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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301.	A business arrangement where one party allows another party to use a business Name and sell its products or services is known
A.	A cooperative.
B.	A franchise
C.	An owner-manager business
D.	A limited company
Answer» B. A franchise

302.	Innovation can best be defined as_______.
A.	the generation of new ideas.
B.	the evolution of new ideas.
C.	the opposite of creativity.
D.	the successful exploitation of new ideas.
Answer» A. the generation of new ideas.

303.	Which of these statements best describes the context for entrepreneurship?
A.	Entrepreneurship takes place in small businesses.
B.	Entrepreneurship takes place in large businesses.
C.	Entrepreneurship takes place in a wide variety of contexts.
D.	Entrepreneurship does not take place in social enterprises.
Answer» C. Entrepreneurship takes place in a wide variety of contexts.

304.	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.
Answer» D. a process involving innovation, new products or services, and value creation.

305.	Entrepreneurial development is the key to achieve all-round ---------------- through acceleration of industrial and entrepreneurial activities.
A.	economic development
B.	increase in profits
C.	shareholders value
D.	business development
Answer» A. economic development

306.	According to sociological approach, entrepreneurship
A.	Process of sensitivity
B.	Process of role performance
C.	Process of economic change
D.	All of these
Answer» B. Process of role performance

307.	Which of the following attitudes Is not generally associated with successful entrepreneurship :
A.	Competition and co-operation
B.	Desire to influence others
C.	Innovation and product improvement
D.	Status quo in business
Answer» D. Status quo in business

308.	The function of entrepreneur are:
A.	To imagine a business idea
B.	To study project feasibility
C.	To setup enterprise
D.	All the above
Answer» D. All the above

309.	Which of the following sentence is not a characteristic of entrepreneurship:
A.	Risk taking
B.	Innovation
C.	Creative activity
D.	Managerial training
Answer» D. Managerial training

310.	An entrepreneur is:
A.	Born
B.	Made
C.	Bom and made both
D.	All of these
Answer» D. All of these

311.	Which of the following sentence is inconsistent in the context of entrepreneur:
A.	He is owner of the business
B.	He is risk taker
C.	He operates production activities
D.	He searches out business opportunities
Answer» C. He operates production activities

312.	Maslow’s Hierarchy of needs theory is governed by the fact that:
A.	People are universally motivated by needs
B.	People are socially motivated by needs
C.	People are politically motivated by needs
D.	None of the above
Answer» C. People are politically motivated by needs

313.	In under developed countries, local mobile phone companies use the same technology used by big companies to manufacture their products. Which of the following type of Entrepreneurs is highlighted above:
A.	Trading Entrepreneurs
B.	Imitative Entrepreneurs
C.	First generation Entrepreneurs
D.	Innovative Entrepreneurs
Answer» B. Imitative Entrepreneurs

314.	All but which of the following is considered to be a myth associated with entrepreneurship?
A.	Successful entrepreneurs are born not made
B.	First ventures are always successful
C.	All entrepreneurs must willingly invest significant sums of money
D.	Successful entrepreneurs must have a break-through invention
Answer» D. Successful entrepreneurs must have a break-through invention

315.	Entrepreneurial culture and growth orientation consists of all of the following except:
A.	Encouraging employees to generate ideas
B.	Focusing on opportunities.
C.	The desire to grow at a slow and controlled pace.
D.	Being creative.
Answer» C. The desire to grow at a slow and controlled pace.

316.	Intrapreneurship often takes the form of
A.	A semi-autonomous group (e.g. an internal venture team), operating within the overarching structure of the parent organization.
B.	A spinout venture from a university to commercial a new invention.
C.	A subsidiary of a large corporation developing a new product.
D.	A semi-autonomous group operating outside the overarching structure of the parent organization.
Answer» A. A semi-autonomous group (e.g. an internal venture team), operating within the overarching structure of the parent organization.

317.	A ______________ is a professional money manager who makes risk investment from a pool of equity capital to obtain a high rate of return on investments.
A.	venture capitalist
B.	entrepreneur
C.	businessman
D.	buyer
Answer» A. venture capitalist

318.	A business plan is important for all of the following reasons EXCEPT:
A.	a business plan forces a firm's founders to systematically think through each aspect of their new venture.
B.	a business plan provides lenders and investors assurance that they will earn a decent return.
C.	a business plan provides an investor with something to react to.
D.	a business plan is a selling document that enables a company to present itself to potential suppliers and business partners.
Answer» B. a business plan provides lenders and investors assurance that they will earn a decent return.

319.	A new venture's business plan is important because ______.
A.	It helps to persuade others to commit funding to the venture.
B.	Can help demonstrate the viability of the venture.
C.	Provides a guide for business activities by defining objectives.
D.	All the above.
Answer» C. Provides a guide for business activities by defining objectives.

320.	To provide financial assistance to entrepreneurs the government has set up a number of___________.
A.	financial advisors.
B.	financial intermediaries.
C.	Industrial estates.
D.	financial institutions.
Answer» D. financial institutions.

321.	_____________ can be defined as a specifically evolved work plan densed to achieve a Specific objective within a specific period of time
A.	Idea generation.
B.	Opportunity Scanning.
C.	Project.
D.	Strategy
Answer» C. Project.

322.	_____________ is used to accomplish the project economically in the minimum available time with limited resources
A.	Project Scheduling.
B.	Network Analysis.
C.	Budget Analysis.
D.	Critical Planning
Answer» A. Project Scheduling.

323.	______________ is a form of financing especially for funding high technology, high risk and Perceived high reward projects
A.	Fixed capital.
B.	Current capital.
C.	Seed capital.
D.	Venture capital.
Answer» D. Venture capital.

324.	_____ is a favorable set of circumstances that creates a need for a new product, service, or business.
A.	A niche
B.	A venture
C.	A trend
D.	An opportunity
Answer» D. An opportunity

325.	Each of the following are ways to identify an opportunity EXCEPT:
A.	observing trends.
B.	solving a problem.
C.	trying out alternative uses of existing products.
D.	finding gaps in the marketplace.
Answer» C. trying out alternative uses of existing products.

360+ Entrepreneurship Development (ED) Solved MCQs

A business arrangement where one party allows another party to use a business Name and sell its products or services is known

Innovation can best be defined as_______.

Which of these statements best describes the context for entrepreneurship?

Entrepreneurship can best be described as _________.

Entrepreneurial development is the key to achieve all-round ---------------- through acceleration of industrial and entrepreneurial activities.

According to sociological approach, entrepreneurship

Which of the following attitudes Is not generally associated with successful entrepreneurship :

The function of entrepreneur are:

Which of the following sentence is not a characteristic of entrepreneurship:

An entrepreneur is:

Which of the following sentence is inconsistent in the context of entrepreneur:

Maslow’s Hierarchy of needs theory is governed by the fact that:

In under developed countries, local mobile phone companies use the same technology used by big companies to manufacture their products. Which of the following type of Entrepreneurs is highlighted above:

All but which of the following is considered to be a myth associated with entrepreneurship?

Entrepreneurial culture and growth orientation consists of all of the following except:

Intrapreneurship often takes the form of

A ______________ is a professional money manager who makes risk investment from a pool of equity capital to obtain a high rate of return on investments.

A business plan is important for all of the following reasons EXCEPT:

A new venture's business plan is important because ______.

To provide financial assistance to entrepreneurs the government has set up a number of___________.

_____________ can be defined as a specifically evolved work plan densed to achieve a Specific objective within a specific period of time

_____________ is used to accomplish the project economically in the minimum available time with limited resources

______________ is a form of financing especially for funding high technology, high risk and Perceived high reward projects

_____ is a favorable set of circumstances that creates a need for a new product, service, or business.

Each of the following are ways to identify an opportunity EXCEPT:

Entrepreneurs can recognize problems and find ways to solve them through each of the following EXCEPT:

All of the following are characteristics shared by those who excel at recognizing opportunities EXCEPT:

All of the following are suitable questions to ascertain Product/Service Desirability EXCEPT:

All of the following are characteristics of attractive industries EXCEPT:

_____ is conducted to determine whether a proposed business has sufficient management expertise, organizational competence, and resources to successfully launch its business.

Why is the executive summary perhaps the most important section of the business plan?

Which of the following might be termed a disadvantage faced by the small business?

The financial assistance to small business provided by the Small Business Administration takes the form of:

Key features of a well written business plan would include all of the following except:

EDPs course contents contain ___________.

MSME is defined under which act?

MSMEs are important for the Nation's Economy because they significantly contribute to

Investment Limit of a Micro Enterprise under manufacturing sector does not exceed _____lakhs.

The manufacturing enterprises are defined in terms of investment in ___________.

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

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

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

Following is not involved in EDP

The distinction between an "entrepreneur" and "small business owner" , if made, revolves around:

Which of the following is not a main element of the project management process?

SBA stands for:

EDPs course contents contains ___________.

EDII was developed by the

NIESBUD was established in

________ is the first development bank of the country.

326.	Entrepreneurs can recognize problems and find ways to solve them through each of the following EXCEPT:
A.	recognizing problems in emerging trends.
B.	identifying a currently available product or service and then building a business around a better version.
C.	framing a problem differently than it's been thought of before, and then proposing an appropriate solution.
D.	experiencing a problem in one's own life, and then realizing the solution represents a business opportunity.
Answer» B. identifying a currently available product or service and then building a business around a better version.

327.	All of the following are characteristics shared by those who excel at recognizing opportunities EXCEPT:
A.	brainstorming.
B.	prior experience.
C.	entrepreneurial alertness.
D.	social contacts and ties with others.
Answer» A. brainstorming.

328.	All of the following are suitable questions to ascertain Product/Service Desirability EXCEPT:
A.	Does it make sense?
B.	Is the product or service financially feasible?
C.	Is this a good time to introduce the product or service in the market?
D.	Are there any fatal flaws in the product or service's basic design or concept?
Answer» B. Is the product or service financially feasible?

329.	All of the following are characteristics of attractive industries EXCEPT:
A.	the industry is young.
B.	the industry is fragmented.
C.	the industry is crowd
Answer» C. the industry is crowd

330.	_____ is conducted to determine whether a proposed business has sufficient management expertise, organizational competence, and resources to successfully launch its business.
A.	A marketing plan
B.	Financial feasibility analysis
C.	Industry/market feasibility analysis
D.	Organizational feasibility analysis
Answer» D. Organizational feasibility analysis

331.	Why is the executive summary perhaps the most important section of the business plan?
A.	This section of the plan provides in-depth discussion of the major trends in the industry in which the firm intends to compete.
B.	This section of the plan summarizes the firm's key executives.
C.	If this section of the plan fails to attract an investor's interest, he or she is unlikely to read the remainder of the plan.
D.	This section of the plan deals with the day-to-day operations of the company.
Answer» C. If this section of the plan fails to attract an investor's interest, he or she is unlikely to read the remainder of the plan.

332.	Which of the following might be termed a disadvantage faced by the small business?
A.	Greater flexibility
B.	Greater ability to serve specialized markets
C.	Extreme personal commitment of the owner
D.	More personal service
Answer» B. Greater ability to serve specialized markets

333.	The financial assistance to small business provided by the Small Business Administration takes the form of:
A.	direct loans
B.	guidance in locating lenders
C.	loan guarantees
D.	assistance in filling out paperwork
Answer» D. assistance in filling out paperwork

334.	Key features of a well written business plan would include all of the following except:
A.	financial plan
B.	qualifications of the owner
C.	an analysis of the market
D.	a review of the advertising firms analyzed
Answer» B. qualifications of the owner

335.	EDPs course contents contain ___________.
A.	General introduction to entrepreneurs.
B.	Motivation training.
C.	Managerial skills.
D.	All the above
Answer» D. All the above