Entrepreneurship Quiz

Entrepreneurship is the willingness and ability to establish, organise and manage a business and take financial risks to make profits. An Entrepreneur is an innovator who brings in new ideas to create a successful business venture. We have compiled some multiple-choice questions and answers on entrepreneurship to help students understand the concept better: 1. Which of these is not a type of entrepreneurship? a. Small business entrepreneurship b. Scalable entrepreneurship c. Large scale entrepreneurship d. Intrapreneurship Answer: d 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 Answer: a 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 Answer: c 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 d. Formulating rules and regulations relating to conducting entrepreneurship in their country Answer: d 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 Answer: b 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 Answer: b 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 Answer: d 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 Answer: d 9. Which of these is the first activity of a new business? a. Departure point b. Goal Orientation c. Business skill development d. None of the above Answer: a 10. Who should be involved in preparing a firm’s business plan? a. Accountant b. Engineer c. Entrepreneur d. None of the above Answer: c 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 Answer: c 12. The process of creating something new is called: a. Creative flexibility b. Management c. Business d. Innovation Answer: d 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 Answer: c 14. Which of these is also known as corporate venturing? a. Intrapreneurship b. Mergers c. Entrepreneurship d. Acquisition Answer: a 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 decisi ons Answer: c 16. Entrepreneurship Development Program is helpful for: a. First-generation entrepreneurs b. Future generation entrepreneurs c. Existing Entrepreneurs d. None of the above Answer: a 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 Answer: b 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 Answer: c 19. What is the purpose of a feasibility study for starting a new venture? a. Exploring for potential customers b. Estimate sales c. To understand if there are any barriers to success d. None of the above Answer: c 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 Answer: a