Swarrnim Startup and Innovation University

Programme – BAMS
Course Name: Foundation of Entrepreneurship
Question Bank
Unit-1
1. Define ‘Entrepreneurship’. Describe its characteristics.
2. Discuss the various definitions of ‘Entrepreneurship’.
3. Entrepreneurship is an innovative function. It is a leadership rather than an ownership”.
Discuss.
4. “Entrepreneurship connotes innovation, risk-bearing and relatively dynamic
leadership”. Explain the statement.
5. Define ‘Entrepreneurship’. Also discuss its significance.
6. State the factors that affect entrepreneurship.
7. What is the role of an entrepreneur in idea generation, and how can it be achieved?
8. What are the different types of entrepreneurs according to Danhof’s classification?
Provide examples.
9. What are the key functions an entrepreneur performs to ensure the smooth operation of
a business?
10. How does an entrepreneur contribute to innovation and business growth?
11. Explain the concept of intrapreneurship and how it differs from traditional
entrepreneurship.
12. What are the two types of intrapreneurship, and how do they contribute to a company's
growth? Provide examples.
13. Describe the steps organizations can take to implement corporate entrepreneurship
successfully.
14. What are the advantages and disadvantages of corporate entrepreneurship for an
organization? Explain with relevant examples.
15. Explain Maslow's hierarchy of needs theory. How do the different levels of needs
influence an individual's motivation? Provide examples of each level.
16. What are the three key needs in McClelland’s Motivation Theory? Explain each briefly.
17. How do Herzberg’s hygiene factors differ from motivators in job satisfaction?

Unit-2
1. Define entrepreneurship and explain the role of innovation in an entrepreneur’s journey.
Provide examples of how innovation contributes to economic development.
2. What are the key characteristics of successful entrepreneurs? Discuss how these traits
contribute to business growth and sustainability.
3. Discuss the leadership qualities of entrepreneurs. What differentiates entrepreneurial
leadership from traditional management?
4. What is the difference between an inventor and an innovator, according to Schumpeter?
 5. Explain the misconception that 'entrepreneurs only care about money.' How do
successful entrepreneurs focus on value creation beyond just financial gain?
6. One common myth is that entrepreneurs are born, not made. Critically analyze this myth
and explain the role of education and experience in shaping entrepreneurs.
7. What are the key personality traits that define a successful entrepreneur, and how do
these traits contribute to their effectiveness in business?
8. How does effective communication contribute to an entrepreneur's success in building
teams, networking, and attracting investors?
9. Explain how risk-taking is a fundamental characteristic of entrepreneurship. What are
some calculated risks entrepreneurs must take to grow their businesses?
10. Explain the concept of opportunity-seeking as a quality of an entrepreneur. How does
identifying and pursuing opportunities lead to business success?

Unit-3
1. What is entrepreneurial cognition, and how does it differ from traditional studies of
entrepreneurship?
2. What are "scripts" in the context of entrepreneurial cognition, and how do they aid
entrepreneurs in decision-making?
3. How does an entrepreneur’s cognitive style affect their decision-making?
4. What is one cognitive bias that can influence an entrepreneur’s decisions?
5. What are the main cognitive factors that differentiate successful entrepreneurs from
others?
6. What impact can cognitive biases have on entrepreneurial success?
7. Why is creativity important for entrepreneurs, and how can it help them succeed in
business?
8. What is the difference between linear thinking and lateral thinking, and why are both
important for coming up with new ideas?
9. What are some ways entrepreneurs can find new ideas for products or services?
10. How do creativity and innovation work together to create unique products or services?

Unit-4
1. What is innovation, and how is it different from invention?
2. What does incremental innovation mean, and how can it improve existing products or
services?
3. How can companies leverage creative thinking to solve complex business challenges?
4. How can organizations foster an innovation culture among their employees?
5. What is process innovation, and why is it significant for businesses?
6. Discuss how incremental innovation can lead to competitive advantages in established
markets.
7. Define process innovation and provide an example of how it can benefit a business.
8. Discuss the differences between incremental innovation and disruptive innovation.
9. How does innovation help businesses adapt to changing customer preferences?
 10. What are the potential risks and rewards associated with implementing new innovations
in a business?

Unit-5
1. Define an entrepreneurial opportunity and explain its significance in starting a new
business.
2. What is problem identification, and why is it essential for entrepreneurs?
3. Explain the concept of idea generation and its importance in entrepreneurship.
4. List and describe two methods for generating business ideas from successful
entrepreneurs.
5. What factors should be considered during opportunity screening?
6. Describe the steps involved in the problem identification process and its impact on
entrepreneurship.
7. Discuss how external factors, such as economic trends and technological
advancements, influence entrepreneurial opportunities.
8. Explain the process of evaluating the feasibility of an identified entrepreneurial
opportunity.
9. Discuss the impact of societal changes on entrepreneurial opportunities.

Unit-6
1. What is brainstorming, and how does it facilitate idea generation?
2. How does reverse brainstorming differ from traditional brainstorming?
3. How can focus groups help entrepreneurs refine their business ideas, and what kind of
information can be gathered from these discussions?
4. Describe the SCAMPER technique.
5. Discuss the importance of Idea Generation Workshops.
6. Explain the Mind Mapping and SCAMPER techniques.
7. Discuss the different sources of business ideas.
8. Why do entrepreneur need to scan the environment for his business idea?

Unit-7
1. What are the objectives of feasibility analysis?
2. What are the key steps involved in writing a FSR (Feasibility Study Report)?
3. Explain the important questions that are required to be answered by the entrepreneur
while conducting technical analysis?
4. Why is it important to conduct feasibility analysis before launching a product?
5. Why is it important to conduct Market feasibility analysis? Briefly describe the
components of market feasibility analysis.
6. What are the different factors that involved in the feasibility study?
7. Discuss the importance of feasibility Study?
 MCQ’s
Unit-1
1. What is one of the main functions of an entrepreneur?
a) Hiring employees b) Innovation
c) Paying taxes d) Monitoring government policies
Answer: b) Innovation

2. Which function of an entrepreneur involves recognizing business opportunities?

a) Resource allocation b) Risk management
c) Opportunity identification d) Marketing
Answer: c) Opportunity identification

3. How does an entrepreneur help in business growth?

a) By minimizing competition
b) By creating new products or services
c) By reducing the workforce
d) By increasing operational costs
Answer: b) By creating new products or services

4. Which function of an entrepreneur is related to managing business risks?

a) Decision-making b) Risk-bearing
c) Innovation d) Product development
Answer: b) Risk-bearing

5. Which of the following is NOT a function of an entrepreneur?

a) Providing leadership b) Promoting innovation
c) Managing market research d) Regulating national policies
Answer: d) Regulating national policies

6. Entrepreneurs take on the function of decision-making. What does this entail?

a) Determining business goals
b) Following market trends without change
c) Controlling government policies
d) Avoiding risks
Answer: a) Determining business goals

7. Which function of an entrepreneur directly impacts new venture creation?

a) Monitoring political changes
b) Creating innovative business models
c) Paying taxes
d) Limiting market entry
Answer: b) Creating innovative business models

8. One of the roles of an entrepreneur is to:

a) Minimize competition in the market
b) Encourage creative solutions
c) Lower employee wages
 d) Follow existing business trends without innovation
Answer: b) Encourage creative solutions

9. What is the main objective of corporate entrepreneurship?

a) To develop social responsibility programs
b) To create new products or services within an existing company
c) To reduce company costs without innovation
d) To invest in start-ups outside the parent company
Answer: b) To create new products or services within an existing company

10. What is the key difference between an intrapreneur and an entrepreneur?

a) Intrapreneurs work in large companies, while entrepreneurs create new businesses
from scratch.
b) Entrepreneurs work in teams, while intrapreneurs work alone.
c) Entrepreneurs have fewer resources than intrapreneurs.
d) Intrapreneurs face more risk than entrepreneurs.
Answer: a) Intrapreneurs work in large companies, while entrepreneurs create new
businesses from scratch.

11. Which type of intrapreneurship focuses on adding value to the core activity of the
parent company?
a) Spin-Off b) Added Value
c) Social Intrapreneurship d) Corporate Venturing
Answer: b) Added Value

12. What is the primary characteristic of internal corporate ventures (ICVs)?

a) They are created outside the corporate structure.
b) They originate within the corporation and remain within the same corporate
structure.
c) They operate independently from the parent company.
d) They involve partnerships with external entities.
Answer: b) They originate within the corporation and remain within the same
corporate structure.

13. In McClelland’s Motivation Theory, which need reflects the desire for friendly and
close relationships?
a) Need for Achievement b) Need for Power
c) Need for Affiliation d) Need for Esteem
Answer: c) Need for Affiliation

14. Which theory suggests that people are motivated by unsatisfied needs, starting with
the most basic ones?
a) McClelland’s Theory of Needs
b) Herzberg’s Motivation-Hygiene Theory
c) Maslow’s Hierarchy of Needs
d) Expectancy Theory
Answer: c) Maslow’s Hierarchy of Needs

15. According to Herzberg, which factor is likely to increase job satisfaction?

a) Higher salary b) Recognition
 c) Safe working environment d) Job security
Answer: b) Recognition

Unit-2

1) Who is considered an innovator according to Schumpeter?

a) A person who creates new products
b) A person who commercially exploits new inventions
c) A person who only discovers new methods
d) A person who manages production lines
Answer: b) A person who commercially exploits new inventions

2) Which of the following best describes an entrepreneur’s approach to risk-taking?

a) An entrepreneur always avoids taking risks.
b) An entrepreneur takes high risks to achieve higher rewards.
c) An entrepreneur is a calculated risk-taker who avoids low and high risks.
d) An entrepreneur only takes low-risk situations to avoid losses.
Answer: c) An entrepreneur is a calculated risk-taker who avoids low and high risks.

3) Which of the following forms is NOT mentioned as an example of innovation by an

entrepreneur?
A) Introduction of new goods
B) Opening of a new market
C) Launching an advertising campaign
D) Introduction of new methods of production
Answer: C) Launching an advertising campaign

4) An entrepreneur is considered a ____________ risk-taker.

a. Calculated b. High c. Low d. Gambling
Answer: A) Calculated

5) Which of the following best defines an entrepreneur's role as an organizer?

A) Delegates all authority to subordinates
B) Brings together factors of production
C) Avoids managing day-to-day operations
D) Focuses only on high-risk investments
Answer: B) Brings together factors of production

6) Which of the following qualities is NOT commonly associated with successful

entrepreneurs?
A) High energy levels
B) Self-confidence
C) Over-reliance on others
D) Visionary mindset
Answer: C) Over-reliance on others

7) What distinguishes an entrepreneur from an ordinary manager?

A) Entrepreneurs are more concerned with day-to-day operations
 B) Entrepreneurs innovate and take calculated risks
C) Entrepreneurs avoid responsibility for outcomes
D) Entrepreneurs focus only on maintaining the status quo
Answer: B) Entrepreneurs innovate and take calculated risks

8) What type of leadership style is typically seen in successful entrepreneurs?

A) Autocratic leadership
B) Visionary leadership
C) Transactional leadership
D) Bureaucratic leadership
Answer: B) Visionary leadership

9) According to Schumpeter, an entrepreneur's contribution to economic development is

primarily through:
A) Increasing the workforce
B) Generating innovations that disrupt existing markets
C) Expanding existing markets without changing processes
D) Maximizing profit without changing business practices
Answer: B) Generating innovations that disrupt existing markets

Unit-3
1) What does cognitive psychology primarily study?
A) Physical health
B) Mental processes
C) Social interactions
D) Economic behavior
Answer: B) Mental processes

2) Which of the following is an example of entrepreneurial cognition?

A) Learning a new language
B) Evaluating business opportunities
C) Physical fitness training
D) Traveling to new places
Answer: B) Evaluating business opportunities

3) What do "scripts" in cognitive psychology refer to?

A) Written plans for a business
B) Structured knowledge about a specific concept
C) Characters in a story
D) Film screenplays
Answer: B) Structured knowledge about a specific concept

4) Which cognitive style prefers analyzing facts and data?

A) Intuitive style
B) Knowing style
C) Reflective style
D) Emotional style
Answer: B) Knowing style

5) What is a key characteristic of successful entrepreneurs in terms of cognition?

 A) They avoid taking risks.
B) They rely solely on luck.
C) They can spot gaps in the market.
D) They prefer traditional methods of business.
Answer: C) They can spot gaps in the market.

6) Which bias leads entrepreneurs to overestimate their abilities?

A) Confirmation bias
B) Loss aversion
C) Overconfidence bias
D) Anchoring effect
Answer: C) Overconfidence bias

7) What does Kolb’s experiential learning theory emphasize?

A) Passive learning
B) The importance of formal education
C) Learning through real-life experiences
D) Memorization techniques
Answer: C) Learning through real-life experiences

8) Which quadrant in the Creativity and Entrepreneurship matrix indicates a winning

combination of creativity and entrepreneurship?
A) Quadrant A
B) Quadrant B
C) Quadrant C
D) Quadrant D
Answer: A) Quadrant A

9) What type of thinking is defined as a logical, step-by-step process?

A) Lateral thinking
B) Divergent thinking
C) Linear thinking
D) Creative thinking
Answer: C) Linear thinking
10) What is a pain point in the context of innovation?
A) A feeling of discomfort
B) A problem people have with a product or service
C) A type of emotional response
D) A psychological barrier
Answer: B) A problem people have with a product or service

11) What is the key to disruptive innovation?

A) Making a product more expensive
B) Making a product more affordable and accessible
C) Reducing customer service
D) Increasing production time
 Answer: B) Making a product more affordable and accessible

12) What differentiates an invention from an innovation?

A) Inventions are always more expensive
B) Inventions are truly novel and unique creations
C) Innovations are more useful than inventions
D) Innovations require less creativity than inventions
Answer: B) Inventions are truly novel and unique creations

13) Which component is NOT part of Teresa Amabile's framework for creativity?
A) Knowledge
B) Creative thinking
C) Experience
D) Motivation
Answer: C) Experience
14) What is a key benefit of adapting to change through innovation?
A) Reducing the number of employees
B) Maintaining relevance and profitability
C) Limiting market opportunities
D) Ignoring customer preferences
Answer: B) Maintaining relevance and profitability
15) What type of innovation is primarily focused on enhancing customer interactions?
A) Service innovation
B) Incremental innovation
C) Process innovation
D) Disruptive innovation
Answer: A) Service innovation
16) Which of the following best describes incremental innovation?
A) A complete overhaul of existing systems
B) Small improvements to existing products or services
C) Developing new markets from scratch
D) Disrupting existing business models
Answer: B) Small improvements to existing products or services
17) What is the goal of user-led innovation?
A) To develop products without user input
B) To guide users in their purchasing decisions
C) To focus solely on profitability
D) To incorporate user feedback into product development
Answer: D) To incorporate user feedback into product development
 Unit-4
1. What is the primary focus of innovation?
A) Creating new ideas
B) Imitating existing products
C) Reducing costs
D) Expanding market reach
Answer: A) Creating new ideas
2. Which of the following best describes disruptive innovation?
A) Incremental improvements to existing products
B) Innovations that create new markets and value networks
C) Imitation of successful products
D) Innovations that are only environmentally friendly
Answer: B) Innovations that create new markets and value networks
3. What is the term for innovation that focuses on doing more with less?
A) Incremental innovation
B) Frugal innovation
C) Process innovation
D) Sustainable innovation
Answer: B) Frugal innovation
4. What is a key benefit of adapting to change through innovation?
A) Reducing the number of employees
B) Maintaining relevance and profitability
C) Limiting market opportunities
D) Ignoring customer preferences
Answer: B) Maintaining relevance and profitability
5. Which type of innovation aims to improve existing systems?
A) Business model innovation
B) Incremental innovation
C) Blue ocean innovation
D) Disruptive innovation
Answer: B) Incremental innovation
6. Which innovation type represents untapped market space?
A) Red ocean innovation
B) Blue ocean innovation
C) Process innovation
D) Service innovation
Answer: B) Blue ocean innovation
7. What type of innovation is primarily focused on enhancing customer
interactions?
A) Service innovation
B) Incremental innovation
C) Process innovation
D) Disruptive innovation
Answer: A) Service innovation
 Unit-5
1. What is essential for identifying entrepreneurial opportunities in a market?
A) Ignoring consumer feedback
B) A thorough understanding of market demand
C) Focusing solely on personal interests
D) Avoiding competition
Answer: B) A thorough understanding of market demand

2. Innovation is crucial in entrepreneurship because it helps to:

A) Maintain the status quo
B) Create unique solutions and products
C) Increase competition
D) Avoid market analysis
Answer: B) Create unique solutions and products

3. Customer feedback is important in the entrepreneurial process because it:

A) Reduces the need for market research
B) Helps entrepreneurs improve their offerings
C) Should be ignored to avoid confusion
D) Is only relevant after a product launch
Answer: B) Helps entrepreneurs improve their offerings

4. What is a crucial step in evaluating the feasibility of an entrepreneurial

opportunity?
A) Rushing into the market
B) Conducting a SWOT analysis
C) Ignoring market research
D) Avoiding stakeholder input
Answer: B) Conducting a SWOT analysis

5. Collaboration among entrepreneurs can enhance idea generation by:

A) Reducing creativity
B) Encouraging diverse perspectives
C) Discouraging teamwork
D) Limiting innovation
Answer: B) Encouraging diverse perspectives

6. Societal changes can create new entrepreneurial opportunities by:

a. Stagnating consumer preferences
b. Influencing values and lifestyles
c. Reducing market demand
d. Eliminating competition
Answer: B) Influencing values and lifestyles
7. Persistence and adaptability are essential for entrepreneurs because they:
a. Help avoid challenges
b. Encourage conformity
c. Enable overcoming obstacles and adapting to changes
d. Make decision-making easier
Answer: C) Enable overcoming obstacles and adapting to changes

8. Which of the following best defines "idea generation"?

A) A random selection of concepts
B) A deliberate process of developing ideas for a problem
C) A method to avoid market analysis
D) An informal discussion among friends
Answer: B) A deliberate process of developing ideas for a problem

9. In the context of entrepreneurship, what does the term "perishable

opportunities" refer to?
A) Opportunities that last indefinitely
B) Opportunities that require immediate action
C) Opportunities that can be ignored
D) Opportunities that are always available
Answer: B) Opportunities that require immediate action

10. What role does brainstorming play in generating business ideas?

A) It restricts creativity
B) It encourages the flow of diverse ideas
C) It should only involve a few people
D) It avoids structured discussions
Answer: B) It encourages the flow of diverse ideas

Unit-6
1. What is the Garden Technique primarily designed to do?
A) Cloud the understanding of the problem
B) Encourage discussion about the known problem
C) Help participants express ideas without knowing the exact problem
D) Finalize a business concept
Answer: C) Help participants express ideas without knowing the exact problem

2. Which technique involves generating new ideas through a chain of word associations?
A) Free Association
B) Heuristics
C) Focus Groups
D) Brainstorming
Answer: A) Free Association
3. Which technique involves writing ideas down and passing the paper to others for
further ideas?
A) Mind Mapping
B) Brainwriting
C) Reverse Thinking
D) SCAMPER
Answer: B) Brainwriting

4. In the SCAMPER technique, what does the 'C' stand for?

A) Create
B) Combine
C) Change
D) Collaborate
Answer: B) Combine

5. Which of the following is NOT a source of idea generation?

A) Employees
B) Competitors
C) Market trends
D) Weather forecasts
Answer: D) Weather forecasts

6. What is the purpose of collaboration in idea generation?

A) To limit creativity
B) To simplify processes
C) To bring together diverse perspectives
D) To increase competition
Answer: C) To bring together diverse perspectives

7. What does the term "Accidental Genius" refer to in idea generation?

A) A genius who invents by accident
B) Writing freely to trigger ideas
C) Unplanned collaborations
D) Random brainstorming sessions
Answer: B) Writing freely to trigger ideas

Unit-7
1) What is the primary purpose of conducting a feasibility analysis?
a) To develop a marketing plan
b) To determine whether the business idea is worth pursuing
c) To create a business logo
d) To assess employee satisfaction
Answer: b) To determine whether the business idea is worth pursuing
2) Which aspect is NOT typically included in a feasibility study?
a) Financial analysis
b) Technical analysis
c) Employee motivation
d) Market analysis
Answer: c) Employee motivation

3) What does a business feasibility study help investors assess?

a) The aesthetic appeal of a product
b) The marketability of the entrepreneur
c) The commercial viability of a project
d) The employee turnover rates
Answer: c) The commercial viability of a project

4) Technical feasibility primarily examines:

a. Marketing strategies
b. Financial implications
c. The capability of current technology and personnel
d. Environmental impact
Answer: c) The capability of current technology and personnel

5) Which of the following questions is relevant to technical analysis?

i. What are the marketing costs?
ii. Is the technology proposed to be used the latest technology?
iii. What is the expected ROI?
iv. How many employees are needed?
Answer: b) Is the technology proposed to be used the latest technology?

6) What is the focus of the plant layout study in technical appraisal?

i. Employee satisfaction
ii. The arrangement of machines and equipment
iii. Marketing strategies
iv. Financial forecasting
Answer: b) The arrangement of machines and equipment

7) What does project scheduling and implementation describe?

i. The marketing plan for the business
ii. The employee training program
iii. The timeline for major phases of project work
iv. The aesthetic design of the product
Answer: c) The timeline for major phases of project work

8) Which of the following is NOT a major area of market feasibility analysis?

a. Investigating market potential
b. Analyzing competitor behavior
c. Conducting financial audits
 d. Understanding customer demand patterns
Answer: C) Conducting financial audits

9) Which of the following is a method for forecasting demand?

a. SWOT analysis b. Delphi method
c. PEST analysis d. Gap analysis
Answer: B) Delphi method

10) What is the ultimate outcome if the market feasibility analysis indicates that the
project is not viable?
A) Proceed with the project
B) Conduct financial analysis
C) Drop the project
D) Modify the product features
Answer: C) Drop the project