CBSE Class 12 Entrepreneurship MCQs Set C

Question: The activity which occurs when the new venture is started is called:
(a) Motivation
(b) Business skills
(c) Departure point
(d) Goal orientation

Answer : C

Question: What is the process by which individuals pursue opportunities without regard to resources they currently control?
(a) Startup management
(b) Entrepreneurship
(c) Financial analysis
(d) Feasibility planning

Answer : B

Question: 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
(b) Technopreneur
(c) Intrapreneur
(d) Social Entrepreneur

Answer : C

Question: Which one of the following gives suggestions for new product and also help to market new products?
(a) Existing products and services
(b) Federal government
(c) Distribution Channels
(d) Consumers

Answer : C

Question: GATT is established in 1947, under:
(a) German leadership
(b) U.S. leadership
(c) French leadership
(d) U.K. leadership

Answer : B

Question: Which of the following is used by entrepreneurs to acquire experience in an international market before making a major commitment?
(a) Merger
(b) Minority Interest
(c) Joint venture
(d) Majority interest

Answer : B

Question: Individuals influencing an entrepreneur’s career choice and style are known as which of the following?
(a) Moral-support network
(b) Role model
(c) Professional support network
(d) Support system

Answer : B

Question: Having less than 50 percent of equity share in an international venture is called:
(a) Joint Venture
(b) Majority interest
(c) Minority interest
(d) Exporting

Answer : C

Question: The level at which an individual is viewed by society is called:
(a) Financial status
(b) Qualification
(c) Social status
(d) Achievement

Answer : C

Question: Members of distribution channels are excellent sources for new ideas because:
(a) They earn a handsome profit from new business
(b) They are familiar with the needs of the market
(c) They do not bother if entrepreneur bears a loss
(d) They have well-developed sales force

Answer : B

Question: Information regarding all of the following is related to operations, EXCEPT:
(a) Location
(b) Promotion
(c) Raw materials
(d) Labor skills

Answer : C

Question: A performance and credit rating scheme has been launched by the MSME Ministry to assess creditworthiness and capabilities of industries in the sector. What is it called?
(a) Performance and Credit Rating Scheme
(b) Zero Defect Zero Effect Certification
(c) Performance and Economy Rating Scheme
(d) None of the above

Answer : A

Question: Family business always interested to handover the change of his business to:
(a) Indian Administration Officers
(b) Professional Managers
(c) Next generation
(d) None of the above

Answer : C

Question: The entrepreneur was distinguished from capital provider in:
(a) Middle ages
(b) 17th century
(c) 18th century
(d) 19th and 20th century

Answer : C

Question: EDP (Entrepreneurship Development Programmes) is required to help:
(a) Existing entrepreneurs
(b) First generation entrepreneurs
(c) Future generations entrepreneurs
(d) None of the above

Answer : B

Question: Which of the following is alternatively called corporate venturing?
(a) Entrepreneurship
(b) Intrapreneurship
(c) Act of stating a new venture
(d) Offering new products by an existing company

Answer : B

Question: Which of the following shows the process of creating something new?
(a) Business model
(b) Modeling
(c) Creative flexibility
(d) Innovation

Answer : D

Question: 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
(b) Technopreneur
(c) Intrapreneur
(d) Social Entrepreneur

Answer : C

Question: Having more than 50% ownership position that provides the entrepreneur with managerial control is called:
(a) Joint venture
(b) Majority interest
(c) Horizontal merger
(c) Diversified activity merger

Answer : B

Question: Which one of the following is the process of entrepreneurs developing new products that over time make current products obsolete?
(a) New business model
(b) Anatomization
(c) None of the given options
(d) Creative destruction

Answer : D

Question: Which of the following factors is the most important in forcing U.S companies to focus on new product development and increased productivity?
(a) Entrepreneurship
(b) Hyper competition
(c) Governmental laws
(d) Organizational culture

Answer : B

Question: Venture capital is concerned with:
(a) New project having potential for higher profit
(b) New project of high technology
(c) New project having high risk
(d) All the above.

Answer : A

Question: Which one of the following is the most important characteristic of a successful business website?
(a) Innovation
(b) Speed
(c) Graphics
(d) Products

Answer : B

Question: A Micro Enterprise is an enterprise where investment in plant and machinery does not exceed (According to MSMED Act, 2006):
(a) Rs. 15 Lakh
(b) Rs. 20 Lakh
(c) Rs. 25 Lakh
(d) Rs. 30 Lakh

Answer : C

Question: A women entrepreneur is supposed to have a minimum financial interest in share capital of entrepreneur’s enterprise:
(a) 35 per cent
(b) 51 per cent
(c) 25 per cent
(d) None of the above

Answer : C

Question: 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
(c) Product Development Stage
(d) Test Marketing Stage

Answer : C

Question: SBA stands for:
(a) Small business accountants
(b) Small business administration
(c) Small business adequacy
(d) Small business advisors

Answer : B

Question: Why should an entrepreneur do a feasibility study for starting a new venture
(a) To identify possible sources of funds
(b) To see if there are possible barriers to success
(c) To estimate the expected sales
(d) To explore potential customers

Answer : B

Question: 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
(b) Distribution channels
(c) Federal government
(d) Consumers

Answer : B

Question: A person who managed large project was termed as the entrepreneur in the _________.
(a) Earliest period
(b) Middle ages
(c) 17th century
(d) 19th and 20th century

Answer : B

Question: Which of the following is the career solution for many underemployed managers?
a) Fortune 500 companies
b) Entrepreneurship
c) Downsizing
d) To remain unemployed
Answer: b

Question: A business center that offers working space and specialized support for new ventures is called
a) Isolator
b) Injector
c) Incubator
d) Integrator
Answer: c

Question: From the following which one is not classification of entrepreneurs according to the types of business?
a) Wholesale trade
b) Retail trade
c) Exporter
d) Rural entrepreneur
Answer: d

Question: The conclusion of the business plan will identify the:
a) feasibility of the business
b) purpose of the business
c) form of organization of the business
d) business suppliers
Answer: b

Question: Priyam composed a music piece for a song and the lyrics were written by him. He wishes to legally protect his creation. He can get a
a) Patent for lyrics and music piece
b) Copyright for lyrics and music piece
c) Copyright of the lyrics and patent for the music piece
d) Trademark for the complete song
Answer: b

Question: Entrepreneurship is a process of:
a) Purchasing shares of a company
b) Setting up one’s own business
c) Working as an employee
d) All of the above
Answer: b

Question: Monik Ltd., was the market leader in the Mobile Phone industry in 2000. The company was well known for its affordable phones. In 2007, a new company launched new Mobile models with latest technologies and captured the market. Monik Ltd. lost the entire market share and had to close their operations. Which of the following SWOT framework factors did Monik Ltd. fail to analyze?
a) Strengths
b) Weakness
c) Opportunities
d) Threats
Answer: d

Question: Which of the following factor has allowed small companies to act like they are big ones?
a) Technology
b) Customers
c) Economic development
d) Competition
Answer: a

Question: 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
b) Distribution channels
c) Federal government
d) Consumers
Answer: b

Question: Intellectual property is classified into:
a) Industrial property
b) Copyrights
c) Both of the above
d) None of the above
Answer: c

Question: Which of the following possible financing options has become a popular choice for entrepreneurs?
a) Angel investor
b) Credit cards
c) Venture capital
d) Public offering
Answer: b

Question: Which of the following is NOT a requirement of Disclosure Document?
a) Description of the invention
b) Claims for invention’s usefulness
c) Photos of invention
d) Cover Letter
Answer: c

Question: Which of the following statements does not clearly distinguish between entrepreneurship and management?
a) Entrepreneurs found the business; managers operate it
b) Entrepreneurs are the owners of their business; managers are employees
c) Entrepreneurs earn profits; managers earn salaries
d) Entrepreneurship is once for all activity; management is a continuous activity
Answer: d

Question: A small-scale entrepreneur is
a) A formal-sector entrepreneur with 11 to 50 employees
b) A formal-sector entrepreneur with 11 to 49 employees
c) A formal-sector entrepreneur with 16 to 49 employees
d) A formal-sector entrepreneur with 16 to 50 employees
Answer: b

Question: If the entrepreneur pays for the first six months of insurance before the business opens, this is listed under start-up costs as:
a) deposits
b) inventory
c) prepaid expenses
d) utilities
Answer: c

Question: Which of the following is a method of selling goods to another country by taking care of transactions?
a) Indirect exporting
b) Direct exporting
c) Importing
d) Management contract
Answer: b

Question: An individual who starts, creates and manages a new business can be called as
a) A leader
b) A manager
c) A Professional
d) An entrepreneur
Answer: d

Question: _________ is a characteristic of entrepreneurship development:
a) Systematic activity
b) Less risk
c) Constant returns
d) All of the above
Answer: a

Question: Which of the following types of ratios measure how efficiently the organization is using its assets?
a) Liquidity Ratios
b) Leverage Ratios
c) Operating Ratios
d) Profitability Ratios
Answer: c

Question: Which one of the following is the first step in the entrepreneurial process
a) Developing successful business ideas
b) Deciding to become an entrepreneur
c) Growing the entrepreneurial firm
d) Moving from an idea to an entrepreneurial firm
Answer: b

Question: 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
Answer: b

Question: …………….. actions by an entrepreneur most likely to contribute to creative destruction.
(a) Development of a new product
(b) Take-over of a competitor
(c) Issuing shares
(d) Development of an organization
Answer: a

Question: From the following which one is not classification of entrepreneurs according to the types of business? (a) Wholesale trade
(b) Retail trade
(c) Exporter
(d) Rural entrepreneur
Answer: d

Question: Exploring opportunities in the environment is a process involving various steps. Arrange the steps in correct order.
(i) Evaluating the ideas received from different sources to find a creative solution
(ii) Identifying a product or service through innovation
(iii) Opportunity spotting by analysing the needs and problems that exist in the environment
(iv) Setting up a project and nurturing it to success
(a) i-ii-iii-iv
(b) iii-i-ii-iv
(c) ii-iii-iv-i
(d) i-iv-iii-ii
Answer: b