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  • UGC NET MBA Unit-10 MCQs

    Entrepreneurship Development, Innovation and Small Business Management

    🔹 SECTION A – ENTREPRENEURSHIP CONCEPTS & CHARACTERISTICS

    1. Entrepreneurship is best described as:
    A. Routine management activity
    B. Innovation and risk-bearing for value creation
    C. Financial accounting practice
    D. Wage employment
    Answer: B
    Explanation: Entrepreneurship involves innovating, taking risks, and organizing resources to create value.*

    2. The word entrepreneur is derived from:
    A. Latin
    B. French
    C. Greek
    D. German
    Answer: B
    Explanation: From French entreprendre meaning “to undertake.”*

    3. According to Schumpeter, the entrepreneur is:
    A. A risk-taker
    B. An innovator introducing new combinations
    C. A manager of a firm
    D. A financier
    Answer: B

    4. Which of the following is not a characteristic of entrepreneurship?
    A. Innovation
    B. Risk-taking
    C. Imitation only
    D. Proactiveness
    Answer: C

    5. Entrepreneurship contributes to economic growth primarily by:
    A. Creating employment and innovation
    B. Increasing imports
    C. Reducing production
    D. None
    Answer: A

    6. Entrepreneurs differ from managers because they:
    A. Create and own the business
    B. Only supervise operations
    C. Work for wages
    D. Have limited risk exposure
    Answer: A

    7. Which of the following statements is true?
    A. All entrepreneurs are innovators
    B. All innovators are entrepreneurs
    C. Entrepreneurship requires both innovation and organization
    D. None
    Answer: C

    8. Entrepreneurship is a:
    A. Process
    B. One-time activity
    C. Government scheme
    D. None
    Answer: A

    9. The core element of entrepreneurship is:
    A. Value creation through opportunity exploitation
    B. Routine job performance
    C. Bureaucratic control
    D. None
    Answer: A

    10. Intrapreneurship occurs:
    A. Within an existing organization
    B. In new startups only
    C. Among government employees only
    D. None
    Answer: A

    🔹 SECTION B – THEORIES OF ENTREPRENEURSHIP

    11. The Risk-Bearing Theory of entrepreneurship was proposed by:
    A. Cantillon
    B. Schumpeter
    C. Knight
    D. Weber
    Answer: A

    12. According to Knight, profits arise due to:
    A. Uncertainty-bearing
    B. Risk-sharing
    C. Innovation
    D. Monopolies
    Answer: A

    13. J.B. Say considered the entrepreneur as:
    A. Organizer of production
    B. Innovator
    C. Capitalist
    D. Worker
    Answer: A

    14. Schumpeter’s innovation theory describes entrepreneurs as:
    A. Agents of creative destruction
    B. Wage earners
    C. Capital owners only
    D. None
    Answer: A

    15. According to McClelland, entrepreneurship is driven by:
    A. Need for achievement (nAch)
    B. Need for affiliation
    C. Need for power
    D. Risk aversion
    Answer: A

    16. Hagen’s Status Withdrawal theory relates entrepreneurship to:
    A. Social frustration and displacement
    B. Economic resources
    C. Innovation
    D. None
    Answer: A

    17. Max Weber emphasized entrepreneurship arises from:
    A. Protestant work ethic and cultural values
    B. Government subsidies
    C. Luck
    D. None
    Answer: A

    18. According to Kirzner, entrepreneurs identify:
    A. Market disequilibria and arbitrage opportunities
    B. Government policies
    C. Technology only
    D. None
    Answer: A

    19. Economic theory of entrepreneurship focuses on:
    A. Capital and resource allocation
    B. Psychological motivation
    C. Cultural beliefs
    D. None
    Answer: A

    20. McClelland’s theory is primarily:
    A. Psychological
    B. Economic
    C. Sociological
    D. None
    Answer: A

    🔹 SECTION C – ENTREPRENEURIAL PROCESS & COMPETENCIES

    21. The first step in the entrepreneurial process is:
    A. Opportunity identification
    B. Business registration
    C. Resource mobilization
    D. None
    Answer: A

    22. Feasibility analysis includes:
    A. Technical, financial, and market analysis
    B. Advertising
    C. Customer service
    D. None
    Answer: A

    23. Entrepreneurial competencies can be developed through:
    A. Training and experience
    B. Family background only
    C. Luck
    D. None
    Answer: A

    24. Key entrepreneurial competency includes:
    A. Initiative
    B. Procrastination
    C. Avoidance
    D. None
    Answer: A

    25. An entrepreneur who innovates within an existing organization is known as:
    A. Intrapreneur
    B. Manager
    C. Contractor
    D. None
    Answer: A

    26. Risk in entrepreneurship is:
    A. Uncertain but manageable
    B. Fully predictable
    C. Always avoidable
    D. None
    Answer: A

    27. Opportunity recognition requires:
    A. Creativity and environmental scanning
    B. Routine operations
    C. Accounting skills only
    D. None
    Answer: A

    28. Entrepreneurial motivation refers to:
    A. Internal and external forces that stimulate entrepreneurial behavior
    B. Legal obligations
    C. Tax incentives only
    D. None
    Answer: A

    29. A key determinant of entrepreneurial success is:
    A. Competence and adaptability
    B. Heredity
    C. Political affiliation
    D. None
    Answer: A

    30. Entrepreneurial decision-making is generally:
    A. Unstructured and uncertain
    B. Routine
    C. Fixed
    D. None
    Answer: A

    🔹 SECTION D – WOMEN & RURAL ENTREPRENEURSHIP

    31. Women entrepreneur is one who:
    A. Owns and manages an enterprise wholly or partly
    B. Works in government
    C. Manages only home-based work
    D. None
    Answer: A

    32. A major problem faced by women entrepreneurs in India is:
    A. Lack of finance and mobility
    B. Too much government support
    C. Excess labor
    D. None
    Answer: A

    33. STEP Scheme relates to:
    A. Training and employment for women
    B. Startup grants
    C. Infrastructure finance
    D. None
    Answer: A

    34. Rural entrepreneurship is based primarily on:
    A. Local resources and traditional skills
    B. Imports
    C. Urban markets
    D. None
    Answer: A

    35. Major constraint in rural entrepreneurship:
    A. Lack of infrastructure and market access
    B. Excess investment
    C. Skilled labor surplus
    D. None
    Answer: A

    36. PMEGP scheme promotes:
    A. Employment generation through micro enterprises
    B. Only export industries
    C. Urban malls
    D. None
    Answer: A

    37. Mahila Coir Yojana aims at:
    A. Promoting women-led coir industry
    B. Dairy farming
    C. Export training
    D. None
    Answer: A

    38. Rural entrepreneurship contributes mainly to:
    A. Balanced regional development
    B. Urban congestion
    C. Inflation
    D. None
    Answer: A

    39. TREAD scheme supports:
    A. Trade Related Entrepreneurship Assistance and Development for women
    B. Technology research
    C. Rural tourism
    D. None
    Answer: A

    40. Self-Help Groups (SHGs) are a major tool for:
    A. Microfinance and rural entrepreneurship
    B. Export financing
    C. Import subsidies
    D. None
    Answer: A

    🔹 SECTION E – INNOVATION AND BUSINESS IDEAS

    41. Innovation in business refers to:
    A. Commercial application of new ideas
    B. Copying competitors
    C. Routine activity
    D. None
    Answer: A

    42. Schumpeter’s view of innovation includes:
    A. New products, processes, markets, or organizations
    B. Government policies
    C. Social media
    D. None
    Answer: A

    43. Process innovation focuses on:
    A. Improving methods of production or delivery
    B. Launching new products
    C. Advertising
    D. None
    Answer: A

    44. Business opportunity identification involves:
    A. Matching market needs with entrepreneur’s strengths
    B. Random guessing
    C. Copying competitors
    D. None
    Answer: A

    45. Screening of business ideas ensures:
    A. Viability and feasibility
    B. Imitation
    C. Market monopoly
    D. None
    Answer: A

    46. Product innovation example:
    A. Introduction of electric cars
    B. Recruitment of staff
    C. Cost accounting
    D. None
    Answer: A

    47. Business model innovation example:
    A. Uber’s ride-sharing platform
    B. Discount sales
    C. New warehouse
    D. None
    Answer: A

    48. Innovation is essential for:
    A. Sustaining competitive advantage
    B. Bureaucracy
    C. Stabilizing monopolies
    D. None
    Answer: A

    49. Incremental innovation refers to:
    A. Small improvements in existing products or processes
    B. Radical new inventions
    C. Imitation
    D. None
    Answer: A

    50. Disruptive innovation example:
    A. Netflix replacing DVD rentals
    B. Traditional retail expansion
    C. Luxury hotel marketing
    D. None
    Answer: A

    UGC NET Management – Unit X

    Entrepreneurship Development, Innovation & Small Business Management

    🔹 SECTION F – BUSINESS PLAN & FEASIBILITY ANALYSIS

    51. A business plan is:
    A. A written document describing business objectives, strategy, and resources
    B. A government policy paper
    C. A legal contract
    D. A budget report
    Answer: A
    Explanation: A business plan outlines an entrepreneur’s goals, market, operations, and financial projections.*

    52. The first part of a business plan is the:
    A. Executive Summary
    B. Appendix
    C. Financial Statement
    D. Product Description
    Answer: A

    53. A business plan is primarily used to:
    A. Attract investors and guide management decisions
    B. Replace accounting records
    C. Avoid marketing
    D. None
    Answer: A

    54. The feasibility study is conducted:
    A. Before preparing a business plan
    B. After launching the business
    C. After one year of operations
    D. None
    Answer: A

    55. Market feasibility focuses on:
    A. Demand, competition, and market potential
    B. Factory layout
    C. Labour laws
    D. None
    Answer: A

    56. Technical feasibility examines:
    A. Production methods and resource availability
    B. Marketing cost
    C. Taxes
    D. None
    Answer: A

    57. Financial feasibility evaluates:
    A. Cost, investment, and profitability
    B. Product design
    C. Employee morale
    D. None
    Answer: A

    58. The main purpose of feasibility analysis is to:
    A. Evaluate project viability before investment
    B. File taxes
    C. Hire labour
    D. None
    Answer: A

    59. Sensitivity analysis in financial feasibility tests:
    A. How results change with key variable changes
    B. Employee satisfaction
    C. Fixed cost only
    D. None
    Answer: A

    60. A good business plan should be:
    A. Clear, realistic, and flexible
    B. Overly optimistic
    C. Lengthy and technical
    D. None
    Answer: A

    🔹 SECTION G – MICRO, SMALL & MEDIUM ENTERPRISES (MSMEs)

    61. MSMEs in India are classified based on:
    A. Investment and annual turnover
    B. Number of employees
    C. Export volume
    D. None
    Answer: A

    62. As per the MSME classification (2020):
    A. Micro – ₹1 Cr investment, ₹5 Cr turnover
    B. Small – ₹10 Cr investment, ₹50 Cr turnover
    C. Medium – ₹50 Cr investment, ₹250 Cr turnover
    D. All of the above
    Answer: D

    63. MSMEs contribute approximately what percentage to India’s GDP?
    A. 30%
    B. 10%
    C. 60%
    D. 45%
    Answer: A

    64. MSMEs employ around:
    A. 11 crore people
    B. 50 lakh people
    C. 3 crore people
    D. None
    Answer: A

    65. Major government initiative promoting MSMEs:
    A. Make in India
    B. Startup India
    C. Atmanirbhar Bharat
    D. All of the above
    Answer: D

    66. The nodal agency for MSME development in India is:
    A. Ministry of MSME
    B. NITI Aayog
    C. Ministry of Finance
    D. None
    Answer: A

    67. Udyam Registration replaced:
    A. Udyog Aadhaar system
    B. DGFT registration
    C. Import license
    D. None
    Answer: A

    68. PMEGP stands for:
    A. Prime Minister’s Employment Generation Programme
    B. Public Manufacturing Enterprise Growth Plan
    C. Post-Manufacturing Entrepreneurship Grant Policy
    D. None
    Answer: A

    69. Cluster Development Programme is intended to:
    A. Support groups of similar small industries
    B. Promote individual trade
    C. Reduce export
    D. None
    Answer: A

    70. MSMEs are vital for:
    A. Balanced regional development and inclusive growth
    B. Import promotion
    C. Capital flight
    D. None
    Answer: A

    🔹 SECTION H – SICKNESS IN SMALL INDUSTRIES

    71. A small-scale unit is termed “sick” when:
    A. It cannot meet financial obligations or sustain operations
    B. It has high profit
    C. It pays all loans on time
    D. None
    Answer: A

    72. Major cause of industrial sickness:
    A. Poor management and marketing problems
    B. High productivity
    C. Government support
    D. None
    Answer: A

    73. Technological obsolescence refers to:
    A. Use of outdated technology causing inefficiency
    B. New technology adoption
    C. Cost reduction
    D. None
    Answer: A

    74. Internal cause of sickness:
    A. Poor working capital management
    B. Infrastructure shortage
    C. Policy changes
    D. None
    Answer: A

    75. External cause of sickness:
    A. Power shortage and delayed payments
    B. Inefficient labour
    C. Poor leadership
    D. None
    Answer: A

    76. Rehabilitation of sick units involves:
    A. Financial, technical, and managerial restructuring
    B. Liquidation
    C. Outsourcing
    D. None
    Answer: A

    77. Which institution is primarily responsible for assisting sick small units?
    A. SIDBI
    B. RBI
    C. SEBI
    D. None
    Answer: A

    78. Early detection of sickness is important because:
    A. Corrective actions are cheaper and more effective
    B. Government grants increase
    C. It ensures monopoly
    D. None
    Answer: A

    79. Industrial sickness can be reduced through:
    A. Improved financial discipline and training
    B. Ignoring market signals
    C. Cost escalation
    D. None
    Answer: A

    80. Rehabilitation of small industries focuses mainly on:
    A. Reviving production and profitability
    B. Selling assets
    C. Closing units
    D. None
    Answer: A

    🔹 SECTION I – INSTITUTIONAL FINANCE TO SMALL INDUSTRIES

    81. SIDBI stands for:
    A. Small Industries Development Bank of India
    B. State Investment Development Board of India
    C. Small Investors’ Development Bureau of India
    D. None
    Answer: A

    82. SIDBI was established in:
    A. 1990
    B. 1985
    C. 1995
    D. 1992
    Answer: A

    83. Primary function of SIDBI:
    A. Finance, promote, and develop MSMEs
    B. Manage public debt
    C. Regulate stock exchanges
    D. None
    Answer: A

    84. NSIC assists small industries in:
    A. Marketing and raw material procurement
    B. Tax management
    C. Employee recruitment
    D. None
    Answer: A

    85. NABARD supports:
    A. Rural industries and agricultural enterprises
    B. Stock market reforms
    C. Telecom industries
    D. None
    Answer: A

    86. KVIC promotes:
    A. Khadi and village industries
    B. Large corporate units
    C. Software exports
    D. None
    Answer: A

    87. Cooperative banks primarily serve:
    A. Rural and semi-urban entrepreneurs
    B. Large industries
    C. Exporters only
    D. None
    Answer: A

    88. Microfinance provides:
    A. Small, collateral-free loans to low-income entrepreneurs
    B. Large-scale industrial loans
    C. Foreign currency financing
    D. None
    Answer: A

    89. SHG–Bank linkage model refers to:
    A. Linking self-help groups with banks for microcredit
    B. Bank merger scheme
    C. Capital market integration
    D. None
    Answer: A

    90. Grameen Bank model was pioneered by:
    A. Muhammad Yunus (Bangladesh)
    B. Amartya Sen
    C. C.K. Prahalad
    D. None
    Answer: A

    🔹 SECTION J – GOVERNMENT SUPPORT & CONTEMPORARY ISSUES

    91. Startup India initiative was launched in:
    A. 2016
    B. 2014
    C. 2019
    D. 2020
    Answer: A

    92. The main aim of Startup India is to:
    A. Promote innovation and entrepreneurship through simplified regulation
    B. Reduce startup funding
    C. Promote monopolies
    D. None
    Answer: A

    93. Atal Innovation Mission focuses on:
    A. Fostering innovation and incubation in schools and research institutes
    B. Agriculture only
    C. Tourism
    D. None
    Answer: A

    94. Stand-Up India Scheme provides:
    A. Bank loans to women and SC/ST entrepreneurs
    B. Export subsidies
    C. Corporate tax benefits
    D. None
    Answer: A

    95. “Make in India” initiative aims to:
    A. Transform India into a global manufacturing hub
    B. Promote only imports
    C. Encourage outsourcing
    D. None
    Answer: A

    96. A key difference between entrepreneur and intrapreneur:
    A. Ownership and risk-bearing responsibility
    B. Education level
    C. Working hours
    D. None
    Answer: A

    97. Business incubators primarily provide:
    A. Mentoring, space, and support for new startups
    B. Fixed capital loans
    C. Tax collection services
    D. None
    Answer: A

    98. Entrepreneurship development programs (EDPs) aim at:
    A. Developing entrepreneurial competencies and motivation
    B. Teaching manual work
    C. Reducing competition
    D. None
    Answer: A

    99. The success of entrepreneurial ventures depends most on:
    A. Innovation, management, and adaptability
    B. Government bureaucracy
    C. Imitation
    D. None
    Answer: A

    100. Entrepreneurship contributes to sustainable development by:
    A. Promoting innovation, inclusivity, and responsible resource use
    B. Ignoring social issues
    C. Reducing employment
    D. None
    Answer: A