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I&E CMAT 2025 Slot 2 Actual Questions

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CMAT 2025 Slot 2 – Innovation & Entrepreneurship

Innovation and Entrepreneurship

Difficulty: Moderate
81. Match List I with List II:
TermMeaning
(A) Patent(IV) Intellectual property protection
(B) Bootstrapping(I) Self funding
(C) Crowdfunding(II) Small contribution from many people
(D) Pivot(III) Change in business direction
  1. A-IV, B-II, C-I, D-III
  2. A-IV, B-I, C-II, D-III
  3. A-IV, B-III, C-II, D-I
  4. A-IV, B-I, C-III, D-II
Correct Option: B
Explanation: Patent = IP protection (IV).
Bootstrapping = Self-funding (I).
Crowdfunding = Many small contributions (II).
Pivot = Change direction (III).
Difficulty: Moderate
82. Which statements are correct?
A. Goal of startup pitch is funding.
B. ‘Innovation’ & ‘adaptability’ describe entrepreneurial mindset.
C. Non-profit is a startup.
D. Neeti Ayog was Planning Commission.
E. Dr Manmohan Singh was RBI Governor.
  1. A and B are correct statements.
  2. C and D are correct statements.
  3. A, B, D and E are correct statements.
  4. A, B and D are correct statements.
Correct Option: C
Explanation: Statement C is incorrect because standard definitions of “startup” (like DPIIT) exclude non-profits. Statements A, B, D, and E are historically and contextually correct.
Difficulty: Easy
83. Which term refers to the initial phase of a startup when it starts to develop its product?
  1. Ideation
  2. Pivoting
  3. Scaling
  4. Bootstrapping
Correct Option: A
Explanation: Ideation is the creative process of generating, developing, and communicating new ideas, which is the very first step.
Difficulty: Moderate
86. Assertion (A): Venture capital nurtures innovative entrepreneurship.
Reason (R): Venture capital is risk financing available as equity/quasi-equity.
  1. Both (A) and (R) are true and (R) explains (A)
  2. Both (A) and (R) are true but (R) does not explain (A)
  3. (A) is true but (R) is false
  4. (A) is false but (R) is true
Correct Option: B
Explanation: Both statements are true definitions. However, R defines *what* VC is, while A states *what it does*. The definition itself isn’t the sole causal explanation for the nurturing effect (which comes from mentorship, networking, etc., not just the equity structure).
Difficulty: Easy
88. Statement I: Incremental innovation is gradual improvement.
Statement II: Radical innovation involves higher risk than incremental.
  1. Both Statement I and Statement II are correct
  2. Both Statement I and Statement II are incorrect
  3. Statement I is true but Statement II is incorrect
  4. Statement I is false but Statement II is correct
Correct Option: A
Explanation: Both statements are standard definitions in innovation management. Radical innovation creates new markets and carries more uncertainty.
Difficulty: Moderate
89. Statement I: Business incubators typically take equity stakes.
Statement II: Incubators provide office space, mentorship, and resources.
  1. Both Statement I and Statement II are true
  2. Both Statement I and Statement II are false
  3. Statement I is true but Statement II is false
  4. Statement I is false but Statement II is true
Correct Option: A
Explanation: While some non-profit incubators (like university ones) might not, the standard business model for private incubators and accelerators involves taking a small equity stake in exchange for services.
Difficulty: Hard
90. Match Adopter Categories:
CategoryDescription
(A) Innovators(IV) First to try
(B) Laggards(III) Tradition bound/conservative
(C) Early majority(I) Rarely leaders but adopt new ideas
(D) Early adopters(II) Opinion leaders
  1. A-IV, B-III, C-II, D-I
  2. A-I, B-II, C-III, D-IV
  3. A-IV, B-III, C-I, D-II
  4. A-IV, B-II, C-III, D-I
Correct Option: C
Explanation: Rogers’ Diffusion of Innovations: Innovators (IV), Early Adopters (II – Opinion Leaders), Early Majority (I), Laggards (III).
Difficulty: Moderate
91. Assertion (A): ‘Scaling’ means expanding to serve more customers.
Reason (R): A small, specialised market is a niche market.
  1. Both (A) and (R) are true, and (R) explains (A).
  2. Both (A) and (R) are true, but (R) does not explain (A).
  3. (A) is true, but (R) is false.
  4. (A) is false, but (R) is true.
Correct Option: B
Explanation: Both sentences are correct definitions. However, defining a “niche market” does not explain the concept of “scaling” (growing). They are unrelated concepts in this context.
Difficulty: Easy
92. What is the primary purpose of a ‘pitch deck’?
  1. To design a product
  2. To present the business idea to potential investors
  3. To recruit employees
  4. To manage daily operations
Correct Option: B
Explanation: A pitch deck is a brief presentation used to provide investors with a quick overview of your business plan.
Difficulty: Moderate
93. Read statements:
A. Manufacturing plant is an incubator.
B. Fixed income is advantage of entrepreneurship.
C. Shared workspace with resources is an incubator.
D. Only youngsters can be entrepreneurs.
E. Only middle-aged can start business.
  1. Only A, B and E are true.
  2. Only A and C are false.
  3. Only A, B and D are true.
  4. Only B, D and E are false.
Correct Option: D
Explanation: B is False (Income is variable/risky).
D & E are False (Age is no barrier).
C is True (Standard definition).
Thus, B, D, and E are the false statements.
Difficulty: Moderate
94. Statement I: Innovation is a source of sustained competitive advantage.
Statement II: Innovation adoption does not depend upon ‘initiation stage’.
  1. Both Statement I and Statement II are true.
  2. Both Statement I and Statement II are false.
  3. Statement I is true but Statement II is false.
  4. Statement I is false but Statement II is true.
Correct Option: C
Explanation: Statement I is True. Statement II is False because the adoption process *starts* with the initiation stage (gathering information, forming attitudes).
Difficulty: Moderate
96. Statement I: Pivoting refers to changing business model in response to feedback.
Statement II: Pivoting always involves changing the target market.
  1. Both Statement I and Statement II are true
  2. Both Statement I and Statement II are false
  3. Statement I is true but Statement II is false
  4. Statement I is false but Statement II is true
Correct Option: C
Explanation: Statement I is correct. Statement II is false because a pivot can involve changing the product, the technology, or the revenue model without necessarily changing the target market.
Difficulty: Moderate
97. Match List I with List II:
TermMeaning
(A) Scalability(II) Ability to grow
(B) Value proposition(IV) USP
(C) Lean startup(III) Experiments based concept
(D) MVP(I) Early stage product
  1. A-II, B-I, C-IV, D-III
  2. A-II, B-I, C-III, D-IV
  3. A-II, B-III, C-I, D-IV
  4. A-II, B-IV, C-III, D-I
Correct Option: D
Explanation: Direct definitions: A-II, B-IV, C-III, D-I.
Difficulty: Easy
98. The concept of a venture capitalist may be simplified as:
  1. 2 and 4 only
  2. 2 only
  3. 4 only
  4. 2, 4 and 5 only
Correct Option: A
Explanation: A VC invests money in someone else’s idea. So from the VC’s perspective: “Your idea and my money.” From the Entrepreneur’s perspective: “My idea and your money.” Both perspectives (2 & 4) describe the relationship.
Difficulty: Moderate
99. Assertion (A): Business accelerators offer mentorship to speed up growth.
Reason (R): Startups face difficulties in their growth stage.
  1. Both (A) and (R) are true and (R) explains (A)
  2. Both (A) and (R) are true but (R) does not explain (A)
  3. (A) is true but (R) is false
  4. (A) is false but (R) is true
Correct Option: A
Explanation: Accelerators exist specifically because (Reason) startups face growth challenges and need resources to overcome them (Assertion). R explains A.
Difficulty: Moderate
100. Match List I with List II:
TermMeaning
(A) Serial Entrepreneur(IV) Multiple ventures
(B) Blue ocean strategy(III) Uncontested market space
(C) Open innovation(II) External ideas utilized
(D) Profit margin(I) Earning Ratio
  1. A-IV, B-III, C-II, D-I
  2. A-III, B-IV, C-II, D-I
  3. A-IV, B-I, C-II, D-III
  4. A-I, B-III, C-II, D-IV
Correct Option: A
Explanation: A-IV, B-III, C-II, D-I.

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