MODEL QUESTION PAPER Course: BBA Semester 6 Paper Code: BB0028 Book ID: B0157

Paper Name: Entrepreneurship Development

Question no 1 to 40 = 1 mark Question no 41 to 60 = 2 marks Question no 61 to 75 = 4 marks

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Question The term Entrepreneur has been derived from the word entreprendre which means: a. To give b. To undertake c. To choose d. To decide Entrepreneurship is a creative activity - Said by: a. Frederick Harbison b. B. F. Hoselitz c. B. Higgins d. Joseph A. Schumpter What is the hallmark of a successful entrepreneur? a. Risk bearing capacity b. Persistence c. Flexibility d. Self confidence Which type of entrepreneurs utilizes a chance to introduce new technique or new product? a. Innovative entrepreneur b. Instigated entrepreneur c. Initiative entrepreneur d. Fabian entrepreneur In which state of India, standard of education is highest? a. Tamil Nadu b. Andhra Pradesh c. Kerala

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d. Karnataka Which phase is the phase of real training? a. Initial phase b. Training phase c. Post training phase d. Follow up phase Seed Capital Scheme is being operated by? a. IDBI b. SIDC c. ICICI d. IFCI Calcutta Y Self- Employment Centre targets unemployed youths between? a. 18 to 30 years b. 16 to 25 years c. 18 to 25 years d. 20 to 30 years In 1995 96 period what percentage of the total entrepreneurs were women entrepreneurs? a. 10 % b. 11.2% c. 13% d. 9% Why majority of the women are unaware of technological developments? a. Low risk bearing ability b. Low mobility c. Lack of education d. Low need of achievement Which of the following is a remedy to solve the problems of women entrepreneurs? a. Social attitude b. Finance cells c. Stiff Competition d. Supervision When was Yashaswini Programme held in Mysore? a. November 2000 b. July 2001 c. June 2002 d. November 2001 What is the analytical study of the end products and by product can throw light on new product ideas? a. Emerging technologies b. Market characteristics c. Social and economic trends d. Product profile Who manufactured Sumeet mixies to suit Indian conditions? a. Manohar Kumar Mathur b. Satya Prakash Mathur

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c. Mridula Kumar Mathur d. Prakash Kumar Mathur What can be defined as an attractive project idea which an entrepreneur accepts as a basis for his investment decision? a. Possibility b. Business c. Opportunity d. Notion What is two way exchange process in which the needs and wants of the buyer and seller are satisfied? a. Marketing b. Selling c. Producing d. Accounting Which phase starts after the investment decision is taken? a. Normalisation phase b. Construction phase c. Pre-investment phase d. Product identification phase What provides all the necessary information of the unit proposed to be set-up for the manufacture of a product or rendering a service? a. Project description b. Project appraisal c. Project implementation schedule d. Project report BEP = (F/(S-V)) x 100 What does F stand for? a. Fixed sales b. Fixed cost c. Finished stock d. Final output Which statement gives a projection of future sources of cash and their applications? a. Cash flow statement b. Fund flow statement c. Income statement d. Balance sheet In long term capital, the repayment of money is arranged for what time period? a. Within 1 year b. More than 2 years c. More than 7 years d. More than 5 years Ownership capital is also known as? a. Debt b. Equity c. Loan

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d. Mortgage To whom does the company pay interest? a. Shareholder b. Customer c. Debenture holder d. Creditor When was the first SFC (State Financial Corporation) set up in Punjab? a. 1950 b. 1958 c. 1953 d. 1960 When was Small Scale Industries Board constituted? a. 1958 b. 1960 c. 1953 d. 1954 Which type of industrial estates is called conventional industrial estates? a. General type industrial estate b. Special type industrial estate c. Ancillary industrial estate d. Workshop bay Government industrial estates come under which type of classification? a. Variant b. Objective c. Functional d. Organizational Under Section 80J of Income Tax act, 1961 new industrial undertakings are exempted from the payment of income tax on their profits subject maximum of what percentage of their capital employed? a. 5% b. 6% c. 10% d. 15% Rehabilitation allowance is granted under which section of Income Tax Act, 1961? a. 30-B b. 80-C c. 32-D d. 33-B When was investment allowance introduced? a. 1970 b. 1961 c. 1967 d. 1976 IPR stands for? a. Industrial Policy Resolutions b. Industrial Protection Resolutions

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c. Independent Policy Reforms d. Income Plan Rewards When was the policy titled Policy Measures for Promoting and Strengthening and Supplementing Small, Tiny and Village Enterprises tabled in the Parliament? a. July 6, 1990 b. August 28, 1992 c. August 6, 1991 d. June 15, 1991 National Programme for Rural Industrialization has been announced with a mission to set up how many rural clusters every year? a. 150 b. 200 c. 250 d. 100 Quality is fitness for use or purpose said by: a. Philip B. Crosby b. Joseph M. Juran c. W. Edwards Deming d. ISO What refers to managing continuous improvement and does not address any specific organizational level? a. Quality b. Administration c. Management d. People What is the fourth element involved in TQM? a. Processes b. Team Work c. Continuous Improvement d. Customer Satisfaction What breeds personal initiative? a. Empowerment b. Consensus c. Team work d. Organization In which stage the business expands by way of opening its branches? a. Start up stage b. Growth stage c. Expansion stage d. Maturity stage Which form of growth of business is diversification? a. External b. Vertical c. Horizontal d. Internal When two or more enterprises merge into one to form a new enterprise, what

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is it called? a. Absorption b. Amalgamation c. Joint Venture d. Franchising _________ says that entrepreneurship is a ___________ activity. a. Fredrick Harbison & creative b. Fredrick Harbison & innovative c. Schumpter & creative d. Schumpter & innovative Which of the following is not a quality of a successful entrepreneur as specified by Mc Clelland? a. He is endowed with an unusual creativeness. b. He has high degree of ambition. c. He is enriched by high propensity. d. He has also a strong need for achievement. The Institute of Entrepreneurship Development has trained around _______ youths in ____ programmes till 1987 April. a. 300, 14 b. 500, 20 c. 200, 10 d. 400,13 Madhya Pradesh Consultancy Organisation Ltd. gives _____ and ______ training to entrepreneurs. a. Technical and managerial b. Vocational and technical c. Managerial and administrative d. Financial and technical According to Frederick Harbison, which of the following is not a function of a women entrepreneur? a. Explore the prospects of starting new enterprises. b. Co-ordination, administration and control c. The power to resist criticism d. Supervision and providing leadership in all aspects of the business. Which of the following is not a source of idea for an entrepreneur? a. Cost of the project b. Product profile c. Imports and exports d. Emerging technologies While doing a market survey for raw material availability, which of the following should be considered? a. Existing brand loyalties and consumption pattern b. Leading suppliers and time for order execution c. Market strategy and advertising d. Major manufacturers and machinery delivery schedules According to Peter Drucker, which of the following is not a kind of opportunity? a. Breakthrough

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b. Additive c. Complementary d. Market Debt-Service Coverage ratio = Net profit after tax + ______________ + interest for one year/___________ + interest for one year a. Depreciation and sales b. Depreciation and capital employed c. Equity and installment d. Depreciation and installment On the basis of permanence, the financial needs are classified into : a. Fixed & working capital b. Long term & fixed capital c. Short term & fixed capital Long term & short term capital An optimum capital structure can be defined as a financing mix incurring the _____ cost but yielding the __________results. a. Least & maximum b. Maximum & least c. Least & minimum d. Maximum & minimum The term export finance refers to _____ facilities and techniques of _________ at the pre shipment and post shipment stages. a. Debit & payment b. Credit & payment c. Credit & collection d. Credit & debit On the basis of organizational set up, industrial estates are classified into: a. Private industrial estates & functional industrial estates b. Functional industrial estates & the workshop bay c. Municipal industrial estates & private industrial estates d. Functional industrial estates & Municipal industrial estates In order to become eligible for tax concession, the small scale industries need to employ at least ____ & _____ workers in a manufacturing process carried on with and without the aid of power respectively. a. 10 & 20 b. 20 & 10 c. 10 & 30 d. 20 & 30 Section 80M of the Income Tax Act,1961,provides for deductions in respect of: a. Royalties from any company in India & Inter corporate dividends b. Inter corporate dividends & Income of Co operative Societies c. Income of Co operative Societies & Royalties from any company in India d. Royalties from any company in India & Royalties from certain foreign companies The IPR 1956 for SSI aimed at : a. Protection plus Growth b. Protection plus Development

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c. Protection plus Promotion d. Promotion plus Development The main thrust of the Seventh Plan was __________ and not ____________. a. Reservation & competition b. Development & competition c. Competition & reservation d. Advancement & reservation Quality is a _________determination, not the __________ determination. a. Manufacturers & Customers b. Sellers & Customers c. Customers & Manufacturers d. Sellers & Buyers TQM is a philosophy where the approach is ____________ and ___________. a. Human & scientific b. Behavioural & Scientific c. Behavioural & Human d. Systematic & Human Sub contracting is a __________ beneficially ______________ relationship between two companies. a. Exclusively & Traditional b. Mutually & Commercial c. Mutually & Traditional d. In exclusively & Commercial Match the following: HEADS ENTREPRENEURIAL FUNCTIONS A. Exchange i. Setting up a Relationship factory B. Managerial ii. Purchasing of Control inputs C. Technological Skill iii. Dealing with customers D. Administration iv. Managing finance a. A i, B ii, C iii, D iv b. A iii, B iv, C i, D ii c. A ii, B- iii, C- iv, D i d. A iv, B iii, C- ii, D -i State TRUE Or FALSE: A. The creation of something new is known as innovation. B. The creation of something new is known as invention. C. Drones are entrepreneurs who are unwilling to make any change in the production system. D. Super growth entrepreneurs are those who necessarily take up a high growth industry. a. False, True, True, False b. True, False, True, False

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c. False, True, True, False d. False, True, False, True Match the following: INSTITUTIONS LEVEL THAT WHICH SUPPORT TO ENTREPRENEURS IS EXTENDED A. ICICI i. State Level B. SFCs ii. State Level C. SIDCS iii. All India level a. A iii, B ii, C i b. A ii, B iii, C i c. A- i, B ii, C iii d. A iii, B i, C ii e. Either a or d Match the following: INSTITUTION A. CYSEC MAJOR FUNCTION i. Give 6 months entrepreneuri al training to literate people belonging to hill tribes of the districts ii. Motivating and instigating the educated and unemployed youth to seek self employment iii. Improve the operational efficiency of the entrepreneurs by providing them technical advice iv. Extend necessary help to entrepreneurs to commence

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D. XISS

their own enterprises a. b. c. d. 65. A iii, B iv, C ii, D i A i, B ii, C iii, D iv A ii, B iii, C iv, D i A iii, B iv, C i, D ii

State TRUE Or FALSE: A. Indian women have no need for achievement. B. Low mobility acts as a barrier to women entrepreneurship. C. Sound family atmosphere is not a necessity for the development of women entrepreneurs. D. Women have a low ability to bear risk. a. True, True, False, True b. True, False, False, True c. True, False, false, True d. True, False, False, False Arrange the steps of Project Life Cycle in the correct sequence: a. Construction phase, Normalization Phase, Pre investment phase b. Pre investment phase, Normalization Phase, Construction Phase c. Normalization Phase, Construction Phase, Pre investment Phase d. Pre investment Phase, Construction Phase, Normalization Phase State TRUE Or FALSE: A. Repayment Schedule is not included in the project report. B. A project report provides all the necessary information of the unit proposed to be set up. C. Study of import statistics is a potential source of product idea. D. Break even analysis is included in a project report. a. False, True, True, True b. True, True, True, True c. False, True, True, True d. False, False, True, True State TRUE Or False: A. Financial structure is primarily represented by short term sources. B. Financial structure is represented both by short term and long term sources. C. Capital structure is primarily represented by short term sources. D. Capital structure is primarily represented by long term sources. a. b. c. d. False, True, True, True True, True, True, True False, True, False, True False, False, True, True

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Match the following: Institutions A. ICICI B. IDBI C. IFCI D. LIC

Year of establishment i.1956 ii.1948 iii.1964 iv.1955

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a. A i, B- ii, C iii, D- iv b. A iv, B iii, C ii, D i c. A iii, B- i, C ii, D iv d. A i, B iii, C- iv, D -ii Match the following: Types of Industrial Basis of Classification Estates A. Special Type i.Other Variants Industrial Estate B. Municipal ii.Organizational Set up Industrial Estate C. Workshop Bay iii. Function a. A ii, B- iii, C iii b. A i, B iii, C ii c. A iii, B- ii, C i d. A ii, B i, C -iii Match the following: Benefits A. Tax Holiday B. Depreciation C. Rehabilitation Allowance D. Investment Allowance

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Section of the Income Tax Act,1961 i. Sec 31A ii. 80 J iii. Sec 32 iv. Sec 33-B

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a. A iii, B iv, C ii, D i b. A i, B ii, C iii, D iv c. A ii, B iii, C iv, D i d. A iii, B iv, C i, D ii Match the following: Deduction Benefits Section of the Income Tax Act,1961 A. Royalties from any i. Sec 80 P company in India B. Royalties from ii. Sec 80 M certain foreign

companies C. Inter corporate Dividends D. Income of Co operative Societies

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Sec 80 O Sec 80 M

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a. A iii, B iv, C ii, D i b. A i, B ii, C iii, D iv c. A ii, B iii, C iv, D i d. A iv, B iii, C ii, D i State TRUR Or FALSE: A. The IPR 1980 re emphasized the spirit of the IPR 1956. B. The IPR 1977 added development. C. The IPR 1956 aimed at protection plus development. D. The IPR 1977 emphasized on effective promotion of the cottage industry. a. b. c. d. True, False, True, True False, False, True, True True, False, True, False True, false, False, False

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Match the following: Quality Imperatives A. Operator Inspection B. Foreman Inspection C. QC Departments D. SQC a. b. c. d.

Period i. ii. iii. iv.

1940 - 60 1920 40 1890 - 1920 1870 1890

A iii, B iv, C ii, D i A i, B ii, C iii, D iv A ii, B iii, C iv, D i A iv, B iii, C ii, D i

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Arrange in sequence the stages of Small Business Growth: a. Growth, start up, maturity, expansion, decline b. Initial phase, growth, maturity, expansion, decline c. Start up, growth, expansion, maturity, decline d. Pre phase, start up, growth, maturity, decline