Start Up and New Venture Management mcq set 3

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

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