UNIT-I

1. Every entrepreneur should draw an. for

his project to ensure the timely completion of
all activities involved in setting up an
enterprise.
(a) cost structure
b. implementation plan
(c) market structure
d. production structure

2. Describes the direction, the enterprise is going

in, what its goals are, where it wants to be, andd
how it is going to get there
a Project report
b. technical analysis
(c) Market analysis
d. financial analysis

3. Entrepreneurial development is the key to

achieve all-round through :
a. Economic development
(b) Increase in profits
(c) Shareholders value
(d) Business development

4. The term "entrepreneurs" was applied to

business initially by the French economist in
the 18th century

A. Cantillon implementation plan

(d) production structure

(b) Technical anlaysis

(d) Financial analysis

(b) Jan Tinbergen

(d) None of these

(c) J.S.Mill

5. Identified innovation as a characteristic of

entrepreneur for the first time in 1934

(a) Wiliam Diamond
(c) W.B. Gartner

(b) A.H. Cole

(d) j.A. Schuumpeter

6. Entrepreneurial management is nofed for its ability to react quickly and effectively to new :
(a) Market

bBusiness opportunities
(c) Product
(d) Technology

7. Which one of the following actions by an

entrepreneur is most likely to contribute to
creative destruction?
(aDevelopment of a new product
(b) Take-over of a competitor
(c) Issuing shares
(d) Reducing prices

8. An advantage of the small firm in the

innovation process

(a) Abiity to carry out R&D

(b) Ability to raise finance
(c) Ability of the entrepreneur to carry out
multiple tasks

dAbility of the entrepreneur to act on neW ideas

or product development

9. External links may provide incentives to

(a) Raise finance
(b) Introduce new working practices
eTntroduce improvements to products
(d) Attend business exhibitions

10. Firms located on science parks compared to those

located off science parks are

(a) More innovative

(6) Less innovative

ENo more or less innovative

(d) More growth orientated

11. An individual who initiates, creates and

manages a new business can be called..

(b) A manager
d) An entrepreneur

(a) A leader

() A professional
12. Someone who improves an existing business can
be called:
JaT An intrapreneur
(C) A co-worker

(b) A professional
(d) A changeling

13. Which could provide an individual with the

mofivation to start a new business venture?

(a) The financial rewards

(b) A desire to be independent
(c) Risk aking
(dAll the above

14. Which industrial sector tends to naturally

promofe Small-scale businesses and

Entrepreneurship, and generally has 1ower

barriers to market entry?
Jay Service
()Distribution

(b) Manufacturing
(d) Agriculture

15. Innovative small firms are more likely in

nowledge-based sectors
(b) Biofechnology

() Automobile manufacture

(a) Aerospace manutacture

16. Schumpeter considered that innovative
entreprerneurs would :
(a) Thrive

(6) Disappear

ETBe absorbed within large innovative firms

(d) Be absorbed within non-innovative tirms

17. Innovative entrepreneurs face special 1ssues in

raising

(a) Development capital (b) Structured capital

(c) Human capital

ey seed capital

18. Innovative entrepreneurs may have to pay high

insurance premiums due to the :

ta The need to profect patents

(6) Greater employee liability

(C) Greater customer liability

(a) reater trading risks

19. Networking by innovative entrepreneurs may

be most encouraged by:

ta)ence parks
o Business incubators

(C) Chambers of Commerce

(d) Business associations

20. The most likely problem encountered by

innovative entrepreneurs in raising finance IS

(a) Limited security. since R&D is an intangible

asset

he costs or the patenung System

te) The exhaustion of personal equity in R&D
(d) Inability of pofential external funders to0
understand technolo8Y
21. Which of the following is NOF recognized as a
misconception about entrepreneurship?

22. All of the following are characteristics of small

Businesses EXCEPT:

a) Small businesses are independentiy owned,

operated, and financed

(O) Small businesses have fewer than 100

piOyees
ASmall businesses emphas1ze new or innovative

ractices
(d) Small businesses have little impact on industry
23. Which of the following is NOF on of the three
areas in which the importance Oo
entrepreneurship can be shown
(a) Innovation
(6) Number of new start-ups

()Jo creation and employment

dy Bureaucracy

24. The creation of new firms is important because

these new firms contribute to economic

development through benefits that include all

of the following EXCEPT

(a) Product-process innovation

( greased tax revenues

O)Unemployment
(d) Social betterment

25. An 1individual who has no prior business

are
Ownership experience as a business founder,
inheritor of a business, or a purchaser or a
business is called an). entrepreneur
(a) Habitual
() Serial

Novice

(d) Portolio

26. An individual who has prior business

ownership experience is called ant) ....

entrepreneur.

(a) Novice

6) Habitual

(C)Serial

(d).Portfolio

27. All of the following are popular demographics

tactors ab0ut entrepreneurs that have ben
studied EXCEPT:
Jay self-confidence

(6) Gender

(c) Education

(d) Family birth order

28. The three main responsibilities involved with

managing an entrepreneurial venture once its
up and running include all of the following
EXCEPT

29. why are small businesses important to a country's economy

(a) They give an outlet for entrepreneurs
(D) They can provide specialist support to larger

companies

() They can be innovators of new products

GyAll the above

30. Which of the following is the reason for business

failure

(a) Lack of market research

(b) Poor financial control

(c) Poor management

(dAl the above

31. The use of informal networks by entrepreneurs

to gather information is known as
(a) Secondary research
Entrepreneurial netwerkin8
(C) Informal parameters
(d) Marketing

32. A new venture's business plan is important

because

(a) It helps to persuade ofhers to commit funding

to the venture

(b) Can help demonstrate the viability of the

venture

(C) Provides a guide for business activities by

detining objectives
(d}All the above

33. Innovation can best be defined as

(a) The generation of new ideas
(6) The evolution of new ideas

(C) The opposite of creativity

Ley The successful exploitation of new ideas

34. Which of these statements best describes the

context for entrepreneurship?

(a) Entrepreneurship takes place in smal

businesses

(D) Entrepreneurship takes place in large

businesses

CEntrepreneurship takes place in a wide variety

of contexts

(d) Entrepreneurship does nof take place in social

Enterprises

35. Basic problems of women entrepreneurs in India:

a) Lack of education skill

6) Male dominating society

(C) ADsence of listetn bearing capaciy

dy All the above

36. Which of the following is least likely to

influence the timing of new business births?
a) Government policies

Profitability

) Copsumer expenditure
(dy Weather conditions
37. PERT stands for

(a) Frogramme Evaluation andResearch

Techniques

O) ojeCt Evaluation and Keview lechniques

wT rOgamme Evaluation and Review

Techniques

(d) Project Evaluation and Research Techniques

38 is used to accomplish the project

economically in the minimum available time
with limited resources.
4a) Project Scheduling (b) Network Analysis
sudget Analysis

(d) Critical Plannin8

39. Decisions taken by an entreprenetur on benalt

of his enterprise are Knon as s

y Organizational decisions
(b) Personal decisions

(C) tine decisiorns

(a) strategC aecisiOns

40. Decisions which are concerned with policy

matters and exerCise fundamental influence on

the objectives of the organization are called as

4a) Organizaional decisions

(6) Personal decisions

(c) Routine decisions

(drStrategic decisions

41. 1mplies the availability or ofherwise

of plant and machinery and technical know how
to produce the product.

(a) Economic viability

(b) Financial feasibility

k Technical feasibility

(d) Managerial competence

42. Which of the list below does nof term

Intellectual Property?

(a) Trade marks

() Patents

cTángible assets

(d) Copyright

43. A business arrangement where one party allow

anofher party to use a business Name nd s

its products or services is known as .....**saasat f

(a) A cooperative
(bA franchise

(C) An owner-manager business

(d) A limited company

44. Idea of new product is tested in pofential

consumers to determine consumer acceptance at

Stage.

(a) Concept

(6) Product development

e Test marketing
(d) Commercialization

45. Which one of the following is nof considered as

one of the building blocks of the model
entrepreneu

(a) lechnical skills

(6) Management competencies

f) Business awareness

(ay 'ersonal attributes

46. An entrepreneur who owns more than one

business at a time is called

(a) an intrapreneur
(b a corporate entrepreneur
A) a portfolio entrepreneur
(d) None of the above

47. Industries producing complete articles for direct

consumption & also processing industries is

called as
(a) Manufacturing industries
(6) Feeder Industries

(C) Service Industries

(d) Mining or Quarrying

48. is primarily concerned with the

identification, qualification and evaluation of

the project resources.

(a) Techno-economic analysis

Ab) Feasibility analysis

(C) Input analysis

(d) Financial analysis

49. Business means

(a) Commerce

Industry and Commerce

(C) rade and commerce

(d) Selling and buying of goods

50. The oldest form of business organization 1s

(a) P'artnersnip

by sole proprietorshp
() Joint stock company

(d) Co-operathve undertaking

51.A peTson owning and running a small tirm, 1

Known as se

(a) A manager-owner
(bAn owner-manager
(c) A professional adapter

(d) An enterprise worker

52. Which of the following is a characteristic typical

Or . Most entrepreneurs
(a) Choose high risk ventures
(6) Chgose low risk ventures
erChoose moderate (or calculated) risk verntures

(a) Choose no risk Ventures

53. As a new company grows, the entrepreneur wiil

need to esas

(a) De responsive to changes in the market.

(D) Ensure financial controls are maintained

(C) Bujld a management team

(yAll the above

54.Entrepreneurship can best be described as

(a) A process that requires setting up a business

(D) laking a signihcant risk ina business context

() Fiaying a strong VISIOn

(A process involving innovation, new products

or services, and value creation

55. Entrepreneurial development is the key to

achieve all-round
acceleration of industrial and entrepreneurial
activities.
af economic development

through

(6) increase in profits

() shareholders value
(d) business development

56. Which of the following is the reason for business

failure ?

(a) Lack of market research

(6) Poor financial control
(C) er management
All the above

57. Decisions taken by an entrepreneur on behalf

of his enterprise are known as:
Aa) Organizational decisions
(b) Personal decisions
(c) Routine decisions
(d) Strategic decisions

58. is a problem -solving technique

designed to produce numerous ideas in a short
period
(a) Synectics
(b) Delphi technique
LeBrain storming
(d) Nominal group technique

59. Which of the following is nof one of the 4 Ms?

(a) Mofivation
cMaterials

60. Which one of the following is nof considered as

one of the building blocks of the model
entrepreneur?
a) technical skills
(b) management competencies
e business awareness
(d) personal attributes

(b) Management
(d) Money

UNIT II

UNIT-II

1. Seed capital assistance

(a) a long-term assistance
(by initial assistance
(c) a help for the purchase of seeds

(d) a sh0:t-term assistance

2. 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

3. is a form of financing especially for

funding high technology, high risk and
perceived high reward projects:
(a) Fixed capital
(c) Seed capital

(b) Current capital

Ldy Venture capital

4.ln.....machines and equipment are

arranged in the order or sequence in which they
are to be used for manufacturing the product.
(a) Factory Layout

b. Product Layout

(C) Process Layout

(d) Combined Layout

5. The term ... denofes bonus or financial

aid which is given by a government to an
industry to help it compete with ofher units,

(a) Incentive
(Bountyy

(6) Subsidy

(d) Concession

6. The granting of cash subsidy on the capital

investment is called

(a) Concessional finance

() Quantum of Subsidy
(c) Interest Subsidy
(Cr Central Investment Subsidy
7. ÍS Primarily concerned with the
identification of the project demand pofential
and the selection of the optimal technology.
a Techno-economic analysis
(6) Feasibility analysis
(C) Input analysis
(hinancial analysIS

8. Large investment is made in fixed assets, the

project will be termed as

LaCapital Intensive

(b) Labour Intensive

(d) Market ntensive

(c) Product Intensive

9. A Micro Enterprise is an enterprise where

investment in plant and machinery does nof

exceed (According to MSMED Act, 2006):

Aa Rs. 15 Lakh
Rs. 25 Lakh

(b) Rs. 20 Lakh

(a) Ks, 30 Lakh

10. Small Scale Industries (SSIs) also known as

MSMES are defined & categorized by the Micro,

Smal& Medium Enterprises Development Act:
a) 2006

) 2007

L92008

(d) 2009

11. Name the institution which was set up in 1982

to Prgmofe integrated rural development:

FNSIC
(c) SIDBI

E NABARD

(a) NCEUS

12. Name the institution which 1s set up as an apex

bank to provide direct or indirect financial

assistance under different schenme:
a SIDBI

(b) NSIC

(c) RSBDC

(d) None of these

13. GATT is established in 1947, under :

(a) German leadership U.S. leadership
(C) French leadership (cd) U.K. leadership

14. NABARD is a Bank for development

(a) Urbarn
Agricultural and Rural
(c) Scientitic

(d) Agriculture and research

15. the point at which there is no

profit or no loss ?

(a) Maximum profit point

(6) Minimum loss point

eyBreak even point

(d) Break down point

16. Which of the following is a financial incentive :
(a) Promofion
TStock incentive

(c) Job security

(d) Employees participation

17. Name the institution which is set up as an apex
bank to provide direct/indirect financial

assistance under different schemes and also

coordinates the functions off ofher institutions

in similar activities:
ta) sIDBI
() RSBDC

(b) NSIC
(c) None

18. If the investment in fixed assets or plant and

machinery does nof exceed one crore rupees, then

that particular firm comes under the category

of:

(a) Tiny industry

bsmall scale industry
(c) Village industry
(d) Coftage industry

19. The accrual concept entails that an expense is

recognised in the financial statements when
(a) The expense is incurred and the money for it
has been paid

(b) The expense has nof been ineurred and the

money has been pald tor it

The expense fhas been Incurred whether or nof
money has been paid for it
(d) All of the above

20. Depreciation can be classitied as

(a) An income

(b) ACash item

() An asset

a) A non-cash tem

21. Financial planning provides

(a) pecitic outcomes of past activities

DpeCitc outCOmes of present activities

(C) Non-specific outcomes of future activities

H Specific outcomes of future activities

22. Fixed costs are

(a) Ihe sales revenue per unit

DCosts that are unattected by increases or

decreases in volume of output

()Costs that are unaftected by increases Or

decreases in volume of input

(a) Costs that tend to increase in the volume ol

Output or sales

23. Variable costs are

(a) The sales revenue per unit

(b)Costs that are unaffected by increases or

decreases in volume of output

C)Costs that are unaffected by increases or

decreases in volume of input
aCosts that tend to increase in the volume oDr

Output or sales

24, . is the first development bank of the

country.

(a) ICICI

(b) IDBI

(C) SFC

ehr TFCI

25. IFCI stands for:

industrial Finance Corporation of India
(b) Institutional Finance Corporation of India
(c) Industrial Funding Corporation of India
(d) lndian Finance Corporation and Institution

26. IFCI has been converted into a:

lay Joint stock company

(b) Co-operative soCiety

(c) Partnership firm

(d) Sole proprietorship

27. SIDBI was set up as a subsidiary of

(aTDBI
(C) 1CICI
28. Which of the following is a function of SIDBI?

(b)

IFCI

(d) SFC

(a) Extension of seed capital

(b) Discounting of bills

(c) Providing factoring services

ety All of the above

29. SFC 1s prohibited rOm granting financial

assistance to any companywhose ag8regate paid

up capital exceed

La) 1 crore

(b) 1.5 crores

(C)2 crores

(d) 2.5 crores

30. In backward areas, term loans tor expansion or

Setting up a new unit are available at :

ka) Concessional terms (b) Difterential terms

() Standard terms

(d) Specific terms

31. A commercial banker would prefer a debt-

equity ratio over the years as it indicates

financial strength of a unit :
a Declining
(c) Stable

(b) Increasing

(d) Fluctuating

32. Which of the following is a function of SIDBI?

(a) Extension of seed capital.
(6) Discounting of bills.

(c) Providing factoring services.

eT All of the above

33. Can be defined as a specifically evolved

work plan densed to achieve a specific objective
within a specific period of time :

(a) ldea 8eneration

(6) Opportunity Scanning

Prlroject
(d) Strategy

34. Large investment is made in fixed assets, the

project will be termed as.
lay Capital Intensive

(b) Labour Intensive

(C) Product intensIve

(d) Market Intensive

35. DIC is headed by General Manager in the rank

of

ayjoint Director of industries

(6) Assistant Director of industries

() Non-departmental officer
(d) Departmental ofhcer

36. the purpose of financial analysis is to determine

of the project

(a) input feasibility

(6) Output feasibility

ertinancial feasibility

(d) Cost-benefit feasibility

37. SFC stands for

(a) State Financial Commiftee

(b) State Funding Corporanon

Cstate Finance Corporation

(d) State Funding Committee

38. SIDBI stands for:

(a) Small Institutions Development Bank of India

(bySmall Industries Development Bank of india
(c)Small Industries Derivatives Bank of India
(d) Small industries Development Bureau of India
39. SIDBI was set up in the year

(b)1988
(d)1990
40. SIDBJ was set up as a subsidiary of
(b)IFCI

(a)i98
eJI989

kajlDBI

(C)Icicr
41. SFC was set up under :

(d)NABARD

State financial corporation Act 1951

(6) State financial corporation Act 1952
(c) State financial corporation Act 1955
(d) State financial corporation Act 1954
42. SIDBI was set up as a subsidiary of
(6]IFCI
(d)NABARD

ajlDBI

(c)ICICI

43. Which of the following institutions is nof part

of the World Bank community
a) TBRD
() IDA
44. Assistance trom IFCI 1s available for .

(d) IFC

(aybettung up of new industrial projects

b) Expansion of existng units
(C) Renovation and modernization
Ley All of the above

45. Which one of the following is the way by which

an eneprenelr can enter into internaional

business
(a)Export

(bJINon equity arrangements

(CDreet roreign investment

fd)All the above

46. IFCI was established in the year

5) 198

(a) 1985

(c) 1980

(d) 1987

47. The term EDP refers to :

ky Entrepreneurship Development Programme
(b) Entrepreneurial Development FTOgramme
(C) Entrepreneur Development rrogrammne

(a) Entrepreneurng Development FTogramme

48. SIDBI was set up in the year *

)1988

(a) 1987
AO 1989

(d) 1990

49. is an apex Institute in the area of

Entrepreneurship and Small D

Development under the Ministry of ero
nal and Medium Enterprises Governmentof

India.

(a) NIESBUA
(C) NIESBUC
(b) NIESBUB
d) NIESBUD

50. IFCI provides

(a) Medium term credit

(b) Short term credit

(efMedum and long term Crea

(d) Long term, credit

51. . is an apex Institute in the area or

Entrepreneurship and Small Business
Development under the Ministry of Micro,
Small and Medium Enterprises Government of

India:

(D ESBUB
dy NIESBUD

(a) NIESBUA

(c) NIESBUC

52. A commercial banker would prefer a

debt-equity ratio over the years as it indicates

financial strength of a unit.
declining

(b) Inereasing

(C) Stable

(d) Fluctaating

53. The term. denofes bonus or financial

aid which is given by a government to an

industry to help 1t compete with ofher units.

(b) Subsidy
(d) Concession

(a) ncerntive

kBounty

54. The granting of cash subsidy on the capital

investment is called-
(a) Concessional ftinance

(b) Quarntum of Subsidy

(C) Interest Subsidy
(dcentral lnvestment Subsidy
55. New Small Scale industries are exempted from

the payment of income tax under section B0) 1S

called:

(a) Deyelopment Rebate

b) investment Allowance

(c) Rehabilitation Allowance

(d) Tax Hloliday

56. EXIM bank 1s a

(a) State-evel institution

(6) Regional level institution

CAl India institution
(d) Intemational institutionn

57. SIDBI stands for:

(a) Small Institutions Development bank of India

DSmall Industries Development Bank of India
() Small Industries Derivatives Bank of India

(d) Small Industries Development Bureau of lndia

58. National Alliance of Young Entrepreneurs

Entrepreneurial

(NAYE) Sponsored an
Development scheme with Bank of India in :
(a) January 1920

(6) August 1920

4d) August 1972

(C) January 1972

59. District Industries Centres are located

ain each district

(b) in each state
(c) only in selected districts
(d) only in selected states

60. Which of the following is nof an aspect of

appraisal of term loans by commercial banks?
(a) Financial feasibility
(b) Technical feasibility
(c) Ecanomic feasibility
kdy Societal feasibility

UNIT III

1 Which one of the following is an important

source of idea generation due to their familiarity
with the needs of market?

(a) Existing products and services

) Distribution channels
(c) Federal government
(d) Consumers

2. Which one of the following is the next stage to

the Concept Stage of Product Planning and
Development Process?
(a) Idea Stage
(b) Product Planning Stage

) Product Development Stage

(d) Test Marketing Stage

3. 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 regarded as?
a) Ecopreneur
e Intrapreneur
4. . is the development of original
products, product improvements, product
modifications, and new brands through the

(6) Technopreneur
(d) Social Entrepreneur

firm's own R&D efforts.

(a) ldea generation
b) Concept testing
(c) Test marketing
kd) New product development
5. New-product development starts with :
(a) idea sCreening
yidea generation
() concept development and testing
(d) marketing strate8y development
6. Major sources of new product ideas include:
(a) internal sources, using company R&D
(b) creative approaches, using bofh "method and

madness aPproaches
(c) watching and listening to customers
dy all of the above are sources of new product

ideas

7. The purpose of is to generate a large

number of ideas.

(a) idea screening

6) idea generation

() concept development and testing

(d) marketing strategy development
8. The first idea reducing stage is .. Which

telps spl0t go0d 1aeas and arop poor ones as sOon

as possi1bie.

(a) 1dea generation

b) 1dea screening

) concept develOpment and testlh8

(d) marketing strategy aevelopment

9. A 1s a detailed version of the idea

stated in meanin8rul consumer temns.
TD) product concePt
(d) test market

a) procuct idea

() product image
10. - Calls for testing new-product concepts

with groups or target consumers.

(a) Concept development

6) Concept testin

() ldea generation

(d) ldea screening

11. Financial feasibility analysis can be done by

comparing With the estimated sales

figure.

(a) cash flow statement

(6) balance sheet

Jer break-even point

(a) profit and loss statement

ntrepreneur has s vntage that

eveloP atd

12. Which of these offers the advantage a

1gn the business in the entrepreneurs own

way
(a) Participate in a business incubator
bstart a new business
(C) Buy a franchise

(d) Buy an existing bustness

13. A business plan for a new business does not need

to include:

(a) a marKeting plan

(O) a discussion of the purpOse of the business

( a description of the company background

(the name of the lending bank
14. Factors contribute to the creation of new venture
EXCEPT:

(a Government
eHigh nterest rates (d) Role models

b)

Finance

15. Innovation can best be detined as:

(a) the generation of new ideas

(b) the evolution of new ideas

()the opposite of creativity

(dthe successful exploitation of new ideas

l6. idea of new product is tested in potential

consumers to determine consumer acceptance at

*oemsesnsnsene***StaBe.

(a) concept

(b) Product development

AI Test marketing
(d) Commercialization
17. What is the process by which individuals pursue

Pportunities without regard to resources they

currently control?

(a) startuP managenment

EntrepreneursniP
(0) Financial analysis

(d) Feasibility planning8

18. Having less than 50 percent of equity share in

an international venture 1s called:

(a) Joint Venture

(D) Majority interest

keT Minority interest

(d) Exporting

19. Having more than 50% Ownership position that

provides the entrepreneur with managerial
control is called:

(a) Joint venture

(6) Majority interest

eHorizontal merger

d) Diversified activity merger

20 Which one of the following is the process or

eeurs developing new progucts that

over time make current products obsoleter

aew business model

db) Anatomization

c) None of the givern options

(d) Creative destruction

21. Which of the following is alternatively called

corporate venturing
a) EntrePreneurship
T ntrapreneurship
(C) Act of stating a new venture

(d)Oftering new products by an existing

company

22. What is the role of a Business Angel?

(a) lo provide small business advice

bo provide capital for business development

in exchange for a stake in the Business

ownership
(c) To set up a tranchise business

(d) To assist an entrepreneur to open a lifestyle

business

23. . 1S a form of financing especially for

funding high technology high risk and
perceived high reward projects
(a) Fixed capital

(b) Current capital

y venture capital
24. Which of the following is a characteristics of

(C) Seed capital

Venture capital firms?

ay Developing portroio of conmpanies
(b) Allowing firm to use the funds as they see fit

(c) Having a short term investment horizon

(d) Holding Debts in the firm that are funded

25. A business center that offers working space and

specialized support tor new ventures is called:

(a) Isolator
cncubator
26. The following are included in a business plan:

(6) lnjector
(C) Integrator

(a) Financial intormation, production plans,

personnel policies.
(b) Goals of the business and how they will be

achieved

Step by step plan for the success or your

Dusiness

(a) All of the above

t tells

cause 1

27. A market survey is important because

you

ay iow many and what types or PEopie are

Snopplng at a store

will buy

(6) Tells you what the custoe

(9lells you how much the customer will pay

for the produc
All of the above
28. Product planning tells you

a where you will produce your produc

Dcost to produce your product
() Your Net profit

(d) Tofal revenues

29.Wnat things could you change to adjust Your

profit?

(a) Price

(b) Number

(C) Less expensive supply sources

(dyAll of the above

30. It becomes necessary to do . after a

project idea has withstood the tests of feasibility
analysis and network analysis.

ayinput analysis
(b) Financial analysis

(c) Project design

(d) Costs benefit analysis

31. Net profit is the:

(a) Amount or money you get for profit lab

bAmount of money, collected trom selling

products

(c) Amount or mOney yolur product costs to

produce

(d) Has nofhing to do with money

32. To figure the Gross Profit:

(a) Add up the hcket sales from selling day

(b) Add up the ticket sales trom selling day and
subtract the cost of the ingredients
(c) Add up cost to produce the product and
subtract the tofal Sales

(d) Add the cost to produce the product and add

the tofal sales

33. The type of capital resources that a start-up

business needs to begin operating usually
depends on the:

(a) vendors lead time

(6) Location

(C) Owner's preterences

dustry
d nat

34. Which of the following statements is true about

new venture risk-taking ?

a Wien an entrepreneur seelks a hi
risk is usually higher

profit,

the

(b) When the entrepreneur seeks to limit risk, the

reward tends to increase

(c) An entrepreneur's financial risk is nof closely

related to rewards

(d) The entrepreneur who does nof care about

profit is a high risk-taker
35. Which of the following is an example of an

ntangidle asset
(a) Equipment

(b) Inventory

c) Office building Accounts receivable

36. Which of the following is a characteristic of a

profi-and-loss statement ?

(a) ls the same as a balance sheet

BTSummarızes expenses and revenue from sales

(C) Shows the owner's financial position

(d) Lists assets and liabilities

37. In managerial accounting, the number of hours
that a business runs its machinery during the

production process 1s classified as a(n):

(a) Production output

JbyCost driver

(c)Unexpected expense

d) Inflexible transaction

38. Businesses often obtain cash to produce and sell

g0Ods by borrowing against their :

(a) Current liabilities

6) Accounts receivable

(C) Operating expenses

(d) Promissory nofes

39. When determining financing needs, what tactor

Snould businesses consider that will help decide
whether they can repay the debt?
ka Liquidity

(6) Depreciation
(d) Inventory

Equity

40. Which of the following is a risk a business might

face t ODtalns a long-term loan trom a

financial institution and pays off the loan before
1t 1s due
a) Bein8 charged a penalty

Losin8 nterest on the account

() Paying a processing fee

d) Keceiving a variable rate

.41. A product idea is feasible if it :

(a) meets sales quofas

8) creates a competitive advantage

(C) costs a lof to produce

(d) 1s a durable good

42. terry, a company buyer, has the job of choosing

a particular assortment of products that will meet
the markeť's needs and the company's goals
lerry 1s responsible for the company's product
a Mix
(C)L Line

b)

Ttem

(d) Sales

43. A business manager who wants to increase the

number of items the business offers needs to

decide whether the new items will be compatible

with the business's :

(a) level of service

(b) patronage mofives
ef current product mix
(d) advertising objectives

44. What do many businesses identify and strive to

improve in order to attract customers and be
competitive?

(a) Commission plans

Service standards

(c) Personal characteristics

(d) Operating quofas

45. Entrepreneurial task depend upon the
personality or the entrepreneur, organisational
structure and:

ka The environment

(6) The market

(c) The labour

(d) The government

46. Which of the following is alternatively called

corporate venturing8
(a) EntrepreneurshiP
ko) Intrapreneurship
(c) Act of stating a new venture

(d) Offering new products by an existing company

47. Project engineering and investment costs 1s an

nol
dgie to ensure

a re-teasibility
(b) Detailed project report
(C) Funding level

ey Project decision
48. Which of the following shows the process o
creating something new ?
(a) Business model

(D) Modeling

( creative flexibility

nnovation

49. Which statement is true

(a) Venture capital is outside equity that comes
rom professionally managed poOls O

nvestor money

(b) lemporary working capital is the amount

needed to meet seasonal or cyclical demana

(c) Permanent working capital 1s the amount

needed to produce goods and services at the

lowest point of demand
(dy All of the above

50. Which of the tollowing ls an advantage to an

entrepreneur or using venture capital to secure

finance tor a business start-up?

(a) 100o of profits are always retained by the

entreprete
(b) Control is never lost within the business
e Large amounts of finance are usually available
(d) The venture capitalist funds will never need
repaying

51. Which type of business would venture capitalists

be usually interested in investing funds?

(a) An established private limited company

(b) A Small business witn siow sales growth

pofential

(C) A wel-known tranchise operation

ay An entrepreneurial start-up with the

possibility of high profits
52. When using which of the following sources of
finance would interest always need to be paid?

(a) share capital

(6) A Joan trom family and friends

eOverdraft
(d) Venture capital

53. Raising funds from a wide variety of small

investors by publicising an idea on the internet
is called

estment costs 1s an

(a) Personal savings

(b) Venture capital
(C) Trade credit

Ld) Crowdfunding
54. An established seasonal Partnership is
experiencing cash flow problems during the
winter months. Which of the following would
be a suitable source of finance to overcome this
problem?
(a) Share capital
e) Overdraft
55. Which of the following is classed as a short-term

ws the process of

(b) Venture capital

56. Which of the following is a reason why a new

Dusiness start-up would need financer
(a) lo fund expansiorn

(b) lo pay tor replacement equipment

(e) lo carry out maintenance on a new piece of
achinery
(dyto pay a deposit for a premises

57. 1o which of the following businesses might a

Supplier be reluctant to 1ssue trade credit

A new Dusiness start-up

(b) A successful franchise

(C) An established and thriving partnership

(d)A highly profitable and reputable private
limited company

58. Which of the following is a benefit to a private

limited company of using retained profit to

finance its growth:

(a) The business will nof be required to pay

dividends to its shareholders

(b) The business will pay less tax on its profits

) The amount wil nof need to be paid back
(d) The amount avalabie will always match fully

tne company s requirements

59 act as an intermediary to link up the

sources of raeas and the sources of tund.
(a Venture capital
() easing
(6) Merchant banking

(a) None of these

60. In any market ...

lenders.

.. are the most important

(a) Money market

Ab) Commercial banks

(d) Financial institutions

(c) State banks

UNIT-IV

UNIT IV

1. The goals ot a business are known as the business :

a)

dea

(6) Plan
oAims arnd objectives (d) Location
2. Which type of business plan is intended as the
blueprint of a company's activities and s
directed to an internal audience?

fay Operational

6)P Full

() Summary
3. In which section of the business plan would you
expect to find details about the capital needed to

(d) Tactical

start-up the business?

(a) The business idea

(b) Business aims and objectives

(C) Forecast revenue, costs and profit

y Sources ot finance
4. Where the money to set up and run a business

will come from is known as:

(a) Predicted costs

(6) A cash-tlow forecast

(C) Forecast revenue fd) Sources of finance

5. An existing business may use a business plan

(a) Focus on the business Idea before start-up

(b) Present to the Suppliers of a private limited

company

er Secure finance trom the bank for business

expansion in the UK

(d) Share with employees in the business

6. Which of the following best describes a business
plan? A written document thát describes:
ka) Ihe business, its aims/objecives, inancial

torecasts and market

(6) The marketing plan of the business

(C) Ihe objectives and key targets ot the business

(d) flow the business will produce its products
7. Which of the following is a major problem that

an entrepreneur might encounter when wrntng

a Dusiness plan for the first time?

(a) Explaining the business idea and where it came
from
(7 Forecasting product sales accurately

othcluding details about the owners

(a) inang an apPropriate lormat to present the

Pla
8. A business plan is more likely to secure external
f
Tunding it it is:

a) very lengthy and vague

(6) Has limited financial forecast information

e Specitic and concise
(d) Flas little evidence of market research being

carried out

9. Which of the following sections of a business

plan would provide an initial description of the

800ds or services a new business will offer tor

sale to its customers?

(a) Target market

(6The business idea

(C) Business aims and objectives

(d) Marketing mx
10. Where the money to set up and run a business

will come from is known as :

(a) Predicted costs (b) A cash-ilow forecast

(c) Forecast revenue Sources ot tinance
11. In which section of the business plan would you
expect to find details about the price the business

intends to charge its customers

(a) business aims and objectives
(6) Target market

keTiMarketing mix

(d) Sources of tinarnce

12. A prediction of the amount of money coming in

from sales, how much those sales will cost to

make and the difference between the two figures
would be found in which of the following

Sections of the business plan?

(a) Sources of finance
(b) Marketing mix

erorecast revenue, costs and profit

(d) Target market
13. Which of the following is true about preparing
SWOT Analysis?

a) lt should focus on where the organization 1S

TOday, not where it could be in the future

(D) A SWOT Analysis is objective

fer Tt should be specific and avoid grey areas
(d) It should analyze the organization only and

gnore the performance of Competitors

14. Which of the following is the most critical

component ot a business plan

a) Market analysis

o)company description
Executive summary

a) rinancial plan

15. who usually conducts a SWOT Analysis for a

usi

(a) Financial Institutions/Banks

) Lawyers
(c) Employees
dManagers
16. Which of the following SWOT elements are
internal factors fora business?
fa) Strengths and Weaknesses
(b) Opportunities and Threats
(C) Strengths and Opportunities
(d) Weaknesses and Threats
17. Which of the following is false regarding why a
SWOT Analysis is used:
(a) To build on the strengths of a busness
(D) 1o minimize the weaknesses ot a business
orlo reduce opportunities available to a business
(d) To counteract threats to a business
18. Which of the following could be a strength?

(a) Weather

(b) A new international market

() A price that is too high

( The location of a business

19. Which of the following could be a weakness?

(a) A developin8 market Such as the Internet

(6) Competitors with access to better channels of
distribution
(ePoor quality of goods and services
d) Special marketing expertise
20. Which of the following could be an opportunity?

a) Having quality processes and procedures

Dvloving into neW market Segments that otfer

improved proits

() Damaged reputation

(a) A new competitor in your home market

21. Which of the following could be a threat?

ayrChanges in technology

(b) A market vacated by an inettective competitor

(C) Location of your business
(d) Lack of marketing expertise

22. Name the function of management which

involves setting objectives and developing

aPpropriate courses of action to achieve these

objectives.

(a) Directing
(oPlanning
23. Which of the following is not a benefit of

(6) Organising
(d) Staffing

ra

Planning?
(a) Planning reduces overlapping and wasteful
activitie
byPlanning is a mental exercise
(C) Planning provides directions
(d) Planning reduces the risks of uncertainty
24. Which of the following is a benefit of planning?
(a) Helps in avoidingcontusion and
misunderstanding
(6) Ensures clarity in thought and actions
(C) Useless and redundant activities are minimised

re

or eliminated
(gyAll of the above

25. Which of the following statements 1s not true

with rererence to Planning

(a) Planning is a pre-requisite for controlling
eT Planning does not lead to rigidity
(C) Planning enables a manager to look ahead and
anticipate changes
(d) Planning facilitates co-ordination among

departments and indiViduals in the

Organisation

26. Which one of the following is the next stage too

the Concept Stage of Product Planning and

Development Process?

(a) ldea Stage

(6) Product Planning Stage
(Product Development Stage
(d) Test Marketing Stage
27. Which of the following is not a feature of

planning
(a) Planning is futuristic
(b) Planning is pervasive
PHlanning establishes standards for controlling
(d) Planning tocuses on achieving objectives
28, All other managerial functions are performed
within the framework of the plans drawn.
Identify the related feature of planning
(a) Planning focuses on achieving objectives
(6) Planning is pervasive
lanning is futuristic
(dyTlanning is primary functhon of management
29. Which of the following is alternatively called

corporate venturing8?

(a) Entrepreneurship

btntrapreneurship

() Act of stating a new venture

(d) Oftering new products by an existing

company

30. Project formulation and its implementation are

the two essential functions of

(a) Project design

byProject management
(C) Project selection

(d) Project tormulation

31. Identify the correct sequence of steps involved

in the planning process.

(a) Evaluating altenative courses, Identifying
alternative course ot actions, Setting objectives,

Developing premises

(D) Setting objectives, ldentitying alternative

course ot actions, Evaluating alternative
courses, Developing premises
(Csetting objectives, Developing premises,
ldentitying alternative course of actions,

Evaluating alternative courses

(d) Setting objectives, Developing premises,

ldentityin8 alternative course of actions,
Evaluating alternative courses

32. . . 1s an investigating process which

precedes investment decision.

(a) Froject 1dea

(b) Project identification

er Project formulation
(d) Project selection
33. It is a plan which quantifies future facts and

T1gures :

(b) Programme
c) Budget

(a) Frocedure

(c) Rule

34. Micromax was India's largest seller of mobile

handsets. It launched low-cost Chinese

manulacturing with some smart packaging and

Teatures like long-lasting batteries and dual-sim

Functionality to garner 20% market share in
India's value-conscious mobile handset market.

1aenity the two types of plans being described

in the above lines.

Entrepreneurship Development 41

ay Strategy and objective

(6) Rule and l'rogramme

(C) Programme and objective

(a) Method and objective

35. The interrelationship between various

constituent activities of a project i1s generally
epi
the torm of
kajNetwork diagram (b)Project design
CFeasibility diagram (d)lnput diagramn
36. The purpose of financial analysis 1s to determine

of the project.
(a) Input feasibility
(b) Output feasibility
ertinancial feasibilhty

(d) Cost-benefit feasibility

37 analysis is primarily concerned with

the identification of the project demand potential
and the selection of the optimal technology

suitable for achieving the project objectives.

(a) Feasibility
eTechno-Economic (d) Network

(6) Pre-teasibility

38. Shubham wants to increase the sale of his

business by 15%% in the next quarter. Identify

the type of plan being described in the above

lines.

a)

Method

Objective

Strategy

(d) Programme

39. The government has been doubling down on is

efforts to switch to 100% electric vehicles by
2030. Many companies such as Tata Motors,
Kinetic Motors, Maruti Suzuki and Hyundai
Motors are all readying their EV models for a

2020 1aunch in order to support the plan. ldentifyy

the type of plan being described in the above

lines.

oT Strategy
(d) Objective

a)

Method

(C) Programme

40. An important part of a market analysis involves

collectin8 . intornmation.
geograpnic
(d) property

(a) confidential

(e) employee
41. Which of the following statements 1s true about

Dusiness Startup requiremhents

(a) New business owners usualy need to reg81ster

for patent protection

o) Ihe tinancial needs to start a new business

depend on the nature ot the venture

velopment

(C)

Furchasing a tranchise is usually easy and

inexpensiv
a quipment is
for a startup bu

up business owners
1e least expensive requirement

42. Why is it important for

industry experts when eneurs to talk
Dusiness concepts ?

developing new

Lne in
usty experts usuainy tmprove your
management skills
) The industry experts typically provide user
ntormation
C) The industry experts commonly enhance your
confidene

d) The industry experts frequently offer financial

Support

43. One reason why it, is important to accurately

TOrecast Sales ror a marketing plan 1s because

the forecast is the basis of other

a) Business reports

b) Pricing strategies
t0 Operational activities

(d) Management techniques

44. is the systematic development of a

project idea for the eventual objective of
arriving an investment decision.
(a) Project objective
(b) Project identification

() Project selection
dProject formulation
45. Which of the following is most likely to be a

dynamic element of a business's external

environmnent ?

(a) Decrease in personnel

Je Increase in competition

() Kenewed emphasis on training

(d) New quality corntrol measures

46. e 15 the heart or à project.

(a) Project idea
roject
(c) Project identitication

(a roject selection
47. Which of the following Situations describes a

Dusiness process changing due to technological

factors ?
jaA manutacturing company purchases a new
sottware program to run its machines
(6) A small general store offers more discounts to

compete with a new shopping8 mall

(C) A waste treatment plant changes its disposal

method to align with environmental law

(d) A family-owned restaurant opens a second

location in an eftort to expand its brand
48. Which one among the following is considered

as one of the important economic factor which

determine entrepreneurial growth?

(a) Government
lefMarket

olitics

(a) Private

49. Entrepreneurial management 1s noted for its

ability to react quickly and effectively to new

(a) Market

(bBusiness opportunities

Product

(d) Technology
50. Which of the following is the back bone of

inancial plan?

(a) Budgeting
BTCapital1
() Nature of business

(d) Cost of production

51. Which one of the following is the way by which

an entrepreneur can enter into international

usiness?

(a) Export
(O) Non equity arrangements
(C) Direct toreign investment
(All the above

52. is concerned with the collection,

compilation and analysis of economic data for
the eventual purpose.of locating possible

OPpOrtunities for nvestment.

(a) Project selection

(b) Project evaluation

er Project identification

(a) trojeCt Segmentation

. 53. Every project has basic dimensions.

(a) One
eThree

b) lwo

(ay rour

54. What are the the 3 basic dimensions ot a project?

(a) input, output and process
(0nput, output and materials
input, output and social cost and benetits
(d) input output and features
55. 1S an important element in the project

plannin8 cycle.
a) Project objective
(6) Project idea
() Project identification

(d) Project selection

56. are economical and social in nature.

(a) Project objective

(6) Project idea

(C) Project identification

(d) Project selection

57. 1S ne first phase in project life cycle.

(a) The introductiorn phase

6TThe pre-investment phase

(c) The construction phase

(d) The normalisation phase

58. phase in the project life cycle begin

after the investment decision is taken.

(a) The post-investment phase

A5) The construction phase

(C) The normalisation phase

(d) The reconstruction phase

59. The asset created during the construction phase

are utilised during the :

(a) The pre-inves tment phase

(b) The post-investment phase

(C) The reconstruction phase

kej The normalisation phase

60. Which of the following is the back bone of
financial plan?
(a) Budgeting
() Nature of business (d) Cost of production

UNIT- V

UNIT- V

1. The development of a new venture based on an

inventor's work often requires
Ja Expertise of an entrepreneur
(6) Heavy investment from financers
(c) Skilled human resources

(d) Highly educated statt

2. A business where an individual is both the

owner and conductor of the business affairs is

called
k) Sole Proprietorship (b) Partnership
(c) Corporation

(d) None of these

3. ......in the entrepreneur has the

right to sell any assets.

kT Proprietorship
(6) Partnership
(C) Limited Liability Company

(d) None ot the given options

Thr
4. 1he plan shows whether the business
1s economically feasible or not.
(a) Financial
(C) Economic

tb) Business

(d) Marketing

5. In which of the following the ownership of

venture is retlected by ownership of shares of

stock?

(a) Partnership

(6) Limited partnershp

Ocorporation
6. 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

(d) Proprietorship

startup stage

(C)early growth stage (d) later growth stage

7. MSMED stands to

(a Micro, Small & Medium Enterprises

Development
(b) Mini, Small & Medium Enterprises
Development
(C) Micro, Small & Medium Entrepreneurship
Development
(d) Miero, Small& Medium Enterprises
Department

8. Which one of the following is an economic

barrier to0 an entrepreneur?

(a) Emotional blocks

BT Labour

(C) Lack of sustained motivation

(d) Lack of vision

9. Financial feasibility analysis can be done by

comparing e W1th the estimated sales

figure.
(a) cash flow statement

(b) balance sheet

er break-even polnt
(d) protit and loss statement

10. Which of the following is not considered while

selecting the region?
(a) Law and order

RJ Price of land

(C) Avalability ot raw materials

(a) Froximity to the product market
11. Which one of the following is the step involve
in setting up a new enterprises
(a) Creating a business plan

(6) Making a product choice

) Selecting the location
(dy Setting up muras

re

12. The parties involved in franchise business are

fb) 2
(d) 5

c) 3

13. lf someone starts a new business that 1s a service

station, this is an example of a(n) :

(a) new concept/new business

() new concept/existing business

existing concept/new business

(d) existing concept/existing business

14. The startups which rarely go public are called

a) Life style
eFoundation company

ybmall company
(d) High potential venture
15. Which of the following is the key factor for

choosing the type ot tinancin8

a) Availability of funds
(b) Assets of the venture

(C) reyailing interest rates

(dyAll of the given options
16. Entrepreneur actually starts setting up of an

enterprise by
(a) Planning
(c) Staffin8
17. Which of the following is usually not a barrier

(6) Organizing
a Directing

to market entry tor a nall tirm:

(a) Economy or scale

rGood ideas

() Switching costs
(d) Access to distribution
18. Venture capital firms' are usualy organized as :
(a) closed-end mutual funds
byimited partnerships

(C). corporations
(a) nonprotit businesses
19. Sangeeta, Kabir, and Kavi started selling
computer software On colege campuses under
the name Student Sottware Company. Each
person contributed Rs.15000- toward start-up
costs and agreed on dividing8 costs and profits
equally. The legal structure tor the company can
best be described as a:
a roprietorship
e)Partnership

( Trade alliance
(d) Corporation
20. An advantage of which of these tactics is that

there is a shorter start-up time and an existing

tack record?

(a) Participate in a business incubator

(6) Start a new business

() Buy a tranchise
ey Buy an existing business

21. Which of these refer to an arrangement by wnich

the owner of a product or service allows others

to purchase the right to distribute the product

or service with help from the owner?

afranchising

(6) Business incubation

() Spinning-off

(d) Globalization

22. 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) P'artiCipate in a business incubator
Je Start a new business
() Buy a franchise
(d) Buy an existing business

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

the

(a) development ot partnership & launching the

company

b) obtaining venture capital

(C) securing government funding
AajiPO

24. An incubator is

a) A government agency that advises and assists

Small businesses

(b) A prog8ram through which private investment

companies licensed by the S.B.A. lend money

to, small businesses
e)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 ot means

25. A business plan for a new business does not need

o include:

(a) a marketing plan

(6) a discussion ot the purpoSe ot the business

() a description of the company background

(d) the name of the lending bank

26. The primary concerns when tirst starting your

business are

(a) marketing and accountin8

(b) planning and human resources

inancing and planning

d) financing and marketing

27. What are the primary sources of funding for

entrepreneurs ?

atersonal savings and individual investors

(b) Finance companies and banks

AeThe Small Business Administration and banks

(d) Former employers and the Economic

Development Authority
28. Which one of the following is a barrier to new

prodict creation and development?

a) Trial and error

(b)Opportunity parameter

TOPportunity cost
Tihtrapreneurship culture

29. Factors contribute to the creation of new venture

EXCE

(a) Government

Finance

ker tigh interest rates (d) Role models

30. Which one of the following 1s the process or

entrepreneurs developing new products that

Over time make current products obsolete?
Ereative destruction

(6) New business model

natomization

(a) None of the given optiorns

31. Which one of the following is a business

arrangement in which someone else 1s alowed

tO use something of the company
(6) Trademark
LLicensing

a) Patent

() Copyright

32. Which one of the following is the main problem

or the entepreneur in the beginning stages O

creatng a new venture?

ta) Lack of experiernce
(b) Limited resources

C) Lack of education
(d) None of the given options
33. Why should an entrepreneur do a feasibility

study for starting a new venture

a) lo see it there are possible barriers to success

b) 1o identity possible sources of funds

C) lo estimate the expected sales

C) 1o explore potential customers

34. 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
Entrepreneurship takes place in a wide variety

of contexts

(d) Entrepreneurship takes Place in large

businesses

35. Which of the following is an internal factor that

n nces enrepreneurs:
a lechnological apaciy

(b) Social environment

(c) Political environment
(d) Economic condition
36. Which one of the following is an economic

barrier to an entrepreneur?

(a) Emotional blocks

rLabour

(C) Lack of sustained motivation

(d) lack of vision

37. Having more than 50% ownership position that

provides the entrepreneur with managerlal

control is called :

(a) Joint venture

fbyMajority interest
(c) Horizontal merger
(d) Diversified activity merge

38. Buying goods and services tor further processing

Or ror use in the production process reters to

which of the following markets?

(a) Consumer markets

(b) Government markets

eT Business markets
(a international markets
39. New product development starts with which on

Dt the followin8 steps of new Prouuc

development?
a) Idea screening
c) Test marketing
40. What is known as a charter of a Company
(a) Memorandum ot Association
b) Bye laws

t6) ldea generation

d) Concept testing

(C) Articles ot Association

(d) Prospectus

41. The minimum number of persons required to0

TOm a prIvate company 15 *

(a) 7

g2

(C)

(d)4

42. 1he name ot a company can be changed by:

(a) an ordinary resolution

(b) a special resolution

(C) the apPproval ot the union 8overnmernt

ya special resolution and with the approval of
the central govermment

43. When is a company said to have been registered

(a) when it files the memorandum of association

tn the re81surar or COmpanes

fWhen it gets the certificate ot incorporation

(C) when it gets the certilicate or commencement

ot business

d) When it actually starts its business

44. the defines the scope 0f a companys

acuvines

ta) prospectus

(b) statutory declaradon

imemorandum ot association

(aj arucles ot assoclation

3. COMPANIES must have their own

Articles.
(a) Government cOmpanies

6) Unlimited companies

(C) companies limited by shares

(d) Kegistered companes

46. Which of the following companies must file a

statement in lieu of prospectus?

(a) A private limited company

(b) A cooperative SOCiety

that has 1ssued aprOspectLis

(C)A company

A public company that has not issued

prospectus

47. The most important document of a company is

its:

(a) prospectus

(O) annual report

ej memorandum ot association

(d) articles of association

48. The rules and regulations for the internal

management of a company are contained in its:

POPectus
(6) annual report

( memorandum ot association
Taricles of association

49. Mark out the document that need not be

prepared and registered with the registrar of

companies in public limited companies.
(a) statutOry aeclardo
(6) Memorandum ot assoclation

) Aricles of association
d) Directors undertakings to take.up and pay for
qualification sharesS
50. The principle that so far as the companys internal
working is concerned, strangers dealing with

the company are entitled to assume that

everything has been regularly done has been
laid down in the :

ta doctrine of indoor management

(b) principle of constructive notice

(C) principle of management by exception
(d) management by objectives

51. The . Constitute the top administrative

organ of the company.
(a) general manager

(Dshareholders
C) board of directors

(d) advisory panel

52. Holding company means a company
a) which holds other company
(6) a government company
(C) a chartered company
(d) a subsidiary company

53. A promoter is a person who

a) 1s a director
b) 1s a relative of the company

() 1s a wellwisher ot the company

) takes part in the companys incorporation

54. A share certificate is required to be signed by:

(a) company secretary

(b) two directors
A two directors and company secretary
(d) all directors and company secretary

55. According to the companies act, which one of

the following companies can

commence
allotment of shares even before the minimum

subscription is subscribed or paid?

(a) Charted company
_bPrivate company

(c) Government company

(d) Public limited company

56. Share premium received by issuing shares can

be used for:

(a) payment of dividend

4oy issue of bonus share.

(c) remuneration to management.

(d) any business purpose

57. A company created by an act of parliament is:

arA statutory company
(b) Legal company
(c) Formal company
(d) Govt. company
58. Dividend on preference capital will be paid:
(a) only when there are profits
(b) even if there are no profits
(c) only when directors recommend

fd) only when share holders recommend

59. What are the mode of company winding up?
(a) Winding up by the court
(b) Voluntary winding up
(c) Winding up subject to the supervision of the

court

ke Al the Above
60. Which one is types of voluntary winding up?
(a) Members voluntary winding up
(b) Creditors volundary winding up
AT Both (a) and (b)

(d) None of Above