack
Answer
B. activity
231. ___ represents the start and end of an activity.
A. event
B. activity
C. network
D. slack
Answer
A. event
232. The sum of earliest start time and estimated time to perform the project is called ___
A. EFT
B. LST
C. LFT
D. EST
Answer
A. EFT
233. The latest possible time an activity can finish without delaying the project is called ___
A. EFT
B. LST
C. LFT
D. EST
Answer
C. LFT
234. Difference between latest finish time and estimated time to perform the projectis called ___
A. EFT
B. LST
C. LFT
D. EST
Answer
B. LST
235. Contribution margin ratio is better known as ___
A. P/V
B. current
C. profitability
D. none
Answer
A. P/V
236. Arrangement where payments to suppliers are made in agreed installments over aspecified 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
Answer
C. deferred credit
237. Payback period and ARR methods are ___
A. traditional
B. discounting
C. modern
D. none
Answer
A. traditional
238. Project ___ is done after the project is implemented.
A. Management
B. Appraisal
C. Evaluation
D. None
Answer
C. Evaluation
239. The main object of project appraisal is :
A. To find whether the project is technically feasible
B. To ascertain whether the project is financially feasible
C. To decide whether to accept or reject a project
D. To know whether the project is eco-friendly
Answer
C. To decide whether to accept or reject a project
240. Which one is not an element of project appraisal :
A. Technical feasibility.
B. Network analysis.
C. Economical viability.
D. Commercial viability.
Answer
B. Network analysis.
