Entrepreneurship Development (MCQs

1. Entrepreneurship is best defined as:
(A) Managing employees only
(B) Starting and managing new ventures
(C) Government policymaking
(D) Buying and selling stocks

2. The person who takes the risk of starting a business is called:
(A) Manager
(B) Entrepreneur
(C) Investor
(D) Worker

3. Innovation in entrepreneurship refers to:
(A) Copying existing products
(B) Introducing new ideas, products, or processes
(C) Reducing production only
(D) Maintaining status quo

4. Which of the following is a characteristic of an entrepreneur?
(A) Risk-taking ability
(B) Laziness
(C) Dependency
(D) Avoiding responsibility

5. The main objective of entrepreneurship is:
(A) Profit maximization
(B) Social service only
(C) Innovation and value creation
(D) Employment reduction

6. A business incubator provides:
(A) Office space and mentoring for startups
(B) Agricultural training
(C) Employment in factories
(D) Free raw materials

7. Which type of entrepreneur imitates existing products?
(A) Innovative entrepreneur
(B) Imitative entrepreneur
(C) Social entrepreneur
(D) Serial entrepreneur

8. Social entrepreneurship focuses on:
(A) Maximizing personal profit
(B) Addressing social problems through business solutions
(C) Copying competitors
(D) Reducing innovation

9. Intrapreneurship refers to:
(A) Entrepreneurship inside an existing organization
(B) Starting a new venture independently
(C) International trade
(D) Small-scale farming

10. Angel investors are:
(A) Banks giving loans
(B) Individuals investing in startups at early stage
(C) Government institutions
(D) Non-profit organizations

11. Venture capital is:
(A) Short-term debt
(B) Equity financing for high-growth startups
(C) Bank overdraft
(D) Microfinance loan

12. The Small and Medium Enterprises (SMEs) play a major role in:
(A) Employment generation
(B) Reducing exports
(C) Increasing monopolies
(D) Import substitution only

13. Which of the following is NOT a barrier to entrepreneurship?
(A) Lack of capital
(B) Fear of failure
(C) Government support
(D) Lack of experience

14. The first step in the entrepreneurial process is:
(A) Idea generation
(B) Funding
(C) Marketing
(D) Recruitment

15. A serial entrepreneur is someone who:
(A) Starts multiple businesses one after another
(B) Runs only one business for life
(C) Avoids risks
(D) Works as an employee

16. Business plan is important because it:
(A) Provides roadmap for business operations
(B) Avoids employees
(C) Guarantees profit
(D) Eliminates competition

17. Break-even analysis helps in:
(A) Determining the level of sales at no profit, no loss
(B) Maximizing exports
(C) Hiring employees
(D) Tax calculation

18. Risk in entrepreneurship is:
(A) Uncertainty of returns
(B) Fixed income
(C) No competition
(D) Guaranteed profits

19. Which type of entrepreneur introduces new products or technologies?
(A) Innovative entrepreneur
(B) Imitative entrepreneur
(C) Social entrepreneur
(D) Drone entrepreneur

20. Feasibility analysis is done to:
(A) Evaluate viability of a business idea
(B) Expand existing markets
(C) Reduce employees
(D) Increase taxation

21. Microfinance institutions support entrepreneurs by:
(A) Providing small loans without collateral
(B) Hiring employees directly
(C) Giving large-scale investments
(D) Government subsidies only

22. Women entrepreneurs face which of the following challenges?
(A) Limited access to finance
(B) Gender bias
(C) Lack of support
(D) All of the above

23. Entrepreneurial motivation is influenced by:
(A) Need for achievement
(B) Fear of innovation
(C) Lack of competition
(D) Dependence on others

24. Which is NOT a function of an entrepreneur?
(A) Innovation
(B) Risk-taking
(C) Decision-making
(D) Tax collection

25. An incubator differs from an accelerator in that:
(A) Incubator supports early-stage ideas, accelerator supports growth stage
(B) Incubator provides loans, accelerator does not
(C) Accelerator is government-run only
(D) Both are the same

26. Crowdfunding is:
(A) Raising small amounts of money from large number of people
(B) Government subsidy
(C) Bank loan
(D) Angel investing only

27. Which type of entrepreneur continues family business?
(A) Social entrepreneur
(B) Intrapreneur
(C) Inherited entrepreneur
(D) Serial entrepreneur

28. Economic development is closely related to:
(A) Growth of entrepreneurship
(B) Reduction of startups
(C) Limiting innovation
(D) Restricting trade

29. The word “entrepreneur” is derived from:
(A) German language
(B) French language
(C) Latin language
(D) Greek language

30. Which of the following is an example of social entrepreneurship?
(A) Grameen Bank by Muhammad Yunus
(B) McDonald’s franchise
(C) Coca-Cola company
(D) Apple Inc.

31. Bootstrapping means:
(A) Using personal savings and resources to start a business
(B) Getting bank loan
(C) Attracting venture capital
(D) Borrowing from friends only

32. Which is the last stage of entrepreneurial process?
(A) Harvesting rewards
(B) Idea generation
(C) Opportunity recognition
(D) Funding

33. Patent protection is important for:
(A) Safeguarding innovative products or ideas
(B) Avoiding taxes
(C) Promoting imports
(D) Government expenditure

34. Which type of entrepreneur avoids taking risks?
(A) Drone entrepreneur
(B) Innovative entrepreneur
(C) Imitative entrepreneur
(D) Social entrepreneur

35. The term “startup” generally refers to:
(A) Newly established business with growth potential
(B) Old established firms
(C) Government offices
(D) Cooperatives

36. Entrepreneurship contributes to:
(A) Employment generation
(B) Innovation
(C) Economic growth
(D) All of the above

37. The entrepreneurial ecosystem includes:
(A) Government policies
(B) Access to finance
(C) Culture and infrastructure
(D) All of the above

38. Which of the following is NOT a source of entrepreneurial finance?
(A) Venture capital
(B) Angel investment
(C) Bootstrapping
(D) Tax collection

39. A feasibility study includes:
(A) Market analysis
(B) Financial analysis
(C) Technical analysis
(D) All of the above

40. The major function of an entrepreneur is:
(A) Decision-making under uncertainty
(B) Avoiding risk
(C) Copying competitors
(D) Collecting taxes

41. Government can promote entrepreneurship by:
(A) Providing subsidies and training
(B) Restricting trade
(C) Eliminating SMEs
(D) Imposing high barriers

42. Which type of entrepreneur introduces new business models?
(A) Innovative entrepreneur
(B) Drone entrepreneur
(C) Imitative entrepreneur
(D) Intrapreneur

43. Entrepreneurial culture means:
(A) Environment encouraging innovation and risk-taking
(B) Avoiding new ideas
(C) Supporting monopolies
(D) Eliminating startups

44. The role of technology in entrepreneurship is to:
(A) Improve efficiency and innovation
(B) Stop competition
(C) Reduce employment
(D) Avoid globalization

45. Which of the following is an example of intrapreneurship?
(A) Google employees creating Gmail within the company
(B) Elon Musk starting Tesla
(C) McDonald’s franchisee
(D) Local retail shop owner

46. The entrepreneurship development programs (EDPs) are designed to:
(A) Train and develop entrepreneurial skills
(B) Replace education
(C) Eliminate business risks
(D) Reduce innovation

47. Opportunity recognition in entrepreneurship is:
(A) Identifying unmet market needs
(B) Hiring employees only
(C) Increasing taxation
(D) Government rules

48. The main difference between entrepreneur and manager is:
(A) Entrepreneur takes risk, manager executes decisions
(B) Both are risk takers
(C) Manager owns the business
(D) Entrepreneur only supervises

49. The success of an entrepreneur depends on:
(A) Innovation and adaptability
(B) Fear of failure
(C) Avoiding competition
(D) Dependency on others

50. Which of the following is a government initiative to support entrepreneurship?
(A) Startup India
(B) Skill development programs
(C) SME policies
(D) All of the above