INTRODUCTION TO ENTREPRENEURSHIP

1. Define free Enterprise:

A business taking risk to make a profit
A program administered by the govt.
People in business trying to make a profit
A business adventure or undertaking.
2. Who can start a business?
Only highly educated person
Only an uneducated person
Only rich person
Any one of the above
3. While selecting line a business,an entrepreneur must keep in his mind
Profitability
Risk involved
Profits
All above
4. What are the 3s in the 3s model of entrepreneurship?
Stimulatory, support, Sustenance
Support, Stimulatory, Sustenance
Sustenance, Stimulatory, Support
System , Support, Stimulatory
5. Which of the following is not a part of three of entrepreneurship?
Income generation
Sales
Self employment
Entrepreneurship
6. Which of the following management concept is most difficult to understand?
Intrapreneurship
entrepreneurship
7. external links may provide incentives to:
raise finance
introduce new working practice
ENTREPRENEUIRIAL MOTIVATION AND COMPETENCIES

8. which term is often used interchangeably with the term motivation?

personality
emotion
need
perception
feelings
9. motivation:
is an external process
a primary reinforce
an internal drive state
an intrinsic incentive
10. competencies are:
the abilities and skills
inly skills
only abilities
the strengths & weaknesses
11. the word competency may include 3 elements except?
Knowledge
Need
Motives and traits
Skills
12. Which one of the following is not included in manifests need theory?
Need for affirmation
Need for power
Need for affiliation
Need for achievement

BUSINESS COMMUNICATION SKILLS FOR SMALL BUSINESS

13. Soft skills are known as:

Hard skills
Communication skills
 People skills
None of skills
14. Most important link in communication process is
massage
Sender
Feedback
decoder

15. following Is/Are common soft skills:

Communication skills
Strong work ethics
Problem solving
All of these

16. Hard skills and soft skills are:

Same
Different
Complementary
None of these
17. Informal negotiation involves:
Four people
Three people
Two people
Any number of people

PRODUCTION AND OPERATION MANAGEMENT

18. Operation management is a ____________process.

Translation
Transformation
 Transaction
Transition
19. The size of the product range or number of service offered is called__________?
Validity
Variability
Value
Variance
20. Production and operation management are classified is following except:
Plant
Product
People
Place
21. CPM is:
Critical project management
Critical path management
Critical path method
Crash project method
22. Which of these managers would be least likely to be considered in an operations
management role within an organization?
Production manager
Reservations manager
Financial manager
Quality manager

QUALITY CONTROL,TQM WITH RESPECT TO SMALL BUSINESS

23. Graphical representation of tabulated frequencies is known as:

Cause and effect diagram
Histogram
Brainstorming
Flow chart
24. TQM refers to?
Total quality management
Total quantity management
Total quotient management
 Total quality marketing
Total quantity marketing
25. A temporary team consisting primarily of workers who share a problem and meet
regularly until the problem is solved is called?
Quality circle
Quality improvement team
Quality control team
Support team
R&D

FINANCIAL MANAGEMENT

26. Which of the following is a technical flew in the profit maximization objective:
Ambiguity
Timing of benefit
Quality of benefit
All of the above
27. Which of the following is the type of financial plans?
Long- term financial plan
Short - term financial plan
 Medium- term financial plan
All of the above
28. Which of the following situation represents sound and efficient financial position:
Capitalization
Over- Capitalization
Under- Capitalization
None of the above
29. Which of the following factors is not important for considering capital structure:
Trading and equity
Purpose of financing
Number of directors in the company
30. Finance is considered as :
Life-blood of the business
Heart of the business
Head of the business
None of the above

MARKETING MANAGEMENT

31. The controllable variables a company puts together to satisfy target group is called?
Marketing strategy
Marketing mix
Strategy planning
Marketing concept
32. Which of the following is not included in the definition of marketing concepts?
Total company profit
Profit
Productivity
Customer satisfaction
 33. Which of the following is not marketing mix four ps?
Product
Place
Profit
Price

STRATEGIC PLANNING FOR SMALL BUSINESS

34. Which of the following is not an integral part of the strategic management process?
Developing mission and objective
Developing a business model
Environment scanning
Formulation and implementation
Evaluation
35. A statement about what an organization wants to become, which sets out an organizations
future is referred as?
Mission
Vision
Values
 Strategic context
36. SWOT is an acronym for:
Strategic, working, opinion, tactical
Strengths, weaknesses, opportunities, threats
Strategy ,work, openness, toughness
Strategy, weaknesses, opinions, tactics
37. A statement that sets out what the organization wishes to achieve in the long term is
referred to as :
Mission
Vision
Values
Strategic context

FRANCISING

38. McDonalds is an example of a __________franchise.

Conversion forms
Trade name
Product distribution
Pure
39. Franchising association of India was set up in:
Mumbai in 2000
Delhi in 1998
Gujarat in 2002
Bangalore in 1999
40. The main type of franchise is /are:
Product distribution franchise
 Business format franchise
Management franchise
None of these
41. Product distribution franchise also known as:
Service name franchising
Commodity name franchising
Trade name franchising
None of the above
42. Identify the incorrect statement about franchising
It enhance business image
Helps in economics of scale
It enhance risks of failure
Ensures consistent quality
43. The key attraction for franchising during early 20th century were:
Low capital requirement
Laws
Language
All of the above

VENTURE CAPITAL FINANCING

44. Which is the most important source of funding for start ups?
Loan from a friend
Venture capital
Local financiers
Debentures
45. Which is the first stage in venture capital financing?
Expansion
Early
Start up
Seed
46. Mezzanine refers to:
Bridge representing expansion and IPO
Capital for physical expansion
Technical expertise
Support for product development
47. Which of these is not a type of venture capital?
 Structured debt
Subordinate debt
debentures
convertible cumulative preference shares
48. venture capital comes from:
wealthy investors
financial institution
investment banks
all of these
49. Business expansion costs include:
Sales and distribution
Parts and inventory
Hiring ,training and marketing
All of these
50. Which of the following are generally not in consideration of venture capitalists?
Small firms
Large firms
Medium firms
None of the above

BUSINESS ETHICS

51. The additional ps of marketing are_____

People ,physical evidence, package
People ,physical evidence, process
People, process, packaging
physical evidence, process, packaging
52. one of the features of marketing is to_____
it is multi-tasking
it is multi-purpose
it is multi-disciplinary
it is multi-natured
53. pricing is one of the essential components of_____
promotion mix
marketing mix
product mix
STP strategy
54. When each party has something that could be of value to other party, it results into____
Exchange process
Marketing process
Market place
 Money exchange
55. One of the disadvantage of branding us___
It is negative
It is competitive
It is costly
It is risky
56. Advertising is a part of __________________ function____
Distribution
Selling
Promotion
Pricing
57. One of the characteristics of business market is__
Few buyers
Many buyers
Daily buyers
Small buyers

BUSINESS OPPORTUNITY IDENTIFICATION

58. Entrepreneurial opportunities can be explained by:

Focusing on the individual entrepreneur
His environment
The actual activities undertaken by the entrepreneur during the start-up process
All of the above
59. General theory of Entrepreneurship is given by:
Shane
Schumpeter
Drucker
Hayek
60. Which of the following is not a schumpetarian opportunity?
Disequilibriating
Requires new information
Common
Very innovative
61. Which of the following is not factor used in assessing market potential for a business:
Demand
Govt. Policy
Income levels
Inflation rate
62. Market Trend issues involves:
Market Volatility
 Market expansion
Market trends
All of the above
63. Wage rates and income Disparity are components of:
Economic factors
Cultures factors
Demographic factors
Industrial factors
64. Business competition helps in:
Giving choices to customers
Improving quality of products
Reducing prices of products
All of above

SOURCES OF ASSISTANCE

65. An entrepreneur requires continuous flow of funds for the following reason:
Setting up a business
Regular upgradation
Modernization of individual unit
All of the above
66. Which of the following is not involved in providing assistance to entrepreneurs?
Central Govt.
State Govt.
Commercial Banks
None of the above
67. Deferred payment guarantees:
Capital expenditure support
To support purchase of capital equipments
Short term liquidity
None of the above
68. NSIC stands for:
National Sectoral Institutional Commission
National small industries corporation
National service industry council
New services and infrastructure corporation
69. Small business investment centres are licensed and regulated by
Central Govt.
State Govt.
NSIC
Small Business administration
70. Kisan vikas card and kisan sampathi are schemes provided by;
SBI
Andhra Bank
SIDO
NSIC
71. There are__________ SFCs in India;
12
15
18
21
HUMAN RESOURCES PLANNING
72. Which of the following is not considered while identify pressure and opportunities:
Political structure
Economic condition
Technology
Competition
73. Which of the following is not considered while clarifying business strategy and direction:
Construct facility
Produce product &ship
Improve technology
Expand markets
74. Succession planning is:
Planning for changes in management
Making successful plans
Reviewing plans at regular terms
Planning by top management
75. Which of the following is considered before determining the feasibility of hiring?
The cost of hiring
The benefits of hiring
The risks of not hiring
All of the above
76. Which of the following is feature of a personnel manual?
Lucid language
Easy to understand
Precise
All of these
77. Which of the following is not a constituent of personnel manual?
Pay policy
Termination policy
Dress code
None of the above
78. Market expansion can be done through:
 Increasing line staff
Appointing additional supervisors
Appointing additional administrative assistance
All of these

TOTAL QUALITY MANAGEMENT

79. Which of the following is not a part of the total quality approach?
Holistic thinking
Focus on short-term financial performance
Focus on desirability
Team thinking
80. Which of the following is not a part of the deming cycle?
Plan
Do
Consider
All of the above are part of the deming cycle
81. Which of the following is not one of the commitments of total quality management?
Technical quality
Understanding and improving the organization process
Data based decision making
Employee involvement
82. Which of these is not a component of jurans triology ?
Quality planning
Quality control
Quality improvement
Quality generation
83. Choose the correct match of the following:
SEIRI- Cleanliness
SEITON- Orderliness
SEISO- Tidiness
SEIKETSU-Discipline
84. Relationship between customers and suppliers in known as;
Quality circle
Quality chains
Welfare chain
None of these
85. Identify the intangible benefits of TQM?
 Enhancement of job interest
Enhanced problems solving capacity
Better company image
All of these

EXPORTS

86. Export can be defined as:

Transport of commodity from a country to another in a legitimate fashion
Transfer payments abroad
Transfer of commodity for non economic purpose
None of the above
87. Which of the following are advantages of exports ?
Increased market size
Market suitability
Currency benefits
All of the above
88. ECGC stands for;
Export Credit Guarantee Corporation
Export Cum Guarantee Corporation
Excise Credit Guarantee Corporation
Excise Cum Guarantee Corporation
89. Which region has highest membership of FIFO in India?
North
South
West
East
90. To minimize the risk of payment by the importer the exporter can sell account receivable
to a third party called
Factor
Bank
LIBOR
None of these
91. Which of these is not an export incentive?
Free trade zone
Software technology park
Duty drawback
Export promotion council
92. Which of the following document are required for the processing of the Shipping Bill:
GR forms
Copies of invoice
 Contract L/C purchase order
All of these

93. Competencies are:

The abilities and skills
Only skills
Only abilities
The strengths & weaknesses
94. Operations can be diagnosed by volume ,variety, variation and ______?
Validity
Variability
Value
variance
95. locus of innovation, strength of patents and market size are components of:
political factor
economic factor
cultural factor
industrial factor
96. loan syndication refers to :
loan from more than one bank
redemption of principal of loan
loan of a small amount
none of these
97. some common source(s) of equity and debt financing is/are:
banks
credit cards
family and friends

all of the above
98. Hiring the wrong people can lead to:
Underachievement
Excess production
Business failure
A and C only
99. When calculating the full cost of hiring a new employee you must consider:
Labour costs
Recruiting costs
Both A and B
None of the above
100. Venture capital is provided to a firm at:
Final stage of development
Formation of company
Liquidation of company
Early stage of development

101. Which among the following is an example for non-profit organization?

Hotel
Hospital
Charitable society
University

102. Personal capability factors are strengthened by psychological factor such as:
Extroversion
Need for achievement
Both a and b
None of these
103. Which of the following is not a constituent of personnel manual?
Pay policy
Termination policy
Dress code
None of the above
104. Human resources planning is characterised by:
An ongoing process
Future forecasting
Manpower planning
All of these
105. Quality improvement includes:
Suggestion system
Automation
Kanban
All of these
106. Establish measurement and standard of performance is a component of :
Quality planning
Quality control
Quality improvement
None of these

107. Which of these is not a principles of TYQM?

Every job must add value
Individual performance
 Creativity promotion
Waste promotion
108. Which of these can act as barriers to TQM?
Improper planning
Lack of employees commitment
Lack of effective communication
All of these
109. A vision statement is:
A forecast of future trend in business
Short declaration of what an organization aspires to be tomorrow
A long term goal
Short term departmental goals
110. A mission statement is:
Clear statement of purpose for the employee, customers and suppliers
Philosophy of the organization
None of these
111. Antiquity measurement is issued by:
Archaeological survey of India in case of antiques
CBEC
EXIM bank
Customers department
112. Which of the following is not among the formats presented for the Shipping Bill:
White Shipping Bill
Green Shipping Bill
Yellow Shipping Bill
Grey Shipping Bill
113. Goods and services produced provided to foreign consumers by domestic
producers
Export
Import
Entrepot
None of the above

114. Schemes by NSIC facilitate:

Technology support
Marketing support
Credit support
 All of these
115. Common sources of financing does not include:
Leasing
Private placement
Trade credit
None of the above
116. A potential market constitutes people who:
Are willing to buy
Are able to buy
Both a and b
None of these
117. Which of these do not constitute a Govt. policy
The opening and closing hours for business
Product characterizations
The licensed customers that the business can serve
Taxation policies
118. Which of the following is not a factor used in assessing market potential for a
business?
Demand
Govt. policy
Income levels
Inflation
119. When the target market views a brand as one more entry in the market, it is called
as__
Over positioning
Confused positioning
Under positioning
Doubtful positioning
120. Third stage financing involves capital provided for:
Physical plant expansion
Product improvement
Marketing
All of above

121. A royalty is paid for:

The trademark
The location
The human resources
The technical support
122. Which of the following do not constitute as a payment to the franchisor?
Fee for disclosure
 Front end fee
Royalty
Honorarium
123. A Gantt chart indicates:
Activities occurring in parallel
Elapsed time of different activities on project
Overall elapsed time on project
The sequence of activities
None of the above
124. Motivation:
Is an external process
Is innate
Is an internal drive state
An intrinsic incentive
125. Competencies are:
The abilities and skills
only skills
only abilities
the strengths & weaknesses
126. The word competency may include 3 elements except?
Knowledge
Need
Motives and traits
Skills
127. Basic ways to improve process in I/O model includes
To reduce resources
To reduces errors
To meet exceed customers needs
All of the above

128. PDSA cycle is also known as:

Quality circle
Deming cycle
Dorming cycle
None of these
129. Recruiting costs do not includes:
Vacancy advertising
Time spent on training
Advertising products
Includes all of the above
130. HR planning takes into consideration the following:
 Company goals and objective
Product lines plan
Need for changes in technology
All of the above
131. Issues with family succession includes:
Splitting the business
Lack of corporate culture
Uncertainty of childrens interest in business
All of the above