QUESTION BANK

Q.1 Explain the terms/ short answers

1. Entrepreneur V/s. Intrapreneur
2. Ease of Doing Business
3.Venture Capital
4. Medium Enterprise
5. Entrepreneurship
6. Corporate Venturing
7. Bootlegging
8. Net Present Value
9. Probability Thinking
10. Outsourcing
11. Crowd Funding
12. Innovation
13. Break Even Point
14. Fabian Entrepreneur
15. Business Plan
16. Sub-Contracting Exchanges
17. Business Plan
18. Adoptive Entrepreneur
19. Intrapreneur
20. Minor entrepreneurship

Q.2 Define Entrepreneurship. Explain the characteristics of a successful entrepreneur.

Q.3 Explain the various functions of NABARD
Q.4 Which are Central level institutions supporting business enterprises in India. Explain any three.
Q.5 Explain the contribution of Gujarati Entrepreneurs to India and World Economy
Q.6 What are the challenges faced by the women entrepreneurs?
Q.7 Discuss in detail the initiatives undertaken by Government of Gujarat for promoting MSME and Start-
up.
Q.8 What are the various problems faced by MSME Sector?
Q.9 Explain the significance and Growth of MSME in India.
Q.10 Explain factors influencing women entrepreneurs and various institutions supporting women’s
entrepreneurship in India.
Q.11 Describe the procedure of Business Plan for setting up Multiplex theatre. Explain the importance of
each major component.
Q.12 Explain the salient features of MSMED Act, 2006
Q. 13 Differentiate Entrepreneurs and Managers.
Q.14 Explain the determinants for Ease of doing Business
Q.15 Describe the entrepreneurial competencies of an entrepreneur and justify with a suitable example of
your choice.
Q.16 Discuss the Government Initiatives on Startup India
Q.17 In the strategic formulation school of thought, what are the four types of strategies involved with
unique elements? Give an illustration of each.
Q.18 Many entrepreneurs have a poor understanding of the finances associated with their new venture
and/or have a venture that lacks uniqueness. Why these characteristics are considered pitfalls of electing new
ventures?
Q.19 Entrepreneurs have a tolerance for ambiguity, are calculated risk takers, and have a high regard for
integrity and reliability. What does this statement, mean? Be complete in your answer.
Q.20 Which are State level institutions supporting business enterprises in Gujarat. Explain any three.
Q.21“The Growth in MSME sector during the second decade of 21 st century has guided Indian economy on
the development path” Do you agree with this statement? Give reasons to support your answer.
Q.22 “Though Government of India as well as different state governments are promoting the MSME sector
by offering different schemes, still it is way behind the expected growth rate.” Give reasons to support this
statement.
Q.23 Describe the procedure of Business Plan for setting up Multiplex theatre. Explain the importance of
each major component.
Q.24 Describe the procedure of Business Plan for setting up Multi-cuisine Restaurant. Explain the
importance of each major component
Q.25 Describe the procedure of Business Plan for setting up Amusement Park. Explain the importance of
each major component.
Q.26 Describe the procedure of Business Plan for setting up an NGO to support women empowerment in
Panchmahal District. Explain the importance of each major component
Q.27Discuss determinants of EoDB. How the indicators are selected?

Q.28 State the significance role of women entrepreneurs.

Q.29 Discuss various problems faced by women entrepreneurs in India and suggest remedies to solve these
problems.

Q.30 What are the challenges faced by minority entrepreneurship?

Q.31Discuss the role and importance of MSME in India.

Q.34 Briefly discuss the growth and development of MSME in Gujarat.

Q. 35 Discuss various measures taken by the Government for the promotion of MSMEs.

Q.36 What are the various Central Government Schemes and benefits for promoting the entrepreneurship in
India
Q.37 What is Stand-up India Scheme? State its salient features.
Q.38 Explain Start-up eco-system. Explain its elements.
Q.39 Discuss Skill India Scheme and its features.
Q. 40 Write a short note on:
a) Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
b) Science for Equity Empowerment and Development (SEED)
c) Trade Related Entrepreneurship Assistance and Development (TREAD)
Q.41 Explain the following support organizations:
a) District Industry Centers (DICs)
b) Industrial Finance Corporation (IFCI)
c) State Financial Corporation (SFCs)
d) Small Industries Development Bank of India (SIDBI)
e) National Bank for Agriculture and Rural Development (NABARD)
f) National Small Industries Corporation (NSIC)

Q. 42 MCQs

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
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. 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
9. Who should be involved in preparing a firm’s business plan?
a) Accountant
b) Engineer
c) Entrepreneur
d) None of the above
10. 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
11. The process of creating something new is called:
a) Creative flexibility
b) Management
c) Business
d) Innovation
12. 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
13. Which of these is also known as corporate venturing?
a) Intrapreneurship
b) Mergers
c) Entrepreneurship
d) Acquisition
14. 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
15. Entrepreneurship Development Program is helpful for:
a) First-generation entrepreneurs
b) Future generation entrepreneurs
c) Existing Entrepreneurs
d) None of the above

16.With reference to the MSME consider the following statement:

a. This sector is the largest employer of human resources of India
b. It generates more employment opportunities per unit of capital invested compared to large
industries
c. These industries in India account for 45% of the industrial units in the country.
a) a. only b) b only c) a & b only d) a, b and c
17.Which of the following is correct regarding medium industry in India?
a. Investment in Plant and Machinery is not more than Rs. 10 crores
b. Annual turnover is not more than Rs.250 Crore
a) Only a b) only b c) Both a and b d) Neither a nor b e) None of the above

18.Which of the following bank is primarily focused on the development of the MSME sector?
a) Reserve Bank of India
 b) National Bank for Agriculture and Rural Development
c) State Bank of India
d) Small Industries Development Bank of India

19.Which of the following initiatives is related to MSME sector?

I. Udyog Aadhar Memorandum
II. A scheme for promotion of innovation, rural industry and entrepreneurship (ASPIRE)
a) I only b) II only c) both I and II d) Neither I nor II

20.What is the limit of the Annual turnover for small enterprises

a) 5 crores to 75 crores rupees b) less than 5 crores rupees
b) Between 75 crores to 150 crores rupees d) between 150 to 200 crores rupees

21. Helpline “Udyami” is meant for:

a) Micro, small and medium enterprises c) Large capital industries
b) Female entrepreneur d) Farmers using technology in farming

22. which of the following is a micro finance programme?

a) Local village bank c) Purvanchal bank
b) Self help group d) Utkal Gramin Bank

23. The correct sequence in a business plan would be

a. Executive summary
b. Details about the entrepreneurs
c. Marketing and economic details
d. Financial details
e. Human resource details
a) a, b, c, d, e b) b, c, d, e, a c) a, d, b, c, e d) a, c, e, b, d
24. The role of a business plan is to identify potential customers within the target market. The process of
dividing up the target market is called ____________.
a. Market segmentation c) Marketing plan

b. Industry analysis. d) Market analysis

25. What is the purpose of a feasibility study for starting a new venture?
a. Exploring for potential customers c) Estimate sales
b. To understand if there are any barriers to success d) None of the above
26. The word Entrepreneur was introduced by
a) M.S Dhoni b) Mukesh Ambani c) Jean-Baptiste d) Stive jobs

27. At the same time who Start and runs a Number of business-\
a) Service entrepreneur b) Portfolio Entrepreneurs
c) Private Entrepreneurs d) govt. Entrepreneurs
28. Which Entrepreneur is not intended in innovative-
a) Portfolio Entrepreneur b) Novice Entrepreneur
c) Imitative Entrepreneur d) None of the above
29 First Generation Entrepreneur –
 a) who makes a company b) who makes an organisation

c) who start an industry with innovative idea and skill d) none of the above

30. Agriculture entrepreneurship related to –

a) Non agriculture activities b) Agriculture activities

c) Both d) None of the above

31. The word entrepreneur derived from

a) Entreprena b) Enereprise c) Entaprena d) Entreprendre
33. In 16th century entrepreneur word applied to
a) Leader of NCC b) leader of military expedition c) Leader of samaj d) None of the above
34. In 18th century it was used to refer to
a) Economic activities b) Noneconomic activities
c) Managerial activities d) None of the above
35. First time who applied Entrepreneur to the business?
a) Dj bravo b) Jean-Baptiste c) Johnson d) Richard Cantillon
36. At the same time who Start and runs a Number of business-
a) Service entrepreneur b) Portfolio Entrepreneurs
c) Private Entrepreneurs d) govt. Entrepreneurs
37. Which Entrepreneur is not intended in innovative-
a) Portfolio Entrepreneurs b) Novice Entrepreneur
c) Imitative Entrepreneur d) None of the above
38. An Entrepreneur Who Has No Prior Business Ownership Experience –
a) Novice Entrepreneur b) Imitative Entrepreneur
c) Portfolio Entrepreneurs d) None of the above
39. First Generation Entrepreneur –
a) who makes a company b) who makes an organisation
c) who start an industry with innovative idea and skill d) none of the above
40. Agriculture entrepreneurship related to –
a) Non agriculture activities b) Agriculture activities
c) Both d) None of the above
41. Buying and selling of manufacturing goods related to which entrepreneur
a) Novice Entrepreneur b) Imitative Entrepreneur
c) Trading entrepreneur d) Portfolio Entrepreneurs
42. An individual who makes change in method of production
a) Imitative Entrepreneur b) Portfolio Entrepreneurs
c) Novice Entrepreneur d) Drone entrepreneur
43. who start with an idea not for making profit but for social welfare
a) Social entrepreneur b) Imitative Entrepreneur
c) Drone entrepreneur d) Novice Entrepreneur
44. An Entrepreneur who is in the process of starting a new business
a) Drone entrepreneur b) Novice Entrepreneur
(c) Nascent entrepreneur d) Social entrepreneur
45. which are the function of an entrepreneur?
a) Risk bearing b) Innovation c) Organizing and managing d) all of the above
46. An entrepreneur enter in to business to improved quality product by their invention and discoveries
comes under
a) Technical entrepreneur b) Professional entrepreneur
c) Novice Entrepreneur d) all of the above
47. An entrepreneur who introduce new idea, methods of production and discovers new market is called as
a) Technical entrepreneur b) Innovative Entrepreneur
c) Novice Entrepreneur d) all of the above
48. The term “entrepreneur” has been from the
a) English verb b) Greek verb c) Italic verb d) French verb
49. Enterprendre means
a) To struggle b) To undertake c) To invent d) To motivate
50. The main Features of entrepreneurship are given below:
a) Management and Leadership Economic b) Economic and dynamic activity
c) Innovative Activity d) All of the above
51. Role of an Entrepreneurship in Economic Development
a) Promotes Balanced Regional Development b) Encourages Capital Formation
c) Rural Development and Reduction in Migration d) All of the above
52. Entrepreneurship can………………. the Gross National Product
a) Increase b) Decrease c) Neither increase nor decrease d) None of the above
53. Entrepreneurship can ………………. the Unemployment
a) Increase b) Neither increase nor decrease c) Decrease d) None of the above
54. The surroundings of business enterprise which have impact on the growth of business is called
a) Environment b) Surroundings c) Both (a) and (b) d) None of these
55. Which of the Following are main non-economic factors:
a) Social factors b) Personality factors c) Psychological factors d) All of the above
56. The economic factors include
a) Capital b) Education c) Family d) Caste Factor
57. Economic environment includes
a) Economic Condition b) Economic Planning c) Economic System d) All of the above
58. Environment is a combination of
a) Political & economic b) Social & cultural c) Legal & economic d) All of the above
59. Changes which take place in environment
a) Affect all businesses in similar manner b) Do not affect
c) Affect all businesses in different manner d) None of these
60. A stable and dynamic political environment play
a) Positive role in business growth b) Negative role in business growth
c) No role in business growth d) None of these
61. entrepreneur is derived from which word
a) enterprendre b) Senterprise c)enterpandro d)entreprena
62. Which is the part of entrepreneurship process
a) Managing the venture b) determination of resources required and starting the venture
c)identifying the evaluation opportunities d) All of the above

Q.43 Case studies:

1. Chinese Restaurants: A Good Business Opportunity

Deepak and Nandan both want to start their own business. On conducting an environment
and industry analysis and a market study, they found tat there is a demand for Chinese food
and the market seems quite large. The market study revealed that customers are looking for
restaurants that offer fun family dining at a reasonable price in key locations. Presently, there
is no competition in lower to medium price range in those locations. Now Deepak and
Nandan both want to start a chain of mid-priced Chinese food restaurants in key locations.
Nandan is a successful investment banker with an experience of 6 years. He conducted the
environment and industry analysis of the project, but he has no background in hospitality and
no particular passion for food.
Deepak started his career in a junior position in the hospitality industry and is now the
operations manager at a well-known, high-end Chinese restaurant. He has a successful track
record of managing restaurants and a strong networking capability with suppliers, chefs,
marketing people and other related individuals. He is very passionate about food and well-
informed about the hospitality industry.
Both Deepak and Nandan have the same business idea – to start a chain of mid-priced,
family oriented Chinese restaurants.
 But is it an equally valid business opportunity for both of them?
 Is starting a Chinese restaurant an equally valid business opportunity for both Deepak
and Nandan?
 What type of business do you suggest for Deepak and Nandan and Why?
 Identify the Entrepreneurial competencies required to establish a business enterprise
with respect to the case study
 2. Sabala: Exporting Indian Handicrafts through SHG
Sabala is a voluntary organization established in 1986 in north Karnataka. It is registered
with Karnataka Societies Registered Act, 1960. Mallalla S. Yalwar is the founder and Chief
Executive of Sabala. Its vision is to empower and other marginalized communities to access
sustainable livelihood and opportunities. Sabala works with widows, destitute women,
tribals, physically challenged girls and women and economically backward women.
Sabala created opportunities for women to learn skill and to use these skills to generate
income, even for marginalized communities Sabala has strived to income generation by
making them associated with crafts such as banjara and kasuthi crafts. Banjara is tribal
community and Sabala has trained and supported more than 1,000 Banjara women from
villages in handicraft work by developing self-help group.
Sabala’s drive to organize the poor to work profitability stem from the conviction that there
is tremendous potential within the poor to help themselves and this potential can be
harnessed by organizing them. For example, Sabala will help tribal women from Bijapur
district from an SHG comprising 20 members. After this, they will send trainers to train the
selected women in the art of making handicrafts. After the development of schemes, the
group members will start generating income. The SHG members will then open a saving
bank account in the name of the group and the members may decide regular saving
contributions from their incomes. The formation of such SHG at Sabala has resulted in the
empowerment of women from marginalized communities to get access for livelihood
opportunities.
Sabal produces wide range of products, including export quality jewelry, ethnic handbags,
cushion covers, gift items, kurtas and wall hangings. In 1998, Sabala established the Craft
Development Centre to revive the traditional craft, promote self-employment, and
entrepreneurship and networking among artisans by self-help groups and provide marketing
facilities to ensure regular income and sustainability.
 From the case, discuss with example how entrepreneurship can help in empowerment
of women.
 Explain how self-help groups can develop entrepreneurship at the grass root level
 How the Sabala assist to create SHG?s

3. Mary Guther has been a sales representative for a large computer firm for seven years. She took the job
following her graduation from a large university, where she majored in computer science. Recently, Mary
has been thinking about leaving the company and starting her own business. Her knowledge of the computer
field would put her in an ideal position
to be a computer consultant. Mary understands computer hardware and software, is knowledgeable about the
strong and weak points of all the latest market offerings, and has a solid understanding of how to implement
around the country would like to introduce computer technology but do not know how to do so. The large
manufacturers, such as the one for which she works, are more interested in selling hardware than in helping
them
clients develop a fully integrated, company-wide computer system. Small consulting firms have to be
brought in to do this. Mary feels that, as a consultant, she not only would be able to evaluate a computer’s
effectiveness, she also would know how to set up the machines to
provide maximum benefit to the company. Mary estimates that, if she were to leave the computer firm
tomorrow, she could line up ten clients immediately. This would provide her with sufficient income for six
months. She is sure that during their period – she would have little difficulty getting more clients. Six of
these ten firms are located on the East Coast, two of them are in the Midwest, and the remaining two are in
California. Mary estimates that it would take about two weeks to install system and have it working, and it
would probably take another two days to correct any problems that occur later. These problems would be
handled during a follow-up visit, usually 10 to 14 days after the initial installation and
setup. The idea of starring her own venture appeals to Mary. However, she is not sure she wants to leave her
job and assume all of the responsibilities associated with running her own operation. Before going any
further, she has decided to evaluate her own abilities and desires to determine whether this is the right career
move for her.

(a) Identify three major characteristics that Mary should have if she hopes
to succeed in this new venture. Defend your choices.
(b) What is the basis for Mary to go for the entrepreneurship than her
prevailing job?
OR
(a) ‘Mary believes that many medium-sized around the country would like
to introduce computer technology, but do not know how to do so’. How
do you see this statement?
(b) Before moving to the new career start, Mary decided rethinks her
decision, what does this shows according to you?

4. IndiaCo: A Business Incubator with a difference

IndiaCo is an investment management firm listed on the Bombay Stock Exchange. The
promoters of IndiaCo have a long history in India. It was the first company in India to launch a private
incubator in 2000. In 2002, this incubator was recognized by the World Bank group and also received
support from the Department of Science & Technology, Government of India.
Business incubation is a business support process that facilitates in the successful development of start-ups
and early growth stage companies by providing entrepreneurs with an array of resources and services
through its network of contacts. A business incubators’ main goal is to produce successful firms that will
leave the project financially viable and self-sustaining.
The promoter of IndiaCo aim to provide transparency and regularize a new model for private
equity markets. They invest the capital required to frame the new business model of the acquired company.
IndiaCo has had the experience of working with incubators across different geographical locations. Based on
its experience, the most common problems that business incubators face in developing countries are the lack
of innovative high-growth projects IndiaCo; non-availability of capital; lack of basic operating
infrastructure; and problems of self-sustenance. Institutional marketing for incubators is a major challenge in
most developing countries.
Since its inception, IndiaCo has been active in the area of incubation and technology transfer,
the key success factors of IndiaCo are the entrepreneurial experience of the founder; visionary leadership;
strategic positioning in the domestic and international markets; good management teams; and milestone-
based e-mentoring. IndiaCo functions as a “venture creation engine” for high-tech start-ups and early-stage
companies. It provides the infrastructure and network to translate research into innovative products to
support entrepreneurs. The international network at IndiaCo is made available to the companies even before
they graduate from the incubator.
The traditional model of business incubators consist of a group of start-up firms that are located in a
common physical space sharing various resources and mentorship. IndiaCo follows an equity model unlike
most incubators. It deploys its funds and investment directly through the holding company into portfolio
companies. This structure provides the flexibility to invest in the holding company, a sector of choice, or just
the company of choice.
1. Analyse the business model of IndiaCo
2. List the key success factors for the success of IndiaCo.
OR
1. Critically examine how IndiaCo enables new venture creation?
2. Why is IndiaCo a business incubator with a difference?