ENTEREPRENEURSHIP & INNOVATION Management

SR.NO DESCRIPTION OPTION1 OPTION2 OPTION3 OPTION4 A

Q1.Which of the following is the most important for the entrepreneur, while Risk Profit Market Competitors
A1 starting a new venture, to make an assessment of? 1
Entrepreneurship is the ________ activity of an individual or a group of
individuals who seek to earn profits through the production and distribution of purposeful default business selective
A2 economic goods and services 1
More difficult When the When the
Less likely than to manage developer developer
User innovation is: manufacturer than other expects to expects to
innovation types of benefit by using benefit by
innovation it selling it
A3 1
To identify
To see if there are To explore
possible To estimate the
Why should an entrepreneur do a feasibility study for starting a new venture? possible barriers to potential
sources of expected sales
success customers
funds
A4 1
In ________ economy, both the government and the private entrepreneurs
capitalistic socialist communist mixed
A5 played an equally important role. 4
Which one is not the process of creativity? Incubation Validation Idea Generation Establish Vision
A6 4
A7 In________ , the state played the role of the entrepreneur. capitalistic socialist communist All the above 2
Invention, Duplication,
Extension, Invention, Duplication, Invention, None of the
What are the four types of Innovation?
Synthesis, Duplication Copying, Creativity, above
Extension Extension
A8 4
The entrepreneur is able to recognize the commercial potential of the invention
and organize the capital, talent, and other resources that turn an invention into a Start up Venture Innovation Business
A9 commercially viable 3
What is the process by which individuals pursue opportunities without regard to Startup management Entrepreneursh Financial analysis Feasibility
A10 resources they currently control? ip planning 2
Second
Pure Technical
Kumar Manglam Birla is what type of Entrepreneur? Founder Generation
Entrepreneur Entrepreneur
A11 Entrepreneur 4
SR.NO DESCRIPTION OPTION1 OPTION2 OPTION3 OPTION4 A
If an entrepreneur does not have the willingness to assume risk, not undergo start risk free
never succeed never fail
A12 entrepreneurship would losses business 1
Invention, Duplication,
Extension, Invention, Duplication, Invention, None of the
What are the four types of Innovation?
Synthesis, Duplication Copying, Creativity, above
Extension Extension
A13 4
Improvement
Generation of
Role of Entrepreneurship in Economic Development includes: Capital formation in per capita All the above
employment
A14 income 4

maximisation
creation and use of follow the development of
Entrepreneurship involves all except of output from
innovative ideas market leader managerial skills
given resources
A15 3

Q1.According to a Wall Street Journal survey, which of the following was

identified as the biggest obstacle to growth for African-American entrepreneurs? Lack of access to
B1 Racisim Lack of training capital and credit All of the above 3
___________ implies that women entrepreneurs are now economically Better utilization of Improved Economic Employment
B2 independent and take decisions independently. resources quality life development generation 2
Among Hispanic groups, which subgroup owned the greatest number of firms?
B3 Puerto Ricans Cubans Mexicans Spaniards 3

financial
Many of the women-owned businesses are concentrated in the: retail and service manufacturing management medical
B4 sector. industry. industry. industry. 1
The economic empowerment of women is being regarded these days as a Sine- None of the
B5 quo-non of progress for a country Quid pro quo Sine-quo-non Both A and B given 2

those who interact

The term "minority entrepreneur" does NOT include: among people
sharing common any individual
national background appalachian those who not of the
or migration Mountain recently arrived majority
B6 experience. businessmen. in the country. population 2
SR.NO DESCRIPTION OPTION1 OPTION2 OPTION3 OPTION4 A
____ implies that women entrepreneurs are now economically independent and Better utilization of Improved Economic Employment
B7 take decisions independently. resources quality life development generation 2

do not have as
Women-owned businesses may be smaller than those owned by men because have a more much
they: cannot find good difficult time do not have management
quality training finding equal access to experience as
B8 programs. employees. capital. men 3

having control
One study found that women defined success as: having many over their earning a large
B9 achieving goals. employees. destinies. salary 3
A women entrepreneur is supposed to have a minimum financial interest in None of the
B10 share capital of entrepreneur’s enterprise: 35 per cent 51 per cent 25 per cent above 1
B11 Which state has the highest number of women entrepreneurs in India Kerala Maharashtra Tamil Nadu West Bengal 3

Many women entrepreneurs who desire balance between work and home When a
discover that: It is easy to feel business is very When a new
overwhelmed by the new, it is often business begins
responsibilities of a easier to get to grow quickly,
young company and away when flexibility often
B12 young children. necessary. disappears. All of the above 4

first and
Women entrepreneurs are having an impact: foremost in the
only in the United mainly in third- United
B13 States. worldwide. world countries. Kingdom. 2
Female entrepreneurs differ from male entrepreneurs in terms of following Departure
B14 except: Select collect option: Business skills point Motivation Goal orientation 3
B15 Women are now starting new ventures at time(s) the rate of men. one two three four 3

in-depth
Q1.The most cited source of new business ideas is understanding
of
industry/profes copying none of the
C1 brainstorming. sion. someone else. above. 2
SR.NO DESCRIPTION OPTION1 OPTION2 OPTION3 OPTION4 A
Felix is an entrepreneur. At this stage of his company , his main concerns are do
we have enough customers and money. What stage of growth is Felix’s company
C2 in? Start-up Survival Takeoff Success 1
Which of these refer to an arrangement by which the owner of a product or
service allows others to purchase the right to distribute the product or service Business
C3 with help from the owner? Franchising incubation Spinning-off Globalization 1
______ process of creating incremental wealth is called Entrepreneurship.
C4 Static Continuous Systematic Dynamic 4

Which of the following is a reason why a person might prefer to purchase a

franchise rather than open a completely new business? ability to benefit
increased from previous reduced royalty
C5 higher failure rate. independence. experience. fees 3
A group of companies or individuals that invests money in new or expanding an equity financing a venture capital
C6 businesses for ownership and potential profits is known as firm. franchising. firm. a corporation 3
Today, inspired by the growth of companies such as Amazon.com, entrepreneurs Small Business
C7 are flocking to the ______ to start new businesses. Administration Internet bookstore mall 2
C8 Entrepreneur actually starts setting up of an enterprise by Planning Organizing Staffing Directing 4
Which of the following is an internal factor that influences entrepreneurs? Technological Social Political Economic
C9 Capacity environment environment condition 1

Which one of the following is the step involved in setting up a new enterprises? Creating a business Making a Selecting the Setting up
C10 plan product choice location infrastructure 4

adaptive
The opposite of "opportunity thinking" is: thought self- response
C11 obstacle thinking leadership. self-efficacy. behavior. 1
Factors contribute to the creation of new venture EXCEPT: High interest
C12 Government Finance rates Role models 3

Which one of the factors should be considered while assessing the location for Access from
business? roadways to All of the given
C13 Parking facility Delivery rates options 4
SR.NO DESCRIPTION OPTION1 OPTION2 OPTION3 OPTION4 A

a group of
An entrepreneurial team is: experienced a group from the a group of
people who Small Business managers who
a group of people join together to Administration get together to
who work within a develop and which consults find creative
corporation to launch market a new with small solutions to
C14 new products. product. business owners. problems. 2

Robert Vadera is a business owner who works from home as a freelance video
producer. He really enjoys his work, but isn’t looking to “set the world on fire”
with his company. He just wants to make a good living and spend time with his
family when he can. Vadera would be classified as a(n) venture
C15 entrepreneur. intrapreneur. micropreneur. capitalist. 3

Q1.If the investment in fixed assets or plant and machinery does not exceed one
crore rupees, then that particular firm come s under the category of Small scale Cottage:
D1 Tiny industry industry Village industry industry 2
Investment in equipments service sector in Micro scale industry should be 10Lacs – 2 2 Crores – 5 None of the
D2 Up to 10 Lacs Crores Crores above 1
In which type of organization does one person take all the risks?
D3 corporation partnership monopoly proprietorship 4

Which ownership type has unlimited liability (owner has full responsibility for
company's debt and can lose entire investment as well as personal assets). Sole
D4 Partnership Franchise Corporation Proprietorship 4
Business owned by one person sole
D5 partnership franchise proprietorship corporation 3
Law firms, medical practices, and auto body repair shops are examples of what
D6 type of ownership sole proprietorship partnership franchise corporation 2

Which are the disadvantages of a partnership? Partnership must be Partners share

reorganized if one unlimited Partners may not All of these are
D7 partner quits liability get along correct 4
SR.NO DESCRIPTION OPTION1 OPTION2 OPTION3 OPTION4 A
Easy to start, Owner is his/her own boss, Owner keeps all the profits - These are
advantages of what type of business Sole
D8 Franchise Corporation Parntership Proprietorship 4

What is the advantage of corporations? minimal government

D9 regulation limited liability short life span has one owner 2
D10 Nike, IBM, and Google are examples of partnership franchise corporation partnership 3

The Dow Jones industrial average swept past 12,000 for the first time. Investors
are increasingly optimistic about corporate earnings and the economy. This
achievement MOST likely involved which type of business organization?
D11 proprietorship partnership corporation conglomerate 3
Owned by many people - stockholders, but treated by the law as one person
D12 Sole Proprietorship Franchise Partnership Corporation 4

A(n) _____________ is a form of business organization in which two or more

business owners share the management and risk of the business Limited liability General Sole
D13 company partnership Corporation proprietorship 2
D14 Who plays an important role in all three business organizations? Governors Presidents Entrepreneurs Magistrates 3
Investment in equipments service sector in small scale industry should be 10Lacs – 2 2 Crores – 5 None of the
D15 Up to 10 Lacs Crores Crores above 2
E1 Q1.IFCI was established in the year___________ 1985 1984 1980 1987 2

SIDO stands for____________ State Travel Service

Industries Industries Small Industries Small Institution
Development Development Development Development
E2 Organization. Organization. Organization. Organization. 3

units in units set up by

A concessional rate of interest is charged by SFC in case of__________ backward technical
E3 small scale industries. areas. entrepreneurs All the above. 4
SR.NO DESCRIPTION OPTION1 OPTION2 OPTION3 OPTION4 A

The objective of Rajiv Gandhi Udyami Mitra Yojana (RGUMY) is to provide

handholding support and assistance to the potential first generation
entrepreneurs, in the establishment and management of the new enterprise, in
dealing with various procedural and legal hurdles and in completion of various
formalities required for setting up and running of the enterprise ________ it was
launched in the year ?
E4 2005 2006 2007 2008 4
KVIC ________ Khadi Village & industries commssion,formed under the Act of
Parliament, 'Khadi and Village Industries Commission Act of 1956.full functioning
E5 came in april 1957.head office is in ? Hyderabad Baroda Mumbai Noida 3
National Manufacturing Competitiveness Programme (NMCP) was introduced in
E6 the year ? 2005 2006 2007 2008 1

To distribute
The main function of SIDO is _________ To assist small basic raw To secure
To provide SSI with industries with materials reservation of
machines on hire marketing through their certain products
E7 purchase basis. facilities. depots. for the SSIS. 4

Institutional agencies grant financial assistance to small scale industries for

_________. participation in equity acquisition of working capital
E8 capital only. fixed assets. assistance. all of the above. 4
National Institute of Entrepreneurship and Small Business Development
E9 (NIESBUD)is situated where ? Hyderabad Kolkata Noida Meerut 3
SIDC was set up under the__________ Co-operative
E10 societies Act. Companies Act. Industries Act. Partnership Act 2

Assistant Non-
DIC is headed by General Manager in the rank of ___________. Joint Director of Director of departmental Departmental
E11 industries. industries. officer. officer 1

MSME Ministry proposed inclusion of khadi spinning in ________ recently ? National Rural Training of Rural
Employment Employment Youth for Self-
Guarantee Act Assurance Employment
E12 (NREGA) Scheme (EAS) (TRYSEM) All the above 1
SR.NO DESCRIPTION OPTION1 OPTION2 OPTION3 OPTION4 A
The Head Office of the Coir Board is at Ernakulam and the Reasearh cum Training
E13 Office is in ? Kerala Karnataka UP Maharashtra 1
E14 Mahatma Gandhi Institute for Rural Industrialisation (MGIRI) 10th FYP 12th FYP 11th FYP 9th FYP 2
E15 SFC Act was amended in the year __________ 1970 1971 1972 1973 3
Q1.small-scale industries (SSI), are exempted from the payment of income-tax
on their profits which is subject to a maximum of ___ per cent per annum of
F1 their capital employed. 5 6 8 10 2
The SSI units are ____ under excise provisions and have to follow simplified None of the
F2 export procedures. covered not covered partially covered above 2

Goods manufactured by an SSI unit with the brand name of others are not
eligible for SSI concession unless, goods are goods are goods are goods are
manufacture in an manufacture in manufacture manufacture in
F3 urban area. a rural area. outside India. SEZ. 2
SSIs can claim deductions in respect of profits and gains (under section 80IB of 20% for first 10 30% for first 10 None of the
F4 Income tax Act) at ______ if the SSI unit is owned by a company 10% for first 10 years years years above 3
F5 SSI exemptions are not applicable to Watches Automobiles Cotton clothes Both A and B 4

The small scale unit wishing to export has to obtain exporters code number from Any
_________. The Reserve Bank of The Central Any Regional International
F6 India. Bank of India. Bank. Bank. 1
F7 SSI exemptions are applicable to Tobacco products Pan Masala Garments Matches 3
Union Budget 2018, announced lowering of the corporate tax rate from 30% to
F8 25% for companies with an annual turnover of up to Rs. ______ 50 crore 100 crore 200 crore 250 crore. 4

Under section 80J of the income tax act, 1961, small-scale industries are
exempted from the payment of income tax on their profits at ___________.
F9 6% p.a. 6% p.m. 5% p.a. 5% p.a. 1

Rehabilitation allowance is allowed to the industrial undertaking equal to ___

percent of the amount of the deduction allowable to the enterprise.
F10 10 20 60 80 3
SR.NO DESCRIPTION OPTION1 OPTION2 OPTION3 OPTION4 A

SSI units can send its raw materials or semi-finished material back and forth Without the
another unit for job work. payment of Without the
With the payment of duty when its payment of duty
duty when total turnover when its total
irrespective of total is below 150 turnover is None of the
F11 turnover lakhs. above 150 lakhs. above 2

Under section 35 (2AB), a weighted deduction @ ____ per cent of the

expenditure incurred on in-house research and development is allowed for SSI.
F12 100 200 300 400 2

SSIs can claim deductions in respect of profits and gains (under section 80IB of
Income tax Act) at ______ if the SSI unit is owned by a co-operative society 25% for first 10 30% for first 10 None of the
F13 10% for first 10 years years years above 2

Clearances of
strips of
plastics used
SSI concessions, that is, not covered under SSI exemption within the
factory of
production for
Clearances of the weaving of
specified goods which fabrics or for
are used as inputs for manufacture of Clearances of
further manufacture sacks or bags goods
of any specified made of manufactured by
goods within the polymers of SSI unit for
factory of production ethylene or captive
F14 of the specified goods propylene consumption All the above 4
SR.NO DESCRIPTION OPTION1 OPTION2 OPTION3 OPTION4 A

are not
Exempted small units, having turnover below 150 lakhs, which are exempt from exempted from
duty, are also exempted provisions of
from provisions of registering Have to
registering their units their units with registering their
with excise excise units with excise None of the
F15 authorities. authorities. authorities. above 1

Q1.Innovative entrepreneurs may have to pay high insurance premiums due to Greater
the: The need to protect employee Greater Greater trading
G1 patents liability customer liability risk 1
Knowledge-based innovation has the ____ lead time of all innovations. None of the
G2 Shortest longest Medium above 2
Innovative entrepreneurs face special issues in raising: Structured
G3 Development capital capital Human capital Seed capital 4
Firms located on science parks compared to those located off science parks are: No more or less More growth
G4 More innovative Less innovative innovative orientated 3

Schumpeter considered that innovative entrepreneurs would: Be absorbed Be absorbed

within large within non-
G5 Thrive Disappear innovative firms innovative firms 3

Changes in
Sources for innovative opportunity prescribed by Peter Drucker are perception,
mood, and
G6 Demographics meaning New knowledge All the above 4

Change in Innovation
Which one is not a source for innovative opportunity prescribed by Peter Drucker The unexpected organization based on
G7 success or failure structure The incongruity process need 2
Networking by innovative entrepreneurs may be most encouraged by? Business Chambers of Business
G8 Science parks incubators Commerce associations 2
SR.NO DESCRIPTION OPTION1 OPTION2 OPTION3 OPTION4 A

Ability of the
An advantage of the small firm in the innovation process? Ability of the entrepreneur to
entrepreneur to act on new
Ability to carry out Ability to raise carry out ideas or product
G9 R&D finance multiple tasks development 4
G10 Knowledge-based innovation is the “______” of entrepreneurship. father king super-star end 3
An innovation, to be effective, has to be ____ and it has to be ____. practical, unique,
G11 simple, focused realistic new, affordable marketable 1
Innovative small firms are more likely in: Knowledge-based Automobile Aerospace
G12 sectors Biotechnology manufacture manufacture 1
Which one of the following actions by an entrepreneur is most likely to Development of a Take-over of a
G13 contribute to creative destruction? new product competitor Issuing shares Reducing prices 1

The most likely problem encountered by innovative entrepreneurs in raising Inability of

finance is: potential
Limited security since The costs of The exhaustion external funders
R&D is an intangible the patenting of personal to understand
G14 asset system equity in R&D technology 3

Introduce new Introduce

External links may provide incentives to: working improvements to Attend business
G15 Raise finance practices products exhibitions 3

Business
Q1.Which is not a stage of business incubation development: Business incubation Business
Business incubation incubation as viewed from incubation as
provided within business networks’ outsourced
H1 physical facility support service perspective service 4
A Business Incubator is a facility designed to assist businesses to become _____ Operational, Trained and Established, Ready and
H2 and _____ during their incubation period. successful skilled profitable equipped 3
National Science and Technology Entrepreneurship Development Board
(NSTEDB) launched the Science and Technology Entrepreneurs Parks (STEP) in
H3 the early______ 1980’s 1970’s 1990’s 2000’s 1
SR.NO DESCRIPTION OPTION1 OPTION2 OPTION3 OPTION4 A

business incubators will provide a variety of resources or resourcefulness which

may include A Full Time
Business Advice and Networking Manager and
H4 Services and Mentoring Shared Premises All the above 4

Companies typically spend average of two years in a business incubator, during

which time they often _____ telephone, secretarial office, and production
equipment expenses with other startup companies, in an effort to _____
everyone's overhead and operational costs. Outsource,
H5 Rent, overcome Share, reduce optimize Hire, minimize 2

their staff
supplies advice
Benefits provided by Incubators to owners of startup businesses. and much-
needed
expertise in
Their office and developing
manufacturing space business and they helping to
is offered at below- marketing fund fledgling
H6 market rates, plans businesses. All the above 4
_________ is a business support process that accelerates the successful
development of start-up and fledgling companies by providing entrepreneurs Entrepreneursh Business
H7 with an array of targeted resources and services. Business incubation ip Intrapreneurship incubator 1
SR.NO DESCRIPTION OPTION1 OPTION2 OPTION3 OPTION4 A

Businesses that
The incubatees may be: have gone
Individuals with through the
Trainees in a business innovative startup phase
development ideas and a but now need
programme whose supporting support to reach
innovative ideas business proliferation but
attract the financing concept and an lack the know-
eye of the incubating accompanying how or financial
H8 institution business plan resources All the above 4
National Science and Technology Entrepreneurship Development Board
(NSTEDB) launched the Technology Business Incubators (TBI) in the beginning of
H9 _____. 1980 1990 2000 2010 3

Incubation program ensures that an individual seeking to start or promote the The knowledge,
growth of their enterprise has easy access to ________ . Man, machine, experience in
money, management,
Facility, infrastructure method and and financial
H10 and knowledge management resources. All the above 3

Business incubation programs are often sponsored by all of the following except public
institutions, such
municipal as colleges and
H11 private companies entities universities entrepreneurs 4

An effective feasibility study, which will help incubator determine whether the A policy support
proposed project has all the factors crucial to an incubator’s success include: perspective to
Strong attract
A solid market and a community government
H12 sound financial base support linkage All the above 4
SR.NO DESCRIPTION OPTION1 OPTION2 OPTION3 OPTION4 A
Business incubators originated in ______ United States of United
H13 America Kingdom China India 1
Incubators carefully screen potential businesses because their space, equipment,
H14 and finances are _______ . Limited Expensive Outsourced Leased 1
There are approximately ______ business incubators nationwide, according to
H15 the National Business Incubation Association. 700 800 900 1000 3