Innovation and Entrepreneurship Actual Questions in CMAT 2024 Slot – 1

  1. QUESTION

The primary function of a new age entrepreneur is innovation. This statement was/is proposed and propagated by:


A)Henri Fayol
B)Steve Jobs
C)Schumpeter
D)Elon Musk

Explanation

(C)

=The statement “The primary function of a new age entrepreneur is innovation” aligns closely with the views of Joseph Schumpeter, an Austrian economist. Schumpeter is renowned for his theories on entrepreneurship, particularly his concept of “creative destruction,” which emphasizes the role of entrepreneurs in introducing innovation and disrupting existing markets. While figures like Steve Jobs and Elon Musk are notable innovators in their own right, Schumpeter’s work laid much of the theoretical groundwork for understanding entrepreneurship and innovation in modern economies.



QUESTION-2

    The entrepreneur:


    A)is an agressive catalyst for change in world of business.
    B) is an independent thinker who dares to be different amid a background of common events.
    C) is a mere creator of business
    D)Both (1) and (2

    Explanation

    (D)

    =Both (1) and (2



    QUESTION-3

      Which of the following is an example of speculative business risk?


      A)A customer is injured while using the product and sues the company
      B)A supplier’s shipment is lost in transit
      C)A special promotion fails to increase the sales
      D)A cashier gives unauthorized discounts to friends

      Explanation

      (C)

      =A special promotion fails to increase the sales



      QUESTION-4

        Which of the following statements are correct?

        (A) MUDRA loans under PMMY include Shishu Category

        (B) MUDRA loans under PMMY include Kishore Category

        (C) MUDRA loans under PMMY include Shaishav Category

        (D) MUDRA loans under PMMY include Tarun Category

        (E) MUDRA loans under PMMY include Vyask Category

        Choose the correct answer from the options given below:


        A)(C), (B) and (E) only
        B)(C), (B) and (D) only
        C) (A), (B) and (E) only
        D)(A), (B) and (D) only

        Explanation

        (D)

        =(A), (B) and (D) only


        QUESTION-5

          A corporate manager who starts a new initiative for their company/organisation which entails setting up a new distinct business unit can be regarded as:


          A)Ecopreneur
          B)Technopreneur
          C)Intrapreneur
          D)Businessman/Businesswoman

          Explanation

          (C)

          =Intrapreneur




          QUESTION-6

            Given below are two statements:

            Statement:

            An entrepreneur can get a lot of quality information about competitors from company reports and its website.

            Statement II:

            First step to avail finance for a new project is Promoter’s Biodata.

            In the light of the above statement, choose the correct answer from the options given below:


            A)Both Statement I and Statement II are true
            B)Both Statement I and Statement il are false
            C)Statment I is true but Statement Il is false
            D)Statement I is false but Statement II is true

            Explanation

            (C)

            =Statment I is true but Statement Il is false



            QUESTION-7

              Design thinking involves which of the following stages?

              (A) Prototyping

              (B) Define

              (C) Empathise

              (D) Modelling

              (E) Test

              Choose the correct answer from the options given below:

              A)(A), (B), (C), (D) and (E)
              B)(A), (B), (C) and (E) only
              C)(A), (D) and (E) only
              D) (B), (C) and (D) only

              Explanation

              (B)

              =(A), (B), (C) and (E) only



              QUESTION-8

                Which of the following is NOT a form of organisation to initiate a business/enterprise?


                A)Partner Organisation
                B)Sole Proprietorship
                C)Private Limited Company
                D)Live and License

                Explanation

                (D)

                =Live and License



                QUESTION-9

                  Given below are two statements:

                  Statement !:

                  People’s attitudes have changed over the years leading to involvement of State (Government) in businesses globally.

                  Statement II:

                  Increasing technicality is leading to State (Government) to make interventions in businesses globally.

                  In the light of the above statements, choose the most appropriate answer from the options

                  given below:


                  A)Both Statement I and Statement II are correct
                  B)Both Statement I and Statement II are incorrect
                  C)Statement I is correct but Statement II is incorrect
                  D)Statement I is incorrect but Statement Il is correct

                  Explanation

                  (B)

                  =Both Statement I and Statement II are incorrect




                  QUESTION-10

                    Which of the following can give an enterprise dealing in instant coffee a competitive edge ?


                    A)Quality, taste and location
                    B)Population increase in the city
                    C)Ambience and customer relationship
                    D)(1) and (3) only

                    Explanation

                    (D)

                    =(1) and (3) only

                    The option that can give an enterprise dealing in instant coffee a competitive edge is:

                    (D) Quality, taste, and location, along with ambience and customer relationship.

                    Instant coffee is often associated with convenience and speed, but to stand out in a competitive market, offering high-quality products with great taste in convenient locations can attract customers. Additionally, providing a pleasant ambience and fostering positive customer relationships can enhance the overall experience, encouraging repeat business and word-of-mouth recommendations.



                    QUESTION-11

                      Which of the following factors must you judge to estimate the market potential?

                      (A) Present Market Demand

                      (B) Export Market Demand

                      (C) Future Market Demand

                      (D) Labour Demand

                      (E) Retailer’s Consumption Preferences

                      Choose the correct answer from the options given below:


                      A) (B), (C) and (D) only
                      B) (A), (B) and (D) only
                      C)(A), (B) and (C) only
                      D) (B), (D) and (E) only

                      Explanation

                      (C)

                      =To estimate market potential, you would typically consider factors such as present market demand, export market demand, and future market demand. Therefore, the correct answer is:

                      (C) – (A), (B), and (C) only




                      QUESTION-12

                        Social Enterprise Obligation includes:

                        (A) Environment

                        (B) Fair Business Practices

                        (C) Community Involvement

                        (D) Energy

                        (E) Shareholder’s Profit

                        Choose the correct answer from the options given below:


                        A)(A), (B), (C) and (E) only
                        B) (A), (B), (C) and (D) only
                        C) (B), (C), (D) and (E) only
                        D) (A), (C), (D) and (E) only

                        Explanation

                        (C)

                        =To estimate market potential, you would typically consider factors such as present market demand, export market demand, and future market demand. Therefore, the correct answer is:

                        (C) – (A), (B), and (C) only



                        QUESTION-13

                          Match List-l with List-II

                          List-IList-II
                          (A)Intrapreneur1-Value Addition
                          (B)Entrepreneur2-Risk-taking in an organisational role
                          (C)Distributor3-Calculated Risk-taking
                          (D)Customer4-Utility Maximisation

                          Choose the correct answer from the options given below:


                          A)(A) (1), (B) – (II), (C) – (III), (D) – (IV)
                          B) (A) (III), (B) – (II), (C) – (I), (D) – (IV)
                          C) (A) (II), (B) – (III), (C) – (I), (D) – (IV)
                          D) (A) – (II), (B) – (III), (C) – (IV), (D) – (I)

                          Explanation

                          (C)

                          =(A) (II), (B) – (III), (C) – (I), (D) – (IV)



                          QUESTION-14

                            Arrange the following stages of Entrepreneurship Creativity in sequence.

                            (A) Knowledge accumulation

                            (B) Incubation

                            (C) Implementation

                            (D) Idea experience

                            (E) Evaluation

                            Choose the correct answer from the options given below:


                            A)(A), (B), (C), (D), (E)
                            B)(A), (D), (B), (E), (C)
                            C)(A), (B), (D), (E), (C)
                            D)(Ε), (A), (B), (C), (D)

                            Explanation

                            (C)

                            =(A), (B), (D), (E), (C)




                            QUESTION-15

                              Scaling up of a business requires a firm to take care of following things:

                              (A) Hiring, retaining and motivating qualified employees

                              (B) Finding investors who share same goals

                              (C) Time management and work assignment ability

                              (D) Adequate market potential and opportune time

                              (E) Business idea experiencing

                              Choose the correct answer from the options given below:


                              A)(A), (B), (D) and (E)
                              B) (B), (C) and (D) only
                              C)(A), (B), (C) and (D) only
                              D)(C), (D) and (E) only

                              Explanation

                              (C)

                              =(A), (B), (C) and (D) only



                              QUESTION-16

                                The Government of India has launched the following initiative a few years ago to drive the new age ideas and enterprises:


                                A)Production Linked Incentive (PLI)
                                B)Special Economic Zone (SEZ)
                                C)Technology Development Board
                                D)Start-Up India

                                Explanation

                                (D)

                                =The Government of India launched the Start-up India Initiative on 16 January 2016, with the objective of supporting entrepreneurs, building a robust start-up ecosystem, and transforming India into a country of job creators instead of job seekers.

                                • The Government of India launched the “Start-up India” campaign in New Delhi on 16 January 2016.




                                QUESTION-17

                                  Given below are two statements:

                                  Statement I:

                                  Yoga and focus on hobbies are good ways to deal with stress for an entrepreneur.

                                  Statement II:

                                  Having stress for an entrepreneur is welcoming as it helps in better performance and helps him/her lead a balanced life.

                                  In the light of the above statements, choose the most appropriate answer from the options

                                  given below:


                                  A)Both Statement I and Statement il are correct
                                  B)Both Statement I and Statement II are incorrect
                                  C)Statement I is correct but Statement II is incorrect
                                  D)Statement I is incorrect but Statement II is correct

                                  Explanation

                                  (C)

                                  =

                                  (C) Statement I is correct but Statement II is incorrect.

                                  While the first statement suggests positive coping mechanisms for stress, the second statement’s assertion that stress is welcoming for an entrepreneur is not necessarily accurate. While some level of stress can indeed be motivating and lead to better performance, chronic or excessive stress can have detrimental effects on health and well-being, and it’s not necessarily conducive to leading a balanced life. So, it’s more accurate to say that managing stress through healthy practices like yoga and hobbies is beneficial for entrepreneurs.




                                  QUESTION-18

                                    Match List I with List II

                                    List IList II
                                    (A)Availability of Raw Material, Plant, Machinery, etc.I-Business Plan
                                    (B)Demand Preferences and CustomerII-Financial Feasibility
                                    (C)Profit ProjectionsIII-Technical Feasibility
                                    (D)Market, Technical, FinancialIV-Market Feasibility

                                    Choose the correct answer from the options given below:


                                    A) (A)-(III), (B)-(IV), (C)-(I), (D)-(II)
                                    B)(A)-(1), (B)-(II), (C)-(III), (D)-(IV)
                                    C) (A)-(II), (B)-(1), (C)-(IV), (D)-(III)
                                    D) (A)-(III), (B)-(IV), (C)-(II), (D)-(I)

                                    Explanation

                                    (A)

                                    =(A)-(III), (B)-(IV), (C)-(I), (D)-(II)




                                    QUESTION-19

                                      Given below are two statements, one is labelled as Assertion (A) and the other is labelled as Reason (R).

                                      Assertion (A):

                                      Small businesses are considered important to economic development.

                                      Reason (R):

                                      Small businesses can be innovators of new products and provide speacialist support to larger companies.

                                      In the light of the above statements, choose the most appropriate answer from the options given below:


                                      A)Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).


                                      B)Both Assertion (A) and Reason (R) are correct and Reason (R) is not the correct explanation of Assertion (A).


                                      C)(A) is correct but (R) is not correct.


                                      D)(A) is not correct but (R) is correct.

                                      Explanation

                                      (A)

                                      =The most appropriate answer would be:

                                      A) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).

                                      Small businesses indeed play a crucial role in economic development, and the reason provided, that they can innovate new products and provide specialized support to larger companies, helps to explain why they are considered important contributors to economic growth.




                                      QUESTION-20

                                        Which of the following is NOT part of Entrepreneurship Development Programme ?


                                        A)Identification of entrepreneurs for training
                                        B)Selection of entrepreneurs for training
                                        C)Developing entrepreneurial capabilities
                                        D)Arranging infrastructural capabilities

                                        Explanation

                                        (D)

                                        =The Entrepreneurship Development Programme typically involves activities related to identifying potential entrepreneurs, selecting candidates for training, and developing their entrepreneurial capabilities. Infrastructural capabilities are not typically considered a direct part of the Entrepreneurship Development Programme. Therefore, the correct answer is:

                                        (D) Arranging infrastructural capabilities



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