MCQs on Entrepreneurship

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?
    1. Small business entrepreneurship
    2. Scalable entrepreneurship
    3. Large scale entrepreneurship
    4. Intrapreneurship
  2. Answer: d

  3. Which of these actions of an entrepreneur will most likely result in creative destruction?
    1. Developing a new product
    2. Taking over a competitor’s business
    3. Issuing shares to individuals and institutions
    4. Lowering prices of your product or service
  4. Answer: a

  5. According to Schumpeter, innovative entrepreneurs would:
    1. Thrive in the market
    2. Not survive and disappear from the market.
    3. Get absorbed within larger innovative businesses
    4. Get absorbed within non-innovative businesses
  6. Answer: c

  7. Which of these is not a challenge for the entrepreneur?
    1. Managing the cash flow of their business
    2. Recruiting new employees
    3. Choosing the product or service to sell in the market
    4. Formulating rules and regulations relating to conducting entrepreneurship in their country
  8. Answer: d

  9. Which of these theories involve taking a moderate amount of risk as a function of skill and not chance?
    1. Need for achievement
    2. Need for affiliation
    3. Need for authority
    4. Need for independence
  10. Answer: b

  11. Which of these is not a category of external forces that affects a business?
    1. Competitive forces
    2. Technological forces.
    3. Economic forces
    4. Socio-economic forces
  12. Answer: b

  13. Which among these is a money manager who is involved in making risk investments from equity capital with the objective of gaining better returns?
    1. Entrepreneur
    2. Businessperson
    3. Buyer
    4. Venture capitalist
  14. Answer: d

  15. Andrew Carnegie belonged to this century:
    1. 16th to 17th Century
    2. 20th to 21st Century.
    3. 17th to 18th Century
    4. 19th to 20th Century
  16. Answer: d

  17. Which of these is the first activity of a new business?
    1. Departure point
    2. Goal Orientation
    3. Business skill development
    4. None of the above
  18. Answer: a

  19. Who should be involved in preparing a firm’s business plan?
    1. Accountant
    2. Engineer
    3. Entrepreneur
    4. None of the above
  20. Answer: c

  21. What should be the main worry of a company’s founder who asks for capital in exchange for equity shares in their venture?
    1. Valuation
    2. Control
    3. Capitalisation
    4. Legal formalities
  22. Answer: c

  23. The process of creating something new is called:
    1. Creative flexibility
    2. Management
    3. Business
    4. Innovation
  24. Answer: d

  25. Ownership position of less than 50 per cent in a business is known as:
    1. Majority Interest
    2. Joint Venture
    3. Minority Interest
    4. None of the above
  26. Answer: c

  27. Which of these is also known as corporate venturing?
    1. Intrapreneurship
    2. Mergers
    3. Entrepreneurship
    4. Acquisition
  28. Answer: a

  29. If an entrepreneur takes decisions on behalf of their enterprise, it is known as ______:
    1. Routine decisions
    2. Strategic decisions
    3. Organisational decisions
    4. Personal decisions
  30. Answer: c

  31. Entrepreneurship Development Program is helpful for:
    1. First-generation entrepreneurs
    2. Future generation entrepreneurs
    3. Existing Entrepreneurs
    4. None of the above
  32. Answer: a

  33. These decisions are concerned with policy matters and they influence the goals and objectives of a business venture:
    1. Routine decisions
    2. Strategic decisions
    3. Organisational decisions
    4. Personal decisions
  34. Answer: b

  35. Ownership position of more than 50 per cent in a business is known as:
    1. Minority Interest
    2. Joint Venture
    3. Majority Interest
    4. None of the above
  36. Answer: c

  37. What is the purpose of a feasibility study for starting a new venture?
    1. Exploring for potential customers
    2. Estimate sales
    3. To understand if there are any barriers to success
    4. None of the above
  38. Answer: c

  39. An entrepreneur who is the owner of more than one business is called:
    1. Portfolio Entrepreneur
    2. Intrapreneur
    3. Corporate Entrepreneur
    4. None of the above
  40. Answer: a

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