MCQ on Entrepreneurship with Answers Pdf

MCQ Questions and Answers on Entrepreneurship Pdf

Here Below we provides a list of MCQ on Entrepreneurship outlined by experts who suggest the most important MCQ for various competitive exams. The below MCQ takes you directly to the corresponding topic where the detailed article along with MCQs is provided for a smooth, effortless searching experience. Before going ahead to solved MCQ on Entrepreneurship with Answers papers or taking up mock tests, make sure you cover the basic concepts of entrepreneurship and solve some sample questions before appearing in Exam. MCQ Questions on Entrepreneurship with Answers Pdf listed below range from the basic to the most advanced Questions, thereby having you covered. Have a look at the list of MCQ below:


How to Solve Entrepreneurship Multiple Choice Questions  : 

  1. Entrepreneurship Multiple choice questions are harder than you think. You have to prepare the material just as well and as mentioned, in practice students make multiple choice questions worse than open questions.
  2. In round 1 you only answer the questions that you know for sure.
  3. In round 2 you will do the more difficult questions. You cross out the impossible answers first. There are usually two. Then you read the question again and make a choice.
  4. In round 3 you will complete the impossible questions. Also here you cross out the two nonsense answers. Then there are two answers left and therefore a 50% chance of a correct answer. Make a choice, otherwise the 50% will remain.
  5. Read the question carefully and don't read the answers. Formulate the answer and then choose the answer that most closely matches.
  6. When the brain reads four answers to a question, the brain performs four commands. That influences thinking and distracts unnecessarily. If the brain only reads the question, it performs one command. The brain can now formulate the correct answer without noise.
  7. Check that all Entrepreneurship MCQ questions have been answered and submitted. If you still have questions and don't have the time, choose the longest answer. Your teacher must also formulate the correct answer and the correct one is often the most comprehensive. Only apply this guessing technique to questions you really don't know!


MCQ on Entrepreneurship

MCQ on Entrepreneurship 

1. Characteristics of Self-Help Groups are_____________

a) SHG comprises 15-20 members & non-partisan in nature

b) Members should belong to same economic strata of society

c) Rational leadership should be encouraged for distribution of power

d) All of these

Answer: d


2. A small-scale entrepreneur is______________

a) A formal-sector entrepreneur with 11 to 50 employees 

b) A formal-sector entrepreneur with 11 to 49 employees 

c) A formal-sector entrepreneur with 16 to 49 employees 

d) A formal-sector entrepreneur with 16 to 50 employees

Answer : b 


3. The following are myths related to entrepreneurs…. 

a) Entrepreneurs are born not made 

b) Entrepreneurs are doers and not thinkers 

c) Entrepreneurs are gamblers 

d) All of the above 

Answer : d


4. The following critical risks are________ 

a) Financial and physical risk  b) Career risks and family risk 

c) Psychological risks 

d) All of the above

Answer: d


5. What are the policies that influence access to finance in context of Innovative entrepreneurship?

a) Debt financing

b) Venture capital

c) Business Angels

d) All of these

Answer: d


6. ‘Angels’ usually provides which type of financing?

a) Debt

b) Equity

c) Stock

d) None of these

Answer: b


7. Which of the following possible financing options has become a popular choice for entrepreneurs?

a) Angel investor

b) Credit cards

c) Venture capital

d) Public offering

Answer: b


8. An entrepreneur’s primary motivation for starting a business is___________

a) To make money

b) To be independent

c) To be famous

d) To be powerful

Answer: b


9. _______________ actions by an entrepreneur are most likely to contribute to creative destruction.

a) Development of a new product

b) Take-over of a competitor

c) Issuing shares

d) Development of a new product

Answer: d


10. The resistance of employees in an organization against flexibility, growth, and diversification can be overcome by developing_____________.

a) Entrepreneurship

b) Managerial domain

c) Intrapreneurship

d) Administrative domain

Answer: c


11. ______________ shows the process of creating something new.

a) Innovation

b) Business model

c) Modeling

d) Creative flexibility

Answer: a


12. High potential venture_______________

a) has the same growth potential as a life-style firm

b) starts out like life-style firm+

c) drawing interest of private investors only

d) None of these 

Answer: D


 13. An entrepreneurship primary motivation for starting a business is___________

a) To make money

b) To be independent

c) To be famous

d) To be powerful

Answer: b


14. …………….. actions by an entrepreneur most likely to contribute to creative destruction.

a) Development of a new product

b) Take-over of a competitor

c) Issuing shares

d) Development of an organization

Answer: a


15. ……………….. Shows the process of creating something new.

a) Innovation

b) Business model 

c) Modeling

d) Creative flexibility

Answer: a


16. The activity which occurs when the new venture is started is called -

a) Motivation

b) Business skills

c) Departure point

d) Goal orientation

Answer: c


17. Having less than 50 percent of equity share in an international venture is calleda) Minority interest

b) Joint venture

c) Majority interest

d) Exporting

Answer: a


18. Bankers say that most businesses fail because of the _________ inability to plan properly.

a) Investors

b) Marketers

c) Entrepreneurs

d) Consultants

Answer: c


19. Industry analysis should include information on:

a) Market size of competitor’s product

b) Growth rate of suppliers

c) New product entry

d) Economic conditions

Answer: d


20. What is the most common reason given for why people choose to become entrepreneurs?

a) To make a lot of money.

b) To escape the long hours associated with corporate jobs.

c) To be their own boss.

d) To be able to retire early.

Answer: c


21. _____ is the position of a firm on a continuum ranging from highly conservative to highly entrepreneurial.

a) Risk tolerance

b) Entrepreneurial intensity

c) Inventiveness

d) Organizational bureaucracy

Answer: b


22. Some entrepreneurs report that the financial rewards associated with entrepreneurship can be bittersweet if they are accompanied by________.

a) modest upside potential

b) the thrill of starting a business

c) motivating factors

d) losing control of the firm

Answer: d


23. Entrepreneurs are…………………………

a) Moderate risk taker

b) High risk taker

c) Avoidance

d) Both b & c

Answer: a


24. EDP ( Entrepreneurship Development( Programmes) is required to help –

a) Existing entrepreneurs

b) First generations entrepreneurs

c) Future generation entrepreneurs

d) None of the above

Answer: c


25. Fiscal and monetary measures to stimulate investment in private & public sector includes______________

a) Lowering the rate of interest

b) Tax reduction & Public Expenditure

c) Price policy & Abolition of monopoly

d) All of these

Answer : d


26. Why should an entrepreneur do a feasibility study for starting a new venture?

a) To see if there are possible barriers to success

b) To identify possible sources of funds

c) To estimate the expected sales

d) To explore potential customers

Answer: a


27. Which of the following factor has allowed small companies to act like they are big ones?

a) Technology

b) Customers

c) Economic development

d) Competition

Answer: a


28. A Micro Entrepreneurs are_________

a) A formal-sector entrepreneur with zero to 10 employees 

b) A formal-sector entrepreneur with 1 to 10 employees 

c) A formal-sector entrepreneur with zero to 15 employees 

d) A formal-sector entrepreneur with 1 to 15 employees

Answer: a


29. Entrepreneurship can be defined as________________

a)  The act of initiating, creating, building, expanding and sustaining a venture and gathering The necessary resources to exploit an opportunity in the marketplace for long-term wealth and capital gain 

b)  The act of creating, building, expanding and sustaining a venture, building an entrepreneurial team and gathering the necessary resources to exploit an opportunity in the marketplace for long-term wealth and capital gain 

c)  The act of initiating, creating, building, expanding and sustaining a venture, building an entrepreneurial team and gathering the necessary resources to exploit an opportunity in the marketplace for long-term wealth and capital gain 

d) None of the Above 

Answer: c


30. A women Entrepreneur is supposed to have a minimum financial interest in share capital of entrepreneurial enterprise:

a) 35 per cent

b) 51 per cent

c) 25 per cent

d) None of the above

Answer: b


31. Sustainability of entrepreneur development depends on factors like_______________

a) Technical skills

b) Technology

c) Organizational sustainability

d) All of these

Answer : d


32. In terms of innovative business the five policy includes ____________

a) Private sources of funding, Debt financing, Venture capital, Business 

angels, subsidies and grants from governments

b) Equity shares, Preference shares, debentures, mutual fund and Insurance

c) Equity shares, private sources, preference shares, debentures and capital 

investment

d) None of these

Answer: a


34. __________________ are the informal associations of people who choose to come together to find ways to improve their living condition

a) NGO

b) Self-Help Groups

c) Private companies

d) None of these

Answer: b


35. The activity which occurs when the new venture is started is called:

a) Motivation

b) Business skills

c) Departure point

d) Goal orientation

Answer: C


36. Having less than 50 percent of equity share in an international venture is called:

a) Minority interest

b) Joint venture

c) Majority interest

d) Exporting

Answer: a


37. Which of the following is alternatively called corporate venturing?

a) Entrepreneurship

b) Intrapreneurship

c) Act of stating a new venture

d) Offering new products by an existing company

Answer: b


38. Individuals influencing an entrepreneur’s career choice and style are known as which of the following?

a) Role model

b) Moral-support network

c) Professional support network

d) Support system

Answer: a


39. Industry analysis should include information on –

a) Market size of competitor’s productI 

b) Growth rate of suppliers

c) New product entry

d) Economic conditions

Answer: d


40. We need to update the business plan because

a) Environmental factors and internal factors can change the direction of the plan

b) Goals set by the entrepreneurs may be unreasonable

c) Goals may not be measurable

d) Goals may not be specific

Answer: a


41. From the following which one is not classification of entrepreneurs according to the types of business?

a) Wholesale trade

b) Retail trade

c) Exporter

d) Rural entrepreneur

Answer: d


42. 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

Answer: b


43. Entrepreneurs typically form________________

a) Service businesses

b) Manufacturing companies

c) Constructive companies

d) A variety of ventures

Answer: d


44. Which of the following is NOT a common myth about entrepreneurs?

a) Everyone has the potential to be an entrepreneur.

b) Entrepreneurs are born, not made.

c) Entrepreneurs are gamblers.

d) Entrepreneurs love the spotlight.

Answer: a


45. Influence on innovation and job creation best typifies entrepreneurial firms'________.

a) Impact on society

b) Economic impact

c) Impact on larger firms

d) Impact on the environment

Answer: b


Frequently Asked Questions on Entrepreneurship  : 

1. What is the Importance of Entrepreneurship? 

Answer : Entrepreneurship has the following importance

  1. Entrepreneurship increases employment opportunities, which can reduce the problem of unemployment.
  2. Monopoly can be reduced only by developing entrepreneurship
  3. Capital is earned only through entrepreneurship
  4. Earning money through entrepreneurship can increase your business further
  5. The economic condition of the country and the progress of the country can be increased only through entrepreneurship.
  6. Entrepreneurship is also helpful in the progress of other areas of the country.

2. What are the Qualities of a successful entrepreneur ?
Answer: successful entrepreneur should have the following characteristics or qualities :
1. Ability to identify the right opportunity and take advantage of it.
2. Understanding the importance of time and being punctual to work on time
3. Ability to understand right and wrong and make the right decisions
4. Having faith in yourself
5. Always focus on growing your business
6. Ability to take risks.
7. Using new technology in your business and moving forward the business.
8. Efficient in arranging and managing well.
9. Doing everything with planning.
10. To give good work training to your employees about work.
11. Taking the right decision at the time of risk (disaster).
12. The ability to complete the task once a decision is made.
13. Ability to deal with future problems
14. Learning from your own and others' experience
15. To meet the demand according to the market.

3. What are the Reasons for the failure of the entrepreneur.
Answer : Entrepreneur starts an enterprise with a thought, but still he does not find the enterprise successful.The main reasons for the failure of an entrepreneur can be as follows.
  1. Lack of capital.
  2. Choosing the wrong business.
  3. Not having proper management. 4 - Lack of raw materials.
  4. Lack of proper knowledge of marketing.
  5. Selecting the wrong employees.
  6. The price of the product (commodity) is high.
  7. Selection of an inappropriate location.
  8. Not to advertise.
  9. Using old technology.

4. What are the main Entrepreneurial potentials?
Answer: An entrepreneur to be successful, it is necessary to have the following abilities.
  1. Thinking of adopting new product and new opportunity by thinking different from job.
  2. Always fulfilling your goal.
  3. Completing any work in a phased manner.
  4. Knowing about problems and having the ability to solve problems.
  5. To meet the demand according to the market.
  6. Keeping the minimum cost and selling the product at maximum price.
  7. Monitoring all the work happening in the enterprise properly.
  8. Maintaining the quality of work.
  9. Identifying the right opportunity and taking advantage of it.
  10. Maintaining confidence.