Nptel Practice Questions (20 Questions)

1. What is entrepreneurship?

a. The process of managing a large corporation

b. The process of starting and running a business

c. The process of investing in stocks and bonds

d. The process of government regulation

Answer: b

2. Which of the following is not a characteristic of a successful entrepreneur?

a. Risk-taking

b. Creativity

c. Avoiding change

d. Vision

Answer: c

3. What is a business plan?

a. A blueprint for starting a business

b. A financial statement

c. An employee handbook

d. A marketing brochure

Answer: a

4. Which of the following is an example of a social entrepreneur?

a. A restaurant owner

b. A non-profit organization founder

c. A software developer

d. A stock trader
Answer: b

5. What does SWOT analysis stand for in entrepreneurship?

a. Strengths, Weaknesses, Opportunities, Threats

b. Sales, Workforce, Organization, Technology

c. Strategic, Wise, Objective, Task-oriented

d. None of the above

Answer: a

6. What is a competitive advantage?

a. Being the only business in town

b. Having the lowest prices in the market

c. Offering a unique product or service

d. Having the most employees

Answer: c

7. What is bootstrapping in entrepreneurship?

a. Using boots as a primary product

b. Self-funding a business with minimal external capital

c. Rapid business expansion

d. Creating a new technology startup

Answer: b

8. What is the term for the legal protection of an entrepreneur's invention or idea?

a. Trademark

b. Copyright

c. Patent

d. Trade secret
Answer: c

9. What is the break-even point in a business?

a. The point at which a business starts losing money

b. The point at which a business covers its costs

c. The point at which a business makes maximum profit

d. The point at which a business is acquired by a competitor

Answer: b

10. Which of the following is an example of a successful pivot in entrepreneurship?

a. Changing the business logo

b. Switching to a different industry entirely

c. Increasing advertising spending

d. Expanding the current product line

Answer: b

11. What does ROI stand for in entrepreneurship?

a. Return on Investment

b. Risk of Inheritance

c. Rate of Inflation

d. Return on Insurance

Answer: a

12. Which of the following is a primary source of financing for most startups?

a. Government grants

b. Venture capital

c. Personal savings

d. Corporate sponsorships
Answer: c

13. Which entrepreneurial characteristic involves the ability to adapt to changing circumstances and
identify opportunities?

a. Risk-taking

b. Resilience

c. Vision

d. Creativity

Answer: b

14. What is the "elevator pitch" in the context of entrepreneurship?

a. A business pitch that's too long

b. A pitch that's delivered in an elevator

c. A concise summary of a business idea

d. A marketing campaign for an elevator company

Answer: c

15. What is a SWOT analysis used for in entrepreneurship?

a. Analyzing market demand

b. Identifying a business's internal strengths and weaknesses

c. Calculating tax liabilities

d. Forecasting economic trends

Answer: b

16. In the product life cycle, which stage is characterized by declining sales and profits?

a. Introduction

b. Growth
c. Maturity

d. Decline

Answer: d

17. What is the term for a legal document that outlines how a business will be run and owned?

a. Business plan

b. Partnership agreement

c. Sales contract

d. Promissory note

Answer: b

18. What is the main purpose of market research in entrepreneurship?

a. To prove the entrepreneur's idea is the best

b. To identify and understand customer needs and preferences

c. To create competition with other businesses

d. To minimize innovation and risk-taking

Answer: b

19. Which type of entrepreneur starts a business to fill a gap in the market, based on identified
demand?

a. Imitative entrepreneur

b. Innovative entrepreneur

c. Lifestyle entrepreneur

d. Franchise entrepreneur

Answer: a
20. What is the term for the sale of a company to an employee or group of employees?

a. Merger

b. Acquisition

c. Management buyout

d. IPO (Initial Public Offering)

Answer: c