CBSE Class 11 Business Studies Small Business and Entrepreneurship MCQs Set 02

Question: In managerial accounting, the number of hours that a business runs its machinery during the production process is classified as a(n)
a) production output.
b) cost driver.
c) unexpected expense.
d) inflexible transaction.
Answer: b

Question: A small scale serivce and business enterprise is one whose investment in fixed assets of plant and machinery excluding land and building does not exceed _____
a) Rs.25 Lakhs
b) Rs.30 Lakhs
c) Rs.10 Lakhs
d) Rs.15 Lakhs
Answer: c

Question: What is often the role of management in the achievement of quality in a business?
a) To assign blame
b) To lead the effort
c) To judge the staff
d) To eliminate conflict
Answer: b

Question: It is not a problem of small Business
a) Finance
b) Technology
c) Sickness
d) Regional balance
Answer: d

Question: Which one of this is the criteria for getting the patent right ?
a) New
b) Useful
c) Only A & C
d) Both A & B
Answer: c

Question: The small scale industry can enjoy the status of _______ unit if it exports more than 50% of its production.
a) Import oriented units
b) Export Oriented units
c) Small scale unit
d) Domestic unit
Answer: b

Question: Which of the following is a characteristic of a business-format franchise:
a) The name of the business is chosen by the franchisee.
b) Products are bought directly from the supplier.
c) It is the least popular franchise arrangement.
d) Continuous assistance is provided by the franchisor.
Answer: d

Question: lf the entrepreneur realizes during planning that the obstacle in proposed venture can not be avoided or overcome, it is suggested to _______ the business endeavor.
a) Hold
b) Alter
c) Terminate
d) Continue
Answer: b

Question: Expand SIDBI
a) Society Industrial development bank of India
b) Small industries development bank of India
c) Super Industrial development bank of India
d) Small Indian Development bank of India
Answer: b

Question: As per notification issued by the ministry of commerce and industry, a start up means, with reference to period
a) not older than 5 years
b) not older than 10 years
c) not older than 12 years
d) not older than 13 years
Answer: a

Question: Small scale industries owned and managed by women entrepreneurs have a share capital of not less than
a) 20 percent
b) 51 percent
c) 25 percent
d) 50 percent
Answer: b

Question: 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

Question: When did India globally become the 7th largest vehicle manufacturer?
a) 2007
b) 2008
c) 2009
d) 2010
Answer: c

Question: Which of the following is not a method of generating new business idea?
a) Case study
b) Brainstorming
c) Focus group
d) Problem Inventory analysis
Answer: a

Question: The word “risk” in entrepreneurship means
a) A situation which is realistic about an outcome of the activity
b) A situation where certainty prevails about an outcome of the activity
c) A situation where uncertainty prevails about outcome of an activity
d) All of the options
Answer: c

Question: MSMEs are important for the Nation’s Economy because they significantly contribute to
a) Industrial Production
b) Exports
c) Employment
d) All of the options
Answer: d

Question: How much is the service investment limit for small scale industries
a) 20 lakh to 2 crore
b) 10 crore to 20 crore
c) 4.5 crore to 505 crore
d) 5 crore to 25 crore
Answer: b

Question: A———-includes shape, pattern and arrangement of lines or color combination that is applied to any article
a) Design
b) copy right
c) patent
d) Trade mark
Answer: a

Question: A product idea is feasible if it
a) meets sales quotas.
b) creates a competitive advantage.
c) costs a lot to produce.
d) is a durable good.
Answer: b

Question: Dan is in the process of determining the types of computer software and telephone service that will best suit his new business and get it up and running. Dan is considering his business’s
a) financial constraints.
b) technical needs.
c) competitive advantage.
d) staffing requirements.
Answer: b

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: District industries centers was launched on
a) 5 May 1972
b) 1 May 1978
c) 13 May 1971
d) 24 May 1975
Answer: b

Question: People who own, operate and take risk of a business venture
a) Aptitude
b) employee
c) Entrepreneur
d) Entrepreneurship
Answer: c

Question: Which of the following is a characteristic of the data collection step in marketing research:
a) The least expensive step in marketing research
b) The least tedious step in marketing research
c) The step in which the most mistakes are made
d) The step that is most interesting to researchers
Answer: c

Question: Which of the following situations describes a business process changing due to technological factors:
a) A manufacturing company purchases a new software program to run its machines.
b) A small general store offers more discounts to compete with a new shopping 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 effort to expand its brand.
Answer: a

Question: Small scale industries owned and managed by women entrepreneurs have share capital of not less than
a) 20%
b) 50%
c) 25%
d) 51%
Answer: d

Question: Expand EOUs
a) Essential Operating units
b) Export Oriented units
c) Export Order Units
d) Essential order units
Answer: b

Question: IPR stands for
a) Indian property rights
b) Important property rights
c) Intellectual property rights
d) Institutional property rights
Answer: c

Fill in the blanks:

Question: Change in attitude of rural entrepreneurs are the main objective of_________ Institution.
Answer: DIC

Question: Promoting credit rating and maintaining good financial record is the objective of _________ Institution.
Answer: NSIC

Question: NSIC was set up in the year_________.
Answer: 1955

Question: Full form of SFURTI is_________.
Answer: Scheme of fund for regeneration of traditional industries

Question: The village and small industries consists of both _________ and _________ small industries.
Answer: traditional and modern

Question: The total contribution of raw material and machinery is rs 2 crore is_________.
Answer: medium enterprises

True / False:

Question: Manufacturing Micro enterprise is one, where investment is Plant And machinery is rupees . Thirty lakhs
Answer: False

Question: Cottage and rural industries provide employment to traditional artisans . hence encourage migration of rural artisans.
Answer: False

Question: Certification mark indicates Quality.
Answer: True

Question: Ministry of commerce and industry notification the start up On 17 February 2017.
Answer: True

Question: Accelerated Industrial growth and creating employment in rural areas are their objectives of government for small scale industries.
Answer: True

Question: Protection of a design is valid for 5 Years.
Answer: False

Match the following:

Question: Start up is an entrepreneurial venture that capitalizes on developing,improving,innovating new product,process and services for the target market. Match the terms with suitable meaning:
      Column A                                        Column B
1. Boot strapping                       a) incubator who nurtures the businesslike child
2. Crowd funding                       b) act as a litmus test
3. Angel investment                   c) individual with surplus cash and mentoring
4. Venture capital                       d) pooling of resources by group of people
5. Business Accelator                e) self financing
Answer: 1-e, 2-d, 3-c, 4-b, 5-a

Question: Match the following examples as per their areas covered under Copyright:
 Column A                                Column B
1. Artistic work                       a) musical work
2. Artistic work                       b) manufacturing
3. Dramatic work                   c) poems
4. Assembling work               d) drawing
Answer: 1-c, 2-d, 3-a, 4-b

Question: Traditionally,rural households in developing countries have been viewed as exclusively engaged in agriculture. Infact government of India is trying to promote small scale industries and rural industrialisations. Match the objectives of institutional support provided by government:
       Column A                                                                  Column B
1. village and small scale industries                        a) institution at district level providing support to
                                                                                     Small business
2. Cottage and rural industries                                b) performance and credit rating of small business
3. National Small Industries corporations                c) providind opportunities to traditional artisans and
                                                                                     weaker sections
4. District industries centre                                      d) integral part of industrial strategies and development in
                                                                                     villages after 2nd five year plan
Answer: 1-d, 2-c, 3-b, 4-a

Question: „‟Necessity is the mother of all inventions‟‟.In business managing its intellectual property is critical in taking a business ahead. It is essential to respect others intellectual property rights not only on the ethical grounds but also legal. Match the type of intellectual property with its terminology:
Column A                                            Column B
1. Geographical indication               a) brand given legal protection
2. Patent                                          b) conferred upon the creator of literary,artist.music
3. Trademark                                   c) agricultural and natural products
4. Copyright                                     d) protection of scientific inventions
Answer: 1-c, 2-d, 3-a, 4-b

Question: In India there are various institutions which help small scale business.Match the institutions with their objective:
Column A                            Column B
1. NABARD                  a) provides imported machinery to business is easy and Low hire terms
2. NSIC                        b) institution at district level which provides all services and support facilities to
                                         entrepreneurs for setting up small and village industries
3. DICs                         c) provides aids to small scale cottage and village industries rural artisans using both
                                        credit and non credit approach
4. RWED                     d) creating a business environment that encourages initiatives of rural and women entrepreneurs
Answer: 1-c, 2-a, 3-b, 4-d