CUET Entrepreneurship Sample Paper Set A

Question. The process of entrepreneurship which involves the translation of a useful idea into an application is called
a) incubation
b) innovation
c) verification
d) illumination

Answer : B

Question. Which of the following is not a natural source of ideas?
a) Horticulture
b) Existing products
c) Agriculture
d) Forests

Answer : B

Question. According to the ‘PESTEL Model’, which factor emphasises the production of goods with minimum environmental damage?
a) Economic
b) Social
c) Ecological
d) Technological

Answer : C

Question. There is a …… relationship between opportunities and problem solving.
a) direct
b) inverse
c) indirect
d) negative

Answer : A

Question. A prospective entrepreneur has to find an opportunity which would be suitable for him/her in terms of ……… .
a) profitability
b) viability
c) Both (a) and (b)
d) None of these

Answer : C

Question. Entrepreneurs should take advantage of social networking tools like social network sites i.e., Facebook, Instagram, etc. to identify new trends. This is an example of
a) read trends
b) talk trends
c) think trends
d) watch trends

Answer : B

Question. The various sources of idea fields are
a) Natural resources
b) Service related
c) Trading related
d) All of these

Answer : D

Question. LPG rationing led the manufacturers to come out with induction cooker. Which importance of environment does the above example indicate?
a) Identification of opportunities to get first mover advantage
b) Tapping useful resources
c) Better performance
d) Image building

Answer : A

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

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

Answer : B

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. ……… 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 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. Which of the following is not a quality of a good brand?
a) It should be long.
b) Neither obscene, negative, offensive or vulgar.
c) Pleasing, impressive when uttered.
d) Linked to product, symbolically eye catching.

Answer : A

Question. Which of the following is the consumer sale promotion activity?
a) Loyalty reward programmes
b) Event sponsorship
c) Competitions
d) Corporate entertainment

Answer : A

Question. XY Limited manufactures plastic buckets. The CEO wants to select a distribution channel for his buckets. The factor(s) related to the product to be kept in mind is/are
a) unit value of product
b) perishability
c) technical nature
d) All of these

Answer : D

Question. ................. act as the key visual component of an enterprise’s overall brand identity.
a) Brand name
b) Logo
c) Tagline
d) Packaging

Answer : B

Question. ‘Balls red’ is a SSI producing cricket and tennis balls. To promote its products, it wants to advertise on TV but its Chartered Accountant advises the CEO of the firm against it. The reason behind this could be
a) limited scope of TV
b) high cost associated with it
c) limited exposure
d) All of the above

Answer : B

Question.. ................. is defined as, ‘‘a process that can allow an organisation to concentrate its resources on the optimal opportunities with the goals of increasing sales and achieving a sustainable competitive advantage’’.
a) Marketing strategy
b) sales strategy
c) Pricing mix
d) Promotion mix

Answer : A

Question. Cocu is a soft drink company. It sells 200 ml bottle for ` 8 and 2,000 ml bottle for ` 55. The company follows which strategy?
a) Cost-plus pricing
b) Pentration pricing
c) Creaming
d) Variable pricing

Answer : D

Question. Various approaches may be used by a company to promote its products. One of them is the use of mass media methods by designing a promotion strategy that aims at establishing brand identity. Identify promotion strategy.
a) Below the line
b) Through the line
c) Above the line
d) None of these

Answer : C

Question. ‘Brand’ word has originated from the word ‘Brandr’ which means ‘to burn’ in
a) French
b) German
c) Norwegian
d) None of these

Answer : C

Question. In the capital market, funds are raised through
a) debt
b) equity
c) Both (a) and (b)
d) None of these

Answer : C

Question. Which amongst the following is/are the feature(s) exhibited by angel investors?
a) They bear extremely high risk
b) They provide proactive advice and guidance
c) They are generally current or retired executives
d) All of the above

Answer : D

Question. ................. refers to the whole network of all organisations, institutions and instruments that provide medium and long-term funds to the government and industrial sector.
a) Capital market
b) Money market
c) Financial intermediation
d) New issue market

Answer : A

Question. Angel investors provide ........... finance for product development and initial marketing but with no commercial sales.
a) long-term
b) short-term
c) start-up
d) growth stage

Answer : C

Question. The role of transferring financial resources from the surplus units to the deficit units is known as ……
a) right issue
b) financial intermediation
c) new issue
d) access to capital

Answer : B

Question. Benefits of raising finance through public issue include
a) higher valuations
b) incentives
c) liquidity
d) All of these

Answer : D

Question. ……to employees enables them to become shareholders of the company and subsequently be able to share the profits of the company.
a) Private placement
b) Rights issue
c) Stock options
d) None of the above

Answer : C

Question. Identify the factors required in the development of entrepreneurship.
a) Innovative ideas
b) Project financing
c) Competency in project preparation and implementation
d) All of the above

Answer : D

Question. The whole process of issue of shares can be divided into
a) pre-issue activiites
b) post-issue activities
c) mid-issue activities
d) Both (a) and (b)

Answer : D

Question. Which of the following statement is/are correct?
Statement I Synergy is the primary reason for the mergers to take place between the two companies.
Statement II The turnover and output produced by the individual firm would be more than the turnover produced by the firm after merger.
Alternatives
a) Both statements are correct
b) Statement I is correct, but Statement II is incorrect
c) Statement I is incorrect, but Statement II is correct
d) Both statements are incorrect

Answer : B

Question. In ………… form of acquisitions, the purchasing company becomes the subsidiary of the purchased company.
a) friendly
b) reverse
c) backflip
d) hostile

Answer : C

Question. The advantages of franchising for a franchiser is/are
a) quick expansion
b) cost advantage
c) Both (a) and (b)
d) None of these

Answer : C

Question. A merger between Fiat and Tata motors would be an example of
a) conglomerate merger
b) vertical merger
c) horizontal merger
d) market extension

Answer : C

Question. In which type of acquistion, a private company takes over a public company?
a) Friendly acquisition
b) Reverse acquistion
c) Hostile acquisition
d) Backflip acquisition

Answer : B

Question. The largest Hamburger manufacturer ‘Hamber’ in India merged with well-known cold drink manufacturer “Soda Pop” and renamed the brand “Ham Pop” to impart a different identity. The type of merger discussed above is ……… .
a) horizontal merger
b) market extension merger
c) product extension merger
d) conglomerate merger

Answer : C

Question. In which of the following from of merger, two entities combine together and form a new entity, extinguishing both the existing entities?
a) Absorption
b) Amalgamation
c) Both (a) and (b)
d) None of these

Answer : B

Question. A …… merger occurs when two or more firms, operatng at different levels within an industry’s supply chain, merge operations.
a) horizontal
b) conglomerate
c) vertical
d) product extension

Answer : C

Question. Measure of unit in which the products are sold, is called
a) unit cost
b) unit of sale
c) unit price
d) None of these

Answer : B

Question. Which of the following is a factor affecting working capital?
a) Scale of operation
b) Seasonal factors
c) Credit allowed
d) All of the above

Answer : D

Question. Which amongst the following is/are example(s) of current liabilities?
a) Debtors
b) Creditors
c) Bills receivables
d) Prepaid expenses

Answer : B

Question. Annual consumption of units in Aahaar Limited = 2,000 units, Buying cost per order = ` 12, Price per unit = ` 1,000, Storage cost as percentage of price per unit = 12%, EOQ = ?
a) 400 units
b) 20 units
c) 200 units
d) 100 units

Answer : B

Question. Ordering cost and carrying cost are ................. related to each other.
a) directly
b) inversely
c) Not
d) Can’t say

Answer : B

Question. ................. indicates the percentage of return on total capital employed in the business.
a) Return on investment
b) Return on equity
c) Re-order quantity
d) None of the above

Answer : A

Question. Which of the following is an examples of carrying costs for inventories?
a) Money tied up in inventory
b) Storage of inventories
c) Obsolescence cost
d) All of the above

Answer : D

Question. XYZ Company uses 500 units of an item per day and the order lead time is 7 days. Re-order level will be
a) 1,000 units
b) 500 units
c) 3,500 units
d) None of these

Answer : C