CBSE Class 12 Entrepreneurship MCQs Set 02

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 : 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 : 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 : 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 : Networking by innovative entrepreneurs may be most encoura

A) Science parksged by?

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 : 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 : 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 : 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 : 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 : 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.z

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