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I&E CMAT 2025 Slot 1 Actual Questions

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CMAT 2025 – Innovation & Entrepreneurship

Innovation and Entrepreneurship CMAT 2025 Slot 1

81. Assertion (A): Management of technological innovation is needed due to uncertainty and risk.
Reason (R): Innovation is a primary competitive tool in the 21st century.
  1. Both (A) and (R) are true and (R) is the correct explanation of (A)
  2. Both (A) and (R) are true but (R) is NOT the correct explanation of (A)
  3. (A) is true but (R) is false
  4. (A) is false but (R) is true
Correct Option: A
Rationale: Management of innovation is essential because the process is inherently risky and uncertain. Reason (R) correctly explains why firms give such high importance to managing this process—it is their primary tool for staying competitive.
84. The Stand-Up India Scheme supports which of the following categories of entrepreneurs?
(A) General category men
(B) Women entrepreneurs
(C) SC entrepreneurs
(D) ST entrepreneurs
  1. (A) and (B) only
  2. (A), (B) and (C) only
  3. (B), (C) and (D) only
  4. All of the above
Correct Option: C
Rationale: The Stand-Up India scheme specifically targets Scheduled Castes (SC), Scheduled Tribes (ST), and Women entrepreneurs to facilitate bank loans between 10 lakh and 1 crore.
85. Statement I: An Intrapreneur works inside a large organization.
Statement II: An Intrapreneur is the same as an entrepreneur working independently.
  1. Both Statement I and Statement II are correct
  2. Both Statement I and Statement II are incorrect
  3. Statement I is correct but Statement II is incorrect
  4. Statement I is incorrect but Statement II is correct
Correct Option: C
Rationale: Statement I is true as intrapreneurship refers to employee initiatives within a corporate setting. Statement II is false because an entrepreneur operates their own business and bears all the financial risk personally.
86. A word, symbol, name, or device used to identify and distinguish the goods of one manufacturer or seller from others is called:
  1. Patent
  2. Copyright
  3. Trademark
  4. Trade Secret
Correct Option: C
Rationale: A Trademark is a recognizable sign, design, or expression which identifies products or services of a particular source.
88. Match the following roles:
PersonRole Description
(A) Intrapreneur(III) Risk taking inside organisation
(B) Entrepreneur(IV) Calculated risk-taking
(C) Venture capitalist(II) Funding startup
(D) Distributor(I) Value addition in supply chain
Correct Option: C
Mapping: A–III, B–IV, C–II, D–I.
90. Statement I: Startup valuation is lowest at the seed stage.
Statement II: Venture capital is usually the first source of funding for a startup.
  1. Both Statement I and Statement II are correct
  2. Both Statement I and Statement II are incorrect
  3. Statement I is correct but Statement II is incorrect
  4. Statement I is incorrect but Statement II is correct
Correct Option: C
Rationale: Statement I is correct as the risk is highest at the seed stage. Statement II is false; the first sources are usually personal savings (bootstrapping), friends, family, or angel investors.
92. Which of the following are true about Venture Capital?
(A) Financing by venture capital
(B) Early-stage private equity
(C) Blue-chip safe investment
(D) High risk, high return
(E) Only tech projects
  1. (A) and (C) only
  2. (A), (B) and (D) only
  3. (B), (D) and (E) only
  4. All of the above
Correct Option: B
Rationale: Venture capital is a type of private equity for early-stage companies with high growth potential, which naturally involves high risk and the expectation of high returns.
95. Statement I: The Lean Startup methodology focuses on heavy market research before developing a product.
Statement II: It focuses on Minimum Viable Product (MVP) testing and rapid iteration.
  1. Both Statement I and Statement II are correct
  2. Both Statement I and Statement II are incorrect
  3. Statement I is correct but Statement II is incorrect
  4. Statement I is incorrect but Statement II is correct
Correct Option: D
Rationale: Lean Startup actually avoids heavy upfront research and instead uses the “Build-Measure-Learn” cycle with an MVP to test hypotheses quickly.
97. Statement I: Cost-Benefit Analysis (CBA) measures societal impact in monetary terms.
Statement II: CBA is used widely in transport appraisal.
  1. Both Statement I and Statement II are correct
  2. Both Statement I and Statement II are incorrect
  3. Statement I is correct but Statement II is incorrect
  4. Statement I is incorrect but Statement II is correct
Correct Option: A
Rationale: CBA is a systematic approach to estimating the strengths and weaknesses of alternatives, often converting social and environmental impacts into monetary values for comparison.
100. A “Fabian Entrepreneur” is characterized by:
  1. Rapid adoption of new technology
  2. Resisting change and preferring traditional methods
  3. Starting multiple businesses simultaneously
  4. Focusing only on social welfare
Correct Option: B
Rationale: Fabian entrepreneurs are very cautious and skeptical. They only adopt changes when they are absolutely certain that failure to do so would result in a loss of their market position.

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