MULTIPLE CHOICE QUESTIONS

Question No: 1
Which of the following shows the process of creating something new?
a) Business model
b) Modeling
c) Creative flexibility
d) Innovation

Question No: 2
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

Question No: 3
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

Question No:4
GATT is established in 1947, under:
a) German leadership
b) U.S. leadership
c) French leadership
d) U.K. leadership

Question No: 5
The entrepreneur was distinguished from capital provider in:
a) Middle ages
b) 17th century
c) 18th century
d) 19th and 20th century
Question No: 6
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

Question No: 7
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

Question No: 8
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

Question No: 9
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

Question No: 10 –
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

Question No: 11
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

Question No: 12
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

Question No: 13
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

Question No: 14
The activity which occurs when the new venture is started is called:
a) Motivation
b) Business skills
c) Departure point
d) Goal orientation

Question No: 15
The level at which an individual is viewed by society is called:
a) Financial status
b) Qualification
c) Social status
d) Achievement

Question No: 16
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

Question No: 17
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

Question No: 18Which one of the following is the most important characteristic of a successful
business website?
a) Innovation
b) Speed
c) Graphics
d) Products

Question No: 19
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

Question No: 20
SBA stands for:
a) Small business accountants
b) Small business administration
c) Small business adequacy
d) Small business advisors

Question No: 21
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

Question No: 22
Information regarding all of the following is related to operations, EXCEPT:
a) Location
b) Promotion
c) Raw materials
d) Labor skills
Question No:23
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
Question No: 24
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
Question No: 25
EDP (Entrepreneurship Development Programmes) is required to help:
(a) Existing entrepreneurs
(b) First generation entrepreneurs
(c) Future generations entrepreneurs
(d) None of the above
Question No: 26
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
Question No: 27
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
Question No: 28
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
Question No: 29
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
Question No: 30
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.

13-1. An entrepreneur is someone who assumes the major risks of a new

business by committing which of the following?
 a. equity.
 b. time.
 c. career.
 d. all of the above.
13-2. An informal group of innovative employees who are permitted to digress
temporarily from their regular tasks to develop new ideas are referred to as:
 a. underground.
 b. skunkworks.
 c. yahoos.
 d. intrapreneurs.
13-3. It is estimated that approximately _____ percent of small businesses fail
within the first five years.
 a. 10.
 b. 25.
 c. 50.
 d. 75.
13-4. Which of the following is not a personal characteristic often found in an
entrepreneur?
 a. self-confident.
 b. independent-minded.
 c. perceptive.
 d. follower.
13-5. The period of business when an entrepreneur must position the venture
in a market and make necessary adjustments to assure survival is called the:
 a. pre-startup stage.
 b. startup stage.
 c. early growth stage.
 d. later growth stage.
13-6. Which of the following is usually included in a business plan?
 a. detailed description of the product or service.
 b. marketing and promotional plans.
 c. management and staffing.
 d. all of the above.
13-7. Which of the following is a reason why a person might prefer to
purchase a franchise rather than open a completely new business?
 a. higher failure rate.
 b. increased independence.
 c. ability to benefit from previous experience.
 d. reduced royalty fees.
13-8. According to the textbook, which of the following management functions
is the least well done?
 a. planning.
 b. organizing.
 c. leading.
 d. controlling.
13-9. Which of the following is not a common motivation of an entrepreneur?
 a. desire for independence.
 b. search for personal and professional growth.
  c. desire to maintain the status quo.
 d. search for more rewarding work.
13-10. Which of the following are risks for entrepreneurs in small business?
 a. interference with personal lives.
 b. psychological stress.
 c. social and family pressure.
 d. all of the above.
13-11. A strategy of courting other companies that have knowledge, ideas or
promising products is known as which type of intrapreneurship?
 a. administrative intrapreneurship.
 b. opportunistic intrapreneurship.
 c. acquisitive intrapreneurship.
 d. imitative intrapreneurship.
13-12. A person within a company who takes a leadership role and is
positioned to help ensure the success of an idea or innovation is often
referred to as a:
 a. supporter.
 b. champion.
 c. leader.
 d. evangelist.
13-13. Which of the following is a purpose of a business plan?
 a. to attract financing.
 b. to inform competitors of plans.
 c. to discipline the entrepreneur to think of all aspects of the proposed
venture.
 d. a & c.
13-14. Who said that the job of the entrepreneur is "creative destruction"?
 a. Peter Drucker.
 b. Pierre Trudeau.
 c. Joseph Schumpeter.
 d. Brian Mulroney.
13-15. All of the following were invented by a Canadians except:
  a. IMAX multiscreen projection.
 b. snowmobile.
 c. twin engine airplane.
 d. post-it note
13-1. Outsourcing allows companies to focus on what they do best.
 True
 False
13-2. Entrepreneurship is derived from the seventeenth-century French word,
entreprendre.
 True
 False
13-3. In Canada, it is generally accepted that large businesses have been the
creators of the most new jobs through the past decade or two.
 True
 False
13-4. Intrapreneurship refers to the entrepreneurial spirit and focus being
applied within a large organization.
 True
 False
13-5. Entrepreneurs have a natural tendency to predict lower sales and higher
costs than are realistic.
 True
 False
13-6. A business plan is often described as the most important tool of the
entrepreneur.
 True
 False
13-7. A greenfield business is a term used to describe the purchase of an
existing business or a franchise.
 True
 False
13-8. Canadian Tire, McCain and Eaton's are examples of successful
leadership successions in family-owned businesses.
  True
 False
13-9. One of the greatest difficulties in buying an existing business is
determining how much one should pay for the business.
 True
 False
13-10. The near-merger of home and business life can be both an advantage
and drawback to starting a home-based business.
 True
 False
13-11. Some studies by Statistics Canada suggest that small businesses
started by male entrepreneurs have about twice the survival rates of those
started by female entrepreneurs.
 True
 False
13-12. Canadians have a long and illustrious history of innovation and
invention.
 True
 False
13-13. A business started by more than one person has a greater chance of
failure than sole proprietorships.
 True
 False
13-14. Startups managed by people without prior management experience
have a greater chance of failure than those experienced with management.
 True
 False
13-15. An executive summary of a business plan is a more detailed version
prepared for top executives.
 True
 False