05 Entrepreneurship Development MCQs

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05 Entrepreneurship Development MCQs

********** UNIT-5 **********

Q1. Role of various national and state agencies which render assistance to small scale The Office of the Development Commissioner (Small Scale Industries) is also known as the………………..
Answer : Small Industry Development Organization (SIDO)

Q2. ………………..continues to implement its various programmes and projects throughout the country to assist the SSI units.
Answer. – NSIC

Q3. The ……………….. is a statutory body created by an Act of Parliament in April 1957.
Answer- Khadi and Village Industries Commission (KVIC)

Q4. ……………….. is done mainly to facilitate SMEs to expand their capacities or diversify and/or upgrade their technology according to the needs of the market.
Answer – Equipment Leasing

Q5. The ……………….. have been identified on the basis of market needs to ensure maximum employment.
Answer – Skills

Q6. Which of the following is a type of intangible business property that is protected by law:
(A). Acreage
(B). Inventory
(C). Trademark
(D). Equipment
Answer: (C)

Q7. 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.
Answer: (D)

Q8. 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.
Answer: (A)

Q9. 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.
Answer: (A)

Q10. 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”
Answer: (B)

Q11. Which of the following statements is true about business startup 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 startup business owners.
(D). Equipment is the least expensive requirement for a startup business.
Answer: (B)

Q12. 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.
Answer: (A)

Q13. The type of capital resources that a startup business needs to begin operating usually depends on the
(A). vendors’ lead time.
(B). location.
(C). owner’s preferences.
(D). industry.
Answer: (D)

Q14. 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
Answer: (D)

Q15. Which of the following is an example of an intangible asset:
(A). Equipment
(B). Inventory
(C). Office building
(D). Accounts receivable
Answer: (D)

Q16. Ethan is developing common-size financial statements so that he can compare financial performance across several different companies. Ethan is conducting __________ analysis.
(A). horizontal
(B). vertical
(C). ratio
(D). trend
Answer: (B)

Q17. 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.
Answer: (B)

Q18. 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
Answer: (D)

Q19. 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
Answer: (B)

Q20. 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.
Answer: (B)