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Entrepreneurial Skills MCQs – Chapter 6 DAE

1. All those activities whose purpose is to earn profit are called:

(A) Commerce


(B) Business


(C) Education


(D) Management




2. A person who manages or controls the business to earn profit is called:

(A) Professional


(B) Entrepreneur


(C) Laborer


(D) Doctor




3. The basic goal/purpose of a business is:

(A) To earn profit


(B) God’s consent


(C) Buy/Sell goods


(D) None




4. The success of business depends upon:

(A) Administrative & technical activities


(B) All of these


(C) Better means of transportation


(D) Availability of raw material




5. To decide in advance, is called:

(A) Business


(B) Business risk


(C) All


(D) Planning




6. Objectives or goals of planning are:

(A) Determination of staff


(B) All of these


(C) Method of leading


(D) Determination of designation




7. To become a good entrepreneur, one must have:

(A) All of these


(B) Power of decision making


(C) Stability


(D) Ability of planning




8. In small business, number of employees are:

(A) 30


(B) More than 10


(C) 20


(D) Less than 10




9. When we perform job without planning, its results will be:

(A) Effective


(B) Very good


(C) Ineffective


(D) All




10. Short time loans time span is:

(A) Less than 1 year


(B) More than 1 year


(C) 1 to 7 years


(D) 1 to 10 years




11. Loans for business can be obtained from:

(A) Bank


(B) All


(C) By debentures


(D) Credit purchase




12. Due to business risks, business goes towards:

(A) Profit


(B) Success


(C) Failure


(D) All




13. Reason(s) of business risks is/are:

(A) Incapable management


(B) Shortage of raw material


(C) All


(D) Shortage of demand




14. Methods of reducing business risks includes:

(A) Reduction in losses


(B) All


(C) Insurance


(D) Speculation




15. To select place of business, it is necessary to have:

(A) Availability of raw material


(B) Suitable atmosphere


(C) Availability of means of transportation


(D) All




16. In the business, this has a position like blood in the body:

(A) Raw material


(B) Labour


(C) Capital


(D) Industrialist




17. This is a feature of business:

(A) All


(B) To earn Profit


(C) Trend of competition


(D) Need of capital




18. This is included in the economic objectives of a business:

(A) Innovation


(B) All


(C) To create customers


(D) To earn Profit




19. This is included in the social objectives of a business:

(A) Production of quality products


(B) Avoid activities against society


(C) All


(D) To provide employment




20. This is included in the human objectives of a business:

(A) Proper reward to employees


(B) Increase workers ability


(C) All


(D) To provide facilities to workers




21. By planning, efficiency of business and staff will be:

(A) Decreased


(B) Ineffective


(C) Increased


(D) None




22. To obey law is the purpose of business:

(A) Economic


(B) Social


(C) Human


(D) National




23. It includes in the functions of a businessman:

(A) Administrative function


(B) Division of labour function


(C) Financial function


(D) All




24. Medium term loans time period is:

(A) One year


(B) One to fifteen years


(C) One to seven or ten years


(D) One to twenty years




25. Long term loans time period is:

(A) One to five years


(B) One to seven years


(C) More than seven years


(D) All




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