Assistant Director (Ministerial), DDA
‘Entrepreneurship’ Test
Q1. Which of the following shows the process of creating something new:
A. Business model
B. Modeling
C. Creative flexibility
D. Innovation
Q2. The entrepreneur was distinguished from capital provider in:
A. Middle ages
B. 17th century
C. 18th century
D. 19th and 20th century
Q3. 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
Q4. 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
Q5. EDP (Entrepreneurship Development Programmes) is required to help:
A. Existing entrepreneurs
B. First generation entrepreneurs
C. Future generation entrepreneurs
D. None of the above
Q6. A Micro Enterprise is an enterprise where investment in plant and machinery does not
exceed (According to MSMED Act, 2006):
A. Rs. 25 Lakh
B. Rs. 20 Lakh
C. Rs. 15 Lakh
D. Rs. 30 Lakh
Q7. 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
Q8. 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
Q9. 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
Q10. An individual who initiates, creates and manages a new business can be called
.
A. A leader
B. A manager
C. A professional
D. An entrepreneur
Q11. Which could provide an individual with the motivation to start a new business
venture?
A. The financial rewards.
B. A desire to be independent.
C. Risk taking
D. All the above.
Q12. Why are small businesses important to a country’s economy?
A. They give an outlet for entrepreneurs.
B. They can provide specialist support to larger companies.
C. They can be innovators of new products.
D. All the above.
Q13. is the first development bank of the country.
A. ICICI.
B. IDBI.
C. SFC.
D. IFCI.
Q14. IFCI stands for .
A. Industrial Finance Corporation of India.
B. Institutional Finance Corporation of India.
C. Industrial funding corporation of India.
D. Indian Finance Corporation and institution.
Q15. Large investment is made in fixed assets, the project will be termed as .
A. Capital Intensive.
B. Labour Intensive.
C. Product Intensive.
D. Market Intensive.
Q16. New Small Scale industries are exempted from the payment of income tax under
section 80J is called .
A. Development Rebate
B. Investment Allowance
C. Rehabilitation Allowance
D. Tax Holiday
Q17. An individual who initiates, creates and manages a new business can be called
.
A. A leader
B. A manager
C. A professional
D. An entrepreneur
Q18. Why are small businesses important to a country’s economy?
A. They give an outlet for entrepreneurs.
B. They can provide specialist support to larger companies.
C. They can be innovators of new products.
D. All the above.
[Link] a business grows, time management continues to be an issue, but the
entrepreneur’s major concern usually becomes:
A. Setting goals
B. Finding, retaining, and motivating qualified employees
C. Measuring performance.
D. All of the above.
Q20. An entrepreneur who owns more than one business at a time is called .
A. An intrapreneur
B. A corporate entrepreneur.
C. A portfolio entrepreneur.
D. None of the above.
Q21. Idea of new product is tested in potential consumers to determine consumer
acceptance at stage.
A. Concept.
B. Product development.
C. Test marketing.
D. Commercialization.
Q22. Which one of the following describes unemployment?
A. The number of people who voluntarily choose not to work.
B. The number of people who are jobless and are actively seeking work.
C. The number of people who are not actively seeking work.
D. The number of people actively seeking work who find work.
Q23. Which one of the following is not considered as one of the building blocks of the
model entrepreneur?
A. Technical skills.
B. Management competencies.
C. Business awareness.
D. Personal attributes.
Q24. The purpose of soft loan scheme is to encourage units to undertake .
A. Modernization of plant and machinery.
B. Replacement of plant and machinery.
C. Renovation of plant and machinery.
D. All the above
Q25. Seed capital assistance is .
A. A long-term assistance.
B. Initial assistance
C. A help for the purchase of seeds.
D. A short-term assistance.
26. is primarily concerned with the identification of the project demand
potential and the selection of the optimal technology.
A. Techno-economic analysis
B. Feasibility analysis
C. Input analysis
D. Financial analysis
27. Promoter is a person who .
A. Takes part in the incorporation of a company.
B. Is a director.
C. Is a relative of the Managing Director
D. Works to publicity to the company.
28. Which of the following is not an aspect of appraisal of term loans by commercial banks?
A. Financial
B. Technical feasibility.
C. c) Economic feasibility.
D. Societal feasibility.
29. The application for registration of a small scale unit should be submitted to the .
A. General Manager, DIC.
B. Director, DIC.
C. General Manager. NSIC.
D. Director, NSIC.
30. A decision which is non-repetitive and novel nature and required to solve unstructured
problem is called as .
A. Programmed decisions.
B. Non -programmed decisions.
C. Routine decisions.
D. Strategic decisions.
31. is primarily concerned with the identification, qualification and evaluation
of the project resources.
A. Techno-economic analysis.
B. Feasibility analysis.
C. Input analysis.
D. Financial analysis.
32. Industries producing complete articles for direct consumption & also processing
industries are called as .
A. Manufacturing industries.
B. Feeder Industries.
C. Service Industries.
D. Mining or Quarrying.
33. implies the availability or otherwise of plant and machinery and
technical know-how to produce the product.
A. Economic viability.
B. Financial feasibility.
C. Technical feasibility.
D. Managerial competence
34. Decisions taken by an entrepreneur on behalf of his enterprise are known as .
A. Organizational decisions.
B. Personal decisions.
C. Routine decisions.
D. Strategic decisions
35. Decisions which are concerned with policy matters and exercise fundamental influence
on the objectives of the organization are called as .
A. Organizational decisions.
B. Personal decisions.
C. Routine decisions
D. Strategic decisions.
36. may be defined as the excess of present value of project cash inflows
over that of out flows.
A. Net present value technique.
B. Average rate of return.
C. Benefit-Cost ratio.
D. Internal rate of return
37. is the analysis of costs and benefits of a proposed project with the goal
of assuming a rational allocation of limited funds.
A. Project formulation.
B. Project evaluation.
C. Project appraisal.
D. Project Design.
38. is a graphical representation of the various activity and event relating to
a project.
A. Network
B. Scheduling technique.
C. Logical Model.
D. Network Diagram
39. is primarily concerned with the identification of the project demand
potential and the selection of the optimal technology.
A. Techno-economic analysis.
B. Feasibility analysis.
C. Input analysis.
D. Financial analysis.
40. New Small Scale industries are exempted from the payment of income tax under
section 80J is called .
A. Development Rebate.
B. Investment Allowance.
C. Rehabilitation Allowance
D. Tax Holiday
41. Large investment is made in fixed assets; the project will be termed as .
A. Capital Intensive
B. Labour Intensive.
C. Product Intensive.
D. Market Intensive.
42. can be defined as a specifically evolved work plan designed to achieve a
specific objective within a specific period of time.
A. Idea generation.
B. Opportunity Scanning.
C. Project.
D. Strategy.
43. EDPs course contents contain .
A. General introduction to entrepreneurs.
B. Motivation training.
C. Managerial skills.
D. All the above
44. A commercial banker would prefer a debt-equity ratio over the years as it
indicates financial strength of a unit.
A. Declining.
B. Increasing.
C. Stable.
D. Fluctuating.
45. Goods or services reach the market place through .
A. Marketing channels.
B. Multilevel pyramids.
C. Monopolies.
D. Multiplication.
46. Someone legally appointed to resolve the financial difficulties of an insolvent firm is
called .
A. An administrator.
B. A predator.
C. An auditor.
D. A turnaround consultant
47. 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
48. To provide financial assistance to entrepreneurs the government has set up a number
of .
A. Financial advisors.
B. Financial intermediaries.
C. Industrial estates.
D. Financial institutions.
49. LOB stands for .
A. Line of Business.
B. Line of Balance
C. Loss of Business.
D. Loss of Balance
50. District Industries Centers are located .
A. In each district.
B. In each state.
C. Only in selected districts.
D. Only in selected states.
51. Which of the following is not an inventory?
A. Machines
B. Raw material
C. Finished products
D. Consumable tools
52. The time period between placing an order its receipt in stock is known as:
A. Lead time
B. Carrying time
C. Shortage time
D. Over time
53. The accounts payable, accruals and notes payables are listed on balance sheet as
A. Accrued liabilities
B. Current liabilities
C. Accumulated liabilities
D. Non-current liabilities
54. The cash and equivalents, inventories and accounts receivables are classified as
A. Assets on balance sheet
B. Liabilities on balance sheet
C. Earnings on income statement
D. Payments on income statement
55. In the situation of bankruptcy, the stock which is recorded above common stock and
below debt account is:
A. Debt Liabilities
B. Preferred Stock
C. Hybrid Stock
D. Common Liabilities
56. According to accounting equation assets are equal to?
A. Liabilities
B. Liabilities and equities
C. Equities
D. None of these
57. The results of business activities are reflected in
A. Profit And Loss Account
B. Profit And Loss Appropriation Account
C. Balance Sheet
D. None Of These
58. Balance sheet is a statement which discloses an organization’s
A. Assets
B. Liabilities
C. Owner’s Equity
D. All Of These
59. Current liabilities need to be paid
A. Within One Accounting Cycle
B. Beyond One Accounting Cycle
C. Within 3 Years
D. Within 6 Months
60. Which of the following is a financial asset?
A. Inventories
B. Equipment
C. Loan to an associate
D. Accounts receivable
61. The cash flow statement consists of which of the following sections?
A. Operating and non-operating
B. current and non-current
C. operating, investing and financing
D. trading and financial
62. When does an accountant record a transaction?
A. If It Is Materialized By A Concrete Document
B. If It Has A Tax Implication
C. On Manager’s Demand
D. None Of These
63. Which of the following describes a record of the transactions?
A. General ledger
B. Income statement
C. Balance sheet
D. Journal
64. Earnings are the result of the difference between
A. Revenue And Assets
B. Revenue And Liabilities
C. Liabilities And Expenses
D. Revenue And Expenses
65. Which of the following equations represents the balance sheet?
A. Assets + Liabilities = Shareholders’ Equity
B. Assets = Liabilities = Shareholders’ Equity
C. Assets = Liabilities – Shareholders’ Equity
D. Assets = Liabilities + Shareholders’ Equity
66. Financially, shareholders are rewarded by
A. Interest
B. Profits
C. Dividends
D. None Of These
67. Process control is carried out:
A. Before Production
B. During Production
C. After Production Control
D. All Of The Above
68. Low cost, higher volume items requires:
A. No inspection
B. Little inspection
C. Intensive inspection
D. 100% inspection
69. High cost, low volume items requires:
A. No inspection
B. Little inspection
C. Intensive inspection
D. 100% inspection
70. A six sigma process has defect level below defects per million opportunities.
A. 3.4
B. 4.5
C. 5.6
D. 6.7
71. The objective of ISO-9000 family of Quality management is:
A. Customer satisfaction
B. Employee satisfaction
C. Skill enhancement
D. Environmental issues
72. The following is (are) the machine down time.
A. Waste
B. No material
C. Breakdown
D. All of the above
73. helps organization reduce employee turnover and absenteeism.
A. Job design
B. Training & development
C. Wage revision
D. All of the above
74. Inspection assures that:
A. Workers are motivated
B. Product meets specification
C. Quality problems are solved
D. Supplier quality is acceptable
75. Procurement cycle time is time consumed for
A. Receiving of raw material
B. Inspection of various raw materials
C. Inspection of purchased components parts
D. All of the above
76. Centralized and decentralized are the types of:
A. Routing
B. Dispatching
C. Scheduling
D. Follow up
77. A is a set of activities which are networked in an order and aimed
towards achieving the goals of a project.
A. Project
B. Process
C. Project management
D. Project cycle
78. Resources refers to
A. Manpower
B. Machinery
C. Materials
D. All of the above
79. Developing a technology is an example of
A. Process
B. Project
C. Scope
D. All of the above
80. The project life cycle consists of
A. Understanding the scope of the project
B. Objectives of the project
C. Formulation and planning various activities
D. All of the above
81. Following is (are) the responsibility (ies) of the project manager.
A. Budgeting and cost control
B. Allocating resources
C. Tracking project expenditure
D. All of the above
82. Following are the phases of Project Management Life Cycle. Arrange them in correct
order
1. Design, 2. Marketing, 3. Analysis and evaluation, 4. Inspection, testing and delivery
A. 3-2-1-4
B. 1-2-3-4
C. 2-3-1-4
D. 4-3-2-1
83. Design phase consists of
A. Input received
B. Output received
C. Both (A) and (B)
D. None of the above
84. Project performance consists of
A. Time
B. Cost
C. Quality
D. All of the above
85. Five dimensions that must be managed on a project
A. Constraint, Quality, Cost, Schedule, Staff
B. Features, Quality, Cost, Schedule, Staff
C. Features, priority, Cost, Schedule, Staff
D. Features, Quality, Cost, Schedule, customer
86. Resource requirement in project becomes constant while the project is in its
progress stage.
A. 40 to 55%
B. 55 to 70%
C. 70 to 80%
D. 80 to 95%
87. Which of the following is a type of intangible business property that is protected by
law:
A. Acreage
B. Inventory
C. Trademark
D. Equipment
88. Limited liability, indefinite length of life, ease of expansion, legal entity, and transfer of
ownership are considered advantages of a
A. Sole Proprietorship.
B. Partnership.
C. Trade Union.
D. Corporation.
89. Which of the following is one way that freedom in a private enterprise system is limited
by laws:
A. Certain occupations must be licensed.
B. All workers must take ability tests.
C. Specific pay scales are regulated.
D. Employees must register with the state.
90. Non-corporations are taxed as pass-through entities, meaning that
A. Profits And Losses Are Claimed On Owners’ Personal Tax Returns.
B. They Do Not Have To Pay Payroll Taxes.
C. Their Income Tax Rates Are Lower Than Those Of Corporations.
D. They Pay Only State And Local Taxes.
91. Which of the following activities is an example of preparing before attempting to sell
an idea:
A. Explaining solutions to audience needs
B. Determining the details of your idea
C. Overcoming objections from the audience
D. Affirming the audience’s decision to “buy”
92. Which of the following statements is true about business start-up requirements:
A. New business owners usually need to register for patent protection.
B. The financial needs to start a new business depend on the nature of the venture.
C. Purchasing a franchise is usually easy and inexpensive for start-up business
owners.
D. Equipment is the least expensive requirement for a start-up business.
93. If an entrepreneur obtains a commercial bank loan to finance a new venture, s/he is
often required to
A. Provide Collateral.
B. Close Savings Accounts.
C. Relinquish Contracts.
D. Charge The Prime-Interest Rate.
94. The type of capital resources that a start-up business needs to begin operating usually
depends on the
A. Vendors’ Lead Time.
B. Location.
C. Owner’s Preferences.
D. Industry.
95. Small-business owners develop and use operating procedures so that everyday tasks
are performed in a (n) way.
A. Innovative
B. Imprecise
C. Diverse
D. Standard
96. Which of the following is an example of an intangible asset:
A. Equipment
B. Inventory
C. Office Building
D. Accounts Receivable
97. What is the relationship between shareholders and the board of directors?
A. The shareholders pay dividends to the board of directors.
B. The board of directors represents the shareholders.
C. The shareholders make decisions for the board of directors.
D. The board of directors holds the shareholders accountable.
98. Who typically reviews and approves the guidelines for running a corporation, which
are also known as corporate governance policies?
A. The Investors
B. The Shareholders
C. The Management Team
D. The Board Of Directors
99. A manufacturing company is required by the local government to dispose of its waste
in an environmentally safe way. This is an example of how process design can be affected
by factors.
A. Human
B. Regulatory
C. Technological
D. Natural
100. Which of the following is a situation in which a business could use the budget
information to make operating changes:
A. Total revenues exceed projected costs.
B. Estimated sales exceed actual sales.
C. Expected profits are increasing.
D. Accounts receivable are on target.