CUET Entrepreneurship MCQs Unit 2 Entrepreneurial Planning

Question. An entrepreneurship 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. Which of the following shows the process of creating something new?
a) Business model
b) Modeling
c) Creative flexibility
d) Innovation
Answer : D

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. 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) Creative destruction
d) None of the given options
Answer : C

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. EDP ( Entrepreneurship Development( Programmes) is required to help –
a) Existing entrepreneurs
b) First generations entrepreneurs
c) Future generation entrepreneurs
d) None of the above
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 level at which an individual is viewed by society is called:
a) Financial status
b) Qualification
c) Social status
d) Achievement
Answer : C

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. 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. Entrepreneurs are…………………………
a) Moderate risk taker
b) High risk taker
c) Avoidance
d) Both (B) & (C)
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. We need to update the business plan because
a) Environmental factors and internal factors can change the direction of the plan
b) Goals set by the entrepreneurs may be unreasonable
c) Goals may not be measurable
d) Goals may not be specific
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. Having less than 50 percent of equity share in an international venture is called
a) Minority interest
b) Joint venture
c) Majority interest
d) Exporting
Answer : A

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. Industry analysis should include information on –
a) Market size of competitor’s product
b) Growth rate of suppliers
c) New product entry
d) Economic conditions
Answer : D

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. ……………….. Shows the process of creating something new.
a) Innovation
b) Business model
c) Modeling
d) Creative flexibility
Answer : A

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 comprehensively written document prepared by the entrepreneur describing formal all the relevant internal and external elements in starting a new venture is called
a) marketing plan
b) business plan
c) financial plan
d) operational plan

Answer : B

Question. Which of the following is not a consequence for non-registration of a partnership firm?
a) The creditors cannot claim their dues.
b) A partner cannot file a suit aganist the firm in a court of law for enforcement of any right arising out of the contract.
c) A right arising from a contract cannot be enforced in any court by or on behalf of the firm against any third party.
d) The firm or any of the partners cannot claim a set-off against a third party.

Answer : A

Question. The business plan
a) helps in determining the viability of the venture in a designated market
b) helps in providing guidance to the entrepreneur in organising his/her planning activities
c) provides room for self-assessment and self-evaluation
d) All of the above

Answer : D

Question. Which of the following is not a public sector enterprise?
a) Departmental undertaking
b) Public corporation
c) Sole tradership
d) Government company

Answer : C

Question. Which of the following forms of business organisations require minimum two persons to start the same?
(i) Sole proprietorship (ii) Partnership (iii) Private company (iv) Public company
a) (i) and (ii)
b) (iii) and (iv)
c) (ii), (iii) and (iv)
d) (ii) and (iii)

Answer : D

Question. This form of business organisation has a limited area of operation due to availability of limited finance and limited managerial abilities
a) joint stock company
b) partnership
c) sole proprietorship
d) Both (a) and (c)

Answer : C

Question. Ravi Mohan is in the process of developing the business plan of a shoes manufacturing unit which he wants to start in an industrial area of Kanpur. He is in the process of developing a component of his business plan wherein he has to detail the kinds of people required their number and the process of their selection. Which of the following components of his business plan he has to develop after this?
a) Marketing plan
b) Financial plan
c) Operational plan
d) Organisational plan

Answer : D

Question. Which of the following is not a disadvantage of sole proprietorship form of business organisation?
a) Limited capital
b) Quick decision-making
c) Limited managerial ability
d) Limited continuity

Answer : B

Question. The business of partnership firm can be carried out by all the partners or any one of them acting for all. This highlights the following characteristic of partnership.
a) Agreement
b) Utmost good faith
c) Mutual agency
d) Implied authority

Answer : C

Question. The organisation structure in which there is separation of ownership and management is called
a) sole proprietorship
b) partnership
c) company
d) one person company

Answer : C

Question. ‘It is an artificial person created by law’ is a characteristic of which of the follow forms of business organisation?
a) Company
b) Partnership firm
c) Sole proprietorship
d) Both (a) and (b)

Answer : A

Question. Vani, Shiva, Bhanu and Kumar are good friends. They are the students of Class IX and are studying in the same school. They were admitted at the age of 5 years and did not fail in any class.
They want to start a retail business. Can they form a partnership?
a) They can form a partnership after taking permission for the parents.
b) They can form a partnership after taking permission from their school principal.
c) They can form a partnership because they are more than two persons.
d) No, they cannot form a partnership because all of them are minors.

Answer : A

Question. The board of directors of a joint stock company is elected by
a) general public
b) government bodies
c) shareholders
d) employees

Answer : C

Question. In which of the following forms of business organisation there exists separation of ownership from management?
a) Sole proprietorship
b) Partnership
c) Company
d) Both (a) and (c)

Answer : C

Question. ……… plan is that part of the business plan which describes the proposed venture’s opted form of ownership.
a) Operational
b) Production
c) Organisational
d) Business venture

Answer : C

Question. The process of initiating production in accordance with pre-conceived production plan is said to be ... .
a) routing
b) scheduling
c) dispatching
d) inspection

Answer : C

Question. Which of the following plans help to plan the work in such a manner that one can clearly form an idea about plan layout?
a) Operational plan
b) Production plan
c) Marketing plan
d) Financial plan

Answer : B

Question. Routing is an element of which of the following components of business plan?
a) Production plan
b) Operational plan
c) Organisational plan
d) Financial plan

Answer : B

Question. The scope of operation of sole proprietorship form of business is limited because of
a) limited finance availabilities
b) limited managerial abilities
c) Both (a) and (b)
d) None of the above

Answer : C

Question. Being an artificial person, a company cannot sign the documents. Hence it uses a ……… on which its name is engraved for the same.
a) trademark
b) logo
c) patent
d) common seal

Answer : D

Question. Break-even point is useful for the entrepreneur as it helps in assessing
a) the minimum level of output to be produced
b) the selling price of the product
c) the effect of change in quantity of output upon the profits
d) All of the above

Answer : D

Question. ‘How products/services will be distributed, priced and marketed’ is described by which of the following components of a business plan?
a) Marketing plan
b) Production plan
c) Operational plan
d) Financial plan

Answer : A

Question. The component of the business plan that goes beyond the production process by describing the market conditions and strategies related to products/services to be distrubuted is called
a) production plan
b) marketing plan
c) operational plan
d) organisational plan

Answer : B

Question. Which of the following statements is/are correct?
Statement I A sole proprietorship does not need to be registered.
Statement II Therefore, it is an expensive manner of commencing business.
Alternatives
a) Statement I is correct, but Statement II is incorrect
b) Statement I is incorrect, but Statement II is correct
c) Both statements are incorrect
d) Both statements are correct

Answer : A

Question. ................. helps to understand the feasibility and viability of the proposed venture.
a) Business plan
b) Marketing plan
c) Production plan
d) Financial plan

Answer : A

Question. Which of the following is not a component offinancial plan?
a) Economic and social variables
b) Follow-up
c) Break-even analysis
d) Proforma investment decisions

Answer : B

Question. Which form of business in suitable when size of the venture is small?
a) Company
b) Partnership
c) Sole proprietorship
d) None of these

Answer : C

Question. Production plan aims at ‘plan your work’, whereas ................. plan aims at ‘work your plan’.

a) operational
b) marketing
c) financial
d) organisational

Answer : A

Question. The maximum number of partners allowed in the banking business are
a) twenty
b) ten
c) fifty
d) two

Answer : C

Question. The process of initiating production in accordance with pre-conceived production plan is said to be ... .

a) routing
b) scheduling
c) dispatching
d) inspection

Answer : C

Question. Which of the following elements of plan relates to evaluation and appraisal of work performed?
a) Dispatching
b) Routing
c) Scheduling
d) Follow-up

Answer : D