UNIT – 1.

Entrepreneurship
Sr. Questions Ans.
No.
1. An entrepreneur who owns more than one business at a time is called B
A. A corporate entrepreneur
B. A portfolio entrepreneur
C. An Intrapreneur
D. Fabian Entrepreneur
2. Which one of the following is not considered as one of the building blocks of C.
the model entrepreneur?
A. Technical skills
B. Management competencies
C. Business awareness
D. Personal attributes
3. What is the role of a Business Angel? A
A. To provide capital for business development in exchange for a stake in the
Business ownership
B. To provide small business advice
C. To assist an entrepreneur to open a lifestyle business
D. To set up a franchise business
4. Innovation can be best defined as A
A. the successful exploitation of new ideas
B. the evolution of new ideas
C. the generation of new ideas
D. the opposite of creativity
5. Which of the following could not be one of the major reasons for business C
failure?
A. Poor financial control
B. Poor management
C. Lack of experience
D. Lack of market research
6. Which of the following is NOT one of the valid statements regarding the B
importance of small businesses in a country’s economy?
A. They can provide specialist support to larger companies
B. They can reduce larger companies’ market dominance by competing with
them
C. They can be innovators of new products
D. They give an outlet for entrepreneurs.
7. Which industrial sector tends to naturally promote small-scale businesses and C
Entrepreneurship, and generally has lower barriers to market entry?
A. Manufacturing

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 B. Agriculture
C. Service
D. Distribution
8. Which one of the following actions by an entrepreneur is most likely to A
contribute to creative destruction?
A. Take-over of a competitor
B. Issuing shares
C. Reducing prices
D. Development of a new product
9. Innovative small firms are more likely in B
A. Biotechnology
B. Knowledge-based sectors
C. Aerospace manufacturing
D. Automobile manufacturing
10. Innovative entrepreneurs face special issues in raising A
A. Seed capital
B. Structured capital
C. Development capital
D. Human capital
11. Which of the following is NOT one of the misconceptions about C.
entrepreneurship?
A. Entrepreneurship is easy
B. Successful entrepreneurship needs only a great idea
C. Entrepreneurial ventures and small businesses are different
D. Entrepreneurship is found only in small businesses
12. Positive external trends or changes that provide unique and distinct possibilities A.
for innovating and creating value are called _____________
A. Opportunities
B. Weaknesses
C. Threats
D. Strengths
13. An individual who has no prior business ownership experience as a business B
founder, inheritor of a business, or a purchaser of a business is called as
____________ Entrepreneur
A. Habitual
B. Novice
C. Serial
D. Portfolio
13. An individual who has prior business ownership experience is called as C
____________ entrepreneur
A. Novice
B. Serial
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 C. Habitual
D. Portfolio
14. Someone who improves an existing business is called B
A. An entrepreneur
B. An Intrapreneur
C. An employee
D. A leader
15. Entrepreneur is a factor of A
A. Microeconomics
B. Sociology
C. Macroeconomics
D. Economics
16. Intrapreneurs perform their activities B
A. Personally
B. Dependently
C. Independently
D. reluctantly
17. Drone entrepreneur C
A. Are imitative
B. Are innovative
C. Refuse to adopt changes
D. Adopt new technologies
18. Which of the following is NOT one of the advantages of entrepreneurship? D
A. Option of choosing a business of own interest
B. Opportunity to be creative
C. Scope of making a lot of money
D. Possibility of making most of the decisions alone
19. Which of the following factors won’t affect a person from being an A
entrepreneur?
A. Gender
B. Education
C. Family background
D. Personal values
20. Which of the following is NOT one thing that could be invested? D
A. Money
B. Time
C. Energy
D. Expertise
21. Female entrepreneurs are different from male entrepreneurs in terms of the C
following things except one
A. Goal orientation
B. Departure point
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 C. Motivation
D. Business skills
22. The resistance of employees in an organization against flexibility, growth and C
diversification could be dealt with the development of ___________
A. Entrepreneurship
B. Leadership
C. Intra-corporate entrepreneurship
D. Team building
23. Entrepreneurial activities predominantly depends upon the personality of an B
entrepreneur, organizational structure and ____________
A. The government
B. The environment
C. The market
D. The labour
24. The word ‘Entrepreneur’ is derived from a _____________ word that means B
‘To undertake’
A. Greek
B. French
C. German
D. Roman
25. Which of the following is NOT one of the disadvantages of entrepreneurship? D.
A. Need to work for long hours
B. Uncertainty of income
C. Risky affair
D. Being your own boss
26. Which of the following is NOT one of the non-economic factors affecting A
entrepreneurial growth?
A. Market
B. Legitimacy of entrepreneurship
C. Security
D. Marginality
27. Which of the following is NOT one of the characteristics of intrapreneurial C
leadership? A. Understanding environment
B. Persistence
C. Being inflexible
D. Encouraging team work
28. Aakash working in the design team of a multi-national tyre company is B
instrumental in designing and developing new tyre variants with anti-skid
design, durability, firm grip and made for different road conditions prevailing
in India like dirt roads, coal tar roads, concrete roads etc. Aakash would be
called as ______________
A. An Entrepreneur
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 B. A Corporate Entrepreneur
C. An employee
D. Social entrepreneur
29. Entrepreneurs selling the products produced by them are said to be engaged in A.
which of the following activities?
A. Manufacturing
B. Trading
C. Service
D. Selling
30. Why is entrepreneurship needed? D
A. For innovation
B. For healthy competition
C. For earning money
D. For filling up the gap in growth
31. Priya wants to start a trading business by importing some cosmetic and lifestyle B
products. What is the best thing Priya should do before starting?
A. Getting a loan right away
B. Speaking with others who are in the import business
C. Incorporate immediately
D. Finding a business to buy as soon as possible
32. When an entrepreneur senses a risk of his products becoming obsolete in the D
days to come, what type of risk it is?
A. Natural
B. Incompetency
C. Human
D. Economic
33. Having served in an airline company for five years, Nisha had travelled all A
across the Asian countries. Being an ardent traveller and a writer, she wrote a
couple of blogs for two international holiday resorts endorsing their services.
Now she is regularly writing blogs for different luxury hotels, clubs, resorts etc.
Nisha’s activities can be best described as
A. Entrepreneurship
B. Intrapreneurship
C. Social entrepreneurship
D. Venture capitalist
34. Which of the following is NOT one of the economic factors affecting C
entrepreneurial growth?
A. Market
B. Raw material
C. Social mobility
D. Labour
35. Which of the following is one of the major problems for an entrepreneur in the B
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 initial stage of creating a new venture?
A. Lack of resources
B. Lack of experience
C. Lack of education
D. Lack of time
36. Which of the following characteristics speaks about an ideal entrepreneurial C
culture?
A. Discouragement of trial and error
B. Intolerance to failure
C. Easily available and accessible resources
D. Discouragement of multi-disciplinary approach
37. Entrepreneurial management is identified for its ability to react quickly and D.
effectively to _____________
A. New markets
B. New products
C. Latest Technology
D. Business opportunities
38. Which of the following statements is conflicting with respect to the B
entrepreneurs?
A. An entrepreneur is the risk taker
B. An entrepreneur operates production function
C. An entrepreneur have an eye for business opportunities
D. An entrepreneur is the owner of business
39. Which of the following could not be the possible reason why entrepreneurs A
would want to take the risk of starting a business?
A. No work pressure
B. Independence
C. Love for challenges & risks
D. Moneymaking
40. 31. The problems of women entrepreneurs could be best addressed with B
_________
A. Social attitude
B. Finance cells
C. Supervision
D. Stiff competition
41. A decision of shifting of the manufacturing plant of Nano cars from Singur, A.
West Bengal to Sanand, Gujrat due to unforeseen complexity is the reflection
of which type of entrepreneurial competencies?
A. Problem solving
B. Quality performance
C. Performance seeking
D. Systematic planning
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42. Which of the following gets accelerated with an expanding economy? C
A. Intrapreneurship
B. Sole proprietorship
C. Entrepreneurship
D. Partnership firm
43. Which of the following is NOT one of the building blocks of the model B
entrepreneur?
A. Managerial competencies
B. Business competencies
C. Personal attributes
D. Technical skills
44. Which of the following is NOT one of the characteristics of entrepreneurship? A
A. Managerial training
B. Innovation
C. Creative activity
D. Risk taking
45. 26. Which of the following statements describing Entrepreneurship is TRUE? D
A. It takes place only in small businesses
B. It doesn’t take place in social enterprises
C. It takes place only in large businesses
D. It takes place in a wide variety of context
46. An entrepreneur who owns more than one business at a time is known as B
A. A corporate entrepreneur
B. A portfolio entrepreneur
C. Trading entrepreneur
D. An intrapreneur
47. Seed capital is to provide ____________ to a start-up A
A. An initial assistance
B. A long-term assistance
C. A short term assistance
D. A temporary assistance
48. An entrepreneur can _________ the business risk involved B
A. Avoid
B. Reduce
C. Erase
D. Ignore
49. Entrepreneurship can be best described as D
A. An act of taking significant risk in the context of a business
B. An act of having a strong vision
C. The process of setting-up a business
D. The process that involves innovation & value creation
50. Corporate venturing is one of the prime characteristics of A
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 A. Intrapreneurship
B. A start-up or new venture
C. Entrepreneurship
D. An established business
51. In ________ century, a person who managed large projects was termed as an C
entrepreneur
A. 17th
B. 16th
C. 19th& 20th
D. 18th
52. Which of the following statements about the role of small businesses in the C
country’s economy is NOT true?
A. They provide specialist support to larger companies
B. They are the innovators of new products
C. They contribute very little to the country’s GDP
D. They provide an outlet for entrepreneurial ideas
53. Which of the following is the industrial sector with low market entry barriers B
that promotes small-scale businesses and entrepreneurship?
A. Manufacturing
B. Service
C. Agriculture
D. Logistics
54. Which of the following is NOT one of the types of an entrepreneur classified D
according to the type of business?
A. Retail Trader
B. Exporter
C. Wholesale trader
D. Rural entrepreneur
55. An entrepreneur is the person who takes __________ C
A. High risk
B. Low risk
C. Moderate risk
D. No risk
56. Which entrepreneurial action contributes to creative destruction? D
A. Takeover of a competitor
B. Setting up a new organization
C. Going public by issuing IPO
D. Development of a new product
57. Venture capital is concerned with C
A. New project of high technology
B. New project having high risk
C. New project having potential for higher profit
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 D. New project with good human resource
58. A women entrepreneur is supposed to have a minimum financial interest in A
share capital of entrepreneur’s enterprise which amounts to
A. 25 per cent
B. 51 per cent
C. 35 per cent
D. 30 per cent
59. A corporate manager who starts a new initiative for their company which C
entails setting up a new distinct business unit and board of directors
A. Technopreneur
B. Ecopreneur
C. Intrapreneur
D. Social Entrepreneur
60. A Micro Enterprise is an enterprise where investment in plant and machinery B
does not exceed
A. Rs. 20 Lakh
B. Rs. 25 Lakh
C. Rs. 30 Lakh
D. Rs. 15 Lakh
61. Why should an entrepreneur do a feasibility study for starting a new venture? B
A. To identify possible sources of funds
B. To see if there are possible barriers to success
C. To estimate the expected sales
D. To explore potential customers
62. The members of distribution channels are excellent sources for new ideas D
because
A. They do not bother if entrepreneur bears a loss
B. They have well-developed sales force
C. They earn a handsome profit from new business
D. They are familiar with the needs of the market
63. Which is the most important source of idea generation due to their familiarity A
with the needs of market?
A. Distribution channels
B. Government
C. Consumer groups
D. Existing products & services
64. The activity that occurs at the start of the new venture is called as C
A. Business activity
B. Goal setting
C. Departure point
D. Motivation
65. Corporate Venturing is an act of A.
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 A. Intrapreneurship
B. Starting a new venture
C. Entrepreneurship
D. Offering new products by an existing company
66. Which is the most important factor in forcing the companies to focus on new B
product development and increased productivity?
A. Government Policies
B. Hyper Competition
C. Entrepreneurship
D. Organizational Culture
67. The process in which entrepreneurs develop new products making current C
products obsolete
A. New Business Model
B. Anatomization
C. Constructive Disruption
D. Destructive Creation
68. The process in which an individual working in an organization pursue D
opportunities without regard to the resources they currently control
A. Start-up Management
B. Financial Analysis
C. Feasibility Study
D. Corporate Entrepreneurship
69. The entrepreneur was distinguished from capital provider in _________ A
A. 18th century
B. 17th century
C. 20th century
D. 19th century
70. The process of creating something new is B
A. Innovation
B. Involvement
C. Model
D. Creativity

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