CUET Entrepreneurship Sample Paper Set B

Question. Which of the following statement is false with respect to ABC analysis?
a) ‘A’ includes the items whose annual consumption value is the highest
b) ‘B’ includes the items with a lower consumption value
c) ABC analysis can help you control you inventory better
d) All of the above

Answer : B

Question. During the last month, a total of 450 people took meals in a restaurant and the total billed amount was Rs 90,000. The unit price per person will be
a) Rs 200
b) Rs 475
c) Rs 325
d) Rs 210

Answer : A

Question. A business needs capital for
a) procuring fixed assets
b) meeting day-to-day expenses
c) growth and diversification
d) All of the above

Answer : D

Question. Amit is running an ‘Advertising agency’ and earning a lot by providing this service to big industries. The working capital requirement of the firm will be ………… .
a) more
b) less
c) Not required
d) Can’t say

Answer : B

Question. Sushant has opened a grocery shop with an investment of Rs 3 lakh. Out of this, Rs 1 lakh was his own and the rest he borrowed from friends and relatives. At the end of the year, he earned a net profit of Rs 40,000. Which ratio will be higher?
a) RoI
b) RoE
c) Both will be the same
d) None of these

Answer : B

Question. At break-even level,
a) Total Revenue > Total Expenses
b) Total Revenue = Total Expenses
c) Total Revenue < Total Expanses
d) None of the above

Answer : B

Question. Which of the following statements is/are correct?
Statement I A transport service provider needs less working capital.
Statement II A service firm sells more on a cash basis and does not have to maintain inventory.
Alternatives
a) Both statements I 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 : A

Question. A company uses 300 units of an item per day and the order lead time is 5 days. What should be the level of inventory when a new order is to be placed?
a) 1,500 units
b) 1,000 units
c) 500 units
d) 2,000 units

Answer : A

Question. The ‘Marketing strategy’ and ‘Action plan’ comprise of decisions pertaining to which of the following?
a) Potential hazards present in the competitive environment
b) Product, place, price, promotion
c) Customer’s characteristics
d) Quantifying goals of the organisation

Answer : B

Question. Which of the following source of idea fields provides important information to identify and and analyse the market need, market size andcompetition?
a) Market or demand driven
b) Natural resources
c) Existing products or service
d) None of the above

Answer : A

Question. Which process is related to creating, developing and communicating ideas which are abstract, concrete or visual?
a) Idea generation
b) Product generation
c) Either (a) or (b)
d) None of the above

Answer : A

Question. Identify the micro-environmental factors from the following.
(i) General public
(ii) Competitors
(iii) Economic
(iv) Intermediaries
(v) Legal
a) (i), (ii) and (iii)
b) (ii), (iii) and (iv)
c) (iii), (iv) and (v)
d) (i), (ii) and (iv)

Answer : D

Question. Himanshu Ltd is looking into ideas to use eco-friendly recyclable materials for the body of the phones that may cause negligible damage to the environment. Identify the factor of the PESTEL model discussed here.
a) Social and Policical
b) Ecological and Technological
c) Economic and Social
d) Legal and Economical

Answer : B

Question. Mr. Dinesh wanted to manufacture an energy efficient AC. He looked into various options and finally narrowed down to one option. He understands that his idea would have to follow a process. Identify the process.
a) Process of idea germination
b) Process of creativity
c) Process of idea generation
d) Process of idea fields

Answer : B

Question. An entrepreneur with a ……… is able to pursuade others to see the opportunity.
a) mission
b) vission
c) process
d) None of these

Answer : B

Question. An economic idea which can be implemented to create a business enterprise and profit is called
a) business environment
b) business opportunity
c) business problem
d) product identification

Answer : B

Question. What is the first stage in innovation?
a) Implementation
b) Resource organisation
c) Creativity
d) Commercial application

Answer : C

Question. Vector Ltd., is in the Fast Moving Consumer Goods Industry. They introduced a new variety of biscuits in the market. It has high fibre content with different new flavours incorporating various multigrains. State which promotion strategy should be used by Vector Ltd.?
a) Below the line
b) Through the line
c) Above the line
d) None of these

Answer : C

Question. The associated cost of promotion is the highest in case of
a) advertising
b) personal selling
c) sales promotion
d) publicity

Answer : B

Question. A ................. is either a tangible or an intangible offering that is required to satisfy the needs and aspirations of a consumer.
a) service
b) goods
c) product
d) None of these

Answer : C

Question. What relates to short-term incentives that encourage or promote the purchase or sale of a product or a service?
a) Advertising
b) Pricing
c) Sales promotion
d) None of these

Answer : C

Question. Which of the following pricing strategy of a product is initially set at a price lower than the eventual market price to attact new customers?
a) Cost-plus pricing
b) Penetration pricing
c) Skimming pricing
d) None of the above

Answer : C

Question. Sales strategy is important because
a) it creates awareness about business environment
b) it helps in measuring short-term performance of sales team
c) Both (a) and (b)
d) None of the above

Answer : C

Question. Which sales strategy allows a business to cover a wide geographical market and to sell to a large customer base?
a) Direct
b) Indirect
b) Promotional
d) None of these

Answer : B

Question. ................ pricing strategy is employed only for a short duration as it is not viable in the long-run.
a) Penetration
b) Cost-plus
c) Skimming
d) Variable

Answer : C

Question. Internal sources of finance include
a) trade credit
b) equity shares
c) public deposit
d) All of these

Answer : B

Question. At the ............ stage of financing, the venture achieves a certain amount of market share and has opportunities to develop and grow.
a) seed capital
b) pre-start-up
c) second
d) bridge

Answer : D

Question. Finance raised by issue of ADRs and GDRs is said to be raised from ................. .
a) internal sources
b) external sources
c) either internal or external sources
d) None of the above

Answer : A

Question. Divij is an innovative entrepreneur. He has decided to open an online portal which helps people to order groceries 24 × 7. But before launching his portal, he wants to investigate the marketability of his idea. He approached Tech Marts, a venture capital firm, to fund his investigation. Divij is looking for .......... finance.
a) start-up
b) second round
c) last stage
d) seed capital

Answer : D

Question. …… is a method of raising additional financa from existing shareholders by giving them a right to purchase certain number of shares in proportion to the shares they are holding.
a) Public issue
b) Private placement
c) Rights issue
d) Offer to employees

Answer : C

Question. Which of the following is not a step involved in public issue of shares?
a) Appointment
b) Subscription list
c) Checks on brokers
d) Allotment of shares

Answer : C

Question. As per SEBI guidelines, if the company does not receive 90% of the issue amount from public subscription within ........... from the date of issue, the amount received is required to be refunded.
a) 60 days
b) 90 days
c) 120 days
d) 150 days

Answer : C

Question. ............ means the direct sale by a company of its securities to a limited number of institutional investors.
a) Public issue
b) Right issue
c) Private placement
d) Offer to employees

Answer : C

Question. Which of the following is/are the examples of venture capital institutions in India?
a) Gujarat Venture Finance Limited (GVFL)
b) Technology Development and Information Company of India Limited (TDICIL)
c) Andhra Pradesh Industrial Development Corporation
d) All of the above

Answer : D

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. 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. 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. 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 (b) and (c)

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

Answer : C

Question. Komal Company Ltd. was initially producing crayons. Now, it has decided to produce oil paints and water paints also. The company is attempting to
a) expand internally
b) expand externally
c) Both (a) and (b) 
d) None of the above

Answer : A

Question. “X + Y = Z, where Z is a new company”. It shows
a) absorption
b) amalgamation
c) acquisition
d) None of the above

Answer : B

Question. The goal of a ……… merger is to create a new larger organisation with more market share.
a) conglomerate
b) horizontal
c) market extension
d) Both (b) and (c)

Answer : D

Question. While ensuring the growth of his enterprise, an entrepreneur has to play the dual role of a ……… .
a) manager
b) leader
c) Both (a) and (b) 
d) None of these

Answer : C

Question. In which of the following is the reason for mergers and acquisitions?
a) Synergy
b) Acquiring new technology
c) Acquiring a competency
d) All of the above

Answer : D

Question. Manufacturing franchise opportunity is common in which industry?
a) Tyre
b) Food and beverage
c) Vending machine nutes
d) None of the above

Answer : B

Question. The main ingredients of a franchise agreement
a) contract explanation
b) operations manual
c) proprietary statements
d) All of the above

Answer : D

Question. Which of the following types of franchises provide an organisation with the right to manufacture a product and sell it to the public, using the franchisor’s name and trademark?
a) Product franchise business opportunity
b) Manufacturing franchise opportunity
c) Business franchise opportunity ventures
d) Business format franchise opportunity

Answer : B