Startup and New Venture

Multiple Choice Questions

1) The word Entrepreneur is originally taken from

A) Greek word
B) French word
C) Greece word
D) Spanish word
Ans: B

2) The word Entreprendre means

A) To undertake
B) To Sustain
C) To Create
D) To manage
Ans: A

3) When selecting a line of action an Entrepreneur must keep in mind

A) Profit
B) Risk involved
C) Profitability
D) All above
Ans : D

4) Which one is not the function of an entrepreneur

A) Turning ideas into action
B) Generating employment
C) Shutting down the existing business
D) Planning
Ans: C

5) According to innovation is the important characteristic of an

entrepreneur
A) Peter Drucker
B) Schumpeter
C) Cantillion
D) J.B.Say
Ans: B

6) Point out the quality of an entrepreneur

A) Initiation
B) Lack of confidence
C) Lack of decision making
D) Self Appreciation
Ans: A
7) What is an entrepreneur?
A) Someone who do not want to earn profit.
B) Someone who makes a lot of money.

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C) Someone who identify the needs of customer and makes innovations.

D) Someone who don’t take risk
Ans: C

8) Define Free Enterprise:

A) A business taking a risk to make a profit.
B) A program administered by the Government.
C) People in business trying to make a profit.
D) A business adventure or undertaking.
Ans: A

9) This is basically the behaviour of the person which has some distinct characteristics
A) Entrepreneurial
B) Entrepreneurship
C) Enterprise
D) Entertainment
Ans: A

10) According to J.B.Say entrepreneur is

A) Innovator
B) Inventor
C) Mentor
D) An Economic agent
Ans: D

11) This kind of entrepreneurs are characterised by readiness to adopt successful innovations
created by innovative entrepreneurs.
A) Innovative Entrepreneurs
B) Imitative Entrepreneurs
C) Agripreneurs
D) Traders
Ans: B

12) Entrepreneurs of this type are very cautious and skeptical while practicing any change
A) Innovative Entrepreneurs
B) Imitative Entrepreneurs
C) Fabian Entrepreneurs
D) Drone Entrepreneurs
Ans: C

13) Which of the following is not a type of Entrepreneur

A) Modern Entrepreneur
B) Technical Entrepreneurs
C) Classical Entrepreneur
D) Intrapreneur
Ans: D

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14) Enrepreneurship is
A) Practice
B) Habit
C) Process
D) Action
Ans: C

15) Theory of High Achievement Motivation is given by

A) Schumpeter
B) Kilby
C) McCelland
D) Staley and Morse
Ans: C

16) Which of the following is not economic factors affecting entrepreneurial growth
A) Capital
B) Labour
C) Raw material
D) Custom
Ans: D

17) “Entrepreneurs are innovators who use a process of shattering the status quo of the existing
products and services, to set up new products, new services.”
A) J.B.Say
B) Peter Drucker
C) Schumpeter
D) Albert Shapero
Ans. C

18) Entrepreneur plays following role:

A) Economic Growth and Prosperity
B) Balanced Regional Development
C) Innovator
D) All of the above
Ans. D

19) Following is the important Quality of Entrepreneur

A) Self Confidance
B) Over Confidence
C) To Dominate others
D) Criticism
Ans: A

20) Danhof classifies entrepreneur in how many types?

A) 2
B) 3
C) 4

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D) 1
Ans. D

21) Which of the following is not the type of Entrepreneur as per Arthur H Cole
A) Empirical
B) Fabian
C) Rational
D) Cognitive
Ans. B

22) Entrepreneurship is defined as a Systematic innovation ,which consists in the purposeful

and organized search for changes ,and it is the systematic analysis of the opportunities
such changes might offer economic and social innovation
A) Peter Drucker
B) Heggins
C) Mc Clelland
D) Schumpeter
Ans. A

23) Which of the following is a recommended strategy for retailers when consumers select the
outlet first and the brand second?
A) Appropriate pricing
B) Brand availability advertising
C) Brand image management
D) price special on brands
Ans: A
24) Which of the following is a recommended strategy for manufacturers when consumers
select the outlet first and the brand second?
A) Retailer image advertising
B) More exclusive distribution
C) point-of-purchase displays
D) Price special on brands
Ans: C
25) Consumers acquiring product through mail, telephone, or computer orders is referred to as

A) Outsourcing
B) Outlet shopping
C) non-traditional shopping In-home shopping
D) all of the above
Ans: D

26) Which of the following is a category of products and services based on their purchase
characteristics relative to Internet shopping identified by Forrester Research?
A) “high-touch” goods
B) Search goods
C) Replenishment goods
D) Adventurous goods

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Ans: C

27) Which of the following category of products and services identified by Forrester Research
based on their purchase characteristics relative to Internet shopping consists of moderate
cost, high-frequency purchases?
A) Replenishment goods
B) Researched items
C) Convenience items
D) Shopping goods
Ans: A

28) Which of the following are the major reason consumers give for shopping online?
A) Want product delivered
B) Unique merchandise Price
C) Impulse
D) Convenience
Ans: D

29) Sales for which product or service classified, as “researched items” are the highest?
A) Food& beverage
B) Travel
C) Automotive parts
D) Computer hard/software
Ans: B

30) The major reason people give for not shopping on the Internet is .
A) Lack of “touch”
B) Security concerns
C) Too difficult
D) Unfamiliar merchants
Ans: B

31) MVM (My Virtual Model) helps consumers shopping online overcome which barrier?
A) Security
B) Information quantity
C) Lack of touch
D) Flow
Ans: C

32) Which of the following is an online shopper segment?

A) Shopping Lovers
B) Adventurous Explorers

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C) Suspicious Learners
D) all of the above
Ans: D

33) Which of the following is NOT an online shopper segment?

A) Technocrats
B) Adventurous Explorers
C) Suspicious Learners \Fun Seekers
D) All of the above are online shopper segments
Ans: A

34) What was the MAIN reason consumers gave in a survey for why they don't like shopping in
stores?
A) don't like shopping
B) Dealing with crowds
C) salespeople are poorly informed
D) Parking and traffic
Ans: C

35) Consumers who browse and/or purchase in more than one channel are known as .
A) cosmopolitan
B) Multi-channel shoppers
C) multi-taskers
D) Market mavens
Ans: B

36) Which of the following affects consumers' retail outlet selection?

A) Outlet image
B) Retailer brands
C) Retail advertising
D) all of the above
Ans: C

37) The “Merchandise” dimension of store image includes .

A) Quality
B) selection
C) price
D) all of the above
Ans: D

38) The “Service” dimension of store image includes all of the following EXCEPT .
A)Easy return
B)Sales personnel
C)Delivery
D)All of the above are included
Ans: D

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39) Which of the following components represent the service dimension of a store's image?
A) Quality, selection, style, and price
B) Layaway plan, sales personnel, easy return, credit, and delivery
C) Location and parking
D) Congeniality, fun, excitement, and comfort
Ans: B

40) Good product offers and information, value, and alignment with consumers' interests are
components of which dimension of online retailer image?
A) Usefulness
B) Enjoyment
C) trustworthiness
D) familiarity
Ans: A

41) What is the key to success of store brands?

A) Low price
B) Low quality, but at a low price
C) High quality at a high price
D) High quality at a reasonable price
Ans: D

42) Sales of additional items to customers who came to purchase an advertised item are
referred to as .
A) Incremental sales
B) Spillover sales
C) Marginal sales
D) Sales plus
Ans: B

43) When a retailer represents a price as “regularly $15.99, now $9.99,” the $15.99 is called the
.
A) Starting price
B) base price
C) reference price
D) comparison price
Ans: C

44) Which of the following are types of reference prices?

A) Primary and secondary
B) Direct and indirect
C) Latent and manifest
D) internal and external
Ans: D

45) Which type of reference price does a marketer for the consumer to use to compare with the

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current price present?

A) Base reference price
B) External reference price
C) Private reference price
D) Outlet reference price
Ans: B

46) Which type of reference price or price range does a consumer retrieve from memory to
compare with a price in the market?
A) Base reference price
B) historical reference price
C) private reference price
D) internal reference price
Ans: D

47) Any patents, trademarks, copyright or trade secrets held by the entrepreneur is known as
A) Disclosure document
B) Patent
C) Intellectual property
D) None of the mentioned
Ans: C

48) The organization will never be able to make the necessary changes without
A) Top Management commitment
B) Employees
C) Workers
D) None of the mentioned
Ans: A

49) The ways entrepreneurs make decisions.

A) Entrepreneurial domain
B) Reverse brain storming
C) Heuristics
D) Reverse brain storming
Ans: A

50) Locus of control is

A) A feeling
B) Attitude
C) Attribute
D) None of the above
Ans: C

51) Licensing arrangements have

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A) Low risk process involved

B) Easy way to generate incremental income
C) Several pitfalls
D) All of the above
Ans: D

52) Personal characteristics to be a successful entrepreneur includes U.,

A) Understanding environment
B) Creating management options
C) Encourage open discussion
D) All of the above.
Ans: D

53) International entrepreneurship is

A) Licensing
B) Exporting.
C) Both of the mentioned in options
D) None of the two mentioned
Ans: C

54) Hindrance for going in the international business is known as

A) Synergy
B) Turn key point
C) Trade Barrier
D) Minority interest
Ans: C

55) In chronological age , most entrepreneurs start their careers between ages
A) 22 and 55
B) 30 and 55
C) 40 and 65
D) None of the given options
Ans: A

56) ………… is the combination of at least two firms doing similarBusinesses at the same
market level?
A) Diversified activity Merger
B) Horizontal Merger
C) Joint Venture
D) Vertical Merger
Ans: A

57) Which of the following is NOT recognized as a misconception about entrepreneurship?

A) Entrepreneurship is found only is small businesses.
B) Entrepreneurship is easy.
C) Successful entrepreneurship needs only a great idea.
D) Entrepreneurial Ventures and small business are different.
Ans: D

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58) All of the following are recognized as potential sources of entrepreneurial ideas EXCEPT:
A) Work experiences. Skills. and abilities
B) Familiar and unfamiliar products and services
C) Personal interests or hobbies
D) All of the Selections are recognized as potential sources of entrepreneurial ideas.
Ans: D

59) An is an individual who creates something for the first time, is a highly driven individual
motivated by his or her own work and personal ideas.
A) Entrepreneur
B) Inventor
C) Both a and b
D) None of the given options
Ans: B

60) Is the process in marketing of dividing a market into distinct subsets (segments) that behave
in the same way or have similar needs?
A) Target Market
B) Market Analysis
C) Market Segmentation
D) All of the Above
Ans: C

61) A business where an individual is both the owner and conductor of the business affairs is
called.
A) Sole Proprietorship
B) Partnership
C) Corporation
D) None of the above
Ans: A

62) In, the entrepreneur has the night to sell any assets.
A) Proprietorship
B) Partnership
C) Limited Liability Company
D) Noneof the given options
Ans: A

63) An entrepreneur`s primary motivation for starting a business is

A) To make money
B) To be Independent
C) To be famous
D) To be powerful
Ans: B

64) To be successful in an entrepreneurial venture, you need

A) Money
B) Luck
C) Hard work

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D) A good idea
Ans: B
65) Entrepreneurs are best as
A) Managers
B) Venture capitalists
C) Planners
D) Doers
Ans: D

66) A successful entrepreneur relies on which of the following for critical management advice
A) Internal management team
B) External management Professionals
C) Financial sources
D) No one
Ans: B

67) Entrepreneurs are:

A) High-risk takers
B) Moderate risk takers
C) Small risk takers
D) Doesn‘t matter
Ans: B

68) Entrepreneurs typically form

A) Service businesses
B) Manufacturing companies
C) Constructive companies
D) A Variety of Ventures
Ans: D

69) Entrepreneurs:
A) Are the life of the party
B) Are bores at a cocktail party
C) Will never go to parties
D) just fit into the crowd at a party
Ans: D

70) Entrepreneurs and ventures capitalists:

A) Get along well
B) Are the best friends
C) Are cordial friends
D) Are in conflict
Ans: D

71) An individual usually begins his or her first significant entrepreneurial business enterprise
at what age
A) Teens
B) Twenties
C) Forties

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D) Fifties
Ans: C

72) Entrepreneurial experience becomes increasingly important as

A) Work load increases
B) Complexity of venture increases
C) Complexity of wok increases
D) None of the above
Ans: B

73) Entrepreneurs are concerned about basic issues of:

A) Sales, costs and benefits
B) Customers, sales and costs
C) Risk, costs and benefits
D) None of the above
Ans: A

74) Licensing arrangements have

A) Low risk process involved
B) Easy way to generate incremental income
C) Several pitfalls
D) All of the above
Ans: D

75) Entrepreneur has used joint ventures:

A) When the entrepreneur wants to purchase local knowledge
B) When rapid entry in to the market is needed
C) Both of the options given
D) None of the above
Ans: C

76) The starting point for a project is called a(n) .

A) Systems request
B) Feasibility study
C) Key performance indicator
D) Project definition
Ans: D

77) Feasibility refers to the technical resources needed to develop,

purchase, install, or operate a system.
A) Operational
B) Technical
C) Economic
D) Schedule
Ans: B

78) An analyst has identified the costs for hardware repairs to the system. This will be
categorized as a .
A) tangible benefit

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B) intangible benefit
C) operational cost
D) development benefit
Ans: C

79) Faster decision making, information processing efficiency, and improved asset utilization
are examples of:
A) intangible costs
B) tangible costs
C) tangible benefits
D)
E) intangible benefits
Ans: D

80) The process of assessing the degree to which the potential time frame and completion
dates for all major activities within a project meet organizational deadlines and constraints
for affecting change best describes:
A) Operational feasibility
B) Technical feasibility
C) Economic feasibility
D) Schedule feasibility
Ans: D

81) Which of the following is not an Operational feasibility vital issue?

A) Management support
B) Users training
C) Performance decline in some system parts
D) Cost reduction and avoidance
Ans: D

82) A project is Important enough to be considered over other projects, is one of

A) History of the project request
B) Project Selection criteria
C) Operational feasibility
D) Economic feasibility
Ans: B

83) The final task in the preliminary investigation is

A) Estimate Project Development Time and Cost
B) Evaluate Feasibility
C) Perform Fact-Finding
D) Present Results and Recommendations to Management
Ans: D

84) The first step in evaluating feasibility is .

A) setting priorities
B) identify systems requests that are not feasible or necessary

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C) conducting a preliminary investigation

D) none of the above
Ans: B

85) The first step in a preliminary investigation is generally to .

A) Evaluate feasibility
B) perform fact-finding
C) Understand the problem or opportunity
D) Estimate project development time and cost
Ans: B

86) An entrepreneur into the hosiery business found out the reason his hosiery was not selling
was due to its color. What could be the best source of this information?
A) Supplier
B) Retailer
C) Competition
D) Government bureau
Ans: B

87) In some countries, point of purchase displays is not allowed in retail stores. International
entrepreneurs under environment study such differences--------.
A) Economic
B) Political
C) Cultural
D) Technological
Ans: C

88) Entrepreneurial success has been significant because of the culture and the political and
economic systems in- - ---.
A) European countries
B) Asian countries
C) Transition economies
D) Middle east
Ans: B

89) Having more than 50% ownership position that provides the entrepreneur with managerial
control is called-----------
A) Joint venture
B) Majority interest
C) Horizontal merger
D) Diversified activity merger
Ans: B

90) The under-developed or lesser developed countries need manufacturing technology and
infrastructure and yet do not want to turn over substantial portion of their economy to
foreign ownership. Which of the following is a solution to this dilemma?
A) Management contract
B) Indirect exporting
C) Licensing
D) Turn-key project

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Ans: D

91) The development of a new venture based on an inventor’s work often requires------
A) Expertise of an entrepreneur
B) Heavy investment from financiers
C) Skilled human resources
D) Highly educated staff
Ans: A

92) The importance of intellectual property should be understood by entrepreneur even before .
A) Hiring a manager
B) Engaging an attorney
C) Developing a product
D) Establishing new venture
Ans: B
93) Which of the following is not followed in brainstorming?
A) Criticism is done by the group members
B) The wilder idea is batter
C) Quantity of ideas is required
D) The session should be fun. with no on dominating the discussion
Ans: A
94) The most important characteristic of a successful business website is
A) Speed
B) Innovation
C) Graphics
D) Products
Ans: A

95) The plan shows whether the business is economically feasible or not.
A) Financial
B) Business
C) Economic
D) Marketing
Ans: B

96) In which of the following, the ownership of venture is reflected by ownership of shares of
stock'?
A) Partnership
B) Limited partnership
C) Corporation
D) Proprietorship
Ans: C

97) Bankers say that most businesses fail because of the inability to plan properly.
A) Investor’s
B) Marketer’s
C) Entrepreneur’s
D) Consultant’s
Ans: C

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