M.B.A (Sem.

-III)
Startup and New Venture Management
Multiple Choice Questions
1)
The word Entrepreneur is originally taken from
A)
Greek word
B)
French word
C)
Greece word
D)
Spanish word
Ans: B
2)
The word Entreprendre means
A)
To undertake
B)
To Sustain
C)
To Create
D)
To manage
Ans: A
3)
When selecting a line of action an Entrepreneur must keep in mind
A)
Profit
B)
Risk involved
C)
Profitability
D)
All above
Ans : D
4)
Which one is not the function of an entrepreneur
A)
Turning ideas into action
B)
Generating employment
C)
Shutting down the existing business
D)
Planning
Ans: C
5)
According to _________________ innovation is the important characteristic
of an
entrepreneur
A)
Peter Drucker
B)
Schumpeter
C)
Cantillion
D)
J.B.Say
Ans: B
6)
Point out the quality of an entrepreneur
A)
Initiation
B)
Lack of confidence
C)
Lack of decision making
D)
Self Appreciation
Ans: A
7)
What is an entrepreneur?
A)
Someone who do not want to earn profit.
B)
Someone who makes a lot of money.
1
M.B.A (Sem.-III)
Startup and New Venture Management
C)
Someone who identify the needs of customer and makes innovations.
D)
Someone who don’t take risk
Ans: C
8)
Define Free Enterprise:
A)
A business taking a risk to make a profit.
B)
A program administered by the Government.
C)
People in business trying to make a profit.
D)
A business adventure or undertaking.
Ans: A
9)
This is basically the behaviour of the person which has some distinct characteristics
A)
Entrepreneurial
B)
Entrepreneurship
C)
Enterprise
D)
Entertainment
Ans: A
10)
According to J.B.Say entrepreneur is
A)
Innovator
B)
Inventor
C)
Mentor
D)
An Economic agent
Ans: D
11)
This kind of entrepreneurs are characterised by readiness to adopt successful
innovations
created by innovative entrepreneurs.
A)
Innovative Entrepreneurs
B)
Imitative Entrepreneurs
C)
Agripreneurs
D)
Traders
Ans: B
12)
Entrepreneurs of this type are very cautious and skeptical while practicing any
change
A)
Innovative Entrepreneurs
B)
Imitative Entrepreneurs
C)
Fabian Entrepreneurs
D)
Drone Entrepreneurs
Ans: C
13)
Which of the following is not a type of Entrepreneur
A)
Modern Entrepreneur
B)
Technical Entrepreneurs
C)
Classical Entrepreneur
D)
Intrapreneur
Ans: D
2
M.B.A (Sem.-III)
Startup and New Venture Management
14)
Enrepreneurship is _____________
A)
Practice
B)
Habit
C)
Process
D)
Action
Ans: C
15)
Theory of High Achievement Motivation is given by
A)
Schumpeter
B)
Kilby
C)
McCelland
D)
Staley and Morse
Ans: C
16)
Which of the following is not economic factors affecting entrepreneurial growth
A)
Capital
B)
Labour
C)
Raw material
D)
Custom
Ans: D
17)
“Entrepreneurs are innovators who use a process of shattering the status quo of the
existing
products and services, to set up new products, new services.”
A)
J.B.Say
B)
Peter Drucker
C)
Schumpeter
D)
Albert Shapero
Ans. C
18)
Entrepreneur plays following role:
A)
Economic Growth and Prosperity
B)
Balanced Regional Development
C)
Innovator
D)
All of the above
Ans. D
19)
Following is the important Quality of Entrepreneur
A)
Self Confidance
B)
Over Confidence
C)
To Dominate others
D)
Criticism
Ans: A
20)
Danhof classifies entrepreneur in how many types?
A)
2
B)
3
C)
4
3
M.B.A (Sem.-III)
Startup and New Venture Management
D)
1
Ans. D
21)
Which of the following is not the type of Entrepreneur as per Arthur H Cole
A)
Empirical
B)
Fabian
C)
Rational
D)
Cognitive
Ans. B
22)
Entrepreneurship is defined as a Systematic innovation ,which consists in the
purposeful
and organized search for changes ,and it is the systematic analysis of the
opportunities
such changes might offer economic and social innovation
A)
Peter Drucker
B)
Heggins
C)
Mc Clelland
D)
Schumpeter
Ans. A
23)
Which of the following is a recommended strategy for retailers when consumers
select the
outlet first and the brand second?
A)
Appropriate pricing
B)
Brand availability advertising
C)
Brand image management
D)
price special on brands
Ans: A
24)
Which of the following is a recommended strategy for manufacturers when
consumers
select the outlet first and the brand second?
A)
Retailer image advertising
B)
More exclusive distribution
C)
point-of-purchase displays
D)
Price special on brands
Ans: C
25)
Consumers acquiring product through mail, telephone, or computer orders is referred
to as
_____
A)
Outsourcing
B)
Outlet shopping
C)
non-traditional shopping In-home shopping
D)
all of the above
Ans: D
26)
Which of the following is a category of products and services based on their
purchase
characteristics relative to Internet shopping identified by Forrester Research?
A)
“high-touch” goods
B)
Search goods
C)
Replenishment goods
D)
Adventurous goods
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M.B.A (Sem.-III)
Startup and New Venture Management
Ans: C
27)
Which of the following category of products and services identified by Forrester
Research
based on their purchase characteristics relative to Internet shopping consists of
moderate
cost, high-frequency purchases?
A)
Replenishment goods
B)
Researched items
C)
Convenience items
D)
Shopping goods
Ans: A
28)
Which of the following are the major reason consumers give for shopping online?
A)
Want product delivered
B)
Unique merchandise Price
C)
Impulse
D)
Convenience
Ans: D
29)
Sales for which product or service classified, as “researched items” are the highest?
A)
Food& beverage
B)
Travel
C)
Automotive parts
D)
Computer hard/software
Ans: B
30)
The major reason people give for not shopping on the Internet is _____.
A)
Lack of “touch”
B)
Security concerns
C)
Too difficult
D)
Unfamiliar merchants
Ans: B
31)
MVM (My Virtual Model) helps consumers shopping online overcome which barrier?
A)
Security
B)
Information quantity
C)
Lack of touch
D)
Flow
Ans: C
32)
Which of the following is an online shopper segment?
A)
Shopping Lovers
B)
Adventurous Explorers
5
M.B.A (Sem.-III)
Startup and New Venture Management
C)
Suspicious Learners
D)
all of the above
Ans: D
33)
Which of the following is NOT an online shopper segment?
A)
Technocrats
B)
Adventurous Explorers
C)
Suspicious Learners \Fun Seekers
D)
All of the above are online shopper segments
Ans: A
34)
What was the MAIN reason consumers gave in a survey for why they don't like
shopping in
stores?
A)
don't like shopping
B)
Dealing with crowds
C)
salespeople are poorly informed
D)
Parking and traffic
Ans: C
35)
Consumers who browse and/or purchase in more than one channel are known as
_____.
A)
cosmopolitan
B)
Multi-channel shoppers
C)
multi-taskers
D)
Market mavens
Ans: B
36)
Which of the following affects consumers' retail outlet selection?
A)
Outlet image
B)
Retailer brands
C)
Retail advertising
D)
all of the above
Ans: C
37)
The “Merchandise” dimension of store image includes _____.
A)
Quality
B)
selection
C)
price
D)
all of the above
Ans: D
38)
The “Service” dimension of store image includes all of the following EXCEPT _____.
A)
Easy return
B)
Sales personnel
C)
Delivery
D)
All of the above are included
Ans: D
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M.B.A (Sem.-III)
Startup and New Venture Management
39)
Which of the following components represent the service dimension of a store's
image?
A)
Quality, selection, style, and price
B)
Layaway plan, sales personnel, easy return, credit, and delivery
C)
Location and parking
D)
Congeniality, fun, excitement, and comfort
Ans: B
40)
Good product offers and information, value, and alignment with consumers' interests
are
components of which dimension of online retailer image?
A)
Usefulness
B)
Enjoyment
C)
trustworthiness
D)
familiarity
Ans: A
41)
What is the key to success of store brands?
A)
Low price
B)
Low quality, but at a low price
C)
High quality at a high price
D)
High quality at a reasonable price
Ans: D
42)
Sales of additional items to customers who came to purchase an advertised item are
referred to as _____.
A)
Incremental sales
B)
Spillover sales
C)
Marginal sales
D)
Sales plus
Ans: B
43)
When a retailer represents a price as “regularly $15.99, now $9.99,” the $15.99 is
called the
_____.
A)
Starting price
B)
base price
C)
reference price
D)
comparison price
Ans: C
44)
Which of the following are types of reference prices?
A)
Primary and secondary
B)
Direct and indirect
C)
Latent and manifest
D)
internal and external
Ans: D
45)
Which type of reference price does a marketer for the consumer to use to compare
with the
7
M.B.A (Sem.-III)
Startup and New Venture Management
B)
intangible benefit
C)
operational cost
D)
development benefit
Ans: C
79)
Faster decision making, information processing efficiency, and improved asset
utilization
are examples of:
A)
intangible costs
B)
tangible costs
C)
tangible benefits
D)
intangible benefits
Ans: D
80)
The process of assessing the degree to which the potential time frame and
completion
dates for all major activities within a project meet organizational deadlines and
constraints
for affecting change best describes:
A)
Operational feasibility
B)
Technical feasibility
C)
Economic feasibility
D)
Schedule feasibility
Ans: D
81)
Which of the following is not an Operational feasibility vital issue?
A)
Management support
B)
Users training
C)
Performance decline in some system parts
D)
Cost reduction and avoidance
Ans: D
82)
A project is Important enough to be considered over other projects, is one of
A)
History of the project request
B)
Project Selection criteria
C)
Operational feasibility
D)
Economic feasibility
Ans: B
83)
The final task in the preliminary investigation is
A)
Estimate Project Development Time and Cost
B)
Evaluate Feasibility
C)
Perform Fact-Finding
D)
Present Results and Recommendations to Management
Ans: D
84)
The first step in evaluating feasibility is _____.
A)
setting priorities
B)
identify systems requests that are not feasible or necessary
13
M.B.A (Sem.-III)
Startup and New Venture Management
C)
conducting a preliminary investigation
D)
none of the above
Ans: B
85)
The first step in a preliminary investigation is generally to _____.
A)
Evaluate feasibility
B)
perform fact-finding
C)
Understand the problem or opportunity
D)
Estimate project development time and cost
Ans: B
86)
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?
A)
Supplier
B)
Retailer
C)
Competition
D)
Government bureau
Ans: B
87)
In some countries, point of purchase displays is not allowed in retail stores.
International
entrepreneurs under environment study such differences---------.
A)
Economic
B)
Political
C)
Cultural
D)
Technological
Ans: C
88)
Entrepreneurial success has been significant because of the culture and the political
and
economic systems in------.
A)
European countries
B)
Asian countries
C)
Transition economies
D)
Middle east
Ans: B
89)
Having more than 50% ownership position that provides the entrepreneur with
managerial
control is called-----------
A)
Joint venture
B)
Majority interest
C)
Horizontal merger
D)
Diversified activity merger
Ans: B
90)
The under-developed or lesser developed countries need manufacturing technology
and
infrastructure and yet do not want to turn over substantial portion of their economy to
foreign ownership. Which of the following is a solution to this dilemma?
A)
Management contract
B)
Indirect exporting
C)
Licensing
D)
Turn-key project
14

Startup and New Venture Management

Ans: D
91)
The development of a new venture based on an inventor’s work often requires------
A)
Expertise of an entrepreneur
B)
Heavy investment from financiers
C)
Skilled human resources
D)
Highly educated staff
Ans: A
92)
The importance of intellectual property should be understood by entrepreneur even
before .
A)
Hiring a manager
B)
Engaging an attorney
C)
Developing a product
D)
Establishing new venture
Ans: B
93)
Which of the following is not followed in brainstorming?
A)
Criticism is done by the group members
B)
The wilder idea is batter
C)
Quantity of ideas is required
D)
The session should be fun. with no on dominating the discussion
Ans: A
94)
The most important characteristic of a successful business website is
A)
Speed
B)
Innovation
C)
Graphics
D)
Products
Ans: A
 95)
The plan shows whether the business is economically feasible or not.
A)
Financial
B)
Business
C)
Economic
D)
Marketing
Ans: B
96)
In which of the following, the ownership of venture is reflected by ownership of
shares of
stock'?
A)
Partnership
B)
Limited partnership
C)
Corporation
D)
Proprietorship
Ans: C
97)
Bankers say that most businesses fail because of the inability to plan properly.
A)
Investor’s
B)
Marketer’s
C)
Entrepreneur’s
D)
Consultant’s
Ans: C
15

1. 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?
a) Supplier

b) Retailer

c) Competition

d) Government
 2. In some countries, points of purchase displays are not allowed in retail stores. Such
differences are studied by international entrepreneurs under __________ environment.
a) Economic

b) Political

c) Cultural

d) Technological

3. Having more than 50% ownership position that provides the entrepreneur with managerial
control is called ___________.
a) Joint venture

b) Majority interest

c) Horizontal merger

d) Diversified activity merge

4. The development of a new venture based on an inventor's work often requires ________.
a) Expertise of an entrepreneur

b) Heavy investment from financers

c) Skilled human resources

d) Highly educated staff

5. A business where an individual is both the owner and conductor of the business affairs is
called__________________.
a) Sole Proprietorship

b) Partnership

c) Corporation

d) None of the above

6. In __________________, the entrepreneur has the right to sell any assets.

a) Proprietorship

b) Partnership
c) Limited Liability Company

d) None of the given options

7. The idea and actions that explain how a firm will make its profits refers to
a) Mission

b) Goal

c) Strategy

d) Objective

8. Entrepreneurs are best as ________________

a) Managers

b) Venture capitalists

c) Planners

d) Doers

9. Entrepreneurs and ventures capitalists:

a) Get along well

b) Are the best friends

c) Are cordial friends

d) Are in conflict

10. _________________ is one method of stimulating, and then capitalizing on, individuals
in an organization who think that something can be done differently and better.
a) Strategic Orientation

b) Capitalization

c) Intrapreneurship

d) Management
 11. The _______ plan shows whether the business is economically feasible or not. a.
Financial

b. Business

c. Economic

d. Marketing

12. In which of the following, the ownership of venture is reflected by ownership of shares of
stock?

a) Partnership

b) Limited partnership

c) Corporation

d) Proprietorship

13. Entrepreneurship can best be described as:

a) a process that requires setting up a business

b) taking a significant risk in a business context

c) having a strong vision

d) a process involving innovation, new products or services, and value creation

14. The small business ‘owner-manager’ is always the founder of the business:
a) True

b) False (A management buyout is an example of a business where the owner-manager

would probably not have been the founder)

15. Which of these statements best describes the context for entrepreneurship:
a) Entrepreneurship takes place in small businesses

b) Entrepreneurship does not take place in social enterprises

c) Entrepreneurship takes place in a wide variety of contexts

d) Entrepreneurship takes place in large businesses

 16. Which of the following are described as one of the ‘Big Five’ personality traits?
a) propensity to leadership

b) need for achievement

c) extravert personality

d) tolerance of others

17. The period of business when an entrepreneur must position the venture in a market and
make necessary adjustments to assure survival is called the:

a) pre-startup stage.

b) startup stage.

c) early growth stage.

d) later growth stage.

18. Which of the following is a reason why a person might prefer to purchase a franchise
rather than open a completely new business?
a) higher failure rate.

b) increased independence.

c) ability to benefit from previous experience.

d) reduced royalty fees.

19. MSMED stands to ___________

a) Micro, Small & Medium Enterprises Development

b) Mini, Small & Medium Enterprises Development

c) Micro, Small & Medium Entrepreneurship Development

d) Micro, Small & Medium Enterprises Department

20. Which of the following is an internal factor that influences entrepreneurs?

a) Technological Capacity

b) Social environment
c) Political environment

d) Economic condition

21.__________________ requires proper review and reconsideration of the selected

alternative before implementing it.
a) Developing possible alternatives

b) Selecting the best alternative

c) Checking the decision

d) Exploring the developed alternatives

22. Which one of the following is an economic barrier to an entrepreneur?

a) Emotional blocks

b) Labour

c) Lack of sustained motivation

d) lack of vision

23. Which of the following enterprises was found by Akio Morita?

a) Samsung

b) Apple

c) Panasonic

d) Sony

24. ________________ can be defined as psychological features that enable an individual to

take action toward a desired goal?
a) Motive

b) Trait

c) Attitude

d) Ego

25. ___________ implies that women entrepreneurs are now economically independent and
take decisions independently.
a) Better utilization of resources

b) Improved quality life

c) Economic development

d) Employment generation

26. Financial feasibility analysis can be done by comparing ______________ with the
estimated sales figure.
a) cash flow statement

b) balance sheet

c) break-even point

d) profit and loss statement

27. Which of the following is not considered while selecting the region?
a) Law and order

b) Price of land

c) Availability of raw materials

d) Proximity to the product market

28. Which one of the following is the step involved in setting up a new enterprises?
a) Creating a business plan

b) Making a product choice

c) Selecting the location

d) Setting up infrastructure

29. The parties involved in franchise business are ___________.

a) 1

b) 2

c) 3

d) 5

30. If someone starts a new business that is a service station, this is an example of a(n):
a) new concept/new business.
b) new concept/existing business

c) existing concept/new business.

d) existing concept/existing business.

The word Entrepreneur is originally taken from

A)Greek wordB)French wordC)Greece wordD)Spanish word
Ans: B

2)The word Entreprendre means

A)To undertakeB)To SustainC)To CreateD)To manage
Ans: A

3)When selecting a line of action an Entrepreneur must keep in mind

A)ProfitB)Risk involvedC)ProfitabilityD)All above
Ans : D

4)Which one is not the function of an entrepreneur

A)Turning ideas into actionB)Generating employmentC)Shutting
down the existing businessD)Planning
Ans: C

5)Acco rd ing to __ ______ ______ ___ in nov ation is the

i mp o rtan t characteristic of an entrepreneur
A)Peter DruckerB)SchumpeterC)CantillionD)J.B.Say
Ans: B

6)Point out the quality of an entrepreneur

A)InitiationB)Lack of confidenceC)Lack of decision makingD)Self
Appreciation
Ans: A

7)What is an entrepreneur?
A)Someone who do not want to earn profit.B)Someone who makes a
lot of money.1C)Someone who identify the needs of customer and
makes innovations.D)Someone who don’t take risk
Ans: C

8)Define Free Enterprise:

A)A business taking a risk to make a profit.B)A program administered

by the Government.C)People in business trying to make a profit.D)A
business adventure or undertaking.

Ans: A

9)This is basically the behaviour of the person which has some

distinct
characteristicsA)EntrepreneurialB)EntrepreneurshipC)EnterpriseD)En
tertainment
Ans: A

10)According to J.B.Say entrepreneur

isA)InnovatorB)InventorC)MentorD)An Economic agent
Ans: D

11)This kind of entrepreneurs are characterised by readiness to

adopt successful innovationscreated by innovative
entrepreneurs.A)Innovative EntrepreneursB)Imitative
EntrepreneursC)AgripreneursD)Traders
Ans: B
12)Entrepreneurs of this type are very cautious and skeptical while
practicing any changeA)Innovative EntrepreneursB)Imitative
EntrepreneursC)Fabian EntrepreneursD)Drone Entrepreneurs
Ans: C

13)Which of the following is not a type of EntrepreneurA)Modern

EntrepreneurB)Technical EntrepreneursC)Classical
EntrepreneurD)Intrapreneur
Ans: D2
14)Enrepreneurship is
_____________A)PracticeB)HabitC)ProcessD)ActionAns:
C15)Theory of High Achievement Motivation is given by
A)SchumpeterB)KilbyC)McCellandD)Staley and Morse
Ans: C