Entrepreneurship Development MCQ Quiz - Multiple Choice Questions & Answers

1. A business arrangement where one party allows another party to use a business name and sell its products or services is known as

1. A cooperative.
2. A franchise.
3. An owner-manager business.
4. A limited company.

2. A business arrangement where one party allows another party to use a business Name and sell its products or services is known as.

1. A cooperative.
2. A franchise.
3. An owner-manager business.
4. A limited company.

3. A commercial banker would prefer a debt-equity ratio over the years as it indicates financial strength of a unit.

1. Declining.
2. Increasing.
3. Stable.
4. Fluctuating.

4. A Company is called an artificial person because

1. it does not have the shape of a natural person.
2. it cannot be used in the court of law.
3. it is invisible and intangible.
4. it exists only in contemplation of law.Answer:C

5. A key aspect of the financial section of the business plan is

1. A statement of management skills.
2. A realistic sales forecast.
3. Production capacity.
4. A description of competitors.

6. A new venture's business plan is important because

1. It helps to persuade others to commit funding to the venture.
2. Can help demonstrate the viability of the venture.
3. Provides a guide for business activities by defining objectives.
4. All the above.

7. A person owning and running a small firm, is known as.

1. A manager-owner.
2. An owner-manager.
3. A professional adapter.
4. An enterprise worker.

8. A project, which may not add to the existing profits, should be financed by

1. debentures.
2. preference share capital.
3. equity capital.
4. public deposits.

9. A provisional SSI registration certificate is valid for a period of

1. four Years.
2. three Years.
3. two Years.
4. one year.

10. A public corporation means

1. public company.
2. government company.
3. statutory corporation.
4. department of union government