Question 1:- Which one of the following actions by an entrepreneur is most likely to contribute to

creative destruction?
a) Development of a new product
b) take over of a competitor
c) issuing prices
d) reducing prices

Question 2:- An advantage of the small firm in the innovation process____________.

a) ability to carry out R&D
b) ability to raise finance
c) ability of an entrepreneur to carry out multiple tasks
d) ability of the entrepreneur to act on new ideas or product development

Question 3:- External links may provide incentives to:

a) raise finance
b) introduce new working practices
c) introduce improvement of products
d) attend business exhibitions

Question 4:- Schumpeter considered that innovative entrepreneurs would___________.

a) thrive
b) disappear
c) be absorbed within large innovative firms
d) be absorbed within non-innovative firms

Question 5:- Innovative entrepreneurs face special issues in raising ___________.

a) development capital
b) structured capital
c) human capital
d) seed capital

Question 6:- Innovative entrepreneurs may have to pay high insurance premiums due to the
___________.
a) need to protect patents
b) greater employee liability
c) greater customer liability
d) greater trading risks

Question 7:- Networking by innovative entrepreneurs may be most encouraged by ____________.

a) science parks
b) business incubators
c) chambers of commerce
d) business associations

Question 8:- Which one of the following is NOT recognised as a misconception about
entrepreneurship?
a) successful entpreneurship needs only a great idea
b) entpreneurship is easy
c) entrepreneurship is only found in small businesses
d) entrepreneurial ventures and small businesses are different
Question 9:- All of the following are the characteristics of small business EXCEPT:
a) small businesses are independently owned, operated and financed
b) small businesses have fewer than 100 employees
c) small businesses emphasize new or innovative practices
d) small businesses have little impact on industry

Question 10:- The creation of new firms are important because these firms contribute to economic
development through benefits that include all of the following EXCEPT:
a) Product-process innovation
b) increased tax revenues
c) unemployment
d) social betterment

Question 11:- Which of the following shows the process of creating something new?
a) business model
b) modelling
c) creative flexibility
d) innovation

Question 12:- Which one of the following gives suggestions for new product and also help to market
new products?
a) existing products and services
b) federal government
c) distribution channels
d) consumers

Question 13:- Which one of the following is used by entrepreneurs to acquire in an International
market before making a major commitment?
a) merger
b) minority interest
c) joint venture
d) majority interest

Question 14:- Which one of the following is the process of entrepreneurs developing new products
that over time make current products obsolete?
a) new business model
b) Anatomisation
c) none of the given options
d) creative destruction

Question 15:- Individuals influencing entrepreneur`s career choice and style are known as which of
the following:
a) moral-support network
b) role model
c) professional support network
d) support system

Question 16:- Venture capital is concerned with __________.

a) new project having potential for higher profit
b) new project of high technology
c) new project having high risk
d) All of the above

Question 17:- A corporate manager who starts a new initiative for their company which entails setting
up a new distinct business unit and board of directors can be registered as -
a) Ecoprenuer
b) technopreneur
c) intrapreneur
d) social entrepreneur

Question 18:- Family business always interested to handover the change of his business to :
a) Indian Administrative officers
b) professional managers
c) next generation
d) None of the above

Question 19:- A women entrepreneur is supposed to have a minimum financial interest in share
capital of entrepreneur`s enterprise:
a) 35%
b) 51%
c) 25%
d) None of the above

Question 20:- EDP(Entrepreneurship development programme) is required to help :

a) existing entrepreneurs
b) first generation entrepreneurs
c) future generation entrepreneurs
d) None of the above