Q81: Which one of the following is the major objective of developing a financial roadmap of the business?
- A. To identify the benchmarks that the company wants to hit in future course of time
- B. To quantify the resources that will be required to meet the milestones or goals set initially
- C. To help & guide in navigating the smaller steps & stages along the way of realizing the business dream visualized
- D. All of the above
Answer
Answer D. All of the above
Q82: Financial statements are useful for this reason
- A. To determine whether a business has the capability to pay back its debts
- B. To determine the ability of a business to generate cash, and the sources and uses of that cash
- C. To investigate the details of certain business transactions, as outlined in the disclosures that accompany the statements
- D. All of the above
Answer
Answer D. All of the above
Q83: This is one of the four components of financial statements which shows the results of the entity’s operations and financial activities for the reporting period
- A. Income statement
- B. Supplementary notes
- C. Balance sheet
- D. Statement of cash flows
Answer
Answer A. Income statement
Q84: This is one of the four components of financial statements which shows the entity’s assets, liabilities, and stockholders’ equity as of the report date
- A. Statement of cash flows
- B. Income statement
- C. Balance sheet
- D. Supplementary notes
Answer
Answer C. Balance sheet
Q85: This component of financial statements includes explanations of various activities, additional detail on some accounts, and other items as mandated by the applicable accounting framework
- A. Statement of cash flows
- B. Supplementary notes
- C. Balance sheet
- D. Income statement
Answer
Answer B. Supplementary notes
Q86: This component of financial statements does not show information that covers a span of time
- A. Statement of cash flows
- B. Supplementary notes
- C. Income statement
- D. Balance sheet
Answer
Answer D. Balance sheet
Q87: This component of financial statements includes revenues, expenses, gains, and losses
- A. Balance sheet
- B. Statement of cash flows
- C. Income statement
- D. Supplementary notes
Answer
Answer C. Income statement
Q88: What would be the best approach of budgeting for startup success?
- A. Calculating every cost in the present and future
- B. Mapping out specific costs & setting aside funds for emergencies
- C. Estimating the startup budget from staffing to machinery & stick to it
- D. All of the above
Answer
Answer B. Mapping out specific costs & setting aside funds for emergencies
Q89: The startup budget
- A. Should be rigid and stuck to for achieving an intended initial goal
- B. Should be flexible & can be readjusted multiple times if required
- C. Can be changed but readjusting the focus to the revamped budget is necessary
- D. None of the above
Answer
Answer C. Can be changed but readjusting the focus to the revamped budget is necessary
Q90: It is said that startup is like building a ship which should sail through the sea of uncertain market & environmental conditions, so startup budgeting becomes the key to success. Which of the following option about startup budget is more apt in this regard?
- A. The budget should be limited & raised with caution to avoid unnecessary debts
- B. Calculate each expense multiple times, if required & determine the more realistic budget
- C. The budget should not have limits or it will restrict the initial push that is very much needed in current competitive scenario
- D. None of the above
Answer
Answer B. Calculate each expense multiple times, if required & determine the more realistic budget
Q91: What would the best approach of budget allocation in case of a debt ridden startup?
- A. It’s better to catch costly expenses in the beginning rather than in the end
- B. The small expenses should be done away with at the first instance followed by the costly expenses
- C. Both small & costly expenses should be cleared simultaneously
- D. None of the above
Answer
Answer A. It’s better to catch costly expenses in the beginning rather than in the end
Q92: Which one of the following is NOT one of the sources of own finance for the business?
- A. Credit cards
- B. Savings
- C. Personal loans
- D. Crowd funding
Answer
Answer D. Crowd funding
Q93: Bootstrapping is the only option of funding for___
- A. The entrepreneurs who want to have a full control or ownership over their company
- B. Companies that won’t grow quickly or provide a significant ROI to investors
- C. The companies which first need to reach certain milestones on their own to get the investments later
- D. All of the above
Answer
Answer B. Companies that won’t grow quickly or provide a significant ROI to investors
Q94: Bootstrapping is the way of raising funds or capital for your business by___
- A. Using your own finances like savings, credit card, loans or from ‘friends, family and fools’
- B. Selling an early product to fund company development
- C. Selling your time & expertise for consulting
- D. All of the above
Answer
Answer D. All of the above
Q95: Raising business funds through crowd funding is NOT
- A. Reward based
- B. Equity based
- C. Request based
- D. Donation based
Answer
Answer C. Request based
Q96: Which of the following statements about government grants & subsidies for business is NOT true?
- A. It is an unconditional grant to support an entrepreneur’s personal & business expenses
- B. It is not expected to be paid back
- C. It may be used for research, business development, education or other endeavors that are anticipated to support a common cause
- D. It is the grant which includes conditions that must be met, such as reporting performance or results
Answer
Answer A. It is an unconditional grant to support an entrepreneur’s personal & business expenses
Q97: Which one of the following is an informal way of raising funds for business?
- A. Loans
- B. Family & friends
- C. Loans
- D. All of the above
Answer
Answer B. Family & friends
Q98: This government scheme will help people in securing a job after successful completion of training & assessment
- A. STAR
- B. PMEGP
- C. PMKVY
- D. SANKALP
Answer
Answer C. PMKVY
Q99: Ministry of MSME has launched this scheme in the year 2005 with the view to promote Cluster development
- A. MPDA
- B. SFURTI
- C. MPEGP
- D. STAR
Answer
Answer B. SFURTI
Q100: Which one of the following is NOT one of the seven training courses under STAR (Standard Training Assessment and Reward) scheme by MSDE?
- A. Security
- B. Telecom
- C. Construction
- D. Manufacturing
Answer
Answer D. Manufacturing
Q101: Which one of the following is a centrally sponsored scheme which is collaborated with the World Bank and aims to implement the mandate of the National Skill Development Mission (NSDM?
- A. STAR
- B. PMKVY
- C. SANKALP
- D. PMEGP
Answer
Answer C. SANKALP
Q102: Which government programme is implemented through KVIC and DICs and helps in establishing new self-employment ventures / projects and micro enterprises?
- A. MPEGP
- B. MPDA
- C. CGTMSE
- D. SFURTI
Answer
Answer A. MPEGP
Q103: Through this government scheme, an assistance is provided for visiting and exhibiting in domestic & international trade fairs
- A. SFURTI
- B. MPDA
- C. SANKALP
- D. None of the above
Answer
Answer B. MPDA
Q104: Which one of the following is NOT one of the main objectives of SANKALP, an outcome-oriented programme of Ministry of Skill Development & Entrepreneurship?
- A. Coverage
- B. Quality
- C. Inclusiveness & Opportunity
- D. Evaluation System
Answer
Answer A. Coverage
Q105: Which one of the following measure won’t work to attract crowd while launching a crowd funding drive?
- A. Choosing a right platform and creating an online profile
- B. Creating interest for fund raising goals
- C. Making an emotional appeal to the public at large including your peers, relatives & friends
- D. Getting your content ready and explaining your project
Answer
Answer C. Making an emotional appeal to the public at large including your peers, relatives & friends
Q106: In this model of crowd funding no obligation is incurred by the recipient to the donor
- A. Reward based
- B. Equity based
- C. Donation based
- D. Lending based
Answer
Answer C. Donation based
Q107: In which crowd funding model a non-monetary obligation is incurred by the recipient to the donor?
- A. Lending based
- B. Reward based
- C. Donation based
- D. Equity based
Answer
Answer B. Reward based
Q108: Which crowd funding model will not be ideal for the entrepreneurs who want to have a full control or ownership over their company?
- A. Reward based
- B. Lending based
- C. Donation based
- D. Equity based
Answer
Answer D. Equity based
Q109: Which one of the following is NOT one of the features of ‘Venture Capital’?
- A. Long-time horizon
- B. High liquidity
- C. Participation in management
- D. Equity participation and capital gains
Answer
Answer B. High liquidity
Q110: Which one of the following is NOT an advantage of venture capital?
- A. Can bring wealth and expertise to your company
- B. The business is not obligated to repay the money
- C. Detailed business plan, financial projections are needed
- D. Can secure future funding from other sources
Answer
Answer C. Detailed business plan, financial projections are needed
Q111: Which one of the following is NOT a disadvantage of venture capital?
- A. Get large sum of equity finance
- B. Lengthy and complex process
- C. Payment for legal and accounting fees in the deal negotiation stage
- D. Investors become part owners of the business
Answer
Answer A. Get large sum of equity finance
Q112: Private equity funds can be used for___
- A. funding new technologies
- B. making acquisitions
- C. strengthening a balance sheet
- D. All of the above
Answer
Answer D. All of the above
Q113: Investors and funds that make investments directly into private companies or conduct buyouts of public companies is called as
- A. Venture capital
- B. Private equity
- C. Public equity
- D. None of the above
Answer
Answer B. Private equity
Q114: The advantage of equity financing over debt financing is
- A. You don’t have to repay it
- B. You don’t have to use your cash flow to repay the money you borrowed, you can use that money to reinvest in your business and pursue growth
- C. A low debt-to-equity ratio also makes it easier to borrow money in the future if you need to
- D. All of the above
Answer
Answer D. All of the above
Q115: Typical vesting schedule plan is of
- A. 4 Years
- B. 5 Years
- C. 6 Years
- D. None of the above
Answer
Answer A. 4 Years
Q116: What is the benefit of cliff vesting for a start up?
- A. a provision to offer vested benefits to its valuable employees
- B. allows time to vest staff before fully committing them into the system
- C. a gesture showing that the company is attaching value to its employees by giving back a token of the profits they’ve labored hard for
- D. All of the above
Answer
Answer D. All of the above
Q117: Which one of the following is NOT a kind of decision which would relate to the relative importance of operational involvement?
- A. the processes by which goods and services are produced
- B. the stock of materials (inventory) needed to produce goods or services
- C. the supply chain of the finished goods or services
- D. the management of human resources
Answer
Answer C. the supply chain of the finished goods or services
Q118: A preferable format of sending investment ‘Pitch deck’ to the prospective investors in advance of a meeting, is___
- A. Google Docs
- B. PDF
- C. Drop box
- D. Other online service
Answer
Answer B. PDF
Q119: Which of the following topic is NOT needed in your investment pitch deck?
- A. Company Overview
- B. The Market Opportunity
- C. Mission/Vision of the Company
- D. Your journey & life Story
Answer
Answer D. Your journey & life Story
Q120: Which one of the following is not one of the purposes Government promotes entrepreneurship?
- A. Promote Balanced Regional Development
- B. Concentration of Economic Power
- C. Attainment of Economic Development
- D. Create Large Scale Employment Opportunities
Answer
Answer B. Concentration of Economic Power
