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Entrepreneurship : CUET Mock Test - 4 - CUET Commerce MCQ


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40 Questions MCQ Test Entrepreneurship Practice Tests: CUET Preparation - Entrepreneurship : CUET Mock Test - 4

Entrepreneurship : CUET Mock Test - 4 for CUET Commerce 2024 is part of Entrepreneurship Practice Tests: CUET Preparation preparation. The Entrepreneurship : CUET Mock Test - 4 questions and answers have been prepared according to the CUET Commerce exam syllabus.The Entrepreneurship : CUET Mock Test - 4 MCQs are made for CUET Commerce 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Entrepreneurship : CUET Mock Test - 4 below.
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Entrepreneurship : CUET Mock Test - 4 - Question 1

Which of the following types of merger refers to merging of two companies with unrelated business activities?

Detailed Solution for Entrepreneurship : CUET Mock Test - 4 - Question 1

A conglomerate merger is a merger between firms that are involved in totally unrelated business activities. There are two types of conglomerate mergers: pure and mixed. Pure conglomerate mergers involve firms with nothing in common, while mixed conglomerate mergers involve firms that are looking for product extensions or market extensions.
Example: A leading manufacturer of athletic shoes merges with a soft drink firm.

Entrepreneurship : CUET Mock Test - 4 - Question 2

Which of the following is not a common motivation of an entrepreneur?

Detailed Solution for Entrepreneurship : CUET Mock Test - 4 - Question 2

An entrepreneur is a person who organises a venture to benefit from an opportunity, rather than working as an employee.

  • Entrepreneurs play a key role in any economy.

An entrepreneur keeps himself motivated through:

  • Desire for independence
  • Search for personal and professional growth
  • Search for more rewarding work
Entrepreneurship : CUET Mock Test - 4 - Question 3

Which of the following considers internal as well as external factors?

Detailed Solution for Entrepreneurship : CUET Mock Test - 4 - Question 3

SWOT analysis is a process that identifies the strengths, weaknesses, opportunities and threats to an organisation. Strengths and weaknesses are often internal to the organisation, while opportunities and threats relate to external factors.

Entrepreneurship : CUET Mock Test - 4 - Question 4

How much is the re-order level when maximum re-order period is 6 weeks and the maximum usage is 105 units?

Detailed Solution for Entrepreneurship : CUET Mock Test - 4 - Question 4

Re-order level = Maximum re-order period × Maximum usage
= 6 weeks × 105 units = 630 units
The re-order level is 630 units.

Entrepreneurship : CUET Mock Test - 4 - Question 5

A positioning strategy should include all the following strategies except:

Detailed Solution for Entrepreneurship : CUET Mock Test - 4 - Question 5

Positioning strategy considers the strengths and weaknesses of the organisation, the needs of the customers and market and the position of competitors. A positioning strategy should include the following strategies: promotion strategy, advertising strategy and product strategy. The purpose of a positioning strategy is that it allows a company to spotlight specific areas where they can outshine and beat their competition.

Entrepreneurship : CUET Mock Test - 4 - Question 6

''What to achieve and by when'' is explained by the _________ of an organisation.

Detailed Solution for Entrepreneurship : CUET Mock Test - 4 - Question 6

Objectives of a business explain what is to be achieved and by when.
Strategy explains how these objectives are to be achieved.
A vision statement describes the desired future position of a company.
A mission statement defines a company's business, its objectives and its approach to reach those objectives.

Entrepreneurship : CUET Mock Test - 4 - Question 7

Which of the following is not one of the traits of an entrepreneur?

Detailed Solution for Entrepreneurship : CUET Mock Test - 4 - Question 7

People with an 'External Locus of Control' generally believe that their successes or failures result from external factors beyond their control, such as luck, fate, circumstance, injustice, bias, or individuals who are unfair, prejudiced, or unskilled. Hence, External Locus of Control is not one of the traits of an entrepreneur.

Entrepreneurship : CUET Mock Test - 4 - Question 8

The ____ plan shows whether the business is economically feasible or not.

Detailed Solution for Entrepreneurship : CUET Mock Test - 4 - Question 8

The business plan shows whether the business is economically feasible or not. A business plan is a formal written document containing the goals of a business, the methods for attaining those goals, and the time-frame for the achievement of the goals. It also describes the nature of the business, background information on the organization, the organization's financial projections, and the strategies it intends to implement to achieve the stated targets. In its entirety, this document serves as a road-map that provides direction to the business.

Entrepreneurship : CUET Mock Test - 4 - Question 9

Meera and Ragini wanted to start a shop to sell Gujarati sweets. They did not know how to enter into the agreement. Therefore, they approached a Chartered Accountant who advised them to prepare a document which may stipulate the terms and conditions of the agreement.
Name the document about which the Chartered Accountant advised Meera and Ragini.

Detailed Solution for Entrepreneurship : CUET Mock Test - 4 - Question 9

The document about which the Chartered Accountant advised Meera and Ragini is partnership deed.
Partnership deed is a written legal document that contains an agreement made between two individuals who have the intention of doing business with each other and share profits and losses. It is also called a partnership agreement.

Entrepreneurship : CUET Mock Test - 4 - Question 10

Which of the following describes a mission statement of start up?

Detailed Solution for Entrepreneurship : CUET Mock Test - 4 - Question 10

Mission statement of startup provides direction and purpose for the startup. An effective mission statement informs and inspires the critical stakeholders that surrounds startup—this group includes customers, investors, employees and job candidates. A mission statement should help them understand the value of the company and its product.

Entrepreneurship : CUET Mock Test - 4 - Question 11

Which of the following is the example of amalgamation?

Detailed Solution for Entrepreneurship : CUET Mock Test - 4 - Question 11

When two entities combine together and form a new entity, extinguishing both the existing entities, it is known as amalgamation. Amalgamation is distinct from merger because neither company involved survives as a legal entity. Instead, a completely new entity is formed to house the combined assets and liabilities of both companies.

Entrepreneurship : CUET Mock Test - 4 - Question 12

What percent SKUs (Stock Keeping Units) are there in 'A' inventory of ABC analysis?

Detailed Solution for Entrepreneurship : CUET Mock Test - 4 - Question 12

The inventory control technique known as ABC analysis builds on Pareto's principle. In ABC analysis, a company reviews its inventory and sorts all SKUs (Stock Keeping Units) into three categories, called A, B and C items. The typical breakdown might look like this:

  • A inventory: 20 percent of SKUs, 80 percent of value
  • B inventory: 30 percent of SKUs, 15 percent of value
  • C inventory: 50 percent of SKUs, 5 percent of value

Hence, option 1 is the right answer.

Entrepreneurship : CUET Mock Test - 4 - Question 13

In which of the following kinds of expansion may the concern expand its present production capacity by adding more machines or by replacing old machines with the new ones with higher productive capacity?

Detailed Solution for Entrepreneurship : CUET Mock Test - 4 - Question 13

Internal expansion results from the gradual increase in the activities of the concern. The concern may expand its present production capacity by adding more machines or by replacing old machines with the new ones with higher productive capacity. The internal expansion can also be undertaken by taking up the production of more units or by entering new fields on the production and marketing sides.

Entrepreneurship : CUET Mock Test - 4 - Question 14

The role of a Business Angel is to

Detailed Solution for Entrepreneurship : CUET Mock Test - 4 - Question 14

A business angel is also a sort of venture capitalist who provides capital for business development in exchange for a stake in the Business ownership.

Entrepreneurship : CUET Mock Test - 4 - Question 15

A business where an individual is both the owner and conductor of the business affairs is called:

Detailed Solution for Entrepreneurship : CUET Mock Test - 4 - Question 15

A business where an individual is both the owner and conductor of the business affairs is called Proprietorship Firms. A sole proprietorship, also recognised as personal entrepreneurship, is a kind of business that is controlled and operated by one body and in which there is no constitutional characteristic within the partner and the partnership entity.

Entrepreneurship : CUET Mock Test - 4 - Question 16

Which of the following is/are not a main ingredient of a franchise agreement?

Detailed Solution for Entrepreneurship : CUET Mock Test - 4 - Question 16

Main ingredients of a franchise agreement:

  • Contract Explanation: The contract explanation is the part of the agreement that outlines the type of relationship a franchisee is entering into with the franchisor.
  • Operations Manual: The operations manual is the section of the agreement that details the guidelines that the franchisee must legally follow in operating the business as outlined by the franchisor.
  • Proprietary Statements: Proprietary statements outline how the franchise name is to be used, as well as the marketing and advertising procedures in place that the franchisee will be required to follow.
  • Ongoing Site Maintenance: Ongoing site maintenance is another item that is outlined in the agreement. Included are the types and time frames regarding various maintenance items and upgrades that must be made to the franchisee's location.

Therefore, financial statement is not one of the main ingredients of a franchise agreement.

Entrepreneurship : CUET Mock Test - 4 - Question 17

A born global firm is a firm that

Detailed Solution for Entrepreneurship : CUET Mock Test - 4 - Question 17

'Born global' is the enterprise that always looks for input resources as well as marketing niches in the global context.

Entrepreneurship : CUET Mock Test - 4 - Question 18

Which of the following enables product identification by providing detailed information about the product to the customers?

Detailed Solution for Entrepreneurship : CUET Mock Test - 4 - Question 18

Labelling is a part of branding which enables product identification. It is a printed information that is bonded to the product for recognition and provides detailed information about the same. Customers can take buying decision easily when they see the information on the label of the product.

Entrepreneurship : CUET Mock Test - 4 - Question 19

Which of the following types of budget may be modified monthly with actual figures?

Detailed Solution for Entrepreneurship : CUET Mock Test - 4 - Question 19

For small businesses, different types of budgets can be drafted to monitor various financial aspects of the business. An operational budget is the most common type of budget used. It forecasts and tries to pretty closely predict yearly revenue and expenses for a business. This budget can be updated with actual figures on a monthly basis.

Entrepreneurship : CUET Mock Test - 4 - Question 20

Which of the following is the ideal market structure for technological advancement?

Detailed Solution for Entrepreneurship : CUET Mock Test - 4 - Question 20

A monopolistic or an oligopolistic firm has no incentive to innovate, because it already has a market for its old existing product. Only the purely competitive firm has the instinct to survive and compete by providing something new or different through technological advance.

Entrepreneurship : CUET Mock Test - 4 - Question 21

Which is the last and the utmost important phase in developing effective business plans?

Detailed Solution for Entrepreneurship : CUET Mock Test - 4 - Question 21

The process of producing a business plan is, in itself, a beneficial undertaking. It facilitates management's focus on the future as well as the present. In the process of preparing the plan, they have a chance to step back and assess where they are now in terms marketing, production, and finances.
The process has four distinct phases:

  • Identification and evaluation of the opportunity
  • Development of the business plan
  • Determination of the required resources
  • Management of the resulting enterprise
Entrepreneurship : CUET Mock Test - 4 - Question 22

A process that allows an organisation to concentrate its resources on the optimal opportunities with the goals of increasing sales and achieving a sustainable competitive advantage is known as:

Detailed Solution for Entrepreneurship : CUET Mock Test - 4 - Question 22

A process that allows an organisation to concentrate its resources on the optimal opportunities with the goals of increasing sales and achieving a sustainable competitive advantage is known as marketing strategy. This definition of marketing strategies was given by David Aaker.

Entrepreneurship : CUET Mock Test - 4 - Question 23

Which type of entrepreneur is considered a superstar according to different business perspectives?

Detailed Solution for Entrepreneurship : CUET Mock Test - 4 - Question 23

Superstar is the type of entrepreneur who is led by charisma, charm and high energy. An entrepreneur like this has an overwhelming personality which works in his favour, so does in the favour of business. This personality often will cause to build business around own personal brand. However, such people tend to become too competitive and workaholic which can sour the workplace and the market. The example of superstar entrepreneur is Peter Sematimba, CEO of Super FM.

Entrepreneurship : CUET Mock Test - 4 - Question 24

Which of the following are included as external factors affecting industrial sickness?
(a) Changes in fiscal and monetary policies
(b) Price and distribution
(c) Non-availability of inputs
(d) Industrial relations
(e) Capital market fluctuations

Detailed Solution for Entrepreneurship : CUET Mock Test - 4 - Question 24

Industrial sickness is a phenomenon characterised by loss of production and employment of industries. The industrial sickness basically occurred in the traditional industries which were developed long ago. With the abolition of managing agency system, there was no mechanism to stop the rot, and industries maintained by managing agents were hard hit in the industrial sickness. The causes of industrial sickness can be divided into two broad categories: external and internal.
External causes are those which are beyond the control of its management, and seem to be relatively more important than internal causes. The external causes which have been identified so far include:
(a) Changes in fiscal and monetary policies
(b) Price and distribution
(c) Non-availability of inputs
(d) Industrial relations
(e) Capital market fluctuations

Entrepreneurship : CUET Mock Test - 4 - Question 25

Raising which of the following types of capital is the most challenging for Innovative entrepreneurs?

Detailed Solution for Entrepreneurship : CUET Mock Test - 4 - Question 25

The innovative entrepreneur would have lost much of his personal stake in the initial research itself, making him face the resource crunch at the implementation stage. He is also a relatively an unknown entity in the market place. So, he would face issues in raising the seed capital.

Entrepreneurship : CUET Mock Test - 4 - Question 26

Ritu has completed her B.Tech. in textile designing. She wants to start a ready-made garments manufacturing unit. She wants to manufacture trendy garments for children below the age of one year. She approached a popular trendspotter to help her with the same. The trendspotter demanded Rs. 2,00,000 from Ritu to help her. Looking at the high fee demanded, she decided to do the trendspotting by herself. She decided to identify the trend by talking to the parents of newborns.
Identify the method that Ritu adopted to spot the trend.

Detailed Solution for Entrepreneurship : CUET Mock Test - 4 - Question 26

The method that Ritu adopted to spot the trend is talk trends. It involves talking to people which is an equally important trend spotting activity which helps the entrepreneur to get inputs on the needs of the customer. This can be done both online and offline.

Entrepreneurship : CUET Mock Test - 4 - Question 27

____ grants the holder the right to exclude others from making, selling, using or offering for sale or importing the invention.

Detailed Solution for Entrepreneurship : CUET Mock Test - 4 - Question 27

A patent is a type of intellectual property that gives its owner the legal right to exclude others from making, using, or selling an invention for a limited period of time in exchange for publishing and enabling disclosure of the invention.

Entrepreneurship : CUET Mock Test - 4 - Question 28

Arrange the sequence of marketing assessment process.

  1. Defining the problem
  2. Obtaining data that is specific to the problem
  3. Analysis and interpreting the data
  4. Analysis of the situation
  5. Designing a plan
  6. Fostering ideas and problem solving
Detailed Solution for Entrepreneurship : CUET Mock Test - 4 - Question 28

The marketing assessment process begins with recognition of the problem. Then the problem is analysed. Then comes collection of data connected with the problem or opportunity. This data has to be converted into information that can be analyzed systematically. After the data has been analyzed and interpreted, comes the stage of answering the problem that we started with and putting the ideas worked out, into a systematic action plan to address the problem or exploit the opportunity.

Entrepreneurship : CUET Mock Test - 4 - Question 29

At which stage of development process, the launching of New Product will take place?

Detailed Solution for Entrepreneurship : CUET Mock Test - 4 - Question 29

Commercialisation is the process of bringing new products or services to market. The broader act of commercialisation entails production, distribution, marketing, sales, customer support, and other key functions critical to achieving the commercial success of the new product or service.

Entrepreneurship : CUET Mock Test - 4 - Question 30

If sales are Rs. 2,000 and the rate of gross profit on cost of goods sold is 25%, then the cost of goods sold will be

Detailed Solution for Entrepreneurship : CUET Mock Test - 4 - Question 30

Let cost price = Rs. 100
Profit = Rs. 25
Sale price = Rs. 125
By unitary method, for sales of Rs. 125, the cost is Rs. 100.
Then, for sales of Rs. 2,000, cost = Rs. {(100/125) × 2,000} = Rs. 1,600
Cost of goods sold = Rs. 1,600

Entrepreneurship : CUET Mock Test - 4 - Question 31

The type of firm that has the strongest incentive for product development and differentiation, is

Detailed Solution for Entrepreneurship : CUET Mock Test - 4 - Question 31

A monopolistic or an oligopolistic firm has no incentive to innovate, because it already has a market for its old existing product. Only the purely competitive firm has the instinct to survive and compete by providing something new or different.

Entrepreneurship : CUET Mock Test - 4 - Question 32

Which is the apex body in India for formulating the policy in respect of entrepreneurship development?

Detailed Solution for Entrepreneurship : CUET Mock Test - 4 - Question 32

National Entrepreneurship Board is the board specially set up to look after the policies related to entrepreneurship development in India. NIESBUD is the secretariat for the National Entrepreneurship Development Board (NEDB). NIESBUD is an apex body for coordinating and over-seeing the activities of different agencies engaged in entrepreneurial development.

Entrepreneurship : CUET Mock Test - 4 - Question 33

With which aspect of commerce are "Bulls and Bears" associated?

Detailed Solution for Entrepreneurship : CUET Mock Test - 4 - Question 33

"Bulls and Bears" are associated with Stock Exchange Market. The bull depicts investors who are optimistic about future prospects of the stock market and believe an upward trending market is on. The polar opposite is the bear; an investor who is convinced that the market is headed for a fall.

Entrepreneurship : CUET Mock Test - 4 - Question 34

Which of the following organisations is meant for promoting small scale industries at district level?

Detailed Solution for Entrepreneurship : CUET Mock Test - 4 - Question 34

The 'District Industries Centre' (DIC) programme was started by the central government in 1978 with the objective of providing a focal point for promoting small, tiny, cottage and village industries in a particular area and to make available to them all necessary services and facilities at one place.
The District Industries Centre is the institution at the district level, which provides all the services and support facilities to the entrepreneur for setting up Micro, Small and Medium Enterprises.

Entrepreneurship : CUET Mock Test - 4 - Question 35

If fixed cost is Rs. 2,50,000, variable cost is Rs. 5 per unit, selling price is Rs. 8 per unit and output is 1,20,000 units, then what will be the profit?

Detailed Solution for Entrepreneurship : CUET Mock Test - 4 - Question 35

Profit = Total sale price - Total cost
Sale price = Rs. (8 × 1,20,000) = Rs. 9,60,000
Total cost = Fixed cost + Variable cost
Total cost = Rs. (2,50,000 + 5 × 1,20,000)
Total cost = Rs. 8,50,000
Profit = Rs. (9,60,000 - 8,50,000) = Rs. 1,10,000

Entrepreneurship : CUET Mock Test - 4 - Question 36

Match the following:

Detailed Solution for Entrepreneurship : CUET Mock Test - 4 - Question 36
  • Entrepreneurship is the process of innovating, designing, launching and running a new business, which is often initially a small business.
  • In marketing, the promotional mix describes a blend of promotional variables chosen by marketers to help a firm reach its goals.
  • Inventory management is the supervision of non-capitalised assets (inventory) and stock items. In the inventory management, reorder level (or reorder point) is the inventory level at which a company would place a new order or start a new manufacturing run.
  • A key step in HR planning is outlining the appraisal process for incorporation into the policy and procedure manual. Most planning begins with assessment of the workforce, using job descriptions for each position.
Entrepreneurship : CUET Mock Test - 4 - Question 37

Kishore Ltd. is the manufacturer of textiles, having its plant in New Delhi. Vishi Ltd. is the manufacturer of ready-made western garments and sells its products throughout the country. It also exports its products to America and European countries. Vishi Ltd. sources its textiles from Kishore Ltd. The management of the two companies decided to merge to have economies of large scale production.
Identify the type of merger entered into by Kishore Ltd. and Vishi Ltd.

Detailed Solution for Entrepreneurship : CUET Mock Test - 4 - Question 37
  • The type of merger entered into by Kishore Ltd. and Vishi Ltd. is vertical merger. A vertical merger occurs when two or more firms operating at different levels within an industry's supply chain merge operations. Most often the logic behind the merger is to increase synergies created by merging firms that would be more efficient operating as one.
  • A horizontal merger is a merger or business consolidation that occurs between firms that operate in the same industry. A merger between Coca-Cola and the Pepsi beverage division, for example, would be horizontal in nature.
  • A market extension merger takes place between two companies that deal in the same products but in separate markets.
  • A product extension merger takes place between two business organisations that deal in products that are related to each other and operate in the same market. The product extension merger allows the merging companies to group together their products and get access to a bigger set of consumers.
Entrepreneurship : CUET Mock Test - 4 - Question 38

State Financial Corporations mainly give assistance to develop which of the following?

Detailed Solution for Entrepreneurship : CUET Mock Test - 4 - Question 38

The State Financial Corporations Act was passed in 1951. It provides power to all the states and union territories to set up State Financial Corporations. They are state level financial institutions that play an important role in the growth of the small and medium enterprises in the concerned states. They provide financial assistance by way of granting loans or advances or subscribing to debentures of industrial concerns or by underwriting the stocks, shares, bonds, and debentures.

Entrepreneurship : CUET Mock Test - 4 - Question 39

In which stage of product life cycle, the company takes decision whether to maintain, harvest or drop the product?

Detailed Solution for Entrepreneurship : CUET Mock Test - 4 - Question 39

The product life cycle is broken into four stages: introduction, growth, maturity, and decline. At declining stage of product life cycle, the company takes decision whether to maintain, harvest or drop the product. At this stage, there is a downturn in the market. For example, more innovative products are introduced or consumer tastes have changed. There is intense price cutting, and many more products are withdrawn from the market. Profits can be improved by reducing marketing spending and cost cutting.

Entrepreneurship : CUET Mock Test - 4 - Question 40

What is the prediction of the Pareto principle?

Detailed Solution for Entrepreneurship : CUET Mock Test - 4 - Question 40

The Pareto principle (also known as the (80/20) rule) states that 80% of effect comes from 20% of causes. This principle holds that in a given system, a relative handful of causes will produce the majority of effects. For example, one may find that 20 percent of customers are responsible for 80 percent of sales. Hence, option 2 is the right answer.

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