M.B.A (Sem.

-III) Startup and New Venture Management

Multiple Choice Questions

1) The word Entrepreneur is originally taken from

A) Greek word
B) French word
C) Greece word
D) Spanish word
Ans: B

2) The word Entreprendre means

A) To undertake
B) To Sustain
C) To Create
D) To manage
Ans: A

3) When selecting a line of action an Entrepreneur must keep in mind

A) Profit
B) Risk involved
C) Profitability
D) All above
Ans : D

4) Which one is not the function of an entrepreneur

A) Turning ideas into action
B) Generating employment
C) Shutting down the existing business
D) Planning
Ans: C

5) According to _________________ innovation is the important characteristic of an

entrepreneur
A) Peter Drucker
B) Schumpeter
C) Cantillion
D) J.B.Say
Ans: B

6) Point out the quality of an entrepreneur

A) Initiation
B) Lack of confidence
C) Lack of decision making
D) Self Appreciation
Ans: A
7) What is an entrepreneur?
A) Someone who do not want to earn profit.
B) Someone who makes a lot of money.

1
M.B.A (Sem.-III) Startup and New Venture Management

C) Someone who identify the needs of customer and makes innovations.

D) Someone who don’t take risk
Ans: C

8) Define Free Enterprise:

A) A business taking a risk to make a profit.
B) A program administered by the Government.
C) People in business trying to make a profit.
D) A business adventure or undertaking.
Ans: A

9) This is basically the behaviour of the person which has some distinct characteristics
A) Entrepreneurial
B) Entrepreneurship
C) Enterprise
D) Entertainment
Ans: A

10) According to J.B.Say entrepreneur is

A) Innovator
B) Inventor
C) Mentor
D) An Economic agent
Ans: D

11) This kind of entrepreneurs are characterised by readiness to adopt successful innovations
created by innovative entrepreneurs.
A) Innovative Entrepreneurs
B) Imitative Entrepreneurs
C) Agripreneurs
D) Traders
Ans: B

12) Entrepreneurs of this type are very cautious and skeptical while practicing any change
A) Innovative Entrepreneurs
B) Imitative Entrepreneurs
C) Fabian Entrepreneurs
D) Drone Entrepreneurs
Ans: C

13) Which of the following is not a type of Entrepreneur

A) Modern Entrepreneur
B) Technical Entrepreneurs
C) Classical Entrepreneur
D) Intrapreneur
Ans: D

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M.B.A (Sem.-III) Startup and New Venture Management

14) Enrepreneurship is _____________

A) Practice
B) Habit
C) Process
D) Action
Ans: C

15) Theory of High Achievement Motivation is given by

A) Schumpeter
B) Kilby
C) McCelland
D) Staley and Morse
Ans: C

16) Which of the following is not economic factors affecting entrepreneurial growth
A) Capital
B) Labour
C) Raw material
D) Custom
Ans: D

17) “Entrepreneurs are innovators who use a process of shattering the status quo of the existing
products and services, to set up new products, new services.”
A) J.B.Say
B) Peter Drucker
C) Schumpeter
D) Albert Shapero
Ans. C

18) Entrepreneur plays following role:

A) Economic Growth and Prosperity
B) Balanced Regional Development
C) Innovator
D) All of the above
Ans. D

19) Following is the important Quality of Entrepreneur

A) Self Confidance
B) Over Confidence
C) To Dominate others
D) Criticism
Ans: A

20) Danhof classifies entrepreneur in how many types?

A) 2
B) 3
C) 4

3
M.B.A (Sem.-III) Startup and New Venture Management

D) 1
Ans. D

21) Which of the following is not the type of Entrepreneur as per Arthur H Cole
A) Empirical
B) Fabian
C) Rational
D) Cognitive
Ans. B

22) Entrepreneurship is defined as a Systematic innovation ,which consists in the purposeful

and organized search for changes ,and it is the systematic analysis of the opportunities
such changes might offer economic and social innovation
A) Peter Drucker
B) Heggins
C) Mc Clelland
D) Schumpeter
Ans. A

23) Which of the following is a recommended strategy for retailers when consumers select the
outlet first and the brand second?
A) Appropriate pricing
B) Brand availability advertising
C) Brand image management
D) price special on brands
Ans: A
24) Which of the following is a recommended strategy for manufacturers when consumers
select the outlet first and the brand second?
A) Retailer image advertising
B) More exclusive distribution
C) point-of-purchase displays
D) Price special on brands
Ans: C
25) Consumers acquiring product through mail, telephone, or computer orders is referred to as
_____
A) Outsourcing
B) Outlet shopping
C) non-traditional shopping In-home shopping
D) all of the above
Ans: D

26) Which of the following is a category of products and services based on their purchase
characteristics relative to Internet shopping identified by Forrester Research?
A) “high-touch” goods
B) Search goods
C) Replenishment goods
D) Adventurous goods

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M.B.A (Sem.-III) Startup and New Venture Management

Ans: C

27) Which of the following category of products and services identified by Forrester Research
based on their purchase characteristics relative to Internet shopping consists of moderate
cost, high-frequency purchases?
A) Replenishment goods
B) Researched items
C) Convenience items
D) Shopping goods
Ans: A

28) Which of the following are the major reason consumers give for shopping online?
A) Want product delivered
B) Unique merchandise Price
C) Impulse
D) Convenience
Ans: D

29) Sales for which product or service classified, as “researched items” are the highest?
A) Food& beverage
B) Travel
C) Automotive parts
D) Computer hard/software
Ans: B

30) The major reason people give for not shopping on the Internet is _____.
A) Lack of “touch”
B) Security concerns
C) Too difficult
D) Unfamiliar merchants
Ans: B

31) MVM (My Virtual Model) helps consumers shopping online overcome which barrier?
A) Security
B) Information quantity
C) Lack of touch
D) Flow
Ans: C

32) Which of the following is an online shopper segment?

A) Shopping Lovers
B) Adventurous Explorers

5
M.B.A (Sem.-III) Startup and New Venture Management

C) Suspicious Learners
D) all of the above
Ans: D

33) Which of the following is NOT an online shopper segment?

A) Technocrats
B) Adventurous Explorers
C) Suspicious Learners \Fun Seekers
D) All of the above are online shopper segments
Ans: A

34) What was the MAIN reason consumers gave in a survey for why they don't like shopping in
stores?
A) don't like shopping
B) Dealing with crowds
C) salespeople are poorly informed
D) Parking and traffic
Ans: C

35) Consumers who browse and/or purchase in more than one channel are known as _____.
A) cosmopolitan
B) Multi-channel shoppers
C) multi-taskers
D) Market mavens
Ans: B

36) Which of the following affects consumers' retail outlet selection?

A) Outlet image
B) Retailer brands
C) Retail advertising
D) all of the above
Ans: C

37) The “Merchandise” dimension of store image includes _____.

A) Quality
B) selection
C) price
D) all of the above
Ans: D

38) The “Service” dimension of store image includes all of the following EXCEPT _____.
A)Easy return
B)Sales personnel
C)Delivery
D)All of the above are included
Ans: D

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M.B.A (Sem.-III) Startup and New Venture Management

39) Which of the following components represent the service dimension of a store's image?
A) Quality, selection, style, and price
B) Layaway plan, sales personnel, easy return, credit, and delivery
C) Location and parking
D) Congeniality, fun, excitement, and comfort
Ans: B

40) Good product offers and information, value, and alignment with consumers' interests are
components of which dimension of online retailer image?
A) Usefulness
B) Enjoyment
C) trustworthiness
D) familiarity
Ans: A

41) What is the key to success of store brands?

A) Low price
B) Low quality, but at a low price
C) High quality at a high price
D) High quality at a reasonable price
Ans: D

42) Sales of additional items to customers who came to purchase an advertised item are
referred to as _____.
A) Incremental sales
B) Spillover sales
C) Marginal sales
D) Sales plus
Ans: B

43) When a retailer represents a price as “regularly $15.99, now $9.99,” the $15.99 is called the
_____.
A) Starting price
B) base price
C) reference price
D) comparison price
Ans: C

44) Which of the following are types of reference prices?

A) Primary and secondary
B) Direct and indirect
C) Latent and manifest
D) internal and external
Ans: D

45) Which type of reference price does a marketer for the consumer to use to compare with the

7
M.B.A (Sem.-III) Startup and New Venture Management

current price present?

A) Base reference price
B) External reference price
C) Private reference price
D) Outlet reference price
Ans: B

46) Which type of reference price or price range does a consumer retrieve from memory to
compare with a price in the market?
A) Base reference price
B) historical reference price
C) private reference price
D) internal reference price
Ans: D

47) Any patents, trademarks, copyright or trade secrets held by the entrepreneur is known as
A) Disclosure document
B) Patent
C) Intellectual property
D) None of the mentioned
Ans: C

48) The organization will never be able to make the necessary changes without
A) Top Management commitment
B) Employees
C) Workers
D) None of the mentioned
Ans: A

49) The ways entrepreneurs make decisions.

A) Entrepreneurial domain
B) Reverse brain storming
C) Heuristics
D) Reverse brain storming
Ans: A

50) Locus of control is

A) A feeling
B) Attitude
C) Attribute
D) None of the above
Ans: C

51) Licensing arrangements have

8
M.B.A (Sem.-III) Startup and New Venture Management

A) Low risk process involved

B) Easy way to generate incremental income
C) Several pitfalls
D) All of the above
Ans: D

52) Personal characteristics to be a successful entrepreneur includes U.,

A) Understanding environment
B) Creating management options
C) Encourage open discussion
D) All of the above.
Ans: D

53) International entrepreneurship is

A) Licensing
B) Exporting.
C) Both of the mentioned in options
D) None of the two mentioned
Ans: C

54) Hindrance for going in the international business is known as

A) Synergy
B) Turn key point
C) Trade Barrier
D) Minority interest
Ans: C

55) In chronological age , most entrepreneurs start their careers between ages
A) 22 and 55
B) 30 and 55
C) 40 and 65
D) None of the given options
Ans: A

56) ………… is the combination of at least two firms doing similarBusinesses at the same
market level?
A) Diversified activity Merger
B) Horizontal Merger
C) Joint Venture
D) Vertical Merger
Ans: A

57) Which of the following is NOT recognized as a misconception about entrepreneurship?

A) Entrepreneurship is found only is small businesses.
B) Entrepreneurship is easy.
C) Successful entrepreneurship needs only a great idea.
D) Entrepreneurial Ventures and small business are different.
Ans: D

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M.B.A (Sem.-III) Startup and New Venture Management

58) All of the following are recognized as potential sources of entrepreneurial ideas EXCEPT:
A) Work experiences. Skills. and abilities
B) Familiar and unfamiliar products and services
C) Personal interests or hobbies
D) All of the Selections are recognized as potential sources of entrepreneurial ideas.
Ans: D

59) An is an individual who creates something for the first time, is a highly driven individual
motivated by his or her own work and personal ideas.
A) Entrepreneur
B) Inventor
C) Both a and b
D) None of the given options
Ans: B

60) Is the process in marketing of dividing a market into distinct subsets (segments) that behave
in the same way or have similar needs?
A) Target Market
B) Market Analysis
C) Market Segmentation
D) All of the Above
Ans: C

61) A business where an individual is both the owner and conductor of the business affairs is
called.
A) Sole Proprietorship
B) Partnership
C) Corporation
D) None of the above
Ans: A

62) In, the entrepreneur has the night to sell any assets.
A) Proprietorship
B) Partnership
C) Limited Liability Company
D) Noneof the given options
Ans: A

63) An entrepreneur`s primary motivation for starting a business is

A) To make money
B) To be Independent
C) To be famous
D) To be powerful
Ans: B

64) To be successful in an entrepreneurial venture, you need

A) Money
B) Luck
C) Hard work

10
M.B.A (Sem.-III) Startup and New Venture Management

D) A good idea
Ans: B
65) Entrepreneurs are best as
A) Managers
B) Venture capitalists
C) Planners
D) Doers
Ans: D

66) A successful entrepreneur relies on which of the following for critical management advice
A) Internal management team
B) External management Professionals
C) Financial sources
D) No one
Ans: B

67) Entrepreneurs are:

A) High-risk takers
B) Moderate risk takers
C) Small risk takers
D) Doesn‘t matter
Ans: B

68) Entrepreneurs typically form

A) Service businesses
B) Manufacturing companies
C) Constructive companies
D) A Variety of Ventures
Ans: D

69) Entrepreneurs:
A) Are the life of the party
B) Are bores at a cocktail party
C) Will never go to parties
D) just fit into the crowd at a party
Ans: D

70) Entrepreneurs and ventures capitalists:

A) Get along well
B) Are the best friends
C) Are cordial friends
D) Are in conflict
Ans: D

71) An individual usually begins his or her first significant entrepreneurial business enterprise
at what age
A) Teens
B) Twenties
C) Forties

11
M.B.A (Sem.-III) Startup and New Venture Management

D) Fifties
Ans: C

72) Entrepreneurial experience becomes increasingly important as

A) Work load increases
B) Complexity of venture increases
C) Complexity of wok increases
D) None of the above
Ans: B

73) Entrepreneurs are concerned about basic issues of:

A) Sales, costs and benefits
B) Customers, sales and costs
C) Risk, costs and benefits
D) None of the above
Ans: A

74) Licensing arrangements have

A) Low risk process involved
B) Easy way to generate incremental income
C) Several pitfalls
D) All of the above
Ans: D

75) Entrepreneur has used joint ventures:

A) When the entrepreneur wants to purchase local knowledge
B) When rapid entry in to the market is needed
C) Both of the options given
D) None of the above
Ans: C

76) The starting point for a project is called a(n) ____________.

A) Systems request
B) Feasibility study
C) Key performance indicator
D) Project definition
Ans: D

77) _______________ Feasibility refers to the technical resources needed to develop,

purchase, install, or operate a system.
A) Operational
B) Technical
C) Economic
D) Schedule
Ans: B

78) An analyst has identified the costs for hardware repairs to the system. This will be
categorized as a _____.
A) tangible benefit

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M.B.A (Sem.-III) Startup and New Venture Management

B) intangible benefit
C) operational cost
D) development benefit
Ans: C

79) Faster decision making, information processing efficiency, and improved asset utilization
are examples of:
A) intangible costs
B) tangible costs
C) tangible benefits
D) intangible benefits
Ans: D

80) The process of assessing the degree to which the potential time frame and completion
dates for all major activities within a project meet organizational deadlines and constraints
for affecting change best describes:
A) Operational feasibility
B) Technical feasibility
C) Economic feasibility
D) Schedule feasibility
Ans: D

81) Which of the following is not an Operational feasibility vital issue?

A) Management support
B) Users training
C) Performance decline in some system parts
D) Cost reduction and avoidance
Ans: D

82) A project is Important enough to be considered over other projects, is one of

A) History of the project request
B) Project Selection criteria
C) Operational feasibility
D) Economic feasibility
Ans: B

83) The final task in the preliminary investigation is

A) Estimate Project Development Time and Cost
B) Evaluate Feasibility
C) Perform Fact-Finding
D) Present Results and Recommendations to Management
Ans: D

84) The first step in evaluating feasibility is _____.

A) setting priorities
B) identify systems requests that are not feasible or necessary

13
M.B.A (Sem.-III) Startup and New Venture Management

C) conducting a preliminary investigation

D) none of the above
Ans: B

85) The first step in a preliminary investigation is generally to _____.

A) Evaluate feasibility
B) perform fact-finding
C) Understand the problem or opportunity
D) Estimate project development time and cost
Ans: B

86) An entrepreneur into the hosiery business found out the reason his hosiery was not selling
was due to its color. What could be the best source of this information?
A) Supplier
B) Retailer
C) Competition
D) Government bureau
Ans: B

87) In some countries, point of purchase displays is not allowed in retail stores. International
entrepreneurs under environment study such differences---------.
A) Economic
B) Political
C) Cultural
D) Technological
Ans: C

88) Entrepreneurial success has been significant because of the culture and the political and
economic systems in------.
A) European countries
B) Asian countries
C) Transition economies
D) Middle east
Ans: B

89) Having more than 50% ownership position that provides the entrepreneur with managerial
control is called-----------
A) Joint venture
B) Majority interest
C) Horizontal merger
D) Diversified activity merger
Ans: B

90) The under-developed or lesser developed countries need manufacturing technology and
infrastructure and yet do not want to turn over substantial portion of their economy to
foreign ownership. Which of the following is a solution to this dilemma?
A) Management contract
B) Indirect exporting
C) Licensing
D) Turn-key project

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M.B.A (Sem.-III) Startup and New Venture Management

Ans: D

91) The development of a new venture based on an inventor’s work often requires------
A) Expertise of an entrepreneur
B) Heavy investment from financiers
C) Skilled human resources
D) Highly educated staff
Ans: A

92) The importance of intellectual property should be understood by entrepreneur even before .
A) Hiring a manager
B) Engaging an attorney
C) Developing a product
D) Establishing new venture
Ans: B
93) Which of the following is not followed in brainstorming?
A) Criticism is done by the group members
B) The wilder idea is batter
C) Quantity of ideas is required
D) The session should be fun. with no on dominating the discussion
Ans: A
94) The most important characteristic of a successful business website is
A) Speed
B) Innovation
C) Graphics
D) Products
Ans: A

95) The plan shows whether the business is economically feasible or not.
A) Financial
B) Business
C) Economic
D) Marketing
Ans: B

96) In which of the following, the ownership of venture is reflected by ownership of shares of
stock'?
A) Partnership
B) Limited partnership
C) Corporation
D) Proprietorship
Ans: C

97) Bankers say that most businesses fail because of the inability to plan properly.
A) Investor’s
B) Marketer’s
C) Entrepreneur’s
D) Consultant’s
Ans: C

15
 irst«
 1
»Last
1. An individual who organizes or operates a business is known as ______

A. employee

B. entrepreneur

C. speculator

D. agent

2. The word entrepreneur has been derived from the French word which is called _______

A. entroprenture

B. entreprendure

C. entreprenture

D. ontreprendure

3. The resistance of employees in an organization against flexibility, growth and diversification can be overc

A. Entrepreneurship

B. Intrapreneurship
 C. Managerial domain

D. Administrative domain

4. Entrepreneurs are never satisfied with traditional or existing sources of materials due to their _____

A. unimaginative nature

B. habitual nature

C. traditional nature

D. innovative nature Correct answer

5. An individual who has prior business ownership experience is called a(n) ____________ entrepreneur.

A. Novice

B. Habitual

C. Serial

D. Portfolio

6. Which of the following is not one of the four phases of entrepreneurial development?

A. The growth of the business

 B. The closure of businesses that are not sufficiently attractive

C. The development of a business to exploit the opportunity

D. The development of superior relationships with customers and suppliers

7. __________ is the ability to bring something new into existence from either an existing or new idea

A. reality

B. ability

C. creativity Correct answer

D. capacity

8. Task presentation , Preparation , Incubation, Idea generation, Idea validation, Outcome assessment are all

A. stages of creativity

B. arena of creativity

C. result of creativity

D. loops of creativity

9. entrepreneurs are ________ in need-achievement

 A. low

B. high

C. average

D. nutral

10. which of these is not a characteristic of an entrepreneur

A. dependence

B. vision

C. value addition

D. optimism

11. Entrepreneurs do not shoot in dark, they are not gamblers, Yes they do take risks but only __________ .

A. calculated risk

B. unspecified risk

C. vague risk

D. uncertain risk

12. entrepreneurship procedure is in which of these sequence ??

 1. They see opportunities where others don’t.
2. They have a ‘vision’, a clear understanding of the concept and of what they’re trying to do.
3. They persuade others of their vision, they can communicate the concept effectively.
4. They gather resources to make their vision become a reality (money, people, things).
5. They organize these resources to create a new venture, product or market (leadership, teams).
6. They constantly change/adapt themselves according to the changing demands of the market.

A. 5>4>3>2>1>6

B. 1>3>2>5>4>6

C. 3>2>5>6>4>1

D. 1>2>3>4>5>6

13. What are the benefits of franchising?

A. Overseas expansion with a minimum investment

B. Franchisees’ profits tied to their efforts

C. Availability of local franchisees’ knowledge

D. All of these

14. Mc Donald is an example of _______.

A. Contract

B. Franchising
 C. Joint venture

D. Agreement

15. The combination of skills permits _______ in dealing with local market conditions and yet provides the p
reasonable degree of control.

A. Flexibility Correct answer

B. Non flexibility

C. Only Non flexibility

D. Both (Flexibility) and (Non flexibility)

16. What are the challenges in new product development?

A. All of these

B. Idea Generation

C. Idea screening

D. Commercialization

E. Testing New Products in National Markets

17. Which of the following was used by Sunbeam Appliance Company to assist in redesigning its many lines
appliances?
 A. consumer usage and attitude survey

B. consumer attribute and benefit survey

C. product line sales and market share simulations

D. conjoint analysis

E. All of these

18. ______ Is the starting point of the technology transfer process.

A. Valorisation

B. Detection

C. Protection

D. Exploitation

19. TTO stands for

A. Technology Transfer offices

B. Technological Transfer officers

C. Transfer Technology offices

 D. None of these

20. Which theory assumes that the consumer is a rational decision maker with well-defined, stable preference
skills to calculate which option will maximize his or her value and will choose on this basis?

A. dual coding theory

B. attribution theory

C. rational choice theory Correct answer

D. calculated theory

E. affect theory

21. A metagoal refers to _________ .

A. None of these

B. the overall amount of energy devoted to any given purchase

C. the conscious thinking of all decision processes

D. using nonfinancial criteria to make purchase decisions

E. the general nature of the outcome being sought Correct answer

22. A limited capacity for processing information is known as _____.

 A. bounded processing

B. working memory

C. bounded memory

D. bounded rationality Correct answer

23. In the context of public service, ________ aims at bringing the result of research laboratories to public us

A. Technology transfer

B. Inter regional exchange

C. Detection

D. Exploitation

24. ________ detection should also involve a first assessment of the commercial potential before taking the f

A. None of these

B. Quality

C. Quantity

D. Both of these
25. Which of the following is a type of consumer choice process?

A. attribute-based choice

B. affective choice

C. attitude-based choice

D. (affective choice), (attitude-based choice) and (attribute-based choice) Correct answer

E. (affective choice) and (attitude-based choice)

 STARUP AND NEW VENTURE MANAGEMENT (303)

MUTIPLE CHOICE QUESTION

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

b. Retailer

c. Competition

d. Government

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

b. Political

c. Cultural

d. Technological

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

a. Joint venture

b. Majority interest

c. Horizontal merger

d. Diversified activity merge

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

Expertise of an entrepreneur

b. Heavy investment from financers

c. Skilled human resources

d. Highly educated staff

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

a. Sole Proprietorship

b. Partnership

c. Corporation

d. None of the above

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

a. Proprietorship

b. Partnership

c. Limited Liability Company

d. None of the given options

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

Mission
b. Goal
c. Strategy

d. Objective

8. Entrepreneurs are best as ________________

a. Managers
b. Venture capitalists
c. Planners
d. Doers

9. Entrepreneurs and ventures capitalists:

a. Get along well
b. Are the best friends
c. Are cordial friends
d. Are in conflict

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

a) Strategic Orientation
b) Capitalization
c) Intrapreneurship
d) Management

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

Financial

b. Business

c. Economic

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

b. Limited partnership

c. Corporation

d. Proprietorship

13. Entrepreneurship can best be described as:

a. a process that requires setting up a business

b. taking a significant risk in a business context
c. having a strong vision
d. a process involving innovation, new products or services, and value creation

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

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

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

a. Entrepreneurship takes place in small businesses

b. Entrepreneurship does not take place in social enterprises
c. Entrepreneurship takes place in a wide variety of contexts
d. Entrepreneurship takes place in large businesses

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

a. propensity to leadership
b. need for achievement
c. extravert personality
d. tolerance of others

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

b. startup stage.

c. early growth stage.

d. later growth stage.

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

a. higher failure rate.

b. increased independence.

c. ability to benefit from previous experience.

d. reduced royalty fees.

19. MSMED stands to ___________

a. Micro, Small & Medium Enterprises Development

b. Mini, Small & Medium Enterprises Development
c. Micro, Small & Medium Entrepreneurship Development
d. Micro, Small & Medium Enterprises Department

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

a. Technological Capacity
b. Social environment
c. Political environment
d. Economic condition

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

a. Developing possible alternatives

b. Selecting the best alternative
c. Checking the decision
d. Exploring the developed alternatives

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

a. Emotional blocks
b. Labour
c. Lack of sustained motivation
d. lack of vision

23. Which of the following enterprises was found by Akio Morita?

a. Samsung
b. Apple
c. Panasonic
d. Sony

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

a. Motive
b. Trait
c. Attitude
d. Ego

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

a. Better utilization of resources

b. Improved quality life
c. Economic development
d. Employment generation

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

a. cash flow statement

b. balance sheet
c. break-even point
d. profit and loss statement

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

a. Law and order

b. Price of land
c. Availability of raw materials
d. Proximity to the product market

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

a. Creating a business plan

b. Making a product choice
c. Selecting the location
d. Setting up infrastructure

29. The parties involved in franchise business are ___________.

a. 1
b. 2
c. 3
d. 5

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

a. new concept/new business.

b. new concept/existing business
c. existing concept/new business.
d. existing concept/existing business.

31. If an entrepreneur has an internal locus of control, this means that he/she:

a. has a high need for achievement

b. believes that success or failure depends on his/her own actions.
c. feels comfortable in an unstructured situation
d. believes fate is a powerful force
32. The process of gathering information about trends is called:

a. need for achievement.

b. tenacity.
c. Trend
d. neuroticism

33. The opposite of "opportunity thinking" is:

a. obstacle thinking
b. thought self-leadership.
c. self-efficacy.
d. adaptive response behavior.

34. The startups which rarely go public are called:

a. Life style
b. Foundation company
c. Small company
d. High potential venture

35. Which of the following factor can create the managerial difficulties in the joint ventures between
foreign companies?

a. Cultural differences
b. Economic policies
c. Public ignorance
d. Government taxes

36. ___________ process of creating incremental wealth is called Entrepreneurship. a.

Static

b. Continuous
c. Systematic
d. Dynamic

37. Barriers to new product creation and development are known as:

a. Trial and error

b. Opportunity cost
c. Opportunity parameters
d. Intrapreneurship culture

38. Information regarding all of the following is related to operations, EXCEPT:

a. Promotion
b. Location
c. Raw materials
d. Labor skills

39. hich of the following cannot be used as basis of loan?

a. Worth of the business

b. Fixed asset
c. Perishable asset
d. All of the given options

40. Which of the following is the key factor for choosing the type of financing?

a. Availability of funds
b. Assets of the venture
c. Prevailing interest rates
d. All of the given options

41. Entrepreneur actually starts setting up of an enterprise by

a. Planning
b. Organizing
c. Staffing
d. Directing

42. Which of the following is least likely to influence the timing of new business births?

a. Government policies
b. Profitability
c. Interest rates
d. Consumer expenditure

43. Which of the following is usually not a barrier to market entry for a small firm?

a. economy of scale
b. good ideas
 c. switching costs
d. access to distribution

44. Which of the following statements is false? Electronic commerce:

a. can allow new ventures to compete on more or less equal terms with large firms
b. offers a relatively inexpensive means of advertising and conducting market and competitor
research
c. can lead to small businesses having reduced contact with its customers
d. is rarely used in small businesses

45. Generally speaking the risk involved in launching as a franchise is greater than that as a start
up.

a. True
b. False

46. Venture capital firms are usually organized as

a. closed-end mutual funds

b. limited partnerships
c. corporations
d. nonprofit businesses

47. The entrepreneur who is committed to the entrepreneurial effort because it makes good
business sense is classed as a/an_____________________

a. inventor
b. opportunist
c. hacker
d. craftsman

48. To the __________, physical location does not matter because the Internet allows anyone to
link to any Web site no matter where in the world that site might be.

a. bricks-and-clicks retailer

b. e-tailer

c. bricks-and-mortar retailer
d. B-to-G business
49. Being interested in computers, Jim Johnson came up with an idea of personalizing the screen
saver programs with family pictures. After trying a couple of programs, Jim started marketing
this service to neighbors and area businesses. Jim’s activities can be described as a(n)

a. entrepreneurship.

b. intrapreneurship.

c. useless idea.

d. large business.

50. Today, inspired by the growth of companies such as Amazon.com, entrepreneurs are flocking
to the to start new businesses.

a. Small Business Administration

b. Internet

c. bookstore

d. mall

51. Which of these refers to the belief by individuals that their future is within their control and
that external forces will have little influence?

a. Awareness of passing time

b. Tolerance for ambiguity

c. Internal locus of control

d. External locus of control

52. means that people are motivated to excel and pick situations in which success is likely.

a. External locus of control

b. Tolerance for Ambiguity

c. Awareness of passing time

 d. Need to achieve

53. Marleesha likes to set her own goals, which have an intermediate level of difficulty. Which of
the entrepreneurial characteristics does she probably possess?

a. A high need for achievement

b. A high need for power

c. An external locus of control

d. An inability to deal with uncertainty

54. The most cited source of new business ideas is

a. brainstorming.

b. in-depth understanding of industry/profession.

c. a hobby.

d. copying someone else.

e. none of the above.

55. Before opening his own business, Tanay was writing a report that details the specifics of his
ideas and future business operations. This document is known as

a. a SWOT analysis.

b. a business portfolio.

c. a business plan.

d. a competitive analysis.

56. ______ refers to an unincorporated business owned by an individual for profit.

a. Partnership

b. Proprietorship

c. Corporation

d. Association
57. Sangeeta , Kabir, and Ravi started selling computer software on college campuses under the
name Student Software Company. Each person contributed Rs.15000/- toward start-up costs
and agreed on dividing costs and profits equally. The legal structure for the company can best
be described as a

a. proprietorship.

b. partnership.

c. trade alliance.

d. corporation.

58. A group of companies or individuals that invests money in new or expanding businesses for
ownership and potential profits is known as

a. an equity financing firm.

b. franchising.

c. a venture capital firm.

d. a corporation.

59. An advantage of which of these tactics is that there is a shorter start-up time and an existing
track record?

a. Participate in a business incubator

b. Start a new business

c. Buy a franchise
d. Buy an existing business

60. Which of these refer to an arrangement by which the owner of a product or service allows
others to purchase the right to distribute the product or service with help from the owner?

a. Franchising

b. Business incubation

c. Spinning-off

d. Globalization
61. Which of these offers the advantage that the entrepreneur has the ability to develop and design
the business in the entrepreneur's own way?

a. Participate in a business incubator

b. Start a new business
c. Buy a franchise
d. Buy an existing business

62. For Internet start-ups, one typical source of first funds is through

a. stock financing.

b. government funds.

c. angel financing.

d. community development financing.

63. The final step in the start-up process is often the

a. development of partnerships.

a. launching the company.

b. obtaining venture capital.

c. securing government funding.

d. IPO.
64. Felix is an entrepreneur. At this stage of his company , his main concerns are do we have
enough customers and money. What stage of growth is Felix’s company in?

a. Start-up

b. Survival

c. Takeoff

d. Resource maturity

e. Success

65. Entrepreneurs take the risk of starting a business for all of the following reasons except:
 a. they want independence.

b. they like the challenge and the risk.

c. they want to make money for themselves.

d. they want to work less.

66. Steve Jacobi is an entrepreneur to the max. Steve has started three businesses, two of which he
sold for a great deal of money. He is now involved in running his third business, with plans to
sell it shortly and start yet another one. When commenting on his success as an entrepreneur,
he says that once an idea comes to him, he just can’t wait to start working on it and bring it to
reality, and that is what he focuses on. Which of the traits of successful entrepreneurs does this
suggest is characteristic of Steve?

a. Action-oriented

b. Self nurturing

c. Self-directed

d. Tolerant of uncertainty

67. An entrepreneurial team is:

a. a group of people who work within a corporation to launch new products.

b. a group of experienced people who join together to develop and market a new
product.

c. a group from the Small Business Administration which consults with small
business owners.

d. a group of managers who get together to find creative solutions to problems.

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

a. entrepreneur.

b. intrapreneur.
 c. micropreneur.

d. venture capitalist.

69. An incubator is:

a. A government agency that advises and assists small businesses.

b. A program through which private investment companies licensed by the S.B.A. lend
money to small businesses.

c. A center that offers new businesses low-cost offices with basic business services.

d. A specific geographic area to which governments try to attract private businesses by a

variety of means.

70. Indrayani Jungle wants to start a small business importing some products from her native
Kenya. Before she starts, some good advice to Indrayani would be:

a. talk to others who have been or are in the import business.

b. get a loan right away.

c. find a business to buy as soon as possible.

d. incorporate immediately.

71. A business plan for a new business does not need to include:

a. a marketing plan.

b. a discussion of the purpose of the business.

c. a description of the company background.

d. the name of the lending bank.

72. The primary concerns when first starting your business are:

a. marketing and accounting.

b. planning and human resources.

c. financing and planning.

d. financing and marketing.

73. What are the primary sources of funding for entrepreneurs?

a. personal savings and individual investors

b. finance companies and banks

c. the Small Business Administration and banks

d. former employers and the Economic Development Authority

74. Kylie is employed by Street Wheels, a large corporation that produces accessories for scooters,
bicycles, and other children's vehicles. She is a creative force within the company and has
helped launch several new successful products. Kylie is a/an
____________________________. a. Intrapreneur.
b. Partner
c. Entrepreneur
d. Owner

75. Babba, a licensed real estate broker, received notification that his application for a business
loan was denied. The bank refused his request because he failed to provide a blueprint
identifying the intended target market and competitive strategy. In order secure a bank loan
Babba evidently needs a:

A) bankruptcy lawyer.

B) business plan.

C) venture capitalist.

D) loan advocate.

76. As a ________ Ronnie searches for firms in need of additional funding to achieve their goals.
In return for his investment, Ronnie becomes a part owner in the business. Ronnie operates as
a(n):

A) investment analyst.

B) venture capitalist.

C) corporate raider. D) securities trader.

77. The resistance of employees in an organization against flexibility, growth, and diversification
can be overcome by developing:

Entrepreneurship

Intrapreneurship

Managerial domain

Administrative domain

78. Which one of the following is a barrier to new product creation and development?

Trial and error

Opportunity parameter

Opportunity cost

Intrapreneurship culture

79. Factors contribute to the creation of new venture EXCEPT:

Government

Finance

High interest rates

Role models

80. Which one of the following is the process of entrepreneurs developing new products that over
time make current products obsolete?

Creative destruction

New business model

Anatomization

None of the given options

81. An entrepreneur doing business within the national border is called:

International entrepreneurship

Intrapreneurship

Domestic entrepreneurship

Imports

82 Which of the following is alternatively called corporate venturing?

Entrepreneurship

Intrapreneurship
Act of stating a new venture

Offering new products by an existing company

83. In which of the following situation the company is considered to be on breakeven point?

No Profit no loss

Profits are higher then expenses

Expenses are higher then profits

None of the given options

84. Licensing is a significant marketing strategy to:

Use intellectual property of others

Pirate others’ patents

Grow the business in new markets

Control the costs

85. Which one of the following best represents the environment of an entrepreneurial oriented
organization?

Corporate culture

Entrepreneurial culture

Intrapreneurial culture

Traditional culture

86. Individuals who help the entrepreneur in business activities are called:

Role models
Moral support networks

Professional support networks

Business support networks

87. Which one of the following is a business arrangement in which someone else is allowed to use
something of the company?

Patent

Trade mark

Copy right

Licensing

88. A patent is granted for a specified amount of time because of the assumption:

That during this time firm will cover its development costs

That firm will earn a sufficient profit during this period

To limit the monopoly of the firm

That it will stimulate idea and development of a better product

89. Which of the followings give the owners a negative right, preventing anyone from making, using,
or selling the invention?

Patent

Copyright

Trade mark

Trade secret

90. Which one of the followings statements is NOT true about trademarks?

The entrepreneur cannot file after the mark already been in use

A trademark could be a slogan or a particular sound

Some trademarks have no relationship with the product

The filing date for the trademark becomes the first date use of the mark

91. Which one of the following is the main problem for the entrepreneur in the beginning stages of
creating a new venture?

Lack of experience

Limited resources

Lack of education

None of the given options

92. Which one of the factors should be considered while assessing the location for business?

Parking

Access from roadways to facility

Delivery rates
All of the given options

93. Which one of the following is a sound strategic option for an entrepreneur when synergy is
present?

Merger

Joint venture
Minority interest

Majority interest

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

To see if there are possible barriers to success

To identify possible sources of funds

To estimate the expected sales

To explore potential customers

95. Kent is going to start his own business. He is concerned that the merchandise he wants to carry
will go out of style soon after opening his business. Which type of risk must he prepare for?

Human

Incompetence

Natural

Economic