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
Entrepreneurship Development MCQ
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
(a)Ideas
(b)Arts
(c)Risks
(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
(d)OPQ
Answer (c)Torrance test
29. One of the major aspects of innovation is
(a)Production
(b)Finance
(c)Marketing
(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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