CBSE Class 11 Business Studies Small Business and Entrepreneurship MCQs

Question : All of the following are characteristics of small businesses EXCEPT:
(a) Small businesses are independently owned, operated, and financed.
(b) Small businesses have fewer than 100 employees.
(c) Small businesses emphasize new or innovative practices.
(d) Small businesses have little impact on industry.

Answer : C

Question : _____________ 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

Question : Large investment is made in fixed assets, the project will be termed as __________.
(a) Capital Intensive.
(b) Labour Intensive.
(c) Product Intensive.
(d) Market Intensive.

Answer : A

Question : Which of the following is NOT on of the three areas in which the importance of entrepreneurship can be shown?
(a) Innovation
(b) Number of new start-ups
(c) Job creation and employment
(d) bureaucracy

Answer : D

Question : 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
(b) Increased tax revenues
(c) Unemployment
(d) Social betterment

Answer : C

Question : All of the following represent countries in which the highest level of entrepreneurial activity was found EXCEPT:
(a) Australia
(b) Korea
(c) Norway
(d) Japan

Answer : D

Question : Positive external trends or changes that provide unique and distinct possibilities for innovating and creating value are called _____________.
(a) Strengths
(b) Opportunities
(c) Weaknesses
(d) Threats

Answer : B

Question : An individual who has no prior business ownership experience as a business founder, inheritor of a business, or a purchaser of a business is called a(n) ____________ entrepreneur.
(a) Habitual
(b) Novice
(c) Serial
(d) Portfolio

Answer : B

Question : An individual who has prior business ownership experience is called a(n) ____________ entrepreneur.
(a) Novice
(b) habitual
(c) Serial
(d) Portfolio

Answer : B

Question : All of the following are popular demographic factors about entrepreneurs that have been studied EXCEPT:
(a) Self-confidence
(b) Gender
(c) Education
(d) Family birth order

Answer : A

Question : The three main responsibilities involved with managing an entrepreneurial venture once its up and running include all of the following EXCEPT:
(a) Managing processes
(b) Managing people
(c) Managing bureaucracy
(d) Managing growth

Answer : C

Question : A tiny unit is defined as an industrial or business enterprise whose investment in plant and machinery is not more than ________
(a) Rs. 25 Lakhs
(b) Rs.30 Lakhs
(c) Rs.35 Lakhs
(d) Rs.50 Lakhs

Answer :  A

Question : Micro enterprises are those whose investment in plant and machinery does not exceed rupees___
(a)5 Lakh
(b) 3 Lakh
(c)1 Lakh
(d)2 Lakh

Answer :  C

Question : Which of the following is organised by individuals?
(a) Cottage Industries
(b)Railway industry
(c)None of these
(d)Chemical industry

Answer :  A

Question : Which one of the following actions by an entrepreneur is most likely to contribute to creative destruction?
(a) Development of a new product
(b) Take-over of a competitor
(c) Issuing shares
(d) Reducing prices

Answer :  A

Question : An advantage of the small firm in the innovation process?
(a) Ability to carry out R&D
(b) Ability to raise finance
(c) Ability of the entrepreneur to carry out multiple tasks
(d) Ability of the entrepreneur to act on new ideas or product development

Answer :  D

Question : External links may provide incentives to:
(a) Raise finance
(b) Introduce new working practices
(c) Introduce improvements to products
(d) Attend business exhibitions

Answer :  C

Question : PERT stands for __________.
(a) Programme Evaluation and Research Techniques.
(b) Project Evaluation and Review Techniques.
(c) Programme Evaluation and Review Techniques.
(d) Project Evaluation and Research Techniques.

Answer : C

Question : _____________ 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

Question : Firms located on science parks compared to those located off science parks are:
(a) More innovative
(b) Less innovative
(c) No more or less innovative
(d) More growth orientated

Answer :  C

Question : In _________, machines and equipments 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.

Answer : B

Question : The term ___________ denotes bonus or financial aid which is given by a government to an industry to help it compete with other units
(a) Incentive.
(b) Subsidy.
(c) Bounty.
(d) Concession.

Answer : C

Question : Innovative small firms are more likely in:
(a) Knowledge-based sectors
(b) Biotechnology
(c) Automobile manufacture
(d) Aerospace manufacture

Answer :  A

Question : Schumpeter considered that innovative entrepreneurs would:
(a) Thrive
(b) Disappear
(c) Be absorbed within large innovative firms
(d) Be absorbed within non-innovative firms

Answer :  C

Question : Entrepreneurs are motivated by _________.
(a) money.
(b) personal values.
(c) pull influences.
(d) All the above.

Answer : D

Question : Which of the following is least likely to influence the timing of new business births?
(a) Government policies.
(b) Profitability.
(c) Consumer expenditure.
(d) Weather conditions.

Answer : D

Question : Innovative entrepreneurs face special issues in raising:
(a) Development capital
(b) Structured capital
(c) Human capital
(d) Seed capital

Answer :  D

Question : Innovative entrepreneurs may have to pay high insurance premiums due to the:
(a) The need to protect patents
(b) Greater employee liability
(c) Greater customer liability
(d) Greater trading risks

Answer :  A

Question : Someone legally appointed to resolve the financial difficulties of an insolvent firm is called____________.
(a) an administrator.
(b) a predator.
(c) an auditor.
(d) a turnaround consultant.

Answer : A

Question : Goods or services reach the market place through ________.
(a) marketing channels.
(b) multilevel pyramids.
(c) monopolies.
(d) multiplication.

Answer : A

Question : Networking by innovative entrepreneurs may be most encouraged by?
(a) Science parks
(b) Business incubators
(c) Chambers of Commerce
(d) Business associations

Answer :  B

Question : The most likely problem encountered by innovative entrepreneurs in raising finance is:
(a) Limited security since R&D is an intangible asset
(b) The costs of the patenting system
(c) The exhaustion of personal equity in R&D
(d) Inability of potential external funders to understand technology

Answer :  C

Question : An individual who initiates, creates and manages a new business can be called _____________.
(a) A leader
(b) A manager
(c) A professional
(d) An entrepreneur

Answer : D

Question : Which of the following is NOT recognized as a misconception about entrepreneurship?
(a) Successful entrepreneurship needs only a great idea.
(b) Entrepreneurship is easy.
(c) Entrepreneurship is found only is small businesses.
(d) Entrepreneurial ventures and small businesses are different.

Answer :  D

Question : Someone who improves an existing business can be called _________.
(a) An intrapreneur.
(b) A professional.
(c) A co-worker.
(d) A changeling.

Answer : A

Question : Which could provide an individual with the motivation to start a new business venture?
(a) The financial rewards.
(b) A desire to be independent.
(c) Risk taking
(d) All the above.

Answer : D

Question : Which industrial sector tends to naturally promote small-scale businesses and Entrepreneurship, and generally has lower barriers to market entry?
(a) Service.
(b) Manufacturing.
(c) Distribution.
(d) Agriculture.

Answer : A

Question : The UK government has implemented a number of policies to encourage Entrepreneurship in schools. One such initiative is _________.

(a) Young Enterprise.
(b) Youth venture.
(c) Young Business.
(d) Young Initiative.

Answer : A

Question : Why are small businesses important to a country's economy?
(a) They give an outlet for entrepreneurs.
(b) They can provide specialist support to larger companies.
(c) They can be innovators of new products.
(d) All the above.

Answer : D

Question : Intellectual Property laws can protect _________.
(a) Trademarks.
(b) Copyright.
(c) Patents.
(d) All the above.

Answer : D

Question : A business arrangement where one party allows another party to use a business name and sell its products or services is known as__________.
(a) A cooperative.
(b) A franchise.
(c) An owner-manager business.
(d) A limited company.

Answer : B

Question : Which of the following is the reason for business failure __________.
(a) Lack of market research.
(b) Poor financial control.
(c) Poor management.
(d) All the above.

Answer : D

Question : The use of informal networks by entrepreneurs to gather information is known as _______.
(a) Secondary research.
(b) Entrepreneurial networking.
(c) Informal parameters.
(d) Marketing

Answer : B

Question : Good sources of information for an entrepreneur about competitors can be Obtained from_________.
(a) Websites.
(b) Product information leaflets.
(c) Company reports and published accounts.
(d) All the above.

Answer : D

Question : 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 : D

Question : Primary data is________.
(a) the most important data.
(b) the data that is collected first.
(c) new data specifically collected for a project.
(d) data that is collected second.

Answer : C

Question : 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 : D

Question : 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

Question : Which of the following statements is false?
(a) Market segmentation is a useful process for small businesses to undertake.
(b) Selling is essentially a matching process.
(c) A benefit is the value of a product feature to a customer.
(d) It is a good idea for small businesses to compete solely on price.

Answer : D

Question : The purpose of all good small business strategy is__________.
(a) to increase turnover.
(b) to increase profitability.
(c) to achieve competitive advantage.
(d) to achieve stated objectives.

Answer : D

Question : Which of the following is a recognized disadvantage of setting up as a start-up as compared with other routes to market entry?
(a) less satisfaction of the owners.
(b) less help from various agencies.
(c) there are more funds required.
(d) there is a high failure rate.

Answer : D 

Question : 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 

Question :  ______________ 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