Class 12 Entrepreneurship MCQ Quuestions with Answer

Class 12 Entrepreneurship MCQ is one of the best strategies to prepare for the CBSE Class 12 Board exam. If you want to complete a grasp concept or work on one’s score, there is no method except constant practice. Students can improve their speed and accuracy by doing more MCQ on Entrepreneurship class 12, which will help them all through their board test.

Class 12 Entrepreneurship MCQ Questions with Answer

Class 12 MCQ with answers are given here to Entrepreneurship. These MCQs are based on the latest CBSE board syllabus and relate to the latest Class 12 syllabus. By Solving these Class 12 MCQs, you will be able to analyze all of the concepts quickly in the chapter and get ready for the Class 12 Annual exam.

Learn Class 12 EntrepreneurshipMCQs with answers pdf free download according to the latest CBSE and NCERT syllabus. Students should prepare for the examination by solving CBSE Class 12 Entrepreneurship MCQ with answers given below.

Question 1: External links may provide incentives to:

A) Raise finance

B) Introduce new working practices

C) Introduce improvements to products

D) Attend business exhibitions

Question 2. Firms located on science parks compared to those located off science parks are:

A) More innovative

B) Less innovative

C) No more or less innovative

D) More growth orientated

Question 3. An advantage of the small firm in the innovation process?

A) Ability to carry out R&D

B) Ability to raise finance

C) Ability of the entrepreneur to carry out multiple tasks

D) Ability of the entrepreneur to act on new ideas or product development

Question 4. Which one of the following actions by an entrepreneur is most likely to contribute to creative destruction?

A) Development of a new product

B) Take-over of a competitor

C) Issuing shares

D) Reducing prices

Question 5. Schumpeter considered that innovative entrepreneurs would:

A) Thrive

B) Disappear

C) Be absorbed within large innovative firms

D) Be absorbed within non-innovative firms

Question 6. Innovative small firms are more likely in:

A) Knowledge-based sectors

B) Biotechnology

C) Automobile manufacture

D) Aerospace manufacture

Question 7. Innovative entrepreneurs may have to pay high insurance premiums due to the:

A) The need to protect patents

B) Greater employee liability

C) Greater customer liability

D) Greater trading risks

Question 8. Networking by innovative entrepreneurs may be most encoura

A) Science parksged by?

B) Business incubators

C) Chambers of Commerce

D) Business associations

Question 9. Innovative entrepreneurs face special issues in raising:

A) Development capital

B) Structured capital

C) Human capital

D) Seed capital

Question 10. Which of the following is NOT recognized as a misconception about entrepreneurship?

A) Successful entrepreneurship needs only a great idea.

B) Entrepreneurship is easy.

C) Entrepreneurship is found only is small businesses.

D) Entrepreneurial ventures and small businesses are different.

Question 11. The most likely problem encountered by innovative entrepreneurs in raising finance is:

A) Limited security since R&D is an intangible asset

B) The costs of the patenting system

C) The exhaustion of personal equity in R&D

D) Inability of potential external funders to understand technology 

Question 12. Which of the following is NOT on of the three areas in which the importance of entrepreneurship can be shown?

A) Innovation

B) Number of new start-ups

C) Job creation and employment

D) bureaucracy

Question 13. All of the following are characteristics of small businesses EXCEPT:

A) Small businesses are independently owned, operated, and financed.

B) Small businesses have fewer than 100 employees.

C) Small businesses emphasize new or innovative practices.

D) Small businesses have little impact on industry.

Question 14. All of the following represent countries in which the highest level of entrepreneurial activity was found EXCEPT:

A) Australia

B) Korea

C) Norway

D) Japan

Question 15. The creation of new firms is important because these new firms contribute to economic development through benefits that include all of the following EXCEPT:

A) Product-process innovation

B) Increased tax revenues

C) Unemployment

D) Social betterment

Question 16. An individual who has no prior business ownership experience as a business founder, inheritor of a business, or a purchaser of a business is called a(n) ____________ entrepreneur.

A) Habitual

B) Novice

C) Serial

D) Portfolio

Question 17. Positive external trends or changes that provide unique and distinct possibilities for innovating and creating value are called _____________.

A) Strengths

B) Opportunities

C) Weaknesses

D) Threats

Question 18. All of the following are popular demographic factors about entrepreneurs that have been studied EXCEPT:

A) Self-confidence

B) Gender

C) Education

D) Family birth order

Question 19. An individual who has prior business ownership experience is called a(n) ____________ entrepreneur.

A) Novice

B) habitual

C) Serial

D) Portfolio

Question 20. An individual who initiates, creates and manages a new business can be called_____________.

A) A leader

B) A manager

C) A professional

D) An entrepreneur

Question 21.The three main responsibilities involved with managing an entrepreneurial venture once its up and running include all of the following EXCEPT:

A) Managing processes

B) Managing people

C) Managing bureaucracy

D) Managing growth

Question 22. Which could provide an individual with the motivation to start a new business venture?

A) The financial rewards.

B) A desire to be independent.

C) Risk taking

D) All the above.

Question 23. Which industrial sector tends to naturally promote small-scale businesses and Entrepreneurship, and generally has lower barriers to market entry?

A) Service.

B) Manufacturing.

C) Distribution.

D) Agriculture.

Question 24. Someone who improves an existing business can be called _________.

A) An intrapreneur.

B) A professional.

C) A co-worker.

D) A changeling.

Question 25. Intellectual Property laws can protect _________.

A) Trademarks.

B) Copyright.

C) Patents.

D) All the above.

Question 26. The UK government has implemented a number of policies to encourage Entrepreneurship in schools. One such initiative is _________.

A) Young Enterprise.

B) Youth venture.

C) Young Business.

D) Young Initiative.

Question 27. Why are small businesses important to a country’s economy?

A) They give an outlet for entrepreneurs.

B) They can provide specialist support to larger companies.z

C) They can be innovators of new products.

D) All the above.

Question 28. The use of informal networks by entrepreneurs to gather information is known as _______.

A) Secondary research.

B) Entrepreneurial networking.

C) Informal parameters.

D) Marketing

Question 29. A business arrangement where one party allows another party to use a business name and sell its products or services is known as__________.

A) A cooperative.

B) A franchise.

C) An owner-manager business.

D) A limited company.

Question 30. Which of the following is the reason for business failure __________.

A) Lack of market research.

B) Poor financial control.

C) Poor management.

D) All the above.

Question 31. Primary data is________.

A) the most important data.

B) the data that is collected first.

C) new data specifically collected for a project.

D) data that is collected second.

Question 32. Good sources of information for an entrepreneur about competitors can be Obtained from_________.

A) Websites.

B) Product information leaflets.

C) Company reports and published accounts.

D) All the above.

Question 33.A new venture’s business plan is important because ______.

A) It helps to persuade others to commit funding to the venture.

B) Can help demonstrate the viability of the venture.

C) Provides a guide for business activities by defining objectives.

D) All the above.

Question 34. Innovation can best be defined as_______.

A) the generation of new ideas.

B) the evolution of new ideas.

C) the opposite of creativity.

D) the successful exploitation of new ideas.

Question 35. Entrepreneurs are motivated by _________.

A) money.

B) personal values.

C) pull influences.

D) All the above.

Question 36. Which of these statements best describes the context for entrepreneurship?

A) Entrepreneurship takes place in small businesses.

B) Entrepreneurship takes place in large businesses.

C) Entrepreneurship takes place in a wide variety of contexts.

D) Entrepreneurship does not take place in social enterprises.

Question 37. Which of the following statements is false?

A) Market segmentation is a useful process for small businesses to undertake.

B) Selling is essentially a matching process.

C) A benefit is the value of a product feature to a customer.

D) It is a good idea for small businesses to compete solely on price.

Question 38. The purpose of all good small business strategy is__________.

A) to increase turnover.

B) to increase profitability.

C) to achieve competitive advantage.

D) to achieve stated objectives.

Question 39. Which of the following is least likely to influence the timing of new business births?

A) Government policies.

B) Profitability.

C) Consumer expenditure.

D) Weather conditions.

Question 40. Someone legally appointed to resolve the financial difficulties of an insolvent firm is called____________.

A) an administrator.

B) a predator.

C) an auditor.

D) a turnaround consultant.

Question 41. Goods or services reach the market place through ________.

A) marketing channels.

B) multilevel pyramids.

C) monopolies.

D) multiplication.

Whoever needs to take the CBSE Class 12 Board Exam should look at this MCQ. To the Students who will show up in CBSE Class 12 Board Exams, It is suggested to practice more and more questions. Aside from the sample paper you more likely had solved. These Entrepreneurship Class 12 MCQ are ready by the subject specialists themselves.

Question 42. Which of the following is a recognized disadvantage of setting up as a start-up as compared with other routes to market entry?

A) less satisfaction of the owners.

B) less help from various agencies.

C) there are more funds required.

D) there is a high failure rate.

Question 43. _____________ can be defined as a specifically evolved work plan densed to achieve a specific objective within a specific period of time

A) Idea generation.

B) Opportunity Scanning.

C) Project.

D) Strategy.

Question 44. Large investment is made in fixed assets, the project will be termed as __________.

A) Capital Intensive.

B) Labour Intensive.

C) Product Intensive.

D) Market Intensive.

Question 45. To provide financial assistance to entrepreneurs the government has set up a number of___________.

A) financial advisors.

B) financial intermediaries.

C) Industrial estates.

D) financial institutions.

Question 46. _____________ is used to accomplish the project economically in the minimum available time with limited resources

A) Project Scheduling.

B) Network Analysis.

C) Budget Analysis.

D) Critical Planning.

Question 47. PERT stands for __________.

A) Programme Evaluation and Research Techniques.

B) Project Evaluation and Review Techniques.

C) Programme Evaluation and Review Techniques.

D) Project Evaluation and Research Techniques.

Question 48. In _________, machines and equipments are arranged in the order or sequence in which they are to be used for manufacturing the product

A) Factory Layout.

B) Product Layout.

C) Process Layout.

D) Combined Layout.

Question 49. ______________ is a form of financing especially for funding high technology, high risk and perceived high reward projects

A) Fixed capital.

B) Current capital.

C) Seed capital.

D) Venture capital.

Question 50. The granting of cash subsidy on the capital investment is called __________.

A) Concessional finance.

B) Quantum of Subsidy.

C) Interest Subsidy.

D) Central Investment Subsidy.

Question 51. The term ___________ denotes bonus or financial aid which is given by a government to an industry to help it compete with other units

A) Incentive.

B) Subsidy.

C) Bounty.

D) Concession.

Question 52. Decisions which are concerned with policy matters and exercise fundamental influence on the objectives of the organization are called as____________.

A) Organizational decisions.

B) Personal decisions.

C) Routine decisions.

D) Strategic decisions.

Question 53. ____________ is primarily concerned with the identification of the project demand potential and the selection of the optimal technology.

A) Techno-economic analysis.

B) Feasibility analysis.

C) Input analysis.

D) Financial analysis.

Question 54. Decisions taken by an entrepreneur on behalf of his enterprise are known as _________.

A) Organizational decisions.

B) Personal decisions.

C) Routine decisions.

D) Strategic decisions

Question 55. A business arrangement where one party allows another party to use a business Name and ell its products or services is known as__________.

A) A cooperative.

B) A franchise.

C) An owner-manager business.

D) A limited company.

Question 56. What is the role of a Business Angel?

A) To provide small business advice.

B) To provide capital for business development in exchange for a stake in the Business ownership.

C) To set up a franchise business.

D) To assist an entrepreneur to open a lifestyle business.

Question 57. _________________ implies the availability or otherwise of plant and machinery and technical know how to produce the product.

A) Economic viability.

B) Financial feasibility.

C) Technical feasibility.

D) Managerial competence

Question 58. Which of the list below does not form Intellectual Property?

A) Trade marks.

B) Patents.

C) Tangible assets.

D) Copyright.

Question 59. Which one of the following is not considered as one of the building blocks of the model entrepreneur?

A) technical skills.

B) management competencies.

C) business awareness.

D) personal attributes.

Question 60. Which one of the following describes unemployment?

A) The number of people who voluntarily choose not to work.

B) The number of people who are jobless and are actively seeking work.

C) The number of people who are not actively seeking work.

D) The number of people actively seeking work who find work.

Question 61. Idea of new product is tested in potential consumers to determine consumer acceptance at _________ stage.

A) Concept.

B) Product development.

C) Test marketing.

D) Commercialization.

Question 62: Industries producing complete articles for direct consumption & also processing industries is called as_______________.

A) Manufacturing industries.

B) Feeder Industries.

C) Service Industries.

D) Mining or Quarrying.

Question 63: An entrepreneur who owns more than one business at a time is called ________.

A) an intrapreneur.

B) a corporate entrepreneur.

C) a portfolio entrepreneur.

D) None of the above

Question 64: Decisions which are concerned with policy matters and exercise fundamental influence on the objectives of the organization are called as____________.

A) Organizational decisions.

B) Personal decisions.

C) Routine decisions.

D) Strategic decisions.

Question 65: _____________ is primarily concerned with the identification, qualification and evaluation of the project resources.

A) Techno-economic analysis.

B) Feasibility analysis.

C) Input analysis.

D) Financial analysis.

Question 66: Seed capital assistance ___________.

A) a long-term assistance.

B) initial assistance

C) a help for the purchase of seeds.

D) a short-term assistance.

Question 67: Business means ________.

A) Commerce.

B) industry and commerce.

C) trade and commerce.

D) selling and buying of goods.

Question 68: Decisions which are non-repetitive and novel nature and required to solve unstructured problem is called as ___________.

A) Programmed decisions.

B) Non -programmed decisions.

C) Routine decisions.

D) Strategic decisions.

Question 69: Business risks can be ______.

A) avoided.

B) reduced.

C) ignored.

D) erased.

Question 70: Promoter is a person who ________.

A) takes part in the incorporation of a company .

B) is a director.

C) is a relative of the managing director

D) works to publicity to the company.

Question 71. Memorandum of association of a firm contains _______.

A) rules regarding the internal management of the company.

B) rules regarding the constitution and activities of the company.

C) rules regarding the external management.

D) rules regarding the constitution.

Question 72. The oldest form of business organization is ______.

A) Partnership.

B) sole proprietorship.

C) joint stock company.

D) co-operative undertaking.

Question 73. Which of the following is a characteristic typical of _________?Most entrepreneurs

A) Choose high risk ventures.

B) Choose low risk ventures.

C) Choose moderate (or calculated) risk ventures.

D) Choose no risk ventures.

Question 74. A person owning and running a small firm, is known as________.

A) A manager-owner.

B) An owner-manager.

C) A professional adapter.

D) An enterprise worker.

Question 75. One of the disadvantages of a franchise business for a franchisee is ________.

A) Lack of independence.

B) Franchise businesses typically have a high failure rate.

C) Lack of brand identity.

D) Training is not normally provided by the franchisor.

Question 76. The UK government has implemented a number of policies to encourage Entrepreneurship in schools. One such initiative is _________.

A) Young Enterprise.

B) Youth venture.

C) Young Business.

D) Young Initiative.

Question 77. As a new company grows, the entrepreneur will need to _________.

A) be responsive to changes in the market.

B) ensure financial controls are maintained.

C) build a management team.

D) all the above.

Question 78. The Markets and Competitors section of a business plan should contain ____________.

A) A statement of the target market.

B) The size of each market segment.

C) The key characteristics of buyers in each business segment.

D) All the above.

Question 79. Entrepreneurship can best be described as _________.

A) a process that requires setting up a business.

B) taking a significant risk in a business context.

C) having a strong vision.

D) a process involving innovation, new products or services, and value creation.

Question 80. An entrepreneur into the hosiery business found out the reason his hosiery was not selling was due to its color. What could be the best source of this information?

A) Supplier.

B) Retailer.

C) Competition.

D) Government bureau. 

Question 81. Entrepreneurial development is the key to achieve all-round —————- through acceleration of industrial and entrepreneurial activities.

A) economic development

B) increase in profits

C) shareholders value

D) business development

Question 82. Every entrepreneur should draw an ———— for his project to ensure the timely completion of all activities involved in setting up an enterprise.

A) cost structure

B) implementation plan

C) market structure

D) production structure

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