Entrepreneurship Development MCQ Questions and Answers for Practice

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

11. A valid definition of a business purpose is to

1. create a customer.
2. maximize profits.
3. serve the society.
4. increase the wealth of the firm.

12. According to MSMEDC (Micro, Small & Medium Enterprises Development) Act 2006, Micro, Small & Medium Enterprise are classified into two classes such as

1. Manufacturing & Service Enterprise
2. Automobile & Electronic Enterprise
3. Research & Development Sector
4. None of these

13. Activities which can be accomplished simultaneously are termed as

1. Preceeding Activities.
2. Succeeding Activities.
3. Concurrent Activities
4. Dummy Activities.

14. Activities which must be finished before a given event can occur are termed as

1. Preceeding Activities.
2. Succeeding Activities
3. Concurrent Activities
4. Dummy Activities.

15. Additional time which a non-critical activity can consume without increasing the project duration is called

1. Total Float.
2. Free Float
3. Independent Float.
4. Dependant Float