ED

Entrepreneurial Development
Internal Assessment Questions

Unit-1
1. An entrepreneur is expected to perform mainly three functions, 1. --------------------
2. Business decisions 3. Managerial functions.
2. The development of an organization and securing adequate financial resources are some
of the functions of an entrepreneur as describe by Mr. -----------------.
3. The emergence of the entrepreneurs in a society depends to a great extent on the
economic social ------------------------ factors prevailing in the society.
4. An entrepreneur wants freedom, he is goal oriented self reliant and self ------------------
5. The entrepreneur is an action man whereas the entrepreneurship is a
-------------------------------
6. Entrepreneur is known to be the fourth factors of enterprises. The other three factors are
labor, capital and ---------------------------
7. Risk of business due to the possibility of change in the taste of the consumers, technique
of productions and new inventions. are genuine and recurring in nature but they cannot be
---------------
8. Doing new things or the doing of things that are already being done in a new way which
includes processes of productions, introductions of new products creations of new
markets etc are called ---------------.
9. -------------can be defined as the provision for capital in order to enable the entrepreneur
to reduce uncertainty, in his plan of investment and expansion of the enterprise
10. Arthur H Cole described an entrepreneur as a decision maker and attributed many
functions to him. The no of functions broadly classified by him is ----------
11. Introduction of a new method of production, that is one not yet tested by experience in
the concerned unit of manufacturer are an example of -------------.
12. Entrepreneurship can be defined as the ----------------------------------barometer of the
countries progress on the economic social and industrial front.
13. According to Sachet committee on company law a professional manager is an individual
who (a) -----------------------------------------------------------------------or (b) is a member of
a recognized professional body or (c) is holder of a degree or diploma in management
from a recognized university.
14. Both managers and entrepreneurs can delegate but they are
---------------------------------------------------
15. The area of studies which focuses on evolving code of ethics for consumer satisfaction is
--------------------------------------------------------.
16. The entrepreneurs who catch hold of a new idea for a product, services or process and
work to bring this idea to fruition within the frame work of the organization, are
called---------------- .
17. When four factors i.e. labor, entrepreneur, capital and land joins hands an
-----------------------------------------is born.
18. The characteristics of a professional management are, body of knowledge, management
tools, specialization, separate discipline, code of conduct and
---------------------------------------------------------------------.
19. The entrepreneur role may be played by the Chief executive officers whereas the
managerial role can be played by the
-----------------------------------------------------------------------------------------------.
20. While the operational and administrative decision which has a bearing on the short and
medium term results is the focus of managers the focus of entrepreneurs is on
-----------------------------------------------------------------------------------------------.
21. The six critical dimensions which distinguishes entrepreneur and manager are strategic
orientation, commitment to opportunity, the resources commitment process, the concept
of control over resources the concept of management and
----------------------------------------------.
22. The resources commitment process, the concept of control over resources and the concept
of management are the three of the six -----------------------------------which distinguishes
entrepreneurial behavior from the more administratively-oriented behaviors.
23. Strategic orientation, commitment to opportunity, resource commitment process, concept
of control over resources, concept of management and compensation policy, are the
------------------------------------that distinguishes, entrepreneurial behavior from the more
administratively-oriented behavior.
24. There are --------------------critical dimensions that distinguish entrepreneurial behaviors
form more administratively oriented behaviors.
25. The major functions of an entrepreneur are 1. Business decisions 2.
-------------------------------------- 3. Managerial functions.
26. On macro level entrepreneur has to perform, mainly three functions. These functions are
Assumption of risk, 2. Business decisions and 3. ------------------------------------------------
27. The development of a market for the products and the maintenance of good relations with
the public authority are some of the functions of an entrepreneur as describe by Mr.
-------------------------------------------------
28. The requisitions of efficient technological equipment and determination of those
objectives of the enterprise are some of the functions of the entrepreneur as described by
Mr.--------------------------------------
29. Introduction of a new goods, that is, one which consumers are not yet familiar with or of
a new quality of a good is an example of -------------------------.
30. While entrepreneur refers to a person, the entrepreneurship refers to
--------------------------
31. The activity which includes communication, risk-taking, leadership, technology, decision
and action can be defined as entrepreneurship whereas the communicator, programmer
and motivator, creator, initiator, and administrator can be defined as
------------------------------------
32. Strategic orientation is the ----------------- critical dimension of six dimensions that
distinguish entrepreneurial behavior from more administratively oriented behavior.
33. In a way entrepreneur --------------------------------entrepreneurship
34. Six critical dimensions which distinguishes entrepreneurial behavior from more
administratively oriented behavior are strategic orientation,
-------------------------------------, the resources commitment process , the concept of
control over resources the concept of management and compensation policy
35. There are six critical dimensions which distinguishes entrepreneurial behavior from more
administratively oriented behavior.These six dimensions are, strategic orientation,
commitment to opportunity, the ------------------------------------------ , the concept of
control over resources the concept of management and compensation policy
36. The function of an entrepreneur is more of a macro in nature whereas the function of a
manger is micro in nature. There are six critical dimensions, which distinguishes
entrepreneurial behavior from more administratively oriented behavior.These six
dimensions are, ------------------------------------------, commitment to opportunity, the
resources commitment process, the concept of control over resources the concept of
management and ----------------------------------------------
37. The entrepreneur is an action man whereas the entrepreneurship is a
-------------------------------
38. According to Sachhar committee on company law a professional manager is an individual
who (a) belongs to the profession of law, accounting, medicine, engineering or
architecture or (b) is a member of a recognized professional body or (c)
----------------------------------------------------------------------
39. In the normal managerial practice the work can be delegated but -------------------------
and -----------------------can not be delegated
tools, specialization, separate discipline, -----------------------------------------------and
professional association
41. The focus of a professional management is short and medium term results whereas the
focus of an entrepreneur is -----------------------------------------------------
tools, specialization, separate discipline, ------------------------------------------------- and
---------------------------------------------------------------------
tools, specialization, -----------------------------------------,
------------------------------------------------- and
---------------------------------------------------------------------
44. The entrepreneurs follows the principal which are more oriented towards
------------------------------------------------------------------------------------------------------------
---------------
45. The entrepreneur role may be played by the
----------------------------------------------------------------------whereas the managerial role
can be played by the middle level and joint level management
---------------------------, capital and land
labor, ----------------------and land
48. When an individual working for an organization catch hold of an idea for a product
services or process and go on to bring this idea to fruition within the organization
framework he/she is called as --------------------------------
49. The emergence of the entrepreneurs in a society depends to a great extent on the
economic social ---------------------------------------------------------------------- factors
prevailing in the society
50. The four factors required to start an enterprise are
-----------------------------------------------------------------------------------------------.
Answers
1. Assumption of risk 29. Innovations

2. Arthur H Cole 30. Process
3. Religious, cultural and psychological 31. Entrepreneur
factors 32. First
4. Motivated 33. Precedes
5. Process 34. Commitment to opportunity
6. Land 35. The resources commitment process
7. Insured 36. Commitment to opportunity and
8. Innovations compensation policy
9. Risk taking 37. Strategic orientation and
10. Six compensation policy
11. Innovation 38. Process
12. De-Facto barometer 39. A holder of a degree of diploma in a
13. Belongs to the profession of law. management form any recognized
Accounting, medicine, engineering, university
or architecture 40. Responsibility and accountability
14. Finally accountable 41. Code of conduct
15. Establishing code of conduct 42. Code of conduct and professional
16. Intrapreneurs knowledge
17. Enterprise 43. Separate discipline, code of conduct
18. Professional association and professional association
19. Middle level and joint level 44. Macro social aspects
managers 45. CEO
20. Strategic decision involving growth 46. Labor
21. Compensation policy 47. Capital
22. Critical dimensions 48. Intrapreneurs
23. Six critical dimensions 49. Religious, cultural and psychological
24. Six factors
25. Business decisions 50. Labor, capital, land and entrepreneur
26. Managerial functions
27. Arther H Cole
28. Arther H Cole
Multiple Choice Questions
1. Industrialization is an ongoing process which accelerate economic growth and induces

1) Cultural change 2) Social change 3) Behavioral changes
4) None of the above 5) All the above
2. Entrepreneurship can be developed through appropriately designed
1) EDP program 2) ERP Program 3) EPD Program
3. One factor which plays the greatest role in achieving the industrial development more than
any other, is____________________
1)Economic factors 2)Social factors 3) Intellectual factors
4)Human factors 5) Cultural factors
4. EDP programs broadly consists of ___________________

1) Developing achievement motivation, and sharpening entrepreneurial trait and behavior
2) Providing guidance on industrial opportunities, incentives, and facilities rules and
regulation and the development of managerial and operational capabilities
3) Training on project planning and development
4) All of the above
5) None of the above
5. To achieve industrial development, the planners in our first five year plan gave greater
emphasis and importance to___________________
1) Technical education 2)Social and moral education 3)Professional education
6. Entrepreneurs are persons

1) Who bring overall change through innovation for the maximum social goods
2) Human value remain and sacred and inspires him to serve society.
3) Both a & b
5) All the above
7. Individual who initiate, establish, maintain, and expand new enterprises constitute,
the____________________
1) Leading class 2) Enterprising class 3) Entrepreneurial class
8. Some of the quality of an entrepreneurs, which includes grasping opportunity, taking

initiatives, and solving problems can be defined as part of_________________
1) Entrepreneurial skills 2) Entrepreneurial attributes 3)Entrepreneurial behaviors
9. Quality of entrepreneurs, i.e. Proposing, strategic thinking and networking can be defined
as part of ____________________
1) Entrepreneurial skills 2) Entrepreneurial attributes 3)Entrepreneurial behaviors
10. Entrepreneurs may be defined in various way but the four key elements involved in it are
innovation, risk taking, vision and ____________________
1) Leadership 2) Personal ability 3) Resourcefulness
4) Organizing skills 5) none of the above
11. Knowledge in entrepreneurship is a means to an end. Indeed that constitutes knowledge in
practice is largely defined by the ends that is by practice. This definition of entrepreneurs
was proposed by_______________________
1) Higgins 2) Peter F drucker 3)F W Taylor 4) None of the above 5) All the above
12. Small enterprise needs some condition to follow so that they remain alive. Those conditions
are _______________________
1) Tolerance for change in the society and culture 2) Social mobility
3) Both a & b 4) None of the above 5) All the above
13. The broad parameters of price setting are _________________
1) Cost based, competitors price strategies and demand of the products
2) Cost based, competitors price strategies and customers
3) Cost based, market position and products position in PLC
5) All the above
14. The most important values which Japanese have brought into their management
are_________________
1) Lifelong employment 2) Quality circles and loyalty 3) Both a & b
4) None 5) All the above
15. An entrepreneur who starts an industrial unit by innovative skill and is essentially an
innovator combining different technology to produce a marketable product or service
is____________________
1)Modern entrepreneurs 2) First generation entrepreneurs 3) Classical entrepreneurs
4) All the above 5) None of the above
16. Jamshedji Tata, Dhrubhai Ambani and Subroto Rai Sahara are examples of
_______________________
1)Modern entrepreneurs 2) First generation entrepreneurs 3) Classical entrepreneurs
17. An entrepreneur whose aim is to maximize his economic returns at a level consistent with
the survival of the firm with or without an element of growth of the enterprise is an
example of______________________
1) Modern entrepreneurs 2) First generation entrepreneurs 3) Classical entrepreneurs
18. An entrepreneur who undertakes ventures which go well along with the changing demand
and which suit the current marketing needs is an_____________________
1) Modern entrepreneurs 2) First generation entrepreneurs 3) Classical entrepreneurs

19. The ability of entrepreneurs to relate to people in a considerate and effective way can be
described as____________________
1) Administrative competence 2) Interpersonal competence 3) Personal competence
20. The ability of an entrepreneur to achieve goals within the bound of the business
constraints, policies and procedures can be described as_____________________
1) Administrative competence 2) Interpersonal competence 3) Personal competence
21. The name of Jamshedji Tata, Dhrubhai Ambani and Subroto Rai Sahara are examples
of_______________
1) Modern entrepreneurs 2) The pioneers 3) Classical entrepreneurs
22. Knowledge in entrepreneurship is a means to an end. Indeed that constitutes knowledge in

practice is largely defined by the ends that is by practice. This definition of entrepreneurs
was proposed by____________
1)Higgins 2) P Parasuraman 3) F W Taylor 4) None of the above 5) All theabove
23. It is a function of seeing investment and production opportunity, organizing to undertake a

new production process, raising capital, hiring labor, arranging for the supply of raw
materials and selecting top managers for the day- to- day operation of the enterprise. The
famous definition of an entrepreneurship was defined by _____________
1)Charles David 2) Peter F drucker 3) Taylor 4) None of the above 5) All the above
24. 24. Some of the quality of an entrepreneurs, which includes persuading, negotiating and
selling can be defined as part of___________________
1) Entrepreneurial quality 2) Entrepreneurial attributes
3) Entrepreneurial behaviors 4) none of the above 5) All the above
25. Quality of entrepreneurs, i.e. Proposing, strategic thinking and networking can be defined
as part of ____________________
1) Entrepreneurial quality 2) Entrepreneurial attributes
3) Entrepreneurial behaviors 4) none of the above 5) All the above
26. EDP stands for________________
1) Enterprises development program 2) Entrepreneurial Development plan
3) Enterpriser development plan 4) None of the above 5) All the above
27. To usher into economic and social transformation in the developing countries, one of the
means to achieve is________________
1) Education 2) Industrialization 3) Capitalization
4) Augmented offer 5) None of the above
28. These individual characteristics of potential entrepreneurs are___________________
1) He/she should be motivated to by an urge to make success of the project
2) He/she is innovative and progressive
3) He/she always strives to climb up
4) All of the above
29. Individual characteristics of a potential entrepreneurs are____________________
1) He/She proceeds to accept the situation as a challenge
2) He/she analyses the pro and cons carefully before making decision
3) He works hard and equips himself with all the necessary tools
4) All the above
30. Much of what the entrepreneur did to take the country on industrial path was
1) Not science but the technological understanding______________________
2) Intuitive almost an art form
3) To study pure science and apply the same in the industrial arena
4) None
5) All the above
31. Some of the quality of an entrepreneurs, which includes Managing autonomously, seeing
things through, and putting things together creatively can be defined as part of
______________________
1) Entrepreneurial skills 2) Entrepreneurial attributes 3) Entrepreneurial behaviors
32. Some of the quality of an entrepreneurs , which includes using judgment to take calculated
risk, putting things together creatively and taking responsibility for and ownership of things
can be defined as part of __________________
4) None of the above 5)All the above
33. Some of the quality of an entrepreneurs, which includes Perseverance, action oriented and
hardworking can be defined as part of _____________________
34. Some of the quality of an entrepreneurs, which includes achievement orientation and
ambition self confidence and self esteem and high internal locus of control can be defined
as part of ________________________
35. Some of the quality of an entrepreneurs , which includes determination, creativity and
preference for learning by doing can be defined as part of _________________
36. Some of the quality of an entrepreneurs, which includes persuading, negotiating and
selling can be defined as part of ____________________
37. Holistically managing business/projects/situations, intuitive decision making under

uncertainty and creative problem solving is part of ______________________
1) Entrepreneurial attributes 2) Entrepreneurial behaviors 3) Entrepreneurial skills
38. There is no unanimity on the definition of entrepreneur but the four key elements involved
in the entrepreneurship are______________________
1) Innovation, risk taking, vision and personal ability
2) Innovation, Composure, vision and personal ability
3) Innovation, risk taking, vision and organizing skill
5) All the above
39. Entrepreneurial process with some change in the economic environment leading to changes
in the every aspect of life in the country is the_____________________
1) Second stages of entrepreneurial process 2) Third stages of process
3) First stages of process 4) None of the above 5) All the above
40. Starting of a new venture is the ________________________
41. The process of extending the enterprises domain of competence by exploiting new
opportunity through new combination of its available resources is_______________
42. The process of coordinating varied activity to achieve the entrepreneurial goals
is_________________
3) First stages of process 4) The fourth stages of the process 5) None of the above
43. It is a function of seeing investment and production opportunity, organizing and enterprise
to undertake a new production process raising capital hiring labor, arranging for the supply
of raw materials and selecting top managers for the day- to- day operation of the enterprise.
The famous definition of an entrepreneurship was defined by____________________
1) Higgins 2) Peter F drucker 3) F W Taylor 4) None of the above 5) All the above
are______________________
1) Tolerance of private ownership 2) Tolerance of profit making
3) Both a & b 4) None of the above 5) Tolerance of service
are____________________
1) Tolerance of private ownership 2) Tolerance of profit making 3) Social mobility
4) All of the above 5) None of the above
46. The most important values which JAPANESE have brought into their management
are_____________________
1) Pride in the organizations 2) Workers participations 3) Both a & b
47. 22. Depending on the stages of the development , the classification of the entrepreneurs
are_____________________
1) First generation entrepreneurs , second generation entrepreneurs, and third generation
entrepreneurs
2) First generation, modern and Contemporary entrepreneurs
3) First generation, modern and classical entrepreneurs
5) All the above
48. The entrepreneurs must have following to effectively discharge his/her
functions____________________
1) Understand his/her job 2) Follow up on promise 3) Giving priority to problem
49. The ability of entrepreneurs to relate to people in a considerate and effective way can be
described as interpersonal competence. The entrepreneurs must have following to
effectively discharge his/her functions_________________________
1) Be fair and objective 2) Listen carefully 3) Clarify priorities
50. Holistically managing business/projects/situations, intuitive decision making under

uncertainty and creative problem solving is part of
1) Entrepreneurial attributes 2) Entrepreneurial behaviors 3) Personal Skill
Answers
1. 2 14. 3 28. 4
29. 3
2. 1 15. 2 30. 2
31. 3
3. 4 16. 2 32. 3
33. 2
4. 4 17. 1 34. 2
35. 2
5. 1 18. 1
36. 1
6. 3 19. 2 37. 3
38. 3
7. 3 20. 2 39. 3
40. 1
8. 3 21. 2 41. 2
42. 4
9. 1 22. 4 43. 1
44. 3
10. 4 23. 4 45. 4
46. 3
11. 2 24. 4 47. 3
48. 4
12. 3 25. 4 49. 4
26. 2 50. 4
13. 2 27. 2
Descriptive questions
1. Define entrepreneur
2. What are the functions of an entrepreneur
3. What are the types of entrepreneurs
4. Explain traits of entrepreneurs
5. What are the qualities of an entrepreneur
6. Define intrapreneur
7. Explain process of entrepreneurship
8. What are the barriers to entrepreneurship
9. Define women entrepreneur
10. Explain relation between women and entrepreneurship
11. Reasons for women entrepreneurship
12. Write some problems of women entrepreneurs
13. Define rural entrepreneurship
14. What is the need to promote rural entrepreneurship
15. What are the steps taken to improve rural entrepreneurs
16. What is the difference between entrepreneur and manager
17. Characteristics of entrepreneur
18. Write the difference between entrepreneur and intrapreneur
19. Write the difference between entrepreneurship and environment
20. Write the difference between entrepreneur and entrepreneurship
II ND UNIT
1. The entrepreneurial development is a key to achieve overall -------------------development

through higher level of industrial activity
2. ----------------------------------------------------------- (EDP) is designed to help a person in
strengthening and fulfilling his entrepreneurial motive and in acquiring skills and
capabilities necessary for playing his entrepreneurial role effectively.
3. Under this training method a single individual is selected for training and this type of
training is undertaken where a complicated skill is to be taught to an individual. The type
of training is known as ---------------------
4. The type of training where the instructor communicates in theory the practice to be
followed by the learners. The type of training is described as -----------------------methods
5. -----------------------------meetings are the mode of training involving a group of people
who discuss the various problems confronting them, they involve exchanging ideas and
views and later on, coming to a firm conclusion based on the various proposals and
alternatives .
6. The mode of training which is suitable for a group of individuals with a similar type of
work and where general instructions are applicable to all are to be given are known as
---------------------------------
7. The overall personality development of the workforce through emphasis on key
qualifications which will equip the workforce with ability to cope with change is an EDP
training approach from --------------------------------------
8. An approach to EDP training with broad based training to start with, followed by
specialization is a ----------------------------------
9. The Delhi based National institute of entrepreneurship and small business development
(NIESBUD) established by the government of India, is an apex body for coordinating and
overseeing the activity of various institutions and agencies engaged in
------------------------------------------------
10. To ensure better product quality and meeting customer expectations to train at cross
functional level a tool is designed as --------------------------------------------
11. A tools designed to train the top level and senior level functionary for realistic
organizational diagnosis and action plans to overcome problems are known as
----------------------------------
12. Modular training tools which are used to train ------------------------------towards
adaptation to hi-tech integrated approach to operation and maintenance
13. --------------------------------- tools which are used to train work force towards adaptation
to hi-tech integrated approach to operation and maintenance
14. the approach which initially focuses on broad based training followed by specialization is
a --------------------approach
15. One of the essential quality of an entrepreneur which urges, drives, desires, aspiration,
strivings or needs direct can be described as --------------------
16. the leader is entrepreneur whereas ---------------------is entrepreneurship
17. Be greedy when others are fearful and be fearful when others are greedy, is a
famous comment by one of the worlds famous investor
Mr.--------------------------------------------------
18. Environmental school of thought, financial school of thought and displacement school of
thought can be described as ---------------------view of entrepreneurial school of thought
approach.
19. Entrepreneurial trait school of thought , venture opportunity school of thought , and
strategic formulation school of thought can be described as ------------------
---------------------view of entrepreneurial school of thought approach.
20. Any dreamers who do is a famous quotes by ------------------------------------to described
the term entrepreneurships)
21. Entrepreneur faces financial risk, --------------------------- family and social risk and
physchic risk.
22. Entrepreneur faces --------------------------- Career risk family and social risk and physchic
risk.
23. Entrepreneur faces a no of different type of risk. These can be broadly grouped into four
basic areas. These are financial risk, career risk, ------------------------ and physchic risk.
24. Entrepreneur faces a no of different type of risk. These can be broadly grouped into four
basic areas. These are financial risk, career risk family and social risk and
---------------------------------------
25. An entrepreneur deals with many type of information. When he/she is dealing with major
expenses, exclusive of cost of goods sold, are classified as
-----------------------------------------------------------------
26. The type of training method where the performance of the work is to be shown
practically by the instructor for better understanding is known as -------------------.
27. The type of training where experts in the field share their ideas and bring to the notice of
learners new ideas and technique is known as -----------------------------
28. The Delhi based National institute of entrepreneurship and small business development
(NIESBUD) established by the government of India, is an apex body for coordinating and
overseeing the activity of various institutions and agencies engaged in entrepreneurship
development particularly in the area of
----------------------------------------------------------------------
29. For developing and improving the quality of day to-day management, which is so
crucial for the success of any industrial venture, as also with a view to encouraging
professionalism in management, IFC had sponsored in 1973, the
--------------------------------------------------at Gurgaon near Delhi .
30. The management development institute established by the government of India is now a
cornucopia of management training and research and consultancies, and its prime goal
being to improve -----------------------------------------------------in the industry/government
and banking sectors of the economy.
31. While organizing entrepreneurs development program it is important to know that it is
impossible to develop entrepreneurs like a degree holders in the country and therefore a
----------------------------------for entering the business ventures must be evaluated and non
serious candidates weeded out
32. There are different approaches to training of the individual in entrepreneur development,
but the approach which focuses on on the job training is a -------------------- approach
33. A Different approach to training where it places littlie accent on formalized institutions
training and tremendous emphasis is laid on On the job training is a
-----------------------------------approach to training
34. A tools ZOPP designed to train the ------------------------------------------------------- for
realistic organizational diagnosis and action plans to overcome problems
35. A tool which is designed to train middle level mangers for identifying and helping to
remove blockage to competency, empowering them for greater effectiveness is known as
----------------
36. A tool Blockage concept which is designed to train ------------------------------------ for
identifying and helping to remove blockage to competency and empowering them for
greater effectiveness is known as ----------------
37. An entrepreneur, who is a college drop out , went on a mission and redefined the canvas
of the entire operation , how a businesses are run or how an organizations runs it various
departments. The change was so dramatic it is regarded as one of the most important
development of this centaury, He went on to become the richest man on earth with assets
worth more than 60 Billion, here we are talking about Mr.
--------------------------------------------
38. A Third generation entrepreneur who realized the changing face of India and changing
dynamics of Indian consumers and came out with a business model for consumers which
became such a raze and being considered as one of the greatest economic turn around on
consumerism, here we are taking about The future group which is established by
Mr.-------------------------------
39. The concept of treading a different path made an entrepreneur to think on different line at
the time of total control and license raj and succeeded in establishing Indias first and
largest private sectors banks called ICICI. The founder of the bank is known as
Mr.------------------------
40. The concept of treading a different path made Mr. .MV Kamat to think on different line
at the time of total control and license raj and succeeded in establishing Indias first and
largest private sectors banks called -----------------------------------
41. Entrepreneurship is an individual quality and talent which takes a dream to its final
conclusion which at the end cater to the overall benefits to the society. It was a dream of
Mr. Ratan Tata to meet one of the critical requirement of a middle class family, the
transportation needs and he put his stake on developing the worlds cheapest car, with a
price at less than 3000 US Dollar. The car was unveiled at
-------------------------------------------
42. Entrepreneurship is an individual quality and talent, which takes a dream to its final
conclusion which at the end cater to the overall benefits to the society. It was a dream of
Mr. Ratan Tata to meet one of the critical requirement of a middle class family, the
transportation needs and he put his stake on developing the worlds cheapest car, The car
was unveiled at India Auto Show Pragati Maidan New Delhi and named as
--------------------------------
43. Entrepreneurship is an individual quality and talent, which takes a dream to its final
conclusion which at the end cater to the overall benefits to the society. It was a dream to
meet one of the critical requirement of a middle class family, the transportation needs and
the man put all his stake on developing the worlds cheapest car, The car was unveiled at
India Auto Show Pragati Maidan New Delhi and named as NANO the entrepreneur who
made all this possible is Mr. ----------------------------
44. A Famous entrepreneur and Ex. CEO of GE was pioneer of changes and believed that a
flexible and lean organization is the ultimate an entrepreneur must aspire to achieve. The
change is only permanent and there fore he coined a slogan be ready to change or die
the entrepreneur we are talking about is Mr.------------------------------------------------
45. Entrepreneurship is a process of innovation and new venture creation through four
major dimensions- i.e. ------------------------------, organizational, environmental and
process that is aided by collaborative networks in government, education and institution .
46. When focusing on an ethical position, entrepreneurs should analyze various organization
characteristics. One study examined ethical norms, motives, goals and used these
characteristics to define three distinct type of management they are immoral management
-----------------------------------------------------and moral management
characteristics to define three distinct type of management they are
---------------------------------Amoral management and moral management
characteristics to define three distinct type of management they are Immoral
management , Amoral management and -----------------------------------
49. An entrepreneur deals with many type of information. When he/she is dealing with a
financial statement that reports a businesss financial position at a specific time, the
statement is called as -----------------------------------
50. An entrepreneur deals with many type of information. When he/she is dealing with a
financial statement that shows the change that has occurred in a firms position as a result
of its operations over a specific period. The financial statement is called as
----------------------------------------------
Answers
1. Economic 9. Entrepreneurship development in the
2. Entrepreneurial development area of small industry and small
program business
3. Individual instructions 10. The new seven tools of QC
4. Lecture 11. ZOPP
5. Meetings 12. Work force
6. Group instructions 13. Modular training
7. Germany 14. German
8. German Approach 15. Motivation
16. Leadership 33. Japanese
17. Warren Buffet 34. Top level and senior level
18. (Macro) 35. Blockage concept
19. (Micro) 36. Middle level managers
20. Gifford Pinchot 37. Top level and senior level
21. Career risk 38. Blockage concept
22. Financial risk 39. Middle level managers
23. Family and social risk 40. ICICI
24. Psychic risk 41. India Auto Show Pragati Maidan
25. Operating expenses New Delhi
26. Demonstration methods 42. NANO
27. Conferences 43. Ratan Tata
28. Small industry and small business 44. Jack Welch
29. Management development institute 45. Individual
30. Managerial effectiveness in the 46. Amoral management
industry/government and banking 47. Immoral management
sectors of the economy 48. moral management
31. Basic capability 49. . Balance sheet
32. Japanese 50. Income statement
Multiple choices
1. Women entrepreneurs have been making a significant impact in all segment of the
economy in most of the developed countries. They have made their mark in business
for the following reasons__________________
1) They want new challenges and opportunities for self fulfillment
2) They want to prove their mettle in innovation and competitive jobs
3) They want the change to control the balance between their family responsibilities and
their business lives
4) All the above
2. There are two major international organization for women business owners have been
created to assist women business owners in overcoming many of the challenges they
face in business. The two organizations are_____________________
1) FCME & IEWE 2) FCEM & IFWE 3) EFCM & IFWE 4) None of the above
3. The most commonly adopted approach to entrepreneurship development
is___________________
1) Cooperation 2) Facilitation 3) Training 4) None of the above 5) All the above
4. There are at least four major approaches to entrepreneurial development. Which of the
following is not the one of them ___________________________
1) Achieving individual objectives 2) Choosing the appropriate training methods
3) Achieving training objectives 4) None of the above 5) All the above
5. Entrepreneurship environment refers to the various facets within which enterprises
operate. The enterprises is therefore influenced by
1) Political & social economic, 2) Social & economical, 3) National and legal forces
6. Entrepreneurial environment is broadly classified into_________________

1) Two important segments 2) Four important segments
3) Five important segments 4) none of the above 5) All the above
7. Entrepreneurship flourishes only under the right atmosphere said to be conducive to the
social, political and economic issues___________________________
1) Social issues 2) Political issues 3) Economic issues
8. A well developed program designed to help a person in strengthening and fulfilling his
entrepreneurial motive and in acquiring skills and capabilities necessary for playing his
entrepreneurial role effectively is called as___________________________
1) EPD program 2) DPE program 3) EDP program
4) None of the above 5) All of the above
9. The process of entrepreneurial; development is multidimensional and multistage. It
primarily focuses on
1) Training, education, orientation, and creation of conducive and healthy environment
for the growth of enterprise.
2) Developing inherent talent of a budding entrepreneur
3) Training, education, orientation, and creation of competitive environment for the
success enterprise.
5) All of the above
10. EDP program are being considered critical aspect industrial development of a country.
The true meaning of EDP program is to_____________________
1) Enable a person to learn the tricks of the game and perform towards wealth creation.
2) Train and motivate individual to take up entrepreneurial activity with confidence and
interest
3) To impart entrepreneurial training to willing individuals
4) Help a person in strengthening and fulfilling his entrepreneurial motive and in
acquiring skills and capabilities necessary for playing his entrepreneurial role effectively.
11. The entrepreneurial cycle has three stages which are________________________

1) Stimulatory, system and sustaining
2) Stimulatory, support and sustaining
3) Simulatory, support and sustaining
4) None
5) Simulatory, sustaining and support
12. Entrepreneurial training is has various approaches to achieve the training objectives;
there are German and Japanese approaches to the Entrepreneurial training. The German
approach basically emphasizes on____________________________
1) Broad based training, to begin with followed by specialization and focus on multi-craft
skill
2) ON THE JOB TRAINIG
3) Both a & b
13. The national institute of entrepreneurship and small business development was set up
in the country primarily to_______________________
1) To prepare model syllabus of training, for various target groups and target areas.
2) To serve as an apex body to co-ordinate the training programmes of various centers
and organizations in the country
3) Both a & b
4) None
5) To cooperate for the villages development
14. To serve as an apex body to co-ordinate the training programmes of various centers and
organizations in the country and to train a large numbers of trainers and motivators in
entrepreneurship development, a national organization NIESBUD was established in
the country and is based in______________________
1) Hyderabad 2) Delhi 3) Chennai 4) None of the above 5) koimabattore
entrepreneurship development, a national organization NIESBUD was established in
the country and is functioning in Delhi since _________________
1) 1938 2) 1983 3) 1985 4) None of the above 5) 1947
16. There are many factors which influences an entrepreneurs to start his own ventures, but
as per Mclelland and Winter, one of the critical factors is___________________
1) Resources 2) Motivation 3) Family background
17. The list of successful entrepreneurs is endless. One of the women entrepreneurs name
comes to the mind is of Shahnaz Hussain whos product profile is_________________
1) Chemical business 2) Fabric and fashion designing 3) Beauty clinical cosmetics
18. The list of successful entrepreneurs is endless. One of the women entrepreneurs name
comes to the mind is of Yamutai Kirloskar whos Ventures is known
by______________
1) Foods and beverages ltd 2) Jayant vitamins Ltd 3) Mahila Udyog Ltd
19. Although some women entrepreneurs have excelled in their enterprise, the fear of
success haunts women in general. Some psycho-social factors impeding the growth of
women entrepreneur is_______________________
1) Cultural values 2) Afraid of failure and criticism 3) Low dignity of labor
success haunts women in general. Some psycho-social factors impeding the growth of
women entrepreneur is______________________
1) Non-persistent attitude 2) Faulty socialization 3) Role conflict
21. Designing entrepreneurs training program involves setting training objectives,
developing the course content and choosing appropriate training methods. The
curriculum of EDP includes_____________________
1)Sports 2)Civics 3) Both a & b 4) None of the above 5) culture
22. Entrepreneurs training program involves setting training objectives, developing the
course content and choosing appropriate training methods. The curriculum of EDP
includes______________________
1) Math, language, drama, history and geography
2) Personal and social skill
3) Both a & b
5) Science & technology
23. Modern business studies have a distinct entrepreneurial, discipline. The approach to the
study of entrepreneurship is_________________________
1) Universal 2) Multi-disciplinary 3) Unifocal
24. Entrepreneurial quality in individuals is to an extent innate but not all of the quality is
innate, some can be enhanced by training or simply by experience. The quality which
are innate and can not be imparted in an individuals are_______________________
1) Courage 2) Honesty 3) Truthfulness 4) All of the above 5) none of the above
25. Entrepreneurial quality in individuals is to an extent innate but not all of the qualities
are innate, some can be enhanced by training or simply by experience. The quality
which are not innate and can be imparted in an individuals
are______________________
1) Delegation skill 2) Organization skill 3) Analytical ability
4) All of the above 5) None of the aove
26. There are two major international organization for women business owners have been
face in business. The two organizations are FCEM & IFWE. Where IFWE stands
for________________
1) International federation of women entrepreneurs
2) Indian federation of women entrepreneurs
3) Interactive federation of women entrepreneurs
5) All the above
27. There are two major international organizations for women business owners have been
face in business. The two organizations are FCEM & IFWE. The FCME is an
organization which is created in______________________
1) India 2) France 3) USA 4) None
28. The two organizations created to assist women business owners in overcoming many of
the challenges they face in businesses. The FCEM created in France has a total
membership of 30.000 and an NGO status with UN, and consultative status with EU
and International labor organizations. The FCEM stands
for________________________
1) Females chefs d enterprises Mondiales
2) Femmes chefs d enterprises Mondese
3) Femmes chefs d enterprises Mondiales
5) All the above
29. There are at least four major approaches to entrepreneurial development. Which of the
following are one of the four approaches____________________
1) Achieving individual objectives
2) Choosing the appropriate training methods
3) Developing individual course content by analyzing the requirement and outcomes
5) All the above
30. There are many approaches to entrepreneurial development which policy makers
planners, trainers and other officials involved in development may choose, these
approaches includes________________________
1) Achieving training objectives
2) Choosing the appropriate training methods
3) Developing and arranging of course content by analyzing needs and stating outcomes
4) All of the above
31. Enterprises of all type have to operate. Entrepreneurial environment is therefore is

broadly classified into_____________________
1) Two important segments 2) Four important segments
3) Five important segments 4)Six important segments 5) eight important segments
32. Entrepreneurship environment refers to the various facets within which enterprises of
all type have to operate. Entrepreneurial environment is therefore is broadly classified
into____________________
1) Political, economic, social, technological, legal and Personal
2) Political, economic, social , technological, legal and Professional
3) Political, economic, social, technical, legal and cultural
4) Political, economic, social, technological, legal and cultural
into six important segments. Which of the following do not form part of the six
segments_______________________
1) Political 2) Legal 3) Social 4) None of the above 5) All the above
into six important segments. Which of the following do not form part of the six
segments__________________
1) Technological 2) Cultural 3) Technical 4) None of the above 5) Scientifical
35. Many a times an impression, that joining an EDP program is means assurances of
finances, obtaining the required licenses for business venture and availing of special
incentives are one of the_______________________
1) Misconceptions of Executives program
2) Misconceptions of Enterprising development
3) Misconceptions of EDP
5) All the above
36. Entrepreneurs who are developed and promoted at social cost have a certain
responsibility to the society that promotes and support them. Towards this end,
entrepreneurs are expected to follow a certain discipline, which is essential for
entrepreneurial career. This covers subjects like________________________
1) Repayment behavior 2) Response to tax and statutory requirements
3) Care for ecology and environment 4) All of the above 5) none of the above
37. The evolution of entrepreneurial development programmes can be traced to the various
motivation campaigns or program taken up by the small industries service institute and
SIET institute in the sixties to fill the existing information gaps relevant for small
entrepreneurs. The SIET stands for______________________
1) Skill imparting service institute
2) Small industries service institute
3) Skill industries service institute
4) None
5) All
there are German and Japanese approaches to the Entrepreneurial training. The
Japanese approach basically emphasizes on__________________________
1) Broad based training, to begin with followed by specialization and focus on multi-craft
skill
2) ON THE JOB TRAINIG
3) Both a & b
5) Off job training
ON THE JOB TRAINIG is one of the training approach adopted
by________________
1) German trainers 2) Japanese trainers 3) US trainers
40. Entrepreneurial training is has various approaches to achieve the training objectives,
Broad based training, to begin with followed by specialization and focus on multi-craft
skill is a type of approach adopted by____________________
1) German trainers 2) Japanese trainers 3) US trainers
41. There are several organization engaged in conducting entrepreneurship development

program in India, One of the institute responsible for the training and development of
the rural entrepreneur in the country is established at Ranchi IN 1983 is known
as______________
1) RDCS 2) RMEDC 3) RED 4) None of the above 5) REP
the rural entrepreneur in the country is Rural entrepreneurship institute RED established
in 1983 at______________________
1) Kakinada 2) Ranchi 3) Gurgaon 4) None of the above 5) Mumbai

the rural entrepreneur in the country is Rural entrepreneurship institute RED established
in Ranchi in______________________
1) 1988 2) 1938 3) 1985 4) 1983 5) 1990
entrepreneurship development, a national organization was established in the country
by the name _________________
1)RED 2) NIESBUD 3) NABARD 4) None of the above 5) ICICI
45. A national organization established in the country to serve as an apex body to co-
ordinate the training programmes of various centers and organizations in the country
and to train a large numbers of trainers and motivators in entrepreneurship development
is_________________
1) NIED 2) NIESBUD 3) NIESUBD 4) None of the above 5) ICICI
success haunt women in general. Some psycho-social factors impeding the growth of
women entrepreneur is______________________
1) Lack of courage and self confidence 2) Lacking in leadership qualities
3) Poor self image of women 4) All of the above 5) None of the above
47. Designing entrepreneurs training program involves setting training objectives,

developing the course content and choosing appropriate training methods. The
curriculum of EDP includes______________________
1) Business education 2) Economics 3) Personal and social skills
48. Entrepreneurs training program involves setting training objectives, developing the
course content and choosing appropriate training methods. The curriculum of EDP
includes______________________
1) Craft design and technology 2) Business education 3) Both a & b
49. The development of jeans in America, the innovations of Gillet, Wright brothers and
Henry ford are the perfect examples of how an entrepreneur can influence a generation.
Therefore it is rightly said that entrepreneurs play an important role in the development
of_____________________
1) Personal wealth 2) Society 3) Race and culture
50. Entrepreneurial quality in individuals is to an extent innate but not all of the qualities
are innate, some can be enhanced by training or simply by experience. The quality
which are not innate and can be imparted in an individuals by training or experience
are______________________
1) Computational skill 2) Practical knowledge 3) Foresight skill
Answers
1. 4 26. 4
2. 2 27. 2
3. 3 28. 3
4. 4
5. 4 29. 2
6. 4 30. 4
7. 4 31. 4
8. 3 32. 4
9. 1 33. 4
10. 4 34. 4
11. 3 35. 3
12. 1 36. 4
13. 2 37. 2
14. 2 38. 2
15. 2 39. 2
16. 2 40. 1
17. 3 41. 3
18. 3 42. 2
19. 4 43. 4
20. 4 44. 2
21. 4 45. 2
22. 4 46. 4
23. 2 47. 4
24. 4 48. 3
25. 4 49. 2
50. 4
1. Explain concept of entrepreneurial motivation
2. Explain motivational process
3. Explain motivational theories
4. What are motivational factors
5. Explain entrepreneurial competencies
6. Explain entrepreneurial mobility
7. Explain about entrepreneurship development
8. Expand EDPS
9. Need for EDP
10. Objectives of EDP
11. Various issues related to EDPs
12. Explain phases of EDPs
13. Importance of training
14. State objectives of training
15. Principles of training
16. Explain Methods of training
17. What are the Different benefits with training process
18. What are the factors affecting entrepreneurial growth
19. Explain about entrepreneur training program
20. Name few women entrepreneurs
III UNIT DATA BANK
Fill in the blanks:
1. ________________________ is one which is operated mainly with hired labor usually

10 to 50 hands.
2. Small Scale Industries are fairly ________________ intensive.
3. ___________________ argument impresses the necessity of regional dispersal of
industries to promote balanced regional development in the country.
4. Projects for which a plausible quantitative assessment of benefits can be made are
called _________________________.
5. Projects involving health education and defence are the examples of
________________.
6. Each of the project idea is evaluated with the help of a tool called ________________
analysis.
7. Expand GERT _______________________________
8. Expand WASP ___________________________________
9. Project appraisal made for proposed projects is called as ______________________.
10. Project appraisal made for executed projects is called as ______________________.
11. In ___________________________ survey, all the probable customers of the product
are approached and their probable demands for the product are estimated and then
summed.
12. _______________________ helps an entrepreneur in selecting the best one among the
alternative projects.
13. The decisions taken by the entrepreneur well in advance regarding the future financial
aspects of his/her enterprise is called ___________________
14. ____________________ provides export assistance in the form of insurance cover and
guarantees.
15. Expand ECGC ___________________________________.
16. The mix of debt and equity which will maximize the market value of a company is
called as ___________________.
17. A financing mix incurring the least cost but yielding the maximum returns is called as
_____________________________.
18. The minimum number of members in a public company is _____________________.
19. The maximum number of members in a private company is _____________________
20. Filing of Prospects with the registrar of companies is necessary in the case of
____________________ company
21. ____________________ is a form of financing especially designed for funding high
technology, high risk and perceived high reward projects.
22. ____________________ is an artificial person being created by the law, with a
distinctive name, a common seal and perpetual succession of members.
23. The financial needs are classified into fixed capital and working capital on the basis of
______________________
24. The rate of return on capital employed is more than the rate of interest on debentures or
rate of dividend on preference shares ,it is called as
________________________________
25. The _______________________ is a blue-print of all those activities that an
entrepreneur proposes to engage in.
26. Small Scale Industries are classified into _________________ types.
27. To improve the level of living of people in the country is one of the objectives of
________________________.
28. The whole complex of activities involved in using resources to gain benefits is called as
_____________________.
29. According to _____________________ classification, projects are classified as demand
based and raw material based projects.
30. ________________________ process starts with the generation of a product idea.
31. _______________________ is a well evoked work plan designed to achieve specific
objectives within a specified period of time.
32. The process of establishing an enterprise starts with ______________________
identification.
33. In order to complete the project within the stipulated period and cost, all activities in
the project are scheduled in a sequential relationship called
________________________________ of activities.
34. In _______________________ method, a sample market is surveyed before the new
product is offered for sale.
35. The dealers opinions about the customers opinion are elicited in
__________________ method.
36. ______________________ plays an important role in making an enterprise a success or
otherwise.
37. A ____________________ is a set of symbols connected with each other with a
sequential relationship with each step making the completion of a project /event.
38. _________________________ is the financial forecast made for the enterprise in the
beginning itself.
39. ________________________ means the permanent financing of the enterprise
represented primarily by long-term sources of funds i.e. debt and equity
40. ________________________ refers to how the firms assets are financed by raising
funds from both long-term and short-term sources.
41. Trading on equity is called as __________________________.
42. _____________________ means total amount of capital employed in an enterprise.
43. In _______________________, capitalization means the determination of the quantity
of finance and also the quality of finance.
44. In ___________________________, capitalization means the determination of
quantum of long-term funds required to run an enterprise.
45. According to _________________________ theory, the amount of capitalization of a
new enterprise is the total of the cost of fixed assets, working capital and the cost
incurred in setting up the enterprise.
46. Minimum number of directors needed is two in the case of __________________
company
47. ____________________ enjoys total autonomy but suffers from unlimited liability.
48. A cooperative organization should have minimum of ________________ members.
49. Proprietorship is also called as _________________________.
50. An agreement written between two partners is called as
____________________________.
Answers
1. Small Scale Industry 24. Trading on equity

2. Labour 25. Project report /business plan
3. Decentralization 26. Five
4. Quantifiable projects 27. Small Scale Industries
5. Non quantifiable projects 28. Project
6. SWOT 29. Causation oriented
7. Graphical Evaluation and Review 30. Project selection
Technique 31. Project
8. Workshop Analysis Scheduling 32. Project/product
Programme 33. Networking/scheduling
9. Ex-ante analysis 34. Sales experience
10. Post-ante analysis 35. Vicarious
11. Complete Enumeration 36. Management ability or competence
12. Project appraisal 37. Network
13. Financial Planning 38. Financial Planning
14. Export Credit and Guarantee 39. Capital Structure
40. Financial Structure
Corporation.
41. Leverage Effect
15. Export Credit and Guarantee
42. Capitalization
Corporation. 43. Broad sense
16. Optimum leverage. 44. Narrow sense
17. Optimum Capital Structure 45. Historical cost
18. Seven(7) 46. Two
19. Fifty(50) 47. Proprietorship
20. Public 48. Ten (10)
21. Venture capital 49. Sole trade Organization
22. Company 50. Partnership Deed.
23. Permanence
Multiple Choice Questions:

1. __________________ are more change susceptible and highly reactive and receptive to
socio-economic conditions.
1) Large scale units 2) Small scale units 3) Manufacturing units
2. The rationale of small scale industries is _________________
1) Latent resource argument 2) decentralization argument 3) Both
4) none 5) centralization argument
3. _________________ members are needed to sign the memorandum and articles of
association in the case of a public company.
1) 2 2) 3 3) 7 4) 50 5) 60
4. Limited liability is one of the features of __________________.

1) Partnership 2) Company 3) Proprietorship 4) all the above 5) society
5. Artificial legal person, Common seal, Perpetual existence are the features
of_______________
1) Partnership 2) Proprietorship 3) Company 4) all the above 5) none of the above
6. The minimum number of members in public limited company is __________

1) 2 2) 7 3) 50 4) unlimited 5) limited
7. The maximum number of members in private company is ________________

1) 2 2) 7 3) 50 4) unlimited 5) limited
8. Filing of Prospectus or a statement in lieu of prospectus is required for
___________________
1) Public Company 2) Private Company 3) Partnership 4) both 1&2 5) none
9. _________________ members are needed to sign the memorandum and articles of
association in the case of a private company.
1) 2 2) 3 3) 7 4) 50 5) 60
10. The interest charged to the loan provided by post shipment finance is about
____________
1) 9.25% 2) 10% 3) 8.25% 4) 8.65% 5) 10%
11. The rate of interest on credit provided in pre-shipment finance is ________

1) 7.50% 2) 10% 3) 7.25% 4) 8.65% 5) 10%
12. Unlimited liability is one of the disadvantages of _________________

1) Partnership 2) Proprietorship 3) Company 4) all the above 5) None
13. Principal-Agent Relationship is found in ______________
1) Partnership 2) Proprietorship 3) Company 4) all the above 5) none
14. Diffusion of risk is one of the features of _______________

1) Partnership 2) Proprietorship 3) Company 4) all the above 5) None
15. In a venture capital company, the debt equity ratio is limited to ___________
1)1.5:1 2) 2.5:1 3)1:1.5 4)1:2.5 5) 2:1
16. __________________ serves as bridge loan for the period between shipment of goods
and the realization proceeds.
1) Pre-shipment finance 2) Post-shipment finance 3) Export finance
4) all the above 5) None of the above
17. In Post-shipment Finance the loan is provided for a maximum period of ________
1) 4 months 2) 6 months 3) 10 months 4) 12 months. 5) 2years
18. In Venture capital companies, the foreign holding will be allowed up to ___________
1) 25% 2) 32% 3) 50% 4) 74% 5) 80%
19. The venture capitalist will have to pay tax at the rate of ___________________
1)15% 2) 20% 3) 30% 4) 18% 5) 25%
20. _________________________ theory lays greater stress on current outlays than on
the requirements for future business.
1) Historical Cost theory 2) Earnings Theory 3) Both 4) None 5) Price theory
21. The actual earnings are lower than the expected ones in the case of _____________
1) Under capitalization 2) over capitalization 3) Perfect capitalization
22. The rate of dividend and the market value of the shares are fairly higher than the market
value of shares of similar enterprises in the case of _______________
1) Under capitalization 2) over capitalization 3) Perfect capitalization
23. Funding the enterprise with high technology, involving high risk and having high
rewards is called _________________
1) Financial planning 2) capitalization 3) Venture Capital
4) Capital Structure 5) None of the above
24. For a successful business in a favorable conditions _______________

1) Equity should be twice of debt 2) Debt should be twice of equity
3) Equity should be thrice of debt 4) Cant say 5)both should be equal halves
25. Optimum Capital Structure means financing mix incurring __________________

1) High cost and yielding high returns 2) High cost and yielding less return
3) Less cost and yielding high returns 4) Less cost and yielding less returns
26. Casting, Electroplating etc are the examples of

1) Manufacturing industries 2) Feeder industries 3) Serving industries
4) Ancillary unit 5) none of the above
27. Output employment ratio is ___________________ and employment generating capacity

is ____________________ in small scale sector.
1) Lowest, Highest 2) Highest, lowest 3) Lowest, lowest
4) Highest, highest 5) none
28. _____________________ impresses necessarily of Regional dispersal of Industries to
promote regional development in the country.
1) Decentralization Argument 2) latent resource argument 3) Equality argument
4) employment argument 5) None of the above
29. _____________________ argument suggests that small enterprises are capable of

mopping up unutilized resources like hoarded wealth and idle entrepreneurial ability etc.
1) Decentralization argument 2) Latent Resource argument 3) Equality argument
4) employment argument 5) None of the above
30. Projects for which plausible quantity to assessment of benefits can be made are called
____________________.
1)Qualifiable products 2)Quantifiable products 3)Non Quantifiable products
4)Both A and C 5) None of the above
31. Based on ___________________ projects are classified as capital intensive and labor
intensive.
1) Causation oriented 2) Magnitude oriented 3) Technology oriented
4) Factor intensity oriented 5) None of the above
32. Projects are classified into demand based and raw based according to
_____________________.
1) Causation oriented 2) Magnitude oriented 3) Technology oriented
4) Factor intensity oriented 5) none of the above
33. WASP means __________________________

1) Workshop Analysis Scheduling Path
2) Workshop Analysis Scheduling Programme
3) Workshop And Review Scheduling Path
4) Workshop and Review Scheduling Programme
34. ________________________ is event oriented approach

1) PERT 2) CPM 3) Both 4) None 5) All the above
35. ________________________ is an activity oriented approach

36. __________________ is time based.

37. _____________________ is cost based.

38. Project appraisal made for proposed projects is called as ________________________

1) Ex-ante analysis 2) Ex post analysis 3) Post-ante analysis
4) none 5) All the above
39. The dealers opinions about the customers opinion are elicited in __________________
method.
1) Sales Experience Method 2) Sample survey method
3) Complete enumeration method 4) Vicarious method 5) All the above
40. _____________________ means the adequacy of the proposed plant and equipment
and equipment to produce the product within the prescribed norms.
1) Economic analysis 2) Financial Analysis 3) Technical Feasibility
4) Managerial Competence 5) None of the above
41. Under _____________________, the aspects highlighted include requirements for raw
materials, level of capacity Utilization, anticipated sales, anticipated expenses and the
probable profits.
4) Market Analysis 5) None of the above
42. Before the production actually starts, the entrepreneur has to do the
______________________
4) Market Analysis 5) None of the above
43. Even a poor project may become a successful one with ______________________
4) Managerial Competence 5) Market Analysis
44. The money required for day to day operations is called as ____________________
1) Fixed Capital 2) Working Capital 3) Short term Capital
4) Long-term Capital 5) None of the above
45. The money invested in durable assets is called as ___________________

1) Fixed Capital 2) Working Capital 3) Short term Capital
4) Long-term Capital 5) None of the above
46. Capital structure means raising funds from ________________

1) Long term Sources 2) Short-term Source 3) Both
4) None 5) Working capital
47. Financial structure means raising funds from ____________________
1) Long term Sources 2) Short-term Source 3) Both
4) None 5) Working capital
48. Optimum Leverage will ________________________

1) Minimizes the cost of Capital
2) Maximizes the market value
3) Both
4) None
5) Maximize the short trem source
49. Capitalization means both amount of finance and modes of finance in

___________________ Sense
1) Broad 2) Narrow 3) Both 4) None 5) wide
50. According to narrow sense, the term capitalization is similar to ___________________

1) Financial Structure 2) Capital Structure 3) Both
4) No similarity 5) Short term capital structure
Answers
1. 2 3. 3
2. 3 4. 2
5. 3 28. 1
6. 2 29. 2
7. 3 30. 2
8. 1 31. 4
9. 1 32. 1
10. 4 33. 2
11. 1 34. 1
12. 2 35. 2
13. 1 36. 1
14. 1 37. 2
15. 3 38. 1
16. 2 39. 4
17. 2 40. 3
18. 1 41. 1
19. 2 42. 4
20. 1 43. 4
21. 2 44. 1
22. 1 45. 3
23. 3 46. 1
24. 2 47. 3
25. 3 48. 3
26. 2 49. 1
27. 1 50. 2
1. Define small enterprise
2. Explain characteristics of small enterprise
3. Write objectives of small enterprises
4. Expand SSI
5. What are the advantages of SSI
6. Write characteristics of SSIS
7. What are the benefits with SSIS
8. Explain project cycle
9. What is project management
10. Write about project identification
11. Explain about feasibility report
12. What is project formulation
13. Write sequential stages of project formulation
14. What is project implementation
15. Explain project evaluation
16. What are the steps in project appraisal
17. Explain the concept of project finance
18. What is short term financing
19. What is long term financing
20. Define joint stock companies
IV UNIT DATA BANK
Fill up the blanks:
1. The first lead to extend financial assistance to the SSIs was taken by
_______________________.
2. A notable feature in financing of SSIs by RBI was introduction of
________________________.
3. A committee was formed to look into the adequacy of institutional credit to SSIs under
the chairmanship of _________________________.
4. __________________________ was established as on July 1, 1964 as the principal
financial institution in the country.
5. SIDF stands for ________________________________________.
6. The full form of VECC is ___________________________.
7. _____________________________ extends financial assistance to the industrial sector
through rupee and foreign currency loans.
8. ___________________________ started encouraging the modernization of tiny, small-
scale ancillary units.
9. ____________________________ failed to exercise necessary control over the
defaulting borrowers.
10. ________________________________ was set up in January 1955 with the primary
objective of developing small and medium industries in the private sector.
11. _______________________________ was set up to look after the special problems of
sick units and provide assistance for their speedy reconstruction and rehabilitation.
12. Small Scale Industries Board is also known as ___________________________.
13. Expand SSIDC ____________________________________.
14. ____________________________ is an apex advisory body constituted to render
advice to the Government on all issues pertaining to the development of SSIs.
15. The DICs consists of ____________________ Project Managers.
16. The DICs consists of ____________________ Functional Managers.
17. The DICs role is mainly _________________________________.
18. ___________________________ provides finance for joint ventures in foreign
countries.
19. EXIM bank introduced _____________________________programme for
upgradation of quality standards and obtaining ISO 9000 certification in various parts
of the country.
20. IRBI helps banks and financial institutions to assess _____________________ of sick
units which are seeking assistance for revival.
21. LIC offers a variety of insurance policies to extend _________________________ to
various segments of society.
22. ____________________________ was set up with the help of UNDP and ILO to help
small scale industries.
23. Expand SIDBI _________________________________
24. _________________________, an enterprise under the Union Ministry of Industries
was set up to promote aid and foster the growth of small scale industries in the country
.
25. To serve as interface between Central and State Governments is one of the main
functions of ________________________.
26. _______________________________ Scheme was launched by IDBI for providing
support in the form of equity to tiny and SSIs.
27. __________________________ offers variety of financial services such as deferred
credit, leasing credit, installment sale, asset credit and venture capital.
28. ______________________________ was converted into Industrial Reconstruction
Bank of India (IRBI)
29. ___________________________ provides loans for various purposes like housing,
water supply, rural electrification etc to benefit individuals and groups.
30. ____________________________ mobilizes savings of small investors through sale of
units and channelizes them into corporate investments.
31. IRCI stands for ____________________________.
32. The main function of SFCs is to provide _______________________ to small and
medium sized industrial units.
33. Preparation of feasibility reports, conducting industrial potential surveys,
entrepreneurship development programs and developing industrial activities are the
promotional activities of ___________________________.
34. ________________________ provides financial support to National Small Industries
Corporation for providing leasing, hire-purchase and marketing support to the Industrial
units in the small sector.
35. ____________________ is considered as life blood of business .
36. To distribute basic raw material among small scale industries through raw material
depots is the function of _____________________________.
37. ____________________________ is an apex body and nodal agency for formulating
,coordinating and monitoring the policies and programmes for promotion and
development of SSIs
38. Coordination, Industrial development and Extension are the main functions of
_________________________.
39. To render marketing assistance to small scale industries to effectively sell their
products is the function of _____________________________.
40. To encourage SSIs to actively participate in Government Stores Purchase Programme
by giving them necessary guidance, market advice and assistance is the function of
_______________________________.
41. The Industries Minister of the Government of India is the chairman of
___________________.
42. ____________________________ was set up to cater to the primary developmental
needs of the small, tiny and village industries in the state and union territories.
43. To supply machinery on hire purchase system is the function of
_______________________.
44. To extent seed capital assistance on behalf of the State Government concerned is the
function of _______________________.
45. The Small Industries Services Institutes (SISIs) are set up to provide
___________________________________ to small entrepreneurs.
46. SISIs render service in ________________________________ surveys.
47. The ______________________________ are envisaged as a single window interacting
agency with the entrepreneur at the district level.
48. ____________________________ is a place where the required facilities and factory
accommodation are provided by the Government to the entrepreneurs to establish their
industries there.
49. An _____________________________ is a tract of land which is subdivided and
developed according to a comprehensive plan for the use of a community of Industrial
enterprises.
50. Central Institute of Hand Tool is located at _____________________.
Answers:
1. State Bank of India 7. Industrial Finance Corporation of

2. Lead Bank Scheme India (IFCI)
3. P.R.Nayak 8. Industrial Finance Corporation of
4. Industrial Development Bank of India (IFCI)
India(IDBI) 9. Industrial Finance Corporation of
5. Small Industries Development Fund India (IFCI)
6. Voluntary Executive Corporation 10. Industrial Credit and Investment
Cell. Corporation of India(ICICI)
11. Industrial Reconstruction Bank of 31. Industrial Reconstruction
India (IRBI) Corporation of India
12. Central Small Industries Board 32. Long term finance
13. State Small Industries Development 33. State Industrial Development
Corporations Corporations(SIDCs)
14. Small Scale Industries board(SSIB) 34. Small Industries Development Bank
or Central Small Industries Board of India (SIDBI)
15. Three 35. Finance
16. Four 36. National Small Industries
17. Promotional and Developmental. Corporation LTD (NSIC)
18. Export Import Bank of India 37. Small Industries Development
(EXIM bank) Organization(SIDO)
19. Clusters of Excellence 38. Small Industries Development
20. Intrinsic worth Organization(SIDO)
21. Social security 39. Small Industries Development
22. Central Institute of Tool Design
Organization(SIDO)
,Hyderabad 40. Small Industries Development
23. Small Industries Development Bank
Organization(SIDO)
of India 41. Small Scale Industries board(SSIB)
24. National Small Industries 42. State Small Industries Development
Corporation LTD (NSIC) Corporations (SSIDC)
25. Small Industries Service Institutes 43. State Small Industries Development
(SISIs) Corporations (SSIDC)
26. National Equity Fund 44. State Small Industries Development
27. Industrial Credit and Investment
Corporations (SSIDC)
Corporation of India(ICICI) 45. Consultancy and training
28. Industrial Reconstruction 46. District Industrial potential
Corporation of India (IRCI) 47. District Industries Centres.(DICs)
29. Life Insurance Corporation of India 48. Industrial Estate
(LIC) 49. Industrial Estate
30. Unit Trust of India (UTI) 50. Jalandhar
Multiple Choice Questions:
1. There are __________ Technical Consultancy Organizations operating in various states.
1) 20 2) 24 3) 17 4) 15 5) 35
2. Electronic Training and Service Institute is located at _________________
1) Bangalore 2) Nainital 3) Madras 4) Ranchi 5) Hyderabad

3. ____________ is an apex national level institute to coordinate research and training in
entrepreneurship
1) NISIET 2) NITCON 3) NIESBUD 4) NECON 5) None
4. To decentralize industries to the rural and backward areas is the objective of

______________________
1) Industrial Estate 2) SSIB 3) SSIDC 4) DIC 5) None
5. SSIB comprises of ______________ members.

1) 45 2) 55 3) 30 4) 50 5) 60
6. The functions of SSIDC are
1) To procure and distribute scarce raw materials
2) To supply machinery on hire purchase system
3) To extend seed capital assistance
4) All the above
7. Interest subsidy scheme for women entrepreneurs was started by __________________
1)IDBI 2) IRBI 3) ICICI 4) IFCI 5) hdfc
8. ICICI was set up in the year __________________
1) 1950 2) 1955 3) 1960 4) 1965 5) 1980
9. _________________ is a subsidiary of IDBI

1) SIDBI 2) SIDC 3) SFC 4) all the above 5) NONE OF THE ABOVE
10. EXIM bank entered into cooperation agreement with _________________
1) IDBI 2) EBRD 3) IFCI 4) IRBI 5) icici
11. The scheme introduced by EXIM bank is/are ______________
1) Export Marketing Finance 2) Production Equipment Finance Program
3) Both 4) none of the above 5) All the above
12. Credit Guarantee Scheme was introduced in the year _______________
1) 1960 2) 1980 3) 1990 4) 1992 5) 1950
13. The head office of IFCI is located at ________________
1) Bombay 2) New Delhi 3) Calcutta 4) Dhanbad 5) Banglaore
14. ____________________ helps banks and financial institutions to assess the intrinsic
worth of sick units which are seeking assistance for revival.
1)IDBI 2) IRBI 3) IFCI 4) ICICI 5) HDFC
15. The initial corpus of venture capital fund launched by SIDBI is about
___________________
1)15 crore 2) 14 crore 3) 12 crore 4) 10 crore 5) 20 crore
16. In 1992-93, equipment finance scheme was introduced by____________________
1) SFC 2) SIDC 3) SIDBI 4) all the above 5) None of the above
17. The head office of SIDBI is situated at ___________________

1) Kerala 2) Ludhiana 3) Lucknow 4) Pune 5) bihar
18. ________________ introduced Clusters of Excellence Programme
1) IDBI 2) EXIM 3) IRBI 4) IFCI 5) ICICI
19. At present there are ___________ SFCs in the country.
1) 17 2) 18 3) 23 4) 28 5) 30
20. The first SFC was set up in ___________
1) Haryana 2) Raipur 3) Punjab 4) Bihar 5) Rajastan
21. Expand ICICI
1) Industries credit and investment corporation of India
2) Investment credit and industries corporation of India
3) Industrial credit and Investment Corporation of India
4) Investment credit and Insurance Corporation of India
5) None
22. The main function of ________________ is to provide long term finance to small and
medium sized industrial units.
1) UTI 2) ICICI 3) SFC 4) SIDBI 5) RBI
23. There are ____________ SIDCs in the country
1) 18 2) 28 3) 23 4) 17 5) 25
24. SRTO stands for _____________________
1) Small Road Transport Operators 2) Small Road Transport Operations
3) State Road Transport Operators 4) State Road Transport Operations 5) none
25. Small Industries Development Fund was put forward by __________________
1) IRBI 2) IFCI 3) IDBI 4) SIDBI 5) ICICI
26. The main functions of NSIC are
i) To provide equipment leasing facility ii) To undertake the construction of

industrial estates iii) to impart training in various industrial trades
1) i and ii 2) i and iii 3) ii and iii 4) i,ii and iii 5) none
27. ____________________________ is an apex body and nodal agency for formulating

,coordinating and monitoring the policies and programmes for promotion and
development of SSIs
1)SSIB 2)SIDO 3)SSIDC 4)SISI 5) ICICI
28. The functions of SIDO are classified into
i) Coordination ii) extension iii) industrial development iv)training
1) i and iii 2) ii and iv 3) i ,ii and iii 4) i ,iii and iv 5) none
29. There are ___________ SISIs and ________ branch SISIs set up in the state Capital
1) 30 and 25 2) 28 and 30 3) 30 and 28 4) 25 and 30 5) none
30. The organizational structure of DICs consists of _____ General Managers and
_____________ Project Managers.
1) 4and 3 2) 1 and 4 3)1and 3 4) 3 and 4 5) none
31. Modernization and implant studies are done by___________________
1) SISI 2) SSIB 3) DIC 4) DRDA 5) IFC
32. Industrial estates are classified into General type and Specific type on the basis of
____________________
1) Organizational set up 2) Functions 3) Other variants
33. HMT Bangalore is an example for _____________
1) Ancillary Industrial Estate 2) The workshop bay 3) Functional Industrial Estate
4) both a and c 5) all the above
34. On the basis of Organizational set up, industrial estates are classified into
____________________ types.
1) 3 2) 4 3) 5 4) 2 5) 7
35. On the basis of functions, industrial estates are classified into ____________types.
1) 3 2) 4 3) 5 4) 2 5) 7
36. ______________________ was set up to provide technical consultancy services in the
matters relating to design and development of electric and electronic instruments.
1)CIHT 2)CITD 3)IDEM 4)CIPET 5) CFC
37. _______________ was established to cater to the consultancy needs of small industries
and new entrepreneurs.
1) TCO 2) NIESBUD 3) IDEM 4) NIFFT 5) NIFTY
38. National Institute of Foundry and Forging Technology is located at_________________
1)Nainital 2)Bangalore 3)Meerut 4)Ranchi 5) hyderabad
39. The institute to provide improved technology, raw materials, design and testing of
handloom industry is located at ____________________.
1)Ranchi 2)Ludhiana 3)Jalandhar 4) Calcutta 5) jameshedpur
40. First Industrial estate in India was set up at____________________
1) Ludhiana 2) Ranchi 3) Rajkot 4) Meerut 5) gangtuk
41. The functions of TCOs are _________________
1) To offer merchant banking services 2) To prepare project profiles
3) To undertake industrial potential surveys 4) all the above 5) none
42. Which of the following are located at Hyderabad?___________________
1) NIESBUD & CIHT 2)NIESBUD & CITD 3) CITD &NISIET
4) all the above 5) none
43. The Government has set up ___________ tool room training centres
1) 4 2) 3 3) 5 4) 8 5) 12
44. Central Institute of Plastics Engineering and Tools is located at ________________
1)Haryana 2) Madras 3) Bihar 4)Bangalore 5) Hyderabad
45. One of the following was initially set up as wholly owned subsidiary of the RBI
____________________________
1) IFCI 2) IDBI 3) IRBI 4) SIDBI 5) NABARD
46. Which of the following belong to IDBI?_______________

1) SIDF 2) NEFS 3) VECC 4) all the above 5) None of the above
47. 22.National Equity Fund Scheme provides support up to a limit of
1) 4 lakhs 2) 5 lakhs 3) 7 lakhs 4) 8 lakhs 5) 10 lakhs
48. IFCI has been criticized on following grounds
1) Delay in sanctioning the loans
2) Failed to exercise control over default borrowers
3) Both
4) none of the above
5) no sanction
49. Services of experienced professionals are utilized in______________________

1) SIDF 2) VECC 3) NEFS 4) all the above 5) none of the above
50. The financial resources of IFCI are___________________
1) Share capital 2) Bonds and Debentures 3) Other borrowings
4) all the above. 5) None of the above
Answers:
1. 3 7. 4 13. 2
2. 2 8. 2 14. 2
3. 3 9. 1 15. 4
4. 1 10. 2 16. 3
5. 1 11. 3 17. 3
6. 2 12. 1 18. 2
19. 2 30. 4 41. 4
20. 3 31. 2 42. 3
21. 3 32. 3 43. 1
22. 3 33. 1 44. 2
23. 2 34. 2 45. 2
24. 1 35. 4 46. 4
25. 3 36. 3 47. 2
26. 4 37. 1 48. 3
27. 2 38. 4 49. 2
28. 3 39. 3 50. 4
29. 4 40. 3
DISCRIPTIVE QUESTIONS
1. Explain financial institutions
2. What are commercial banks
3. Role of commercial banks
4. Expand IDBI
5. Development activities of IDBI
6. Expand IFCI
7. Write about LIC
8. Explain in brief about IRBI
9. Expand UTI
10. Expand ICICI
11. Write about state financial corporations
12. Write the objectives of SFC
13. Write the functions of SFC
14. Write about EXIM bank
15. Role of financial institutions in ED
16. Explain SIDO
17. Explain SSIB

18. Expand SSICS
19. Explain about SISIS
20. Write about DICS
V Th unit
1. ________________ is a growing business of recent origin in the area of industrial
financing in India.
2. The financial institutions have devised schemes such as seed capital scheme, risk capital
fund etc, to help __________________.
3. The ______________ market with its conventional financial instruments/schemes does
not come much to the benefit of risky venture.
4. ___________________ refers to investment in new and tried enterprises that are lacking
a stable record of growth.
5. ___________________ pool their resources including managerial abilities to assist new
entrepreneurs in the early years of the project.
6. Venture capital is usually in the form of a _____________participation. it may also take
the form of convertible debt or _______________.
7. Venture capitalist joins the entrepreneur as a _________________ in projects and shares
the risks and rewards of the enterprise.
8. The basic objective of investment is not profit but _______________________ at the
time of disinvestment.
9. The public issue would be difficult and expensive since first generation entrepreneurs are
not known in the ________________.
10. The OTC exchange in India has been set up in _____________.
11. In the initial stage venture capitalists provide ___________________ capital for
translating an idea in to business proposition.
12. A developed venture capital institutional set-up reduces the time lag between a
______________ innovation and its _________________ exploitation.
13. Bankers and investors will not lend money with inadequate margin of
____________________.
14. A venture capital firm serves as an intermediary between investors and
_____________________.
15. Venture capital as a new phenomenon originated in __________ and developed world
wide since the second half of the _______________.
16. The real development of venture capital took place in _____________ year.
17. ___________ occupies a second place after US in terms of investment in VC.
18. Risk capital and technology finance corporation ltd is a subsidiary of __________
19. Infrastructure leasing promoted by_____________________
20. The minimum size of VC Fund is Rs___________
21. VC firms usually invest in ___________________ and ____________ scale industries.
22. VC firms allowed investing in leasing up to ________________ of the total funds
deployed.
23. _________________ share the risk in the business.
24. The venture capital company or venture capital fund should be managed by
__________________ and should be independent of the parent organization.
25. United Nations development programme in 1987 on behalf of government examined the
possibility of developing venture capital in _________________.
26. _________________ is funds to enable the current operating management/inventories to
acquire an existing product line/business.
27. Venture capital investment are generally idea based and ______________ in contrast to
the conventional investments which are asset based
28. Some of the valuation methods which illustrate the approach that VCIs can adopt are
conventional venture capital valuation method, the first Chicago method and
___________________
29. VC investments are generally idea based and growth based in contrast to the conventional
investments which are __________________
30. __________________ Method is an improvement over the conventional method of
valuation.
31. __________________ is a factor that can be used to estimate the value of a VCU.
32. __________________ are issued at a large discount to their maturity value.
33. ___________________are secured, redeemable at premium in lump sum / installments
have zero interest and carry a warrant against which equity shares can be acquired.
34. ______________ can be either convertible or non convertible with zero/no interest rate.
35. ____________________debentures have two components 1.convertable portion and
2.non convertible portion
36. ___________________ debentures carry a fixed/variable rate of interest, are redeemable
at par/premium, are secured, and can be cumulative/non cumulative
37. _________________ fall between the conventional and loans and carry a uniform low
rate of interest plus a royalty on sales
38. ____________________ Loans are modified to the requirements of venture capital
financing.
39. ___________________ loan is a form of loan finance without any pre determined
repayment schedule or interest rate
40. ___________________ refers to the financial instruments through which venture capital
investment is made
41. The styles of nurturing refer to the extent of participation by VCIs in the affairs of
________________.
42. ____________________ refers to continuous and constant involvement in the operations
of the investee company which is institutionalized in the form of representation on the
board of directors.
43. VCIs play a relatively passive role in the _______________ style
44. ______________ is a mid way between hands on and hands off styles
45. VCIs should receive _______________reports about the operations of projects.
46. Quoted marked value method is based on ________________ of securities.
47. _____________ refer to the collection of information from on the spot visit of the plant
site
48. Venture capital portfolio has to be valued from time to time to monitor and
________________ the performance of the venture capital investment.
49. According to ________________ method the value of equity holding is computed
/recorded at the historical cost of acquisition until it is disposed of.
50. _______________ instruments are generally valued at cost
Answers
1. Venture capital 27. Growth based

2. New entrepreneurs 28. Revenue multiplier method
3. Capital 29. Asset based
4. Venture capital 30. First Chicago method
5. Venture capitalist 31. Revenue multiplier
6. Equity, long term loan 32. Deep discount bonds
7. Co-promoter 33. Secured premium notes
8. Capital appreciation 34. Zero interest/coupon
9. Capital market bonds/debenture
10. 1992 35. Partly convertible debentures(PCDs)
11. Seed 36. Non convertible debentures(NCDs)
12. Technological , commercial 37. Income notes
13. Equity capital 38. Conventional
14. Entrepreneurs. 39. Conditional loan
15. USA, seventies 40. Structuring of the deal
16. 1958 41. VCUs
17. UK 42. Hands on nurturing
18. IFCI 43. Hands off style
19. Central bank of India 44. Hands holding nurturing
20. 10 crs 45. Periodic
21. Small and medium 46. Market quotations
22. 15%. 47. Plant visits
23. Venture capitalists 48. Evaluate
24. Professionals 49. Cost method
25. Private sector 50. Debt
26. Management buyIns(MBIs)
Multiple choices
1. Venture capital is usually in the form of an _______________________
1) Equity participation 2) preference participation 30Debenture participation
4)None of the above 5) All the above
2. In which stage seed capital is provided for translating an idea in to business
1) First stage 2) Second stage 3) Third stage 4) Fourth stage 5) none
3. The objective of venture capitalist is to ________________
1) sell of the investment 2) buy 3) Both 4) None of the above 5) hold
4. How many stages are there in development of a project___________________
1.1 2) 2 3) 3 4) 4 5) 5
5. Costs of public issues of equity share often range between
1) 5 to 10% 2) 10 to 15% 3) 15 to 20% 4) 20 to 25% 5) 26TO 30%
6. Venture capital as a new phenomenon originated in_________________
1) UK 2) Australia 3) US 4) None of the above 5) ALL THE ABOVE
7. Which occupies a second place after US in terms of investment in VC_______________
1) UK 2) Australia 3) US 4) None of the above 5) all the above
8. The CHARTER House Development limited is the oldest venture capital company in UK
established in __________________
1) 1931 2) 1932 3) 1933 4) 1934 5) 1938
9. UK Witnessed a massive growth of industry during___________________
1) 50s and 60s 2) 60s and 65s 3) 60s and 70s 4) 70s and 80s 5) NONE
10. Which five year plan emphasizes the need for developing a system of funding venture
capital?_______________________
1) Fifth 2) Sixth 3) Seventh 4) Eight 5) TENTH
11. Venture capital assistance should go to enterprises with a total investment of not more
than___________________
1) 5 crores 2) 10 crores 3) 15 crores 4) 20 crores 5) 11 croer
12. Expand VCF
1) venture capital function 2) venture capital fund 3)1 &2

4) none 5) venture conventional fund
13. Expand VCC__________________
1) Venture capital cost 2) venture company cost 3) venture capital company
4) Venture conventional cost 5) None
14. Venture capital firms participate in equity through direct purchase of shares but their
stake does not exceed____________________
1) 47% 2) 48% 3) 49% 4) 50% 5) 60%
15. Indian investment fund promoted by___________________
1)Grind lays bank 2) Central bank of India 3) SBI caps
4) Canara bank 5) hdfc bank
16. Infrastructure leasing promoted by___________________
1) Grind lays bank 2) Central bank of India 3) SBI caps
4) Canara bank 5) none
17. Andhra Pradesh industrial development corporation venture capital Ltd promoted
by_________________
1) Central bank of India 2) APIDC 3) SBI caps 4) Canara bank 5) none
18. The promoters stake should be atleast 10% for the ventures below______________
1) 30 lakhs 2) 35 lakhs 3) 40 lakhs 4) 50 lakhs 5) 60 lakhs
19. Which section of amendment of the companies act is required to enable the new venture
capital companies to buy back their shares at the time of disinvestments by VC finance
companies?_______________________
1) sec 75 2) sec 76 3) sec 77 4) sec 78 5) none
20. The assistance per project may be up to __________ in the form of equity and or
conditional loan.
1) One crore 2) two crores 3) Three crores 4) four crores 5) none
21. Canara bank has set up a venture capital fund called___________________
1) cantac 2) canbank 3) cansac 4) canbanky 5) none

22. Canara bank has set up a venture capital fund called canbank venture capital fund woth
rupees_______________________
1) 5 crores 2) 15 crores 3) 10 crores 4) 20 crores 5) none
23. How many venture capital companies are there in India both private and public sector.
1) 5 companies 2) 10 companies 3) 15 companies 4) 20 companies 5) none
24. Which law represents a hurdle to the success of venture capital financing
1) capital profit law 2) capital loss law 3) capital income law
4) capital gains law 5) none
25. Application of provisions applicable to non-corporate entities for taxing
1) long term gains 2) long term capital gains 3) long term assets
4) none 5) ALL
26. Which form of organization/structure has unlimited liability of partners
1) joint venture
2) partnership
3) sole proprietorship
4) none
5) ALL
27. Which provides an impetus to banks to participate in ventures in the form of equity and
long term debt?
1) small business investment 2) big business investment 3) medium business

investment 4) 1 and 2 5) NONE
28. Expand DFI
1) development fedging institutions 2) development fiscal institutions
3) development finance institutions 4) development flow institutions
29. Which is the first nationalized bank in india to start a venture capital fund
1) IFCI 2) Indian bank 3) Andhra bank 4) Canara bank 5) HDFC bank
30. The GVFL launched its third fund, Gujarat venture capital fund 1997 as a __________
fund of 12 year duration.
1) closed ended 2) open ended 3) both 4) none 5) all

31. In which year the GVFL launched its second fund Gujarat venture capital fund
1) 1994 2)1995 3) 1996 4) 1997 5) 1999
32. ________________ is a seven year closed ended fund established in October 1998.
1) IAAF 2) TIF 3) SARA 4) AAF 5) SAHARA
33. Which is the oldest fund promoted by IL and FS venture corporation ltd and was set up in
September 1993__________________
1) IAAF 2) TIF 3) SARA 4) ITF 5) SAHARA
34. ____________ fund portfolio allocation is oriented towards information technology,

health care, food processing and retailing.
1) IAAF 2) TIF 3) SARA 4) ITF 5) SAHARA
35. The SARA fund is an apex fund created for the specific purpose of promoting state
____________________
1) Specific funds 2) Sara fund 3) information technology fund 4) none 5) All
36. Draper international was incorporated in_____________
1) 1990 2) 1991 3) 1992 4) 1994 5) 1996
37. The international equity partners is a venture capital firm that was established in
_________
1) 1991 2) 1992 3) 1993 4) 1994 5) 1996
38. The Walden international initiated its India operations in late ________
1) 1991 2) 1992 3) 1994 4) 1996 5) 1998
39. A VCF established as a company can be wound up in accordance with the provision of
the ________________
1) companies act 2) Industry act 3) compensation act 4) none 5) all
40. The VCFs must maintain for a period of _______________ books of

accounts/records/documents which give a true and fair picture of the state of their affairs
1) 6 years 2) 7 years 3) 8 years 4) 9 years 5) 12 yrs
41. The VCFs cannot invest more than ____________ percent corpus of the fund in one
VCU.
1) 20% 2) 25% 3) 30% 4) 35% 5) 40%
42. SEBI can suspend/cancel the registration of a VCF on the basis of
1) Due process 2) due procedure 3) due progress 4) none 5) all
43. Which law represents a hurdle to the success of venture capital financing
1) capital profit law 2) capital loss law 3) capital income law
4) capital gains law 5) none
44. Venture capital investment is generally idea based and ______________ in contrast to the
conventional investments which are asset based
1) production based 2) growth based 3) price based 4) cost based 5) none
45. The ______________ with the support of the world bank set up in 1997 the first
dedicated fund for software industry in the country.
1) IDBI 2) ICICI 3) JAIC 4) None 5) all
46. ______________ fund finances the cost of using the incubator facility in lieu of an equity
stake in the company
1) IDBI 2) ICICI 3) JAIC 4) None 5) all
47. _________________ was set up with a major contribution from the UTI.
1) VECAUS 2) VEACUS 3) VEUSCA 4) None 5) all
48. The venture capital fund is set up as a division and not as an independent _____________
1) legal entity 2) legal office 3) legal admin 4) none 5) all
49. Which scheme presently aims at encouraging ventures concerning development of

innovative products and services?_______________________
1) UTI 2) IDBI VCF 3) ICICI 4) all the above 5) none of the above
50. Which fund is an offshore fund domiciled in Mauritius

1) JAIC 2) ICICI Global opportunity fund 3) ICICI incubator fund 4) none 5) all
Answers
1. 1 9. 4 17. 2
2. 1 10. 3 18. 4
3. 1 11. 2 19. 3
4. 4 12. 2 20. 2
5. 2 13. 3 21. 2
6. 3 14. 3 22. 3
7. 1 15. 1 23. 4
8. 4 16. 2 24. 4
25. 2 34. 3 43. 4
26. 2 35. 1 44. 2
27. 1 36. 4 45. 2
28. 3 37. 3 46. 2
29. 4 38. 4 47. 1
30. 1 39. 1 48. 1
31. 2 40. 3 49. 2
32. 2 41. 2 50. 2
33. 4 42. 2
1. What is venture capital?
2. State the features of venture capital?
3. Explain the various stages of venture capital financing?
4. Discuss the importance of venture capital?
5. Write note on SBI CAP?
6. What are the disinvestment options available in India?
7. Expand VCF
8. Give some suggestions for the growth of venture capital funds
9. Expand APIDC
10. Methods/modes of venture financing
11. Characteristics of venture capital
12. Need for venture capital
13. Various factors of venture capital investments
14. Different Methods of raising funds in venture capital
15. Explain exit mechanism in venture capital
16. Different types of venture capital firms in India
17. Write about investment nurturing
18. Explain the structure of venture capital firms
19. Explain the method of valuation venture capital portfolio
20. Expand SBI CAP

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Entrepreneurial Development

Internal Assessment Questions

1. Assumption of risk 29. Innovations

Multiple Choice Questions

1. Industrialization is an ongoing process which accelerate economic growth and induces

4. EDP programs broadly consists of ___________________

6. Entrepreneurs are persons

8. Some of the quality of an entrepreneurs, which includes grasping opportunity, taking

1) Modern entrepreneurs 2) First generation entrepreneurs 3) Classical entrepreneurs

4) None of the above 5) All the above

22. Knowledge in entrepreneurship is a means to an end. Indeed that constitutes knowledge in

23. It is a function of seeing investment and production opportunity, organizing to undertake a

37. Holistically managing business/projects/situations, intuitive decision making under

50. Holistically managing business/projects/situations, intuitive decision making under

1. The entrepreneurial development is a key to achieve overall -------------------development

6. Entrepreneurial environment is broadly classified into_________________

11. The entrepreneurial cycle has three stages which are________________________

31. Enterprises of all type have to operate. Entrepreneurial environment is therefore is

41. There are several organization engaged in conducting entrepreneurship development

43. There are several organization engaged in conducting entrepreneurship development

47. Designing entrepreneurs training program involves setting training objectives,

III UNIT DATA BANK

Fill in the blanks:

1. ________________________ is one which is operated mainly with hired labor usually

1. Small Scale Industry 24. Trading on equity

Multiple Choice Questions:

4. Limited liability is one of the features of __________________.

6. The minimum number of members in public limited company is __________

7. The maximum number of members in private company is ________________

11. The rate of interest on credit provided in pre-shipment finance is ________

12. Unlimited liability is one of the disadvantages of _________________

14. Diffusion of risk is one of the features of _______________

24. For a successful business in a favorable conditions _______________

25. Optimum Capital Structure means financing mix incurring __________________

26. Casting, Electroplating etc are the examples of

27. Output employment ratio is ___________________ and employment generating capacity

29. _____________________ argument suggests that small enterprises are capable of

33. WASP means __________________________

34. ________________________ is event oriented approach

35. ________________________ is an activity oriented approach

36. __________________ is time based.

37. _____________________ is cost based.

38. Project appraisal made for proposed projects is called as ________________________

45. The money invested in durable assets is called as ___________________

46. Capital structure means raising funds from ________________

48. Optimum Leverage will ________________________

49. Capitalization means both amount of finance and modes of finance in

50. According to narrow sense, the term capitalization is similar to ___________________

Fill up the blanks:

1. State Bank of India 7. Industrial Finance Corporation of

Multiple Choice Questions:

1. There are __________ Technical Consultancy Organizations operating in various states.

2. Electronic Training and Service Institute is located at _________________

1) Bangalore 2) Nainital 3) Madras 4) Ranchi 5) Hyderabad

1) NISIET 2) NITCON 3) NIESBUD 4) NECON 5) None

4. To decentralize industries to the rural and backward areas is the objective of

1) Industrial Estate 2) SSIB 3) SSIDC 4) DIC 5) None

5. SSIB comprises of ______________ members.

9. _________________ is a subsidiary of IDBI

17. The head office of SIDBI is situated at ___________________

i) To provide equipment leasing facility ii) To undertake the construction of

1) i and ii 2) i and iii 3) ii and iii 4) i,ii and iii 5) none

27. ____________________________ is an apex body and nodal agency for formulating

46. Which of the following belong to IDBI?_______________