Central and State Government Industrial Policies

and Regulations
S.N QUESTION AND ANSWER
O
1
2
3
4

6
7

Businesses are any undertaking created for the purpose of creating

utility.
a. TRUE b. FALSE
Entrepreneur is regarded as a special kind of labour
True False
Most of the scholars who wrote about the origin of
entrepreneurship are either economists or historians.
True False
Richard Cantillon was not the first to introduce the concept
"entrepreneur" in the early 18th century
True False
.was the first to coin the word entrepreneur in about
1800
(Baptiste Say).
Gartner (1988) conceived entrepreneurship as the creation of new
organizations.
True False
Penrose (1963) viewed entrepreneurship as the activity that involves
identifying opportunities within the economic system

True False.
t. views entrepreneurship as: self employment of any
sort
(Cantillon)
Creation of organizations, Innovation applied to a business context and
the combination of resources are not parts concepts of entrepreneurship
True False

10

11

12

13
14
15
16
17

some scholars contended that it was not actually another economist,

Jean-Baptiste Say, who first coined the word entrepreneur in about
1800.
True False
Schumpeter (1934) conceived the entrepreneur as the innovator who
implements change within the market
True False
An entrepreneur who is not able to establish his or her own business but
work in an organization is known as
(Intrapreneur)
And Murphy (2010) conceived an entrepreneur is not a person who is
dynamic, continues to seek opportunities .
True False
An entrepreneur is influenced by his or her environment
True or False
Copy cats is another name for imitating entrepreneur
True or False
------------type of entrepreneur is preoccupied with introducing something
New into the market
Ans: Innovative
Drone are those entrepreneurs that are resistant to change.
True False

18

Which of the following is not true?

a. Libertarians value freedom above equality.
b. Liberals value equality more than order.
c. Conservatives value freedom more than equality.
d. Communitarians value freedom more than order.

19

These are those types of entrepreneurs that are very careful and cautious
in adopting any changes.
Ans: Fabian
What term describes the idea that each person is guaranteed the same
chance to succeed in life?
a. economic equality
b. communism
c. equality of outcome
d. political equality

20

21.

These are those entrepreneurs that are resistant to change.

Ans: Drone

22.

Entrepreneurship is an activity embarked upon for a specific purpose.

a.
Involves Risk
b.Purposeful Activity
c. Dynamic Process
d. Creative Activity

23.

CII stands for

(a) Confederation of Indian Industries (b) Condition of Indian
Industries
(c ) Classes of Indian Industries (d) Civilians of Indian Industries

24.

This type of entrepreneur is preoccupied with introducing something new

into the market, organization or nation.
Ans: Innovative
--------------identified the four types of entrepreneurs as Innovative,

25.

Imitating, Fabian and Drone ans: RockStar(2008)

26.

Entrepreneurship is a very risky venture; entrepreneurial decisions can

have far-reaching impact on the organization, people in the organization
and even the economy.
b.
Involves Risk
b.Purposeful Activity
c. Dynamic Process
d. Creative Activity

27.

Entrepreneurship is a dynamic process that has to bear in mind the

dynamic business environment.
a.
Involves Risk
b.Purposeful Activity
c. Dynamic Process
d. Creative Activity

28.

Entrepreneurship entails innovations.

a.
Involves Risk

b.Purposeful Activity
c. Dynamic Process
d. Creative Activity
29.

----------identified entrepreneurial characteristics

planning ability, prudence, and team work.
Ans: Stephenson (2010)

30.

The entrepreneur must have the capacity to bear risk.

a. Risk Bearing Ability
b. Technical Knowledge
c. Self Confidence and Multi-Skilled
d. Innovative skills

31.

Depending on the kind of venture created, the entrepreneur must have

technical expertise about production techniques and marketing.
a. Risk Bearing Ability
b. Technical Knowledge
c. Self Confidence and Multi-Skilled
d. Innovative skills
e.
The entrepreneur is one who knows how to get results under any
circumstances either with others or through others.
a. Risk Bearing Ability
b. Technical Knowledge
c. Self Confidence and Multi-Skilled:
d. Results-Orientated
e.
Businesses are created to satisfy unmet needs. A successful
entrepreneur must be able to anticipate customers needs

32.

33.

as:

seriousness,

and satisfy them through his/her product offerings,which is called--------a. Prudence

b. Customer-Centric
c. Planning Ability
d. Seriousness
34.

Risk taking propensity (RTP) is one of the main characteristics for a

successful entrepreneur identified by Driessen and Zwart
True or False

35.

Depending on the kind of venture created, the entrepreneur must have

technical expertise about production techniques and marketing

36.

37.

True and False

Financial and Motivational Resources are not needed for the creation of a
new business
True or False
Inferiority complex is a characteristic of a successful entrepreneur.
True or False

38.

What is triple bottom line audit?

(a) A social, economic and environmental audit
(b) An audit of the three major financial project of a business.
(c ) An audit by the Physical Health of Employees
(d) An audit of all the Sporting resources of the enterprise

39.

The entrepreneur must be steadfast and resolute and be ready to move on

even in the face of adversity.
True or False

40.

Which of the following is not a business opportunity generated by

globalization?
(a) Access to low cost labour
(b) Cheap international transport
(c ) Currency crisis
(d) Less stringent regulations of the Business Environment

41

A successful entrepreneur should posses some of these characteristics

except
(a)Calm
(b) Focused
(c)Tolerance
(d) Greed

42

Most cars produced in the US are sold in:

a)Europe.

43

b)Japan.
c)NAFTA.
d)None of the above.
_______ is the first step in the typical internationalization
process.
a)Coordination.
b)Diversification.
c)Capitalization.
d)License

44

Which of the following is the best example of a multinational

enterprise?
a)A British rail company.
b)A large pharmaceutical company.
c)A local health company.
d)The US post office.

45

The first step a firm must take in strategic planning is:

a)analysis of the internal environment.
b)analysis of the external environment.
c)identify its basic mission.
d)formulate its objectives.

46

IBRD(International Bank for Reconstruction and Development)also

known as
a)Exim Bank
b)World Bank
c)International Monetary fund
d)International Bank

47

Which is the right sequence of a stages of internatonalization

a)Domestic,Transnational,Global,Intrenational,Multinational
b) Domestic, Intrenational, Multinational, Global, Transnational
c) Domestic, Multinational, Intrenational, Transnational, Global
d) Domestic, Intrenational, Transnational, Multinational, Global

48

49

50

51

52

53

54

is application of knowledge which redefine the boundaries

of global business
a)Cultural Values
b)Society
c)Technology
d)Economy
Which is not an Indian multinational company?
a)Unilever
b)Asian Paints
c)Piramal
d)Wipro
Which of the following is not a force in the porter five forces model
a)Buyers
b)Suppliers
c)Complementary products
d)Industry rivalry
is the payment method most often used in internatinal trade
which offers the exporter best assurance of being paid for the products
sold
a)Bill of Lading
b)Letter of Credit
c)Open Account
d)Drafts
Select example of Indian multinational company
a)Hindusthan Unilever
b)Videocon
c)cargill
d)Tesco
..company produces,markets,invests and across the world
a)Global
b)International
c)Transnational
d)Mnltinational
Globalization refers to

55

a)Lower incomes worldwide

b)Less foreign trade and investment
c)Global warming and their effects
d)A more integrated and interdependent world
NAFTA stands for
a)North African trade Association
b)North American free trade agreement
c)Northern Atlantic trade agreement
d)Northern association for trade

56

Two factors have had a particularly strong influence on the growth of

international business operations. One of these is listed below-which is
it?
a)Development in information technology
b)Third world debt reduction
c)The growth of American Power
d)The use of English

57

A company deciding whether to invest in a country is likely to be most

heavily influenced by which of these factors
a)Main language
b)Stage economic development
c)Distance from the companies home country

58

A countries ability to provide the facilities that are needed to support

economy activities known as
a)Portfolio investment
b)Infrastructure
c)Indirect investment
d) direct investment

59

A high context culture is one in which

a)Information and communication is typically implicit and indirect
b)Information and communication is typically explicit and clear
c)People conduct their lives in separate compartments

d)People take responsible for the welfare of others

60

61.

All of the following are examples of possible negative effects of

globalization on poorer countries
a)Rich countries become richer and more powerful
b)Poor countries may gain access to new markets
c)All societies become exposed to a common global culture, reducing
diversity
d)World Trade organization rules impose unfair conditions on developing
countries
. Which of the following is not a peculiar problem faced by Nigerian
entrepreneurs
a. Financial Problems
b. Infrastructural Problems
c. Low standard of Business Ethics and Political Instability
d. Inadequate Raw materials

62.

According to Human Development Report 2003, about_______ countries

were poorer in 2003 than in 1990.
a. 50.
b. 100.
c. 1000.
d. 5.

63.

_____________is below the income that secures the bare essentials of

food, clothing, and shelter.
a. Income inequality.
b. Absolute poverty.
c. Sens poverty index.
d. Purchasing-power poverty.

64.

Sen's welfare theory relies on

a. individuals' accomplishments.
b. individuals' capabilities.
c. individuals' wealth.
d. individuals' education.

65.

Indices of income distribution measure

a. absolute poverty.
b. economic growth.
c. relative poverty.
d. standard of living.

66.

Income inequalities are often shown on a

a. production possibility curve.
b. marginal inequality curve.
c. Sen curve.
d. Lorenz curve.

67.

A value of 1 in Gini index represents

a. low inequality.
b. maximum inequality.
c. 10/10, 000% inequality.
d. 1% inequality.

68.

A successful entrepreneur does not anticipate customers needs and satisfy

them through his/her product offerings
True False

69.

The entrepreneurs most important team members are the customers

for without customers a business cannot survive

True false
70.

71.

72.

73.

74.

The entrepreneur has to act as a leader because the entrepreneur is the one
who brings other people together in order to create the business.
a.

Leader Role

b.

Figure Head Role

c.

Liason Role

d.

Monitor Role

The entrepreneur has to act as the link between the business and the parties
outside the business.
a.
Leader Role
b.

Figure Head Role

c.

Liason Role

d.

Monitor Role

The entrepreneur acts as a monitor; he monitors both the internal and the
external environment of the business constantly.
a.
Leader Role
b.

Figure Head Role

c.

Liason Role

d.

Monitor Role

The entrepreneur has to act as figure head in the organization, as such; he

has to perform ceremonial duties.
a.
Leader Role
b.

Figure Head Role

c.

Liason Role

d.

Monitor Role

The entrepreneur has to act as the organizational representative and

transmit information both within and outside the business.

a.

Information Disseminator Role

b.

Spokesman Role

c.

Entrepreneurial Role

d.

Disturbance Handler

75.

Which of the following is not true about the specialized farm?

a. Such a farm is the most advanced agricultural phase in a market
economy.
b. Such a farm usually emphasizes cultivating one crop.
c. Such a farm is labor intensive.
d. Such a farm uses advanced technology, and takes advantage of
economies of scale.

76.

Which of the following is not a consequence of growing agricultural

commercialization?
a. An increase in the number of landless laborers.
b. An increase in rural poverty.
c. Women gain in decision making power.
d. Workers nutrition is reduced.

77.

Which of the following is not a major factor raising LDC agricultural

labor productivity?
a. new biological-chemical-mechanical inputs in production.
b. new technical and organizational knowledge from greater specialization.
c. expanded markets for agricultural output.
d. massive government intervention.

78.

The manager has to act as the spokesman of the business; he is the person
for the business both inside and outside.

79.

a.

Information Disseminator Role

b.

Spokesman Role

c.

Entrepreneurial Role

d.

Disturbance Handler

The entrepreneur decides on how the scarce resources of the business are
allocated among its competing ends so as to achieve organizational goals
and objectives.

80.

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83

84

a.

Spokesman Role

b.

Entrepreneurial Role

c.

Disturbance Handler

d.

Resource Allocator:

3. Throughout most of humankinds existence, population grew at a rate

of _________ per year.
a. 10%.
b. 0.002%.
c. 2%.
d. 0.5%.
The entrepreneur also acts as arbitrator in situations of conflict so as to
maintain organizational harmony.
a.

Spokesman Role

b.

Entrepreneurial Role

c.

Disturbance Handler

d.

Resource Allocator

This is the basic role of the entrepreneur; he launches new ideas for the
business and bears the risk.
a.

Information Disseminator Role

b.

Spokesman Role

c.

Entrepreneurial Role

d.

Disturbance Handler

The entrepreneur has to negotiate on behalf of the business both with the
other categories of labour and other outside sources.
a.

Information Disseminator Role

b.

Spokesman Role

c.

Disturbance Handler

d.

Negotiator Role

e.

85

The entrepreneur has to act as figure head in an organization.

True or False.

86

Which of the followings is not the role of an entrepreneur?

(a) Leader role
(b)Monitor role
(c) Spokesman role
(d)None of the above

89

According to Putari, entrepreneurs perform controlling and directing

Roles.
True False

90

All entrepreneurs are managers and all managers are entrepreneurs.

True False

91

Entrepreneurial motivations are those factors that propel individuals to

become entrepreneurs.
True False

92

According to Shane, Locke and Collins , human motivations do not

influence entrepreneurial decisions
True False

93

negative displacement and career transition are entrepreneurial

motivational factors. True False

94

Entrepreneurs are more likely to undertake entrepreneurial activities when

their opportunity costs are lower.
True False

95

Stocks of Financial Capital is not Non-Motivational Influence on

Entrepreneurship. True False

96

The two basic factors that affect the supply of entrepreneurship variables
are opportunity and willingness to become an entrepreneur.
True False

97

According to Timmons , Willingness is an entrepreneurial variables which

does not lead to the creation of enterprise from nothing .
True False

98

SMEDAN is a government institution that encourage and assist

entrepreneurs to find capital, draw-up business plans, and comply with the
various business and tax regulations.
True False

99

The degree to which the spirit of enterprise exists or can be initiated in the
individual, by the society and culture is not a factor that affects
opportunity.
True False

100

SWOT entails scanning the internal environment only so as to identify the

strengths and weakness of a business .
True or False