Q.

A ________________ is a clear and concise description of an opportunity.

answer choices

business model

feasibility analysis

business concept

business plan

Q. The process used to test a business concept is called a________________.

answer choices

feasibility analysis

consumer trend

focus group

value chain

Q. A/An _________is a group of businesses with a common interest.

answer choices

association

trade union

industry

manufacturer

Q. Those most likely to buy a business's products and services are________.

answer choices

manufacturers

trade organizations

other businesses

target customers
Q.

To develop a new business first you need to create a/an________________.

answer choices

plan

prototype

account

layout

Q.

A___________describes how you intend to make money with your business concept.

answer choices

brainstorm

trend

business model

prototype

Question 7 30 seconds

Q. The________is the distribution channel through which your product or service flows from the
producer to the customer.

answer choices

highway system

value chain

distribution channel

direct channel

Question 8 30 seconds

Q. When you have a feasible business concept, the next step is to develop a/an__________________.

answer choices

business plan

financial analysis

feasibility analysis
industry

Question 9 30 seconds

Q.

A_________expresses the specific aspirations of a company.

answer choices

blueprint

vision statement

flow chart

mission statement

Question 10 30 seconds

Q. A______________is the means by which you deliver a product or service to the customer.

answer choices

direct channel

distribution channel

delivery method

layout

Question 11 30 seconds

Q.

The___________looks at the people aspects of the business.

answer choices

growth plan

contingency plan

organizational plan

business plan

Question 12 30 seconds

Q. The financial plan presents ______ for the future of the business.

answer choices

forecasts

finances
trends

studies

Question 13 30 seconds

Q. In projecting growth levels, investors will be impressed by ______.

answer choices

large sales figures

conservative calculations

communication skills

underestimating the need for capital

Question 14 30 seconds

Q. The _______ is a government agency that provides services to new entrepreneurs.

answer choices

Better Business Bureau

Census Bureau

Internet

Small Business Administration (SBA)

Question 15 30 seconds

Q.

A___________offers technical and general assistance in a specific profession.

answer choices

trade association

trade mission

banking institution

chamber of commerce

The most effective businesses emerge from a process that includes each of the following EXCEPT:

Open Hint for Question 1 in a new window.

 recognizing a business idea.

testing the feasibility of the idea.

writing a business plan.

securing angel investment.

End of Question 1

Question 2.

Which of the following is an example of primary research?

Open Hint for Question 2 in a new window.

census data

industry studies

administering surveys

analyst forecasts

End of Question 2

Question 3.

_____ is an assessment of the overall appeal of the product or service being proposed.

Open Hint for Question 3 in a new window.

 Concept testing

Product/service feasibility analysis

Test marketing

Usability testing

End of Question 3

Question 4.

All of the following are normally included in the concept test EXCEPT:

Open Hint for Question 4 in a new window.

detailed financial statements.

a description of the product or service.

the intended target market.

the benefits of the product or service.

End of Question 4

Question 5.

All of the following are suitable questions to ascertain Product/Service Desirability EXCEPT:
Open Hint for Question 5 in a new window.

Does it make sense?

Is the product or service financially feasible?

Is this a good time to introduce the product or service in the market?

Are there any fatal flaws in the product or service's basic design or concept?

End of Question 5

Question 6.

All of the following are characteristics of attractive industries EXCEPT:

Open Hint for Question 6 in a new window.

the industry is young.

the industry is fragmented.

the industry is crowded.

the industry has high operating margins.

End of Question 6

Question 7.
_____ is conducted to determine whether a proposed business has sufficient management expertise,
organizational competence, and resources to successfully launch its business.

Open Hint for Question 7 in a new window.

A marketing plan

Financial feasibility analysis

Industry/market feasibility analysis

Organizational feasibility analysis

End of Question 7

Question 8.

The ability to obtain intellectual property protection on key aspects of the business is most likely an
issue related to _____.

Open Hint for Question 8 in a new window.

financial performance of similar firms

industry attractiveness

resource sufficiency

second-mover advantage

End of Question 8
Question 9.

Which of the following is the final step of a comprehensive feasibility analysis?

Open Hint for Question 9 in a new window.

financial feasibility analysis

marketing research

filing articles of incorporation

industry/market feasibility analysis

End of Question 9

Question 10.

The projected financial return to assess whether the venture is financially feasible considers each of the
following EXCEPT:

Open Hint for Question 10 in a new window.

availability of equity capital.

amount of capital invested.

existing alternatives for the money being invested.

risks assumed in launching the business.

End of Question 10
Question 11.

The process of determining if a business idea is viable is the development of a business plan.

Open Hint for Question 11 in a new window.

True

False

End of Question 11

Question 12.

Many entrepreneurs make the mistake of identifying a business idea and then jumping directly to
writing a business plan to describe and gain support for the idea.

Open Hint for Question 12 in a new window.

True

False

End of Question 12
Question 13.

A concept test is the first physical depiction of a new product.

Open Hint for Question 13 in a new window.

True

False

End of Question 13

Question 14.

Some entrepreneurs conduct their initial product/ service feasibility analysis by simply talking about
their product or service idea with others before deciding to move forward.

Open Hint for Question 14 in a new window.

True

False

End of Question 14

Question 15.

Three important ways to accumulate evidence that there will be healthy demand for a product or
service are with library, Internet and gumshoe research.
Open Hint for Question 15 in a new window.

True

False

End of Question 15

Question 16.

An industry is a group of firms producing a similar product or service.

Open Hint for Question 16 in a new window.

True

False

End of Question 16

Question 17.

A target market is a place within a larger market segment that represents a broader group of customers
with different needs.

Open Hint for Question 17 in a new window.

True

False
 End of Question 17

Question 18.

Two of the most important factors related to management prowess are passion for the business idea
and understanding the markets in which the firm will participate.

Open Hint for Question 18 in a new window.

True

False

End of Question 18

Question 19.

The adequacy of the labor pool poses a resource sufficiency issue.

Open Hint for Question 19 in a new window.

True

False

Question 20.

For feasibility analysis, it is not typically required that an entrepreneur do a rigorous financial
assessment..

True

Fals
Question 21.

What are the major components of a comprehensive feasibility analysis?

Product/service feasibility analysis

-Industry/market feasibility analysis

-Organizational feasibility analysis

-Financial feasibility analysis

Question 22.

Discuss the four step process effective businesses emerge from.

Recognizing a business idea

-Testing the feasibility of the idea

-Writing a business plan

-Launching the business

paid promotion through media outlets

advertising

asset

publicity

vision

a document that thoroughly explains a business idea and how it will be carried out

business model

mission

marketing plan

business plan

research that compares an organization with several direct and indirect competitors by name in a
manner that is meaningful to targeted customers

environmental analysis

feasibility analysis
industry analysis

competitive analysis

free promotion

culture

vision

liability

publicity

a 30-second to 2-minute presentation that conveys in an engaging way hat a business is proposing and
why the listener should be interested

marketing plan

liability

elevator pitch

net worth

any item of value

culture

asset

mission

vision

a study to assist in making the go/no go decision based on a close examination of product/service,
market, industry, and financial data

environmental analysis

industry analysis

competitive analysis

feasibility analysis

a review that addresses the roles of the community, region, nation, or the rest of the world, as they
relate to a business

feasibility analysis

environmental analysis

industry analysis

competitive analysis
the difference between assets and liabilities

vision

net worth

liability

publicity

a concise communication of strategy, including a business definition and explanation of competitive

advantage

liability

asset

mission

vision

a critical view of industry definition, industry size and growth (or decline), product and industry life
cycle, and any current or anticipated legal or regulatory concerns

feasibility analysis

industry analysis

competitive analysis

environmental analysis

a company's plan to generate revenue and make a profit from operations

mission

net worth

business model

business plan

the combination of the four factors - product, price, place, and promotion - that communicates a
marketing vision

advertising

marketing mix

marketing plan

target market

when the volume of sales exactly covers the fixed costs

advertising
breakeven point

marketing plan

balance sheet

the beliefs, values, and behavioral norms of an organization

vision

publicity

culture

asset

a broader and more comprehensive perspective on an organization that its mission; built on the core
values and belief systems of the organization

vision

liability

mission

asset

a financial document that summarizes income and expense activity over a specified period and shows
net profit or loss

mission statement

cash flow statement

balance sheet

income statement

a brief, written statement that informs customers and employees what an organization's goal is and
describes the strategy and tactics to meet it

mission

income statement

mission statement

cash flow statement

a financial statement showing cash receipts less cash disbursements for a business over a period of time

income statement

mission statement

balance sheet
cash flow statement

groups defined by common factors such as demographics, psychographics, age, or geography that are of
primary interest to a business

marketing mix

proof of market

direct marketing

target market

an income statement

income statement

profit and loss statement (P&L)

cash flow statement

mission statement

a statement of the marketing goals and objectives for a business and the intended strategies and tactics
to attain them

breakeven point

business plan

marketing plan

marketing mix

net worth

advertising

liability

net worth

owner's equity

first offering of corporate stock to investors on the open (public) market

marketing mix

initial public offering (IPO)

public relations

publicity

a financial statement summarizing the assets, liabilities, and net worth of a business
asset

business plan

balance sheet

breakeven point

community activities that are designed to enhance an organization's image

public relations

vision

publicity

culture

an investigation that provides evidence of a market opportunity

proof of market

target market

asset

direct marketing

a business debt

liability

asset

vision

publicity

includes telemarketing, direct mail, in-person selling, and other personalized promotional efforts

direct marketing

advertising

net worth

target market

Q1. Which of the following shows the process of creating something new:
Business model

Modeling

Creative flexibility

Innovation

Answer: d

Q2. The entrepreneur was distinguished from capital provider in:

a) Middle ages

b) 17th century

c) 18th century

d) 19th and 20th century

Answer: c

Q3. A corporate manager who starts a new initiative for their company which entails setting up a new
distinct business unit and board of directors can be regarded as:

a) Ecopreneur

b) Technopreneur

c) Intrapreneur
d) Social Entrepreneur

Answer: c

Q4. Family business always interested to handover the change of his business to:

a) Indian Administration Officers

b) Professional Managers

c) Next generation

d) None of the above

Answer: c

Q5. EDP (Entrepreneurship Development Programmes) is required to help:

a) Existing entrepreneurs

b) First generation entrepreneurs

c) Future generation entrepreneurs

d) None of the above

Answer: b

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Q6. A Micro Enterprise is an enterprise where investment in plant and machinery does not exceed
(According to MSMED Act, 2006):

a) Rs. 25 Lakh

b) Rs. 20 Lakh

c) Rs. 15 Lakh

d) Rs. 30 Lakh

Answer: a

Q7. Why should an entrepreneur do a feasibility study for starting a new venture:

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

Answer: b

Q8. Which one of the following is the next stage to the Concept Stage of Product Planning and
Development Process:
a) Idea Stage

b) Product Planning Stage

c) Product Development Stage

d) Test Marketing Stage

Answer: c

MCQ’s Question of Entrepreneurship Development

Q9. What is the process by which individuals pursue opportunities without regard to resources they
currently control:

Startup management

Entrepreneurship

Financial analysis

Feasibility planning

Answer: b

Q10. An individual who initiates, creates and manages a new business can be called _____________.

A leader

A manager

A professional

An entrepreneur

Answer: d
Q11. Which could provide an individual with the motivation to start a new business venture?

The financial rewards.

A desire to be independent.

Risk taking

All the above.

Answer: d

Q12. Why are small businesses important to a country’s economy?

They give an outlet for entrepreneurs.

They can provide specialist support to larger companies.

They can be innovators of new products.

All the above.

Answer: d

Q13. ________ is the first development bank of the country.

ICICI.

IDBI.

SFC.

IFCI.

Answer: d

Q14. IFCI stands for_____________.

Industrial finance corporation of India.

Institutional finance corporation of India.

Industrial funding corporation of India.

Indian finance corporation and institution.

Answer: a

Q15. Large investment is made in fixed assets, the project will be termed as __________.

Capital Intensive.

Labour Intensive.

Product Intensive.

Market Intensive.

Answer: a

Q16. New Small Scale industries are exempted from the payment of income tax under section 80J is
called __________.

Development Rebate

Investment Allowance

Rehabilitation Allowance

Tax Holiday

Answer: b

Q17. An individual who initiates, creates and manages a new business can be called _____________.

A leader

A manager

A professional

An entrepreneur

Answer: d
Q18. Why are small businesses important to a country’s economy?

They give an outlet for entrepreneurs.

They can provide specialist support to larger companies.

They can be innovators of new products.

All the above.

Answer: d

Q19.As a business grows, time management continues to be an issue, but the entrepreneur’s major
concern usually becomes:

a) Setting goals

b) Finding, retaining, and motivating qualified employees

c) Measuring performance.

d) All of the above.

Answer: b

Q20. An entrepreneur who owns more than one business at a time is called ________.

An intrapreneur

A corporate entrepreneur.

A portfolio entrepreneur.

None of the above.

Answer: c
Q21. Idea of new product is tested in potential consumers to determine consumer acceptance at
_________ stage.

Concept.

Product development.

Test marketing.

Commercialization.

Answer: c

Q22. Which one of the following describes unemployment?

The number of people who voluntarily choose not to work.

The number of people who are jobless and are actively seeking work.

The number of people who are not actively seeking work.

The number of people actively seeking work who find work.

Answer: b

Q23. Which one of the following is not considered as one of the building blocks of the model
entrepreneur?

Technical skills.

Management competencies.

Business awareness.

Personal attributes.

Answer: c

Q24. The purpose of soft loan scheme is to encourage units to undertake ___________.

Modernization of plant and machinery.

Replacement of plant and machinery.

Renovation of plant and machinery.

All the above

Answer: d

Q25. Seed capital assistance is ___________.

A long-term assistance.

Initial assistance

A help for the purchase of seeds.

A short-term assistance.

Answer: b

Unit: 02

Q1. ____________ is primarily concerned with the identification of the project demand potential and
the selection of the optimal technology.

Techno-economic analysis

Feasibility analysis

Input analysis

Financial analysis

Answer: a

Q2. Promoter is a person who ________.

Takes part in the incorporation of a company.

Is a director.

Is a relative of the managing director.

Works to publicity to the company.

Answer: a

Q3. Which of the following is not an aspect of appraisal of term loans by commercial banks?

Financial

Technical feasibility.

c) Economic feasibility.

Societal feasibility.

Answer: d

Q4. The application for registration of a small scale unit should be submitted to the _______.

General Manager, DIC.

Director, DIC.

General Manager. NSIC.

Director, NSIC.

Answer: a

Q5. A decision which is non-repetitive and novel nature and required to solve unstructured problem is
called as ___________.

Programmed decisions.

Non -programmed decisions.

Routine decisions.

Strategic decisions.

Answer: b
Q6. _____________ is primarily concerned with the identification, qualification and evaluation of the
project resources.

Techno-economic analysis.

Feasibility analysis.

Input analysis.

Financial analysis.

Answer: b

Q7. Industries producing complete articles for direct consumption & also processing industries are called
as_______________.

Manufacturing industries.

Feeder Industries.

Service Industries.

Mining or Quarrying.

Answer: a

Q8. _________________ implies the availability or otherwise of plant and machinery and technical know
how to produce the product.

Economic viability.

Financial feasibility.

Technical feasibility.

Managerial competence

Answer: c

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Q9. Decisions taken by an entrepreneur on behalf of his enterprise are known as _________.
Organizational decisions.

Personal decisions.

Routine decisions.

Strategic decisions

Answer: a

Q10. Decisions which are concerned with policy matters and exercise fundamental influence on the
objectives of the organization are called as____________.

Organizational decisions.

Personal decisions.

Routine decisions

Strategic decisions.

Answer: d

Q11. ______________ may be defined as the excess of present value of project cash inflows over that of
out flows.

Net present value technique.

Average rate of return.

Benefit-Cost ratio.

Internal rate of return

Answer: a

Q12. _______________ is the analysis of costs and benefits of a proposed project with the goal of
assuming a rational allocation of limited funds.

Project formulation.

Project evaluation.
Project appraisal.

Project Design.

Answer: c

Q13. _____________ is a graphical representation of the various activity and event relating to a project.

Network

Scheduling technique.

Logical Model.

Network Diagram

Answer: d

Q14. ____________ is primarily concerned with the identification of the project demand potential and
the selection of the optimal technology.

Techno-economic analysis.

Feasibility analysis.

Input analysis.

Financial analysis.

Answer: a

Q15. New Small Scale industries are exempted from the payment of income tax under section 80J is
called __________.

Development Rebate.

Investment Allowance.

Rehabilitation Allowance

Tax Holiday

Answer: b
Q16. Large investment is made in fixed assets; the project will be termed as __________.

Capital Intensive

Labour Intensive.

Product Intensive.

Market Intensive.

Answer: a

Q17. _____________ can be defined as a specifically evolved work plan densed to achieve a specific
objective within a specific period of time.

Idea generation.

Opportunity Scanning.

Project.

Strategy.

Answer: c

Q18. EDPs course contents contain ___________.

General introduction to entrepreneurs.

Motivation training.

Managerial skills.

All the above

Answer: d

Q19. A commercial banker would prefer a ____________ debt-equity ratio over the years as it indicates
financial strength of a unit.
Declining.

Increasing.

Stable.

Fluctuating.

Answer: a

Q20. Goods or services reach the market place through ________.

Marketing channels.

Multilevel pyramids.

Monopolies.

Multiplication.

Answer: a

Q21. Someone legally appointed to resolve the financial difficulties of an insolvent firm is
called____________.

An administrator.

A predator.

An auditor.

A turnaround consultant

Answer: a

Q22. Why should an entrepreneur do a feasibility study for starting a new venture?

To identify possible sources of funds

To see if there are possible barriers to success

To estimate the expected sales

To explore potential customers

Answer: c

Q23. To provide financial assistance to entrepreneurs the government has set up a number
of___________.

Financial advisors.

Financial intermediaries.

Industrial estates.

Financial institutions.

Answer: d

Q24. LOB stands for____________.

Line of Business.

Line of Balance

Loss of Business.

Loss of Balance

Answer: b

Q25. District Industries Centers are located ____________.

In each district.

In each state.

Only in selected districts.

Only in selected states.

Answer: a
1. An entrepreneur into the hosiery business found out the reason his hosiery was not selling was due to
its color. What could be the best source of this information?

a) Supplier

b) Retailer

c) Competition

d) Government

2. In some countries, points of purchase displays are not allowed in retail stores. Such differences are
studied by international entrepreneurs under __________ environment.

a) Economic

b) Political

c) Cultural

d) Technological

3. Having more than 50% ownership position that provides the entrepreneur with managerial control is
called ___________.

a) Joint venture

b) Majority interest

c) Horizontal merger
d) Diversified activity merge

4. The development of a new venture based on an inventor's work often requires ________.

a) Expertise of an entrepreneur

b) Heavy investment from financers

c) Skilled human resources

d) Highly educated staff

5. A business where an individual is both the owner and conductor of the business affairs is
called__________________.

a) Sole Proprietorship

b) Partnership

c) Corporation

d) None of the above

6. In __________________, the entrepreneur has the right to sell any assets.

a) Proprietorship
b) Partnership

c) Limited Liability Company

d) None of the given options

7. The idea and actions that explain how a firm will make its profits refers to

a) Mission

b) Goal

c) Strategy

d) Objective

8. Entrepreneurs are best as ________________

a) Managers

b) Venture capitalists

c) Planners

d) Doers
9. Entrepreneurs and ventures capitalists:

a) Get along well

b) Are the best friends

c) Are cordial friends

d) Are in conflict

10. _________________ is one method of stimulating, and then capitalizing on, individuals in an
organization who think that something can be done differently and better.

a) Strategic Orientation

b) Capitalization

c) Intrapreneurship

d) Management

11. The _______ plan shows whether the business is economically feasible or not. a. Financial

b. Business

c. Economic
d. Marketing

12. In which of the following, the ownership of venture is reflected by ownership of shares of stock?

a) Partnership

b) Limited partnership

c) Corporation

d) Proprietorship

13. Entrepreneurship can best be described as:

a) a process that requires setting up a business

b) taking a significant risk in a business context

c) having a strong vision

d) a process involving innovation, new products or services, and value creation

14. The small business ‘owner-manager’ is always the founder of the business:

a) True
b) False (A management buyout is an example of a business where the owner-manager would
probably not have been the founder)

15. Which of these statements best describes the context for entrepreneurship:

a) Entrepreneurship takes place in small businesses

b) Entrepreneurship does not take place in social enterprises

c) Entrepreneurship takes place in a wide variety of contexts

d) Entrepreneurship takes place in large businesses

16. Which of the following are described as one of the ‘Big Five’ personality traits?

a) propensity to leadership

b) need for achievement

c) extravert personality

d) tolerance of others

17. The period of business when an entrepreneur must position the venture in a market and make
necessary adjustments to assure survival is called the:
a) pre-startup stage.

b) startup stage.

c) early growth stage.

d) later growth stage.

18. Which of the following is a reason why a person might prefer to purchase a franchise rather than
open a completely new business?

a) higher failure rate.

b) increased independence.

c) ability to benefit from previous experience.

d) reduced royalty fees.

19. MSMED stands to ___________

a) Micro, Small & Medium Enterprises Development

b) Mini, Small & Medium Enterprises Development

c) Micro, Small & Medium Entrepreneurship Development

d) Micro, Small & Medium Enterprises Department

20. Which of the following is an internal factor that influences entrepreneurs?

a) Technological Capacity

b) Social environment

c) Political environment

d) Economic condition

21.__________________ requires proper review and reconsideration of the selected alternative before
implementing it.

a) Developing possible alternatives

b) Selecting the best alternative

c) Checking the decision

d) Exploring the developed alternatives

22. Which one of the following is an economic barrier to an entrepreneur?

a) Emotional blocks

b) Labour

c) Lack of sustained motivation

d) lack of vision
23. Which of the following enterprises was found by Akio Morita?

a) Samsung

b) Apple

c) Panasonic

d) Sony

24. ________________ can be defined as psychological features that enable an individual to take action
toward a desired goal?

a) Motive

b) Trait

c) Attitude

d) Ego

25. ___________ implies that women entrepreneurs are now economically independent and take
decisions independently.

a) Better utilization of resources

b) Improved quality life

c) Economic development

d) Employment generation

26. Financial feasibility analysis can be done by comparing ______________ with the estimated sales
figure.

a) cash flow statement

b) balance sheet

c) break-even point

d) profit and loss statement

27. Which of the following is not considered while selecting the region?

a) Law and order

b) Price of land

c) Availability of raw materials

d) Proximity to the product market

28. Which one of the following is the step involved in setting up a new enterprises?

a) Creating a business plan

b) Making a product choice

c) Selecting the location

d) Setting up infrastructure

29. The parties involved in franchise business are ___________.

a) 1

b) 2

c) 3

d) 5

30. If someone starts a new business that is a service station, this is an example of a(n):

a) new concept/new business.

b) new concept/existing business

c) existing concept/new business.

d) existing concept/existing business.