01551 V. V.

Technologies Society - Faridabad

BB0028 - ENTERPRENEURSHIP DEVELOPMENT Q.1. The word entrepreneur is taken from the _______ language. a) Greek b) Spanish c) French d) Roman An entrepreneur is a _______, who introduces something new in the economy. a) Innovator b) Capitalist c) Individual d) None of the above A successful entrepreneur must possess the following traits:a) Mental ability b) Technical knowledge c) Quality conscious d) All of the above Entrepreneurial functions under managerial control head are:a) Managing financing b) Managing production c) Both a & b d) Industrial engineering _______ may be explained as the willingness to face losses which may arise due to unforeseen uncertainties. a) Innovation b) Risk-taking c) Invention d) Management _______ entrepreneurs are unwilling to make any change in the production system, even if the system causes losses repeatedly. a) Innovative entrepreneurs b) Initiative entrepreneurs c) Fabian entrepreneurs d) Drone entrepreneur EDP stands for:a) Entrepreneur Development Program b) Entrepreneurship Development Program c) Entrepreneur Development Process d) Entrepreneurship Development Process Phases of entrepreneurial development program are:a) Initial phase b) Training phase c) Pose-training phase d) All of the above

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Q.9.

The _______ is conducting several science & Technology Entrepreneurship parks (Steps) in the country. a) IDBI b) IFC c) ICICI d) SFC

Q.10. An enterprise owned & controlled by a woman having a minimum financial interest of _______% of the capital defined as woman entrepreneur. a) 37% b) 57% c) 49% d) 40% Q.11. _______ may be defined as an attractive project idea which an entrepreneur accepts as a basis for his investment decision. a) Demand b) Idea c) Opportunity d) Possibility Q.12. Marketing is a _______ exchange process in which the need & wants of the buyer & seller are satisfied. a) Two-way b) One-way c) Both a & b d) None of the above Q.13. _______ is defined as the whole complex of activities involved in using resources to gain benefits. a) Project life cycle b) Project identification c) Project report d) Project Q.14. _______ opportunity involves drastic & fundamentals changes in the existing business. a) Addictive opportunity b) Breakthrough opportunity c) Complementary opportunity d) Opportunity Q.15. Technical appraisal deals with the following components:a) Factory layout b) Personnel c) Process of manufacture d) All of the above Q.16. In the cash flow statement, _______ is the most important source of inflow. a) Loss b) Profit c) Sales d) None of the above

Q.17. _______ is one of the important pre-requisites to start an enterprise. a) Raw material b) Labor c) Finance d) Machinery Q.18. Enough provision of _______% of purchase consideration should be made to meet unexpected/unplanned business expenses. a) 10-15% b) 15-20% c) 10-20% d) 5-15% Q.19. The money invested in current assets like raw materials, finished goods, debtors etc. is known as _______. a) Fixed capital b) Working capital c) Long-term capital d) Short-term capital Q.20. _______ can be defined as a financing mix incurring the least cost but yielding the maximum returns. a) Capital structure b) Financial structure c) Optimum capital structure d) Optimum leverage Q.21. Loans taken for a definite period of time are called _______ loans. a) Term loans b) Short-term loans c) Long-term loans d) None of the above Q.22. Equity shares are entitled to dividend & capital _______ the payment of dividend & capital on preference shares. a) Before b) After c) Between d) Equal to Q.23. The IDBI provides assistance to the _______ scale industries through its scheme of refinance. a) Small b) Large c) Medium d) None of the above Q.24. The LIC was established under the LIC Act in _______. a) 1971 b) 1990 c) 1956 d) 1951 Q.25. Retention of profits is also known as:-

a) b) c) d)

Internal financing Ploughing back of profits Both a & b Public deposits

Q.26. How many theories of capitalization for new business enterprise? a) Two b) Three c) Four d) One Q.27. When actual capitalization is more than proper capitalization i.e. _______. a) Under specialization b) Over specialization c) Capitalization d) Capacity Q.28. For the operation of the venture capital companys debt-equity ratio should be limited to:a) 2:1 b) 2.5:1 c) 1:2 d) 1:1.5 Q.29. Individual units manufacturing the same product are usually housed in _______ Industrial Estates. a) Ancillary Industrial Estates b) Functional Industrial Estates c) The Work-shop Bay d) Municipal Industrial estates Q.30. Under section 80J, small scale industries are exempted from the payment of income tax on their profits subject to a maximum of _______% per annum of their capital employed. a) 4% b) 7% c) 6% d) 8% Q.31. Small scale industries comprising of industrial units with an investment of up to Rs._______. a) 10 lakhs b) 15 lakhs c) 8 lakhs d) 12 lakhs Q.32. TQM stands for:a) Total Quantity Management b) Total Quality Machine c) Total Quality Management d) Total Quantity Machine Q.33. Various names of TQM are:a) Total Quality Improvement b) Total Quality Control c) Strategic Quality Management d) All of the above Q.34. TQM offers advantage like:a) Lower productivity

b) c) d)

Lower market share Higher productivity Decreased customer satisfaction

Q.35. The first step in TQM process is:a) Team work b) Customer satisfaction c) Processes d) Personal initiative Q.36. Start up stage of enterprise life cycle is followed by the _______. a) Maturity stage b) Expansion stage c) Growth stage d) Decline stage Q.37. In this type of diversification, complementary products or services are added to the existing product or service line of the enterprise. a) Horizontal diversification b) Vertical diversification c) Concentric diversification d) Conglometric diversification Q.38. _______ is a restricted or a temporary partnership between two or more firms to undertake jointly to complete a specific venture. a) Join venture b) Merger c) Diversification d) Expansion Q.39. When two or more existing enterprise merges one to form a new enterprise is called:a) Merger b) Absorption c) Amalgamation d) Concentric merger Q.40. When the work assigned to small enterprise involves manufacturing works, it is called ________. a) Industrial sub-contracting b) Commercial sub-contracting c) Sub-contracting d) Franchising Q.41. A _______ simply provides finance whereas _______ is an organizer who combines various factors of production to produce a socially viable product. a) Entrepreneur, Capitalist b) Capitalist, Entrepreneur c) Capitalist, Entrepreneurship d) Entrepreneurship, Capitalist Q.42. Entrepreneurs who are not included in the definitions of Danhof. 1. Technological Entrepreneurs

2. 3. 4.

Instigated entrepreneurs Initiative Entrepreneurs Innovative Entrepreneurs a) 2, 3 b) 1, 4 c) 1, 3 d) 1, 2

Q.43. A _______ entrepreneur is an individual who is motivated by economic & psychological rewards. a) Induced entrepreneurs b) Motivated entrepreneurs c) Pure entrepreneur d) Spontaneous Entrepreneurs Q.44. A _______ is an independent businessman whereas an _______ works under the chief executive/promoter. a) Entrepreneur, Intrapreneur b) Intrapreneur, Entrepreneur c) Entrepreneur, Entrepreneur d) Intrapreneur, Intrapreneur Q.45. _______ is national institutions which were established by the Gujarat Government in collaboration with the financial institutions at all India level. a) Xavier institute of social service, Ranchi b) Madhya Pradesh consultancy organization Ltd. c) Calcutta Y self-employment center d) Entrepreneurial development institute of India Q.46. Leadership qualities of women entrepreneurs:a) Optimism b) Merciful approach c) Power to resist criticism d) All of the above Q.47. Majority of the women entrepreneurs belongs to _______ class families & are having _______ technical education & willing to become entrepreneurs. a) Middle, High b) Middle, Low c) Rich, High d) None of the above Q.48. True/False:1. The government of India is now encouraging imports. 2. The project undertaken by the entrepreneur should not violate government regulations. a) True, True b) False, False c) False, True d) True, False Q.49. A _______ is a report which provides all the necessary information of the unit proposed to be set up. a) Project b) Project report

c) d)

Project identification Project life cycle

Q.50. Break Even Point:a) F/S-V*100 b) S/F-V*100 c) F/V-S*100 d) F/S-F*100 Q.51. On the basis of extent of performance, the financial needs are classified into:1. Long term capital 2. Short term capital 3. Fixed capital 4. Working capital a) 1, 3 b) 2, 4 c) 3, 4 d) 1, 2 Q.52. Ownership capital is known as _______ & borrowed capital is known as _______. a) Debt, Equity b) Equity, debt c) Debt, Preference shares d) Preference shares, Debt Q.53. In case, the enterprise is required to raise funds for unproductive purpose like spending on the staff welfare facilities, it will raise funds by issue of _______. a) Debentures b) Preference shares c) Equity shares d) Bonds Q.54. The government of India set up the Industrial finance corporation of India (IFCI) in _______. a) July 1964 b) July 1948 c) January 1955 d) January 1948 Q.55. According to _______ theory, capitalization of new enterprise is considered to be the equivalent of the cost actually incurred on setting up an enterprise. a) Historical cost theory b) Earnings theory c) Capitalization d) Under-capitalization Q.56. True/False:1. In case of over-capitalization, the actual earnings are lower than the expected ones. 2. High rates of taxation imposed by the government is the cause of over-capitalization. a) False, False b) True, True c) False, True d) True, False Q.57. _______ is a place where the required facilities & factory accommodation are provided by the government to the entrepreneurs to establish their industries there. a) District Industries center

b) c) d)

Industrial estates Conventional industrial estate The workshop bay

Q.58. The rehabilitation allowance should be used for business purposes within _______ years of units reestablishment, reconstruction or revival. a) 4 years b) 5 years c) 2 years d) 3 years Q.59. _______ is only a part of _______. a) TQM, ISO b) ISO, TQM c) TQM, Quality d) ISO, Quality Q.60. _______ & _______ are the forms of internal growth of business. a) Joint venture, Merge b) Expansion, Diversification c) Expansion, Merger d) Diversification, Joint-venture Q.61. Entrepreneurial functions under Administration head are:1. 2. 3. 4. 5. Managing finance Setting up of factory Dealing with bureaucracy Dealing with customers & suppliers Purchasing of inputs. a) 1, 2, 5 b) 3, 4 c) 2, 3 d) 1, 3, 4 Technical entrepreneurs Induced entrepreneurs Professional entrepreneurs Agricultural entrepreneurs a) 1, 4 b) 2, 4 c) 2, 3 d) 1, 3 Shortage of funds High mobility Stiff competition High need for achievement Social attitudes a) 1, 2, 4 b) 1, 3, 5 c) 2, 3, 4 d) 2, 3, 5

Q.62. According to the use of technology, the entrepreneurs in business are classified into:1. 2. 3. 4.

Q.63. Problems faced by women entrepreneurs are:1. 2. 3. 4. 5.

Q.64. Arrange the stages of project life cycle:1. The construction phase. 2. Normalization phase

3.

Pre-investment stage a) 1, 2, 3 b) 2, 3, 1 c) 3, 1, 2 d) 2, 1, 3

Q.65. The appraisal of the financial aspects involves scrutiny of:a) Cost of project & means of financing b) Cash flow estimates c) Projected balance sheets d) All of the above Q.66. After the subscription is over, & _______ subscription is received, the shares are allotted to the applications within _______ days of the issue of prospectus. a) Minimum, 130 days b) Maximum, 130 days c) Minimum, 120 days d) Maximum, 120 days Q.67. _______ is a financial service designed to help firms in managing their books debts & receivables in a better manner. a) Factoring b) Bank overdraft c) Trade credit d) Public deposits Q.68. In broad sense, the term capitalization is synonymous with the term _______ whereas in narrow sense it is similar to _______. a) Capital structure, Financial planning b) Financial planning, Capital structure c) Capital structure, Borrowed capital d) Financial planning, Borrowed capital Q.69. Catcher paper mill, panchgram earned an annual profit of Rs. 50, 000 on its total investment of Rs. 5, 00, 000.If the expectation for return is 10%, and this will be called _______. a) Over capitalized b) Under capitalized c) Properly capitalized d) None of the above Q.70. Remedies of under capitalization are:1. To issue bonus shares 2. To reduce the per value of stock 3. To split up the shares of the enterprise 4. To increase the per value of stock a) 2, 3, 4 b) 1, 2, 4 c) 1, 2, 3 d) 1, 3, 4 Q.71. _______ finance serves as a bridge loan for the period between shipment of goods & the realization of proceeds. a) Pre shipment finance

b) c) d)

Post-shipment finance Export finance None of the above

Q.72. True/False:1. To avail tax exemption, small scale industries should employ 10 or more workers in a manufacturing process with power. 2. A SSI established in backward area but engaged in mining activity is entitled to deduction benefits. 3. Carry forward & set off business losses falls under section 80P. a) True, True, False b) True, False, Tue c) True, False, False d) False, False, True Q.73. _______ increases the investment limit in plant & machinery of tiny enterprise from Rs. 2 lakhs to Rs. 5 lakhs, irrespective of the location of the enterprise. a) IPR 1977 b) New small enterprise policy 1991 c) IPR 1980 d) IPR 1956 Q.74. TQM involves the following process:1. Customer satisfaction 2. Processes 3. Continuous improvement 4. Team work 5. Personal initiative a) 1, 2, 3, 5 b) 1, 2, 3, 4, 5 c) 2, 3, 4, 5 d) 1, 3, 4, 5 Q.75. _______ means the enterprise increases the sales of its existing product by enlarging the existing market. a) Product development b) Expansion c) Market development d) Market penetration 1c 11 c 21 a 31 a 41 b 51 c 61 b 71 b 2a 12 a 22 b 32 c 42 d 52 b 62 d 72 c 3d 13 d 23 a 33 d 43 c 53 c 63 b 73 b 4c 14 b 24 c 34 c 44 a 54 b 64 c 74 b 5b 15 d 25 c 35 b 45 d 55 a 65 d 75 - d 6d 16 b 26 a 36 c 46 d 56 d 66 c 7b 17 c 27 b 37 b 47 b 57 b 67 a 8d 18 a 28 d 38 a 48 c 58 d 68 b 9a 19 b 29 b 39 c 49 b 59 b 69 c 10 b 20 c 30 c 40 a 50 a 60 b 70 d

5E/7, Above Dainik Jagran, Railway Road, Nr. Neelam Chowk, NIT, Faridabad - 121001