GS: Hindi / English · Language questions stay in their original language.
120 questions · 120 marks · 2 hours
Choose one option per question.
Tap an option to check it, or open “See answer”.
Correct answer: (C) Apprenticeship
In apprenticeship the trainee learns many of the tasks of the trade over a long period, which makes it the broad training.
Correct answer: (C) The difference between current assets and current liabilities
Working capital is the difference between current assets and current liabilities, and it is what runs the business from day to day.
Correct answer: (A) Technical
The technical entrepreneur keeps his attention on the work and the technology, which is why he is called extremely task-oriented.
Correct answer: (C) To raise funds from a large number of individuals through an online platform
Crowdfunding raises capital in small amounts from a large number of individuals, usually through an online platform.
Correct answer: (A) 2006
The MSME Development Act came into force in 2006.
Correct answer: (B) Buying and selling of government debt securities
The bond market is where government debt securities are bought and sold; company shares trade on the stock exchange.
Correct answer: (C) Loss by transmission and poor retention
Loss in transmission and poor retention is a mechanical or organizational barrier, not a personal one—the personal barriers are fear of a challenge to authority and unwillingness to communicate.
Correct answer: (A) Facilitating the trading of stocks and other securities
A stock exchange facilitates the trading of stocks and other securities; fixing interest rates is the central bank's work.
Correct answer: (B) Capital structure
The structure of the total capital funds a company raises is called its capital structure.
Correct answer: (C) Marketing
Gauging what the customer needs and designing the product or service to serve it is the process of marketing.
Correct answer: (C) Opening a trading account and demat account, placing an order, execution of order, settlement of order
The sequence runs—opening a trading and demat account, placing the order, execution of the order, and settlement last.
Correct answer: (A) Brand
A name, term, design or symbol that marks out one seller's goods from another's is a brand.
Correct answer: (A) Depository participant
The intermediary between the investor and the depository is the depository participant, which keeps the accounts of dematerialized shares.
Correct answer: (A) Channel of distribution
The organized network of agencies and institutions that links the producer to the end customer is the channel of distribution.
Correct answer: (C) Personal selling
Personal selling is the most expensive promotional tool, since the salesman must reach each customer himself.
Correct answer: (C) Convenience product
Goods such as soap or a candy bar are bought often and on impulse, so they are convenience products.
Correct answer: (E) None of the above
By the key all three statements hold as they stand—about an idea merely told to a friend, about commonly known information and about a choreographic work—so the answer is ‘None of the above’.
Correct answer: (A) Elasticity
The degree to which one economic variable changes in response to another is called elasticity.
Correct answer: (C) Trademarks are protected under the Consumer Protection Act.
Trademarks are protected by intellectual property law, not under the Consumer Protection Act—so that is the false statement.
Correct answer: (A) Marketing mix
The mix of controllable variables used to reach the desired sales in a target market is the marketing mix.
Correct answer: (D) More than one of the above
That entrepreneurship is easy, that it is found only in small business, and that it needs only a great idea are all recognized misconceptions, so the answer is ‘more than one’.
Correct answer: (C) Unsought products
Goods the customer does not know of, or does not actively seek, are unsought products.
Correct answer: (D) More than one of the above
Financial reward, the desire to be independent and a taste for risk-taking can all motivate a new venture, so the answer is ‘more than one’.
Correct answer: (C) Market positioning
Securing a clear and desirable place for one's product against competing ones in the minds of the target market is market positioning.
Correct answer: (A) Change, challenge, creativity, control, curiosity and cash
The 6 C's that motivate entrepreneurs are change, challenge, creativity, control, curiosity and cash.
Correct answer: (C) Patent
The exclusive right granted to an inventor over a new product or process is a patent.
Correct answer: (A) Kiran Mazumdar-Shaw
“Entrepreneurship is about being able to face failure and succeed after failure” was said by Kiran Mazumdar-Shaw.
Correct answer: (A) Utility patent
A utility patent is granted for a new and useful process, machine, article of manufacture or composition of matter, or an improvement of one.
Correct answer: (A) Adoptive
The adoptive entrepreneur sets up industry by taking over proven technology, which is why he matters most to underdeveloped countries—what they need is the spread of established technique rather than fresh invention.
Correct answer: (D) More than one of the above
An inventor, an assignee and an obligated assignee may all apply for a patent, so the answer is ‘more than one’.
Correct answer: (A) Market
The market is the most important economic factor in entrepreneurial growth; government and politics are non-economic factors.
Correct answer: (D) More than one of the above
Under consumer protection a complainant may be the consumer himself, a registered voluntary consumer association, or several consumers with the same interest—so the answer is ‘more than one’.
Correct answer: (D) More than one of the above
That entrepreneurs are gamblers and that they are born, not made, are myths, while ‘everyone has the potential to be an entrepreneur’ is not one. By the key more than one option is taken not to be a myth.
Correct answer: (B) Consumer dispute
A dispute in which the other party denies the allegations of the complaint is called a consumer dispute.
Correct answer: (C) Organizational feasibility analysis
Organizational feasibility analysis is done to see whether the proposed business has the management expertise, organizational competence and resources to launch.
Correct answer: (A) First-generation entrepreneur
One who sets up an industrial unit for the first time by his own innovative skill is called a first-generation entrepreneur—there being no tradition of industry in his family.
Correct answer: (D) More than one of the above
SIDBI extends seed capital, discounts bills and promotes the MSME sector too, so the answer is ‘more than one’.
Correct answer: (A) Modern entrepreneur
An entrepreneur who runs his venture along with the changing demand of the market is called a modern entrepreneur.
Correct answer: (C) SIDBI is mandated to serve as the principal financial institution for executing the triple agenda of promotion, financing and development of large-scale industry.
The mandate the statement assigns to SIDBI is not stated correctly, so that is the false statement.
Correct answer: (C) Copreneurs
A wife and husband running a venture together are called copreneurs.
Correct answer: (B) A business plan provides lenders and investors assurance that they will earn a decent return.
A business plan makes the founders systematize their thinking and serves as a selling document, but it gives lenders no assurance of profit—so that is not one of the reasons.
Correct answer: (C) Intrapreneuring
Entrepreneurial activity carried on with the organization's sanction and resources, purely for innovative results, is intrapreneuring.
Correct answer: (A) Venture capital
Finance for high-technology, high-risk and high-reward projects is venture capital.
Correct answer: (A) Vanguard
A group leading the way in new developments or ideas is called the vanguard.
Correct answer: (D) More than one of the above
Planning working capital means fixing the cash balance, the level of inventory and the credit policy alike, so the answer is ‘more than one’.
Correct answer: (D) More than one of the above
The soft loan scheme is meant to encourage units to modernize, replace and renovate plant and machinery alike, so the answer is ‘more than one’.
Correct answer: (A) Vertical
In filing, the folders, drawers and cupboards are kept vertical, so that files can be taken out and put back easily.
Correct answer: (E) None of the above
A business plan systematizes the founders' thinking and presents the venture; the options do not state its purpose correctly, so the answer is ‘None of the above’.
Correct answer: (E) None of the above
Under the Companies Act, 2013 the maximum number of members of a private company is 200, which is not among the options—so the answer is ‘None of the above’.
Correct answer: (C) Opportunity
A favourable set of circumstances creating a need for a new product, service or business is an opportunity.