Most important MCQs of Entrepreneurship Development, its cover two topics Concept of Entrepreneurship and Types of Entrepreneurs.

1. B.Com 4th
Semester
Vocational Course (Entrepreneurship)
Concept of Entrepreneurship
1. Which of these is not a type of entrepreneurship?
a. Small business entrepreneurship
b. Scalable entrepreneurship
c. Large scale entrepreneurship
d. Intrapreneurship
2. Which of these actions of an entrepreneur will most likely result in
creative destruction?
a. Developing a new product
b. Taking over a competitor’s business
c. Issuing shares to individuals and institutions
d. Lowering prices of your product or service
3. According to Schumpeter, innovative entrepreneurs would:
a. Thrive in the market
b. Not survive and disappear from the market.
c. Get absorbed within larger innovative businesses
d. Get absorbed within non-innovative businesses
4. Which of these is not a challenge for the entrepreneur?
a. Managing the cash flow of their business
b. Recruiting new employees
c. Choosing the product or service to sell in the market

2. d. Formulating rules and regulations relating to conducting
entrepreneurship in their country
5. Which of these theories involve taking a moderate amount of risk as a
function of skill and not chance?
a. Need for achievement
b. Need for affiliation
c. Need for authority
d. Need for independence
6. Which of these is not a category of external forces that affects a
business?
a. Competitive forces
b. Technological forces.
c. Economic forces
d. Socio-economic forces
7. Which among these is a money manager who is involved in making risk
investments from equity capital with the objective of gaining better
returns?
a. Entrepreneur
b. Businessperson
c. Buyer
d. Venture capitalist
8. Andrew Carnegie belonged to this century:
a. 16th to 17th Century
b. 20th to 21st Century.
c. 17th to 18th Century
d. 19th to 20th Century
9. Which of these is the first activity of a new business?

3. a. Departure point
b. Goal Orientation
c. Business skill development
d. None of the above
10.Who should be involved in preparing a firm’s business plan?
a. Accountant
b. Engineer
c. Entrepreneur
d. None of the above
11.What should be the main worry of a company’s founder who asks for
capital in exchange for equity shares in their venture?
a. Valuation
b. Control
c. Capitalisation
d. Legal formalities
12.The process of creating something new is called:
a. Creative flexibility
b. Management
c. Business
d. Innovation
13.Ownership position of less than 50 per cent in a business is known as:
a. Majority Interest
b. Joint Venture
c. Minority Interest
d. None of the above
14.Which of these is also known as corporate venturing?
a. Intrapreneurship

4. b. Mergers
c. Entrepreneurship
d. Acquisition
15.If an entrepreneur takes decisions on behalf of their enterprise, it is
known as ______:
a. Routine decisions
b. Strategic decisions
c. Organisational decisions
d. Personal decisions
16.Entrepreneurship Development Program is helpful for:
a. First-generation entrepreneurs
b. Future generation entrepreneurs
c. Existing Entrepreneurs
d. None of the above
17.These decisions are concerned with policy matters and they influence
the goals and objectives of a business venture:
a. Routine decisions
b. Strategic decisions
c. Organisational decisions
d. Personal decisions
18.Ownership position of more than 50 per cent in a business is known as:
a. Minority Interest
b. Joint Venture
c. Majority Interest
d. None of the above
19.What is the purpose of a feasibility study for starting a new venture?
a. Exploring for potential customers

5. b. Estimate sales
c. To understand if there are any barriers to success
d. None of the above
20.An entrepreneur who is the owner of more than one business is called:
a. Portfolio Entrepreneur
b. Intrapreneur
c. Corporate Entrepreneur
d. None of the above
Types of Entrepreneur
Q 1: Which of the following types of Entrepreneurs is given by C. Danhof?
(a) Trading Entrepreneurs (c) First generation Entrepreneurs
(b)Agriculture Entrepreneurs (d) Innovative Entrepreneurs
Q 2: ___________ are the type of entrepreneurs who imitate only when they
are sure that failure to do so would result in a loss of the relative share in the
enterprise.
(a) Trading Entrepreneurs (c) First generation Entrepreneurs
(b) Fabian Entrepreneurs (d) Innovative Entrepreneurs
Q 3: ____________ are the conventional in their approach. They are not ready
to change their existing production methods even if they suffer losses
(a) Drone Entrepreneurs (c) First generation Entrepreneurs
(b)Fabian Entrepreneurs (d) Innovative Entrepreneurs

6. Q 4: In Underdeveloped countries, local mobile phone companies use the same
technology used by big companies to manufacture their product. Which of the
following types of Entrepreneurs is highlighted above?
(a) Trading Entrepreneurs
(c) Imitative Entrepreneurs
(b) Agriculture Entrepreneurs
(d) Innovative Entrepreneurs
Q 5: _______________ type are entrepreneurs are found in the field of small
trading and manufacturing concerns.
(a) Trading Entrepreneurs (c) First generation Entrepreneurs
(b)Business Entrepreneurs (d) Innovative Entrepreneurs
Q 6: To which type of entrepreneurs Hero Motor Corp and Hyundai
Corporation belong to?
(a) Trading Entrepreneurs (c) First generation Entrepreneurs
(b) Business Entrepreneurs (d) Industrial Entrepreneurs
Q 7: ______________ are Essentially compared to craftsmen who concentrate
more on production than marketing.
(a) Trading Entrepreneurs (c) Technical Entrepreneurs
(b) Business Entrepreneurs (d) Innovative Entrepreneurs
Q 8: Identify the type of entrepreneurs who develop alternative projects by
selling the running business.

7. (a) Trading Entrepreneurs (c) Technical Entrepreneurs
(c) Business Entrepreneurs (d) Professional Entrepreneurs
Q 9: Which of the following type of Entrepreneurs are also known as pure
entrepreneurs because of their desire for self-fulfillment?
(a) Spontaneous Entrepreneurs (c) Technical Entrepreneurs
(b) Business Entrepreneurs (d) Professional Entrepreneurs
Q 10: They enter into entrepreneurship because of various governmental
supports provided in terms of financial assistance, incentives, concessions, and
other facilities to the people who want to set up their new enterprises”. Which
type of entrepreneur is being discussed in the above lines?
(a) Induced Entrepreneurs (c) Motivated Entrepreneurs
(b) Spontaneous Entrepreneurs (d) Imitative Entrepreneurs
Q 11: Steve Jobs, the brain behind Apple and I-pod, is known to value quality
in all the products introduced by the company. Which of the following
competency of an Entrepreneur is highlighted in the above case?
(a) Persistence (c) Systematic Planning
(b) Information seeking (d) Quality Performance
Q 12: It is the method of governance that essentially involves balancing the
interests of many stakeholders in a company. Identify the above concept
related to business Ethics.
(a) Corporate governance (c) Fiduciary Responsibility

8. (b) Insider Trading (d) Bribery
Q 13: Which of the following is the core value that is generally possessed by
dynamic entrepreneurs:
(a) Motivation (c) Ethics
(b) Quest for outstanding performance (d) Attitude
Q 14: Unsatisfied Need —> Tension —> X What is X in the above process of
Motivation?
(a) Reduction in tension (c) Drives
(b) Satisfaction of need (d) Search behavior
Q 15: They are commonly found in developed countries where opportunities
and resources are in abundance and contribute towards building a modern
capitalist economy”. Which type of entrepreneur is being discussed in the
above lines?
(a) Drone Entrepreneurs (c) Innovative Entrepreneurs
(b) Fabian Entrepreneurs (d) Imitative Entrepreneurs
Q 16: Elon Musk, the brain behind Tesla and neuro links, is known to value
quality in all the products introduced by the company. Which of the following
competency of an entrepreneur is highlighted in the above case?
(a) Persistence (c) Systematic Planning
(b) Information seeking (d) Quality Performance

9. Q 17: The use of the material and non-public information in trading the
shares of a company by any person who owes a fiduciary duty to the company.
Identify the above concept related to business Ethics.
(a) Corporate governance (c) Fiduciary Responsibility
(c) Insider Trading (d) Bribery
Q 18: Which of the following is not the core value that is generally possessed
by dynamic entrepreneurs:
(a) Innovation and creativity (c) Independence
(b) Quest for outstanding performance (d) Attitude
Q 19 : Unsatisfied Need —> X —> Drives. What is X in the above process of
Motivation.
(a) Innovation and creativity (c) Independence
(b) Quest for outstanding performance (d) Attitude
Q 20: Rata Tata shifted the manufacturing plant of Nano cars from Singur to
Sanand due to unforeseen Complexity. Which of the following Competency of
an entrepreneur is highlighted in the above case?
(a) Problem Solving (c) Systematic Planning
(b) Information seeking (d) Q uality Performance
Q 21: When Apple phone was launched, Steve Jobs took great care to make
the package eco friendly and light weight with 3D images on it. Which of the
following core value is highlighted in Steve Jobs Behaviour

10. (a) Innovation and creativity (c) Independence
(b) Quest for outstanding performance (d) Respect for Work
Q 22: A young boy who could not clear IAS examination ,opened an institute
for aspiring youngsters. What started as a single teacher coaching centre grew
into a big education institute that provides wide range of courses. The young
man who could not achieve his dream of becoming a civil servant has become
an entrepreneur in the field of education. Which of the following core value is
highlighted in above case
(a) Innovation and creativity (c) Independence
(b) Q uest for outstanding performance (d) Respect for Work
Q 23: Advertisers often use actors and actresses who look similar to or act
similar to their intended audiences. The another application which advertisers
use to influence audience attitudes is that they show typical people confronting
different typical problems and finding solution in the use of the advertised
brand. Which of the following source of attitude is highlighted in above
example?
(a) Direct personal experience (c) Influential others
(b) Group association (d) All of the above
Q 24: Arrange the following needs in the order of their hierarchy as per
Maslow’s need hierarchy theory of motivation.
(i) Safety needs
(ii) (ii) Esteem needs
(iii) (iii) basic physiological needs

11. (iv) (iv) Belonging needs (
a) (i) (ii) (iii) (iv) (b) (iii) (i) (iv) (ii)
C) (iv) (iii) (ii) (i) (d) (iii) (iv) (i) (ii)
Q 25: Under which of the following category job security, stability of
income, pension plans need will be classified?
(a) Safety needs (b) Esteem needs
(c) basic physiological needs (d) Belonging needs
Concept of Entrepreneurship Types of Entrepreneur
1- D
2- A
3- C
4- D
5- B
6- B
7- D
8- D
9- A
10- C
11- C
12- D
13- C
14- A
15- C
16- A
17- B
18- C
19- C
20- C
1- D
2- B
3- A
4- C
5- B
6- D
7- C
8- D
9- A
10- C
11- D
12- A
13- B
14- C
15- C
16- D
17- B
18- D
19- D
20- A
21- B
22- C
23- C
24- B
25- A