MAHATMA GANDHI INSTITUTE OF TECHNOLOGY

OBJECTIVE QUESTION BANK - 1

PRINCIPLES OF ENTREPRENEURSHIP
_______________________________________________________________________
1. Entrepreneur is known as ______________ [ D ]

A) Risk bearer B) Organizer C) Innovator D) All of the above

2. Reward for an Entrepreneur [ B ]
A) Salary B) Profit C) Salary & Profit D) All of the above
3. An individual who starts, creates and manages a new business can be called_____________________
4. What could turn out to be risks of an entrepreneurial ventures [ D]
A) Product failure B) Business failure C) Concept failure D) All of the above
5. Which of the following is the reason for business failure [ D ]
A) Lack of market research B) Poor financial control C) Poor management D) All of the above
6. ________________ is a method that leads a group of people through an open in depth question [ A ]
A) Focus Groups B) Brainstorming C) Collective Notebook D) Checklist Method
7. In dream approach, its solution is_____________________________________ [ A ]
A) Thinking Big B) Thinking Small C) Thinking Big & Small D) None of the above
8. Which one of the idea generation method uses no criticism in the group [ B ]
A) Focus Groups B) Brainstorming C) Problem Inventory Analysis D) CPS
9. Which one of the method uses both divergent & convergent thinking [ D ]
A) Focus Groups B) Brainstorming C) Problem Inventory Analysis D) CPS
10. Which one of the factor is the major differences between Brainstorming & Reverse Brainstorming[ B ]
A) Freewheeling B) Criticism C) Quantity of ideas D) Combinations & Improvement of ideas
11. Which could provide an individual with the motivation to start a new business venture [ D ]
A) The financial rewards B) A desire to be independent C) Risk taking D) All of the above
12. _______________is the systematic development of an project idea for eventual purpose of arriving at an
investment decision [C ]
A) Project identification B) Project feasibility C) Project formulation D) Project evaluation
13. What is the role of business angel? [B ]
A) To provide small business advice
B) To provide capital for business development in exchange for a stake in the business ownership
C) To setup a franchise business
D) To assist an entrepreneur to open a life cycle business
14. Which of the following statements is false about an E-commerce [C ]
A) Can allow new ventures to complete one or more or less equal terms with larger firms
B) Can lead to small businesses having reduced contact with its customers
C) Is rarely used in small business D) Is used in many different industries & markets
15. Business risk can be__________________________ [ B ]
A) Avoided B) Reduced C) Ignored D) Erased
16. Integrating the project management with the organization takes place with the_______________[ D ]
A) Master budget B) Strategic plan C) Process of managing actual projects D) Both B & C

17. The content of the final report basically includes the following topics_______________________[ D ]
 MAHATMA GANDHI INSTITUTE OF TECHNOLOGY
OBJECTIVE QUESTION BANK - 1
PRINCIPLES OF ENTREPRENEURSHIP
_______________________________________________________________________
A) Executive summary B) Review & analysis C) Recommendations D) All of the above
18. Goods or services reach the market plans through______________________________________[ A ]
A) Marketing channels B) Multilevel pyramid C) Monopolies D) Multiplications
19. Which of the following shows the process of creating something new: [D ]
A) Business model B) Modeling C) Creative flexing D) Innovation
20. A____________ is a professional manager who make risks investment from a pool of equity capital to
obtain a high rate of return on investments [A ]
A) Venture Capitalist B) Businessman C) Entrepreneur D) Buyer
21. To provide the financial assistance to entrepreneur, the Govt. has setup a number of ________ [ D ]
A) Financial Advisors B) Industrial Estates C) Financial Intermediaries D) Financial Intuitions
22. __________ is a problem solving technique designed to produce numerous ideas in a short period[ C ]
A) Synectics B) Delphi Technique C) Brain Storming D) Nominal Group Technique
23. District Industry Centers are located_________ [A ]
A) In each districts B) In each state C) Only in selected districts D) Only in selected states
24. Govt. can help in forming new venture by providing [C ]
A) Finance B) Technology C) Infrastructure D) Subsidiaries
25. Developing a new idea through inquiry and testing is called [C ]
A) Forced Relationship B) Heuristics C) Scientific Method D) Value Analysis Method
26. ___________ describes the direction, the enterprise is going in, what its goals are, where it wants to be
and how it is going to get there [A ]
A) Project Report B) Technical AnalysisC) Market Analysis D) Financial Analysis
27. __________ is a form of financing especially for funding high technology, high risks and perceived high
reward projects [D ]
A) Fixed Capital B) Current Capital C) Seed Capital D) Venture Capital
28. What are the components of project report are_______________________________________ [ D ]
A) Requirement of funds B) Location C) Manpower D) All of the above
29. ______________ is included in the project cost i.e. is estimated on the basis of year when the entrepreneur
break even [ D ]
A) Working Capital B) Cost of Capital C) Cost of Production D) Cost of Equity
30. Entrepreneurship can be best described as_________ [D ]
A) A process that requires setting up a business B) Taking a significant risk in a business control
C) Having a strong vision D) A process involving innovation, new product or services and value creation
31. As a new company grows, the entrepreneur will need to [D ]
A) Be responsive to changes in the market B) Ensure financial controls are maintained
C) Build a management team D) All of the above
32. A valid definition of a business purpose is to_______________________ [A ]
A) Create a Customer B) Maximize Profits C) Serve the Society D) Increase the wealth of the firm
33. Business means_________________ [B ]
A) Commerce B) Industry & Commerce C) Trade Commerce D) Selling & Buying of goods
34. Decisions taken by an entrepreneur on behalf of his enterprise is known as________________ [ A ]
 MAHATMA GANDHI INSTITUTE OF TECHNOLOGY
OBJECTIVE QUESTION BANK - 1
PRINCIPLES OF ENTREPRENEURSHIP
_______________________________________________________________________
A) Organizational Decisions B) Personal Decisions C) Routine Decisions D) Strategic Decisions
35. MSMED stands for _______________________ [A ]
A) Micro Small Medium Enterprises Development B) Mini Small Medium Enterprises Development
C) Micro Small Medium Entrepreneurship Development D) Micro Small Medium Enterprises Department
36. A business arrangement where one party allows another party to use a business name and sell its products
or services is known as _______________________ [C ]
A) A Co-operativeB) An owner – manager business C) A franchise D) A limited company
37. Information regarding all of the following is related to operations, except _________________ [ A ]
A) Promotion B) Location C) Raw Materials D) Labor Skills
38. The application for registration of a small scale unit should be submitted to the______________[ B ]
A) General Manger, DIC B) Director, DIC C) General Manger, NSIC D) Director, NSIC
39. For Internet Startups, one typical source of first funds is through_______________________ [C ]
A) Stock financing B) Govt funds C) Angel financing D) Community development financing
40. The primary concerns when first starting your business are_____________ [C ]
A) Marketing & Accounting B) Planning & Human Resource
C) Financing & Planning D) Financing & Marketing
41. The resistance of employees in an organization against flexibility, growth, and diversification can be overcome by
developing _______________________ [B ]
A) Entrepreneurship B) Intrapreneurship C) Managerial domain D) Administrative domain
42. An entrepreneur doing business within the national border is called _______________________ [C ]
A) International entrepreneurship B) Intrapreneurship C) Domestic entrepreneurship D) Imports
43. Which one of the following is the main problem for the entrepreneur in the beginning stages of creating a new
venture? _______________________ [A ]
A) Lack of experience B) Limited resources C) Lack of education D) None of the given options
44. Which of the following factor can create the managerial difficulties in the joint ventures between foreign
companies? _______________________ [A ]
A) Cultural differences B) Economic policies C) Public ignorance D) Government taxes
45. Which of the following enterprises was found by Akio Morita? _______________________ [D ]
A) Samsung B) Apple C) Panasonic D) Sony
46. An entrepreneur into the hosiery business found out the reason his hosiery was not selling was due to its color. What
could be the best source of this information?_______________________ [B ]
A) Supplier B) Retailer C) Competition D). Government
47. ___________ describes the direction the enterprise is going in, what its goals are, where it wants to be and
how it is going to get there . [A ]
A) Project Report B) Technical Analysis C) Market Analysis D) Financial Analysis
48. Government can help in forming new venture by providing__________ [C ]
A) Finance B) Technology C) Infrastructure D) Subsidiaries