360+ Entrepreneurship Development (ED) Solved MCQs

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) , Bachelor of Banking and Insurance (BBI) , Bachelor of Commerce (B Com) , Bachelor Multimedia Communication (BMMC) , Bachelor of Arts in Multimedia (BA Multimedia) .

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101.	Payback period and ARR methods are …………………..
A.	traditional
B.	discounting
C.	modern
D.	none
Answer» A. traditional

102.	NPV, PI and ………………………. are the three discounted cash flow techniques.
A.	arr
B.	irr
C.	ntv
D.	urgency
Answer» B. irr

103.	Original investment is divided by constant cash……………………….. to get payback period.
A.	inflows
B.	outflows
C.	balance
D.	both (a)and (b)
Answer» A. inflows

104.	…………………. is also called trial and error Method.
A.	arr
B.	irr
C.	ntv
D.	urgency
Answer» B. irr

105.	The discount rate at which present value of cash inflows equals to the present value of cash outflows is called …………………..
A.	arr
B.	irr
C.	ntv
D.	urgency
Answer» B. irr

106.	Project…………………………… is done after the project is implemented.
A.	management
B.	appraisal
C.	evaluation
D.	none
Answer» C. evaluation

107.	The main object of project appraisal is:
A.	to find whether the project is technically feasible.
B.	to ascertain whether the project is financially feasible.
C.	to decide whether to accept or reject a project.
D.	to know whether the project is eco-friendly.
Answer» C. to decide whether to accept or reject a project.

108.	Project appraisal is done by:
A.	government.
B.	financial institution only.
C.	entrepreneur only.
D.	both financial institution and entrepreneur.
Answer» D. both financial institution and entrepreneur.

109.	Which one is not an element of project appraisal:
A.	technical feasibility.
B.	network analysis.
C.	economical viability.
D.	commercial viability.
Answer» B. network analysis.

110.	The discount rate must be determined in advance for the :
A.	payback period.
B.	time adjusted rate of return method.
C.	irr
D.	npv method.
Answer» D. npv method.

111.	Which one of the following is not a discounted cash flow technique:
A.	arr
B.	irr
C.	npv
D.	pi
Answer» A. arr

112.	The difference between the total present value of a stream of cash flows of a given rate of discount and the initial capital outlay is known as the :
A.	irr.
B.	arr.
C.	npv.
D.	net profit.
Answer» C. npv.

113.	The scientific technique of evaluation of capital expenditure decisions include the following except:
A.	npv.
B.	pi.
C.	irr.
D.	payback period.
Answer» D. payback period.

114.	Profitability index shows benefits from the proposal in :
A.	absolute terms.
B.	relative terms.
C.	both of the above.
D.	none of these.
Answer» B. relative terms.

115.	For discounted cash flow methods, the discount rate used is:
A.	fixed arbitrarily
B.	equivalent to bank rate.
C.	equivalent to firm’s average cost of capital.
D.	equivalent to final rate of dividend.
Answer» C. equivalent to firm’s average cost of capital.

116.	The process of measuring the progress and performance of a project is called:
A.	project appraisal.
B.	project evaluation.
C.	project control.
D.	project audit.
Answer» B. project evaluation.

117.	The excess of the present value over the cost of the project is ……………………..
A.	irr
B.	arr
C.	npv
D.	ntv
Answer» D. ntv

118.	In case of mutually exclusive projects, the project with ……………. PI is to be selected.
A.	higher
B.	lower
C.	negative
D.	positive
Answer» A. higher

119.	In independent projects, accept a project if it’s NPV is………………………..
A.	higher
B.	lower
C.	negative
D.	positive
Answer» D. positive

120.	Under Net Terminal Value Method, accept a project if it’s NTV is……………………
A.	higher
B.	lower
C.	negative
D.	positive
Answer» D. positive

121.	Accept a project if it’s IRR is……………….when compared to desired minimum
A.	higher
B.	lower
C.	negative
D.	positive
Answer» C. negative

122.	Reject a project if it’s IRR is……………….when compared to desired minimum
A.	higher
B.	lower
C.	negative
D.	positive
Answer» B. lower

123.	…………………………report is a document wherein all the details obtained from technical analysis, financial analysis, profitability analysis etc. are put together.
A.	feasibility
B.	project
C.	both
D.	none
Answer» C. both

124.	…………………………. Is an essential document for procuring assistance from financial institutions and for fulfilling other formalities for the implementation of the project.
A.	feasibility
B.	project
C.	progress
D.	none
Answer» B. project

125.	Department of industries and commerce formulated a scheme to set up ………………. To inculcate entrepreneurial culture amongst youth.
A.	ed clubs
B.	youth clubs
C.	lion clubs
D.	none
Answer» A. ed clubs

360+ Entrepreneurship Development (ED) Solved MCQs

Payback period and ARR methods are …………………..

NPV, PI and ………………………. are the three discounted cash flow techniques.

Original investment is divided by constant cash……………………….. to get payback period.

…………………. is also called trial and error Method.

The discount rate at which present value of cash inflows equals to the present value of cash outflows is called …………………..

Project…………………………… is done after the project is implemented.

The main object of project appraisal is:

Project appraisal is done by:

Which one is not an element of project appraisal:

The discount rate must be determined in advance for the :

Which one of the following is not a discounted cash flow technique:

The difference between the total present value of a stream of cash flows of a given rate of discount and the initial capital outlay is known as the :

The scientific technique of evaluation of capital expenditure decisions include the following except:

Profitability index shows benefits from the proposal in :

For discounted cash flow methods, the discount rate used is:

The process of measuring the progress and performance of a project is called:

The excess of the present value over the cost of the project is ……………………..

In case of mutually exclusive projects, the project with ……………. PI is to be selected.

In independent projects, accept a project if it’s NPV is………………………..

Under Net Terminal Value Method, accept a project if it’s NTV is……………………

Accept a project if it’s IRR is……………….when compared to desired minimum

Reject a project if it’s IRR is……………….when compared to desired minimum

…………………………report is a document wherein all the details obtained from technical analysis, financial analysis, profitability analysis etc. are put together.

…………………………. Is an essential document for procuring assistance from financial institutions and for fulfilling other formalities for the implementation of the project.

Department of industries and commerce formulated a scheme to set up ………………. To inculcate entrepreneurial culture amongst youth.

The scheme of ED Clubs will be implemented by ………………..

A grant of ………… Will be given to each ED club by the department of Commerce and industry.

A …………………………. Is an organization designed and success of entrepreneurial companies through an array of business support resources and services.

………………………….. Skill refers to the ability to conceive new ideas and products.

The skill to handle people and to influence their behaviour is known as ……………

………….. Skill refers to the ability to understand problems from visible symptoms.

Ability to use techniques ,procedures and tools of a specific field is called…………

Entrepreneurship development is slow in Kerala because:

The minimum numbers to form an ED club is:

Which one of the following is not a function of ED club:

Which of the following provides services and advices to start up firms:

………………….analysis is concerned with identification of project demand potential and selection of optimal technology:

…………………………. Analysis is concerned with the development of detailed work plan of the project and its time profile:

………………. Analysis involves estimation of project costs and revenues and funds required for the project:

……………………… analysis aims at analyzing the real contribution of an investment project towards welfare of country as a whole;

………………………. Helps to take investment decision:

………………. Analysis is carried out to ascertain technical soundness of the project:

………………………….. Refers to manner in which a company’s inputs are transferred into output process:

………………. Give right to use patented technology and get related know-how on mutually agreed basis:

There is no need for technological support from the seller in ……………………………

The supplier may participate technically as well as financially in a ………………… arrangement.

Technology developed within a country is called …………………………….

……………… Refers to the volume that can be manufactured during a given period:

………………… Refers to the board area where the enterprise is to be established:

…………………………….. Refers to the arrangement of machines, equipments and other physical facilities within factory premises:

126.	The scheme of ED Clubs will be implemented by ………………..
A.	business incubators.
B.	industrial estates.
C.	dic.
D.	none of these.
Answer» C. dic.

127.	A grant of ………… Will be given to each ED club by the department of Commerce and industry.
A.	20000
B.	15000
C.	18000
D.	12000
Answer» D. 12000

128.	A …………………………. Is an organization designed and success of entrepreneurial companies through an array of business support resources and services.
A.	business incubators.
B.	industrial estates.
C.	dic.
D.	none of these.
Answer» A. business incubators.

129.	………………………….. Skill refers to the ability to conceive new ideas and products.
A.	diagnostic
B.	conceptual
C.	technical
D.	human relation
Answer» B. conceptual

130.	The skill to handle people and to influence their behaviour is known as ……………
A.	diagnostic
B.	conceptual
C.	technical
D.	human relation
Answer» D. human relation

131.	………….. Skill refers to the ability to understand problems from visible symptoms.
A.	diagnostic
B.	conceptual
C.	technical
D.	human relation
Answer» A. diagnostic

132.	Ability to use techniques ,procedures and tools of a specific field is called…………
A.	diagnostic
B.	conceptual
C.	technical
D.	human relation
Answer» C. technical

133.	Entrepreneurship development is slow in Kerala because:
A.	natural resources are limited.
B.	poor quality of man power.
C.	instable govt.
D.	none of these.
Answer» D. none of these.

134.	The minimum numbers to form an ED club is:
A.	20.
B.	25.
C.	50.
D.	none of these.
Answer» B. 25.

135.	Which one of the following is not a function of ED club:
A.	organic workshop.
B.	interaction with promotional agencies.
C.	provide infrastructure.
D.	organic industrial visits.
Answer» C. provide infrastructure.