Entrepreneurship Development MCQ

Entrepreneurship Development MCQ

Here we are sharing the most top important Questions of Entrepreneurship Development. We have taken this 50 Entrepreneurship Development MCQ Questions from Entrepreneurship Development Institutes of India(EDII). Hope this will help you .

Also you can Read Entrepreneurship MCQ

  1. MCQ on Entrepreneurship
  2. MCQ on Entrepreneur

Entrepreneurship Development MCQ

1. If an entrepreneur has an internal locus of control, this means that he/she:

(a) Has a high need for achievement?

(b) Escapes in an unstructured situation.

(c) Believes that success or failure depends on his/her team actions.

(d) Believes fate is a powerful force.

 Answer (a) has a high need for achievement?

2. The process of gathering information about trends is called:

(a) Need for achievement

(b) Tendency

(c) Neuroticism

(d) Scanning the environment.

  Answer (d) Scanning the environment.

3. Product quality is only one of the possible bases upon which to build a business using what strategy?

(a) Focus

(b) Differentiation

(c) Low-cost

(d) All of the above

  Answer (b) Differentiation

4. Many entrepreneurs choose to start businesses by themselves because:

(a) The want of uncontested control

(b) Coordination is less complicated

(c) Profits will go only to the founder.

(d) All of the above.

   Answer (d) All of the above.

5. Which of the following techniques is an excellent method for initially screening ideas and concepts in addition to generating new ideas?

(a) Understanding environment

(b) Encourage team work

(c) Not flexible

(d) Persistent

Answer (a) Understanding environment

6. Which of the followings is true regarding the start-ups?

(a) Technology centric

(b) Scalable

(c) Replicable

(d) all of the above

 Answer (d) all of the above

7. According to David McClelland achievement motivation, which of the following is true for entrepreneur?

(a) High need for achievement

(b) Low need of achievement

(c) High need for power

(d) High need of affiliation

 Answer (a) High need for achievement

8. Which of the following shows the process of creating something new?

(a) Business model

(b) Modelling

(c) Creative flexibility

(d) Innovation

  Answer (d) Innovation

9. Which of the following is not related to Opportunity Identification?

(a) Brainstorming

(b) Pain storming

(c) Causation

(d) Opportunity walks

 Answer (c) Causation

10. A business plan should include:

(a) Technical Analysis

(b) Market Analysis

(c) Financial Analysis

(d) All of the above

Answer (d) All of the above

11. Which of the following is not a personal characteristic often found in entrepreneurs?

(a) Self-Confident

(b) Independent-minded

(c) Perceptive

(d) Follower

Answer (d) Follower

12. Which of the following is a level of learning?

(a) Cognitive

(b) Emotional

(c) Behaviour

(d) All of the above

Answer (d) All of the above

13. Disruptive Innovation generally targets which of the segment:

(a) High Income

(b) Low Income

(c) Both A and B

(d) None of the above

Answer (b) Low Income

14. Which of the followings is not a financial ratio?

(a) Activity Ratio

(b) Divergent ratio

(c) Solvency Ratio

(d) Liquidity Ratio

 Answer (b) Divergent ratio

15. “Dividing the market into niche” is referred to as:

(a) Targeting

(b) Segmentation

(c) Positioning

(d) Niche analysis

Answer (b) Segmentation

16. “The more you understand your competitors, the more effectively you can ………….

(a) Segment your customers

(b) Target your customer

(c) Position your enterprise 3

(d) Plan your sales strategy

Answer (c) position your enterprise 3

17. Which of the following customer groups can be targeted using discount cards, pass out free coffee coupons at events, and offer entertainment on weekends.

(a) Tourists

(b) Local residents

(c) Students

(d) Local businesses

Answer (c) Students

18. Having more than one customer segment:

(a) can never be beneficial as this make an entrepreneur lose focus

(b) can never be beneficial as it brings in undesired complexity

(c) can be beneficial as it helps maintain consistent business throughout the year

(d) can be beneficial as it helps reduce costs.

Answer (c) can be beneficial as it helps maintain consistent business throughout the year

19. The central construct in entrepreneurship is _______________

(a) Performance

(b) Opportunity

(c) Structure

(d) Outcomes

Answer (b) opportunity

20. Stress can be coped up by doing ……

(a) Yoga

(b) Meditation

(c) Exercise

(d) All of the above

Answer (d) All of the above

21. Double Diamond Model helps is:

(a) New Venture Ideation

(b) Collaboration

(c) Networking

(d) Internationalisation

Answer (a) New Venture Ideation

22. Educate, Stimulate and Incubate can be used in:

(a) Helping Student Start-ups

(b) Helping Existing Family Firms

(c) Helping only Women led Enterprises

(d) None of the Above

 Answer (a) Helping Student Start-ups

23. Hands on learning can be best taught through:

(a) Case Study Analysis

(b) Entrepreneurial Audit

(c) Entrepreneur Profiling

(d) All of the above

Answer (d) All of the above

24. Industry-Academia-Government linkages in an academic campus helps in:

(a) Propagating new business ideas

(b) Sourcing business problems to work

(c) Getting governments’ perspectives of business issues

(d) All of the above

Answer (d) All of the above

25. The task of strategy choice involves:

(a) Developing plans and activities which will improve the organisation’s performance and competitive position

(b) Determining how the organisation can be more market and efficiency oriented

(c) Monitoring whether the organisation is achieving good financial performance

(d) Keeping the organisation free of debt

Answer (a) developing plans and activities which will improve the organisation’s performance and competitive position

26. Which one of them is a type of innovation?

(a) Abruption

(b) Disruption

(c) Interruption

(d) Solvation

 Answer (b) Disruption

27. Creativity primary involves




(d)Craft Work

Answer (a) Ideas

28. Which one of them is a test to assess creativity among students?

(a)EC Test

(b)Big 5 Personality Test

(c)Torrance test


Answer (c)Torrance test

29. One of the major aspects of innovation is




(d)Human Resources

Answer (c)Marketing

30. Age is considered to be

(a) Directly proportional to creativity

(b) Inversely proportional to creativity

(c) Directly proportional to innovation

(d) Inversely proportional to innovation

Answer (b) Inversely proportional to creativity

31. Which is not one of the chief characteristics of an entrepreneur?

(a) personal initiative

(b) ability to consolidate resources

(c) desire for control of people

(d) risk taking

Answer (c) desire for control of people

32. Most entrepreneurs should be categorized as

(a) inventors

(b) innovators

(c) lucky

(d) wealthy

Answer (b) innovators

33. With persistent problem solving, entrepreneurs

(a) Must daydream all day

(b) Can’t multi-task

(c) Think anything is possible

(d) Are always delegating

 Answer (c) think anything is possible

34. One factor not found in high achievers is

(a) Responsibility

(b) Failure to listen to feedback

(c) Moderate risk taking

(d) Learn from Mistake

Answer (b) failure to listen to feedback

35. When entrepreneurs believe that their accomplishments and setbacks are within their own control and influence, they are exhibiting

(a) Persistent problem-solving

(b) Internal locus of control

(c) External locus of control

(d) Opportunity orientation

Answer (b) internal locus of control

36. In starting or buying a new business, the higher the rewards, the

(a) risk is then minimized

(b) greater the risk

(c) greater the size of a business

(d) smaller the enjoyment

Answer (b) greater the risk

37. Which of the following may be the greatest risk to the well-being of the entrepreneur?

(a) Social risk

(b) Financial risk

(c) Psychic risk

(d) Family risk

 Answer (c) psychic risk

38. Stress can be dealt with by:

(a) Networking

(b) Delegating

(c) Both a and b

(d) Working harder

Answer (c) both a and b

39. Which of the following is not a way to combat stress?

(a) Acknowledging its existence

(b) Ignoring coping mechanisms

(c) Probing personal unacknowledged needs

(d) Taking a few days off

 Answer (b) ignoring coping mechanisms

40. Maximum number of Partners in case of Banking Business Partnership Firm

(a) 15

(b) 10

(c) 5

(d) 20

  Answer (b) 10

41. Minimum number of members for formation of Public Limited Company is

(a) 7

(b) 5

(c) 3

(d) 2

   Answer (a) 7

42. Limited Liability Partnership Firm’s turnover should not exceed Rs…………. Lacs for being exempted from Audit

(a) 25

(b) 100

(c) 40

(d) 20

Answer (c) 40

43. Which of the following is not a Legal Business Structure in India?

(a) Limited Liability Partnership

(b) Private Limited Company

(c) Public Limited Company

(d) Limited Liability Company

 Answer (d) Limited Liability Company

44. Which one of the following factors has the least influence on plant capacity?

(a) Input constraints

(b) Investment cost

(c) Organisational condition

(d) Market conditions

Answer (c) Organisational condition

45. Which of the following is not a relevant question in judging the appropriateness of technology?

(a) Whether the technology utilizes local raw materials?

(b) Whether the technology utilizes local manpower?

(c) Whether the technology comes from the orient [manufacturers]?

(d) Whether the technology protects ecological balance?

Answer (c) Whether the technology comes from the orient [manufacturers]?

46. The choice of technology is generally not influenced by the

(a) Ease of operation

(b) Ease of absorption

(c) Use by other units

(d) Plant capacity

 Answer (a) Ease of operation

47. Proximity to the source of raw material may not be very important for:

(a) Steel plant

(b) Refinery

(c) Cement plant

(d) Both a and b

Answer (b) Refinery

48. Which one of the following is not a source of positive net present value?

(a) Product differentiation

(b) Industry standing; no growth

(c) Marketing reach

(d) Economy of scale

Answer (b) Industry standing; no growth

49. What is an elevator pitch?

(a) a conversation that happens in an elevator

(b) a long and elaborate presentation

(c) a brief persuasive speech

(d) a brief instructive speech

 Answer (c) a brief persuasive speech

50. Ethos Pathos Logos are tools used for:

(a) Giving instructions

(b) Persuasion

(c) Warning employees

(d) Dealing with negative messages

 Answer (b) persuasion

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