Entrepreneurship Development Programme Training Questions & Answer

Entrepreneurship Development Programme Training Questions & Answer.
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MODULE I: PROGRAM ORIENTATION

1 : What theory States that people desire to achieve something for their inner feeling of accomplishment?

1. Need for Achievement Model
2. Psycological Theory of Etreprenuership
3. Psydynamic Model
4. None of these
   CORRECT ANSWER: Need for Achievement Model
   DESCRIPTION: Need for achievement model. This theory contends/states that people desire to achieve something for their inner feeling of accomplishment.

2 : what was propounded by Kets de Vries?

1. Psychodynamic Model
2. Locus of Control
3. Modern Entreprenuership
4. None of these
5. 
   CORRECT ANSWER: Psychodynamic Model
   DESCRIPTION: Psychodynamic model This was propounded by Kets de Vries. This says that people tend to be self-employed and become successful because of “troubled childhood”. In troubled childhood, children tend to be lacking, security or abused, low selfesteem, lack of confidence. Therefore, growing in such an environment some people do have repressed wishes towards those in control.

3 : What is the mandatory duration of Manufacturing/ service sector project with cost of more than 5.00 lakh rupees?

1. 15 working days
2. 20 working days
3. 10 working days
4. 5 working days
   CORRECT ANSWER: 10 working days
   DESCRIPTION: For manufacturing/service sector projects with project cost of more than Rs.5.00 lakhs, the EDP duration of 10 working days is mandatory.

4 : what is one of the important things that Currency gave to entrepreneurs?

1. It acted as a medium of exchange
2. It provided a way for entrepreneurs to store value
3. It facilitated long-distance trade
4. All of these
   CORRECT ANSWER: All of these
   DESCRIPTION: Over time, paper money and coinage would be developed. Currency gave entrepreneurs several important things: It facilitated long-distance trade It acted as a medium of exchange It provided a way for entrepreneurs to store value.

5 : What does KVIB stands for?

1. Khadi and Village Industries Board
2. Khadi and Village Industrial Business
3. Khadi and Village Income Business
4. None of these
   CORRECT ANSWER: Khadi and Village Industries Board
   DESCRIPTION: KVIB stands for Khadi and Village Industrial Business.

MODULE II: STARTING A NEW VENTURE

1 : What are the Supporting/detailed documents that are needed along with a Business Plan?

1. Pictures of the product/prototype
2. Management team resumes
3. Patent, IP, legal documentation
4. All of the above
   CORRECT ANSWER: All of the above
   DESCRIPTION: Supporting and detailed documents that are needed: ? Pictures of the product/prototype ? Management team resumes ? Patent, IP, legal documentation ? Surveys and summary data used to study target market ? Financial statements ? Other supporting documents that will help make your case for how this is going to become a lucrative business.

2 : A __ one of the traditional graphical tools used by professionals.

1. Business Process Flow Chart
2. Business Plan
3. Marketing Plan
4. None of the above
   CORRECT ANSWER: Business Process Flow Chart
5. DESCRIPTION: A business process flow chart is the simplest and most primary representation of processes. It serves to initiate a further and more complex understanding of the process. It usually doesn’t show exceptions or problems that may occur during the process flow.

3 : What are the factors responsible for the success of an idea?

1. Complexity – Is the idea easy to understand or does it require
   new knowledge and skills?
2. Compatibility – Is your idea perceived to be consistent with the
   needs of potential adopters?
3. Relative advantage – Is the idea perceived to outperform
   competition?
4. All the above
5. 
   CORRECT ANSWER: All the above
   DESCRIPTION: • FACTORS RESPONSIBLE FOR THE SUCCESS OF AN IDEA Validation is a continuous process for improving ideas and doesn’t stop. There are aspects that might need to be validated as the idea is developed: Adopter categories – How appealing is your idea to the relevant adopter categories? Compatibility – Is your idea perceived to be consistent with the needs of potential adopters? Relative advantage – Is the idea perceived to outperform competition? How is it perceived to be better? Is it actually better? Complexity – Is the idea easy to understand or does it require new knowledge and skills? Trialability – Can your offering be experimented before making a purchase? Observability – Are the benefits of your offering visible for others? Competitors can seize an opportunity first.

MODULE III: VARIOUS STATUTORY AND BUSINESS
REGISTRATIONS

1 : Importer Exporter Code is a license granted by____________.

1. Directorate General of Foreign Trade (DGFT)
2. FSSAI
3. CSO
4. none of them
   CORRECT ANSWER: Directorate General of Foreign Trade (DGFT)
   DESCRIPTION: Importer Exporter Code is a license granted by Directorate General of Foreign Trade (DGFT).

2 : It is also compulsory to quote PAN in all documents pertaining to the following financial transactions

1. a time deposit, exceeding fifty thousand rupees, with a banking company
2. a deposit, exceeding fifty thousand rupees, in any account with Post Office Savings Bank
3. a contract of a value exceeding one lakh rupees for sale or purchase of securities
4. all of them
   CORRECT ANSWER: all of them
   DESCRIPTION: It is also compulsory to quote PAN in all documents pertaining to the following financial transactions :- a deposit, exceeding fifty thousand rupees, in any account with Post Office Savings Bank a contract of a value exceeding one lakh rupees for sale or purchase of securities and a time deposit, exceeding fifty thousand rupees, with a banking company.

3 : From when has it become mandatory to quote PAN on challans for any payments due to Income Tax Department?

1. 01-Jan-05
2. 12-Jan-05
3. 31-Jan-05
4. 01-Feb-05
   CORRECT ANSWER: 01-Jan-05
   DESCRIPTION: From 1 January 2005 it has become mandatory to quote PAN on challans for any payments due to Income Tax Department.

4 : Copyright registrations are handled by the Copyright Office acting under the___________.

1. Indian Copyright Act, 1957
2. Indian Contract Act
3. Indian Trusts Act, 1882
4. none of them
   CORRECT ANSWER: Indian Copyright Act, 1957
   DESCRIPTION: Copyright registrations are handled by the Copyright Office acting under the Indian Copyright Act, 1957.

5 : Which is a type of business where the bottom line and success metrics are measured in more than just profits?

1. social enterprise
2. MSME
3. both of them
4. none of them
   CORRECT ANSWER: social enterprise
   DESCRIPTION: A social enterprise is a type of business where the bottom line and success metrics are measured in more than just profits.

6 : which return form includes Details of outward supplies of taxable goods and/or services affected?

1. GSTR-1
2. GSTR-2
3. GSTR-3
4. GSTR-4
   CORRECT ANSWER: GSTR-1
   DESCRIPTION: GSTR-1 Details of outward supplies of taxable goods and/or services affected.

7 : Under which of the Income Tax Act, 1961, it is mandatory to quote Tax Deduction Account Number (TAN) allotted by the Income Tax Department (ITD) on all TDS returns.

1. Section 230A
2. Section 203A
3. Section 203A
4. none of them
   CORRECT ANSWER: Section 203A
   DESCRIPTION: Under Section 203A of the Income Tax Act, 1961, it is mandatory to quote Tax Deduction Account Number (TAN) allotted by the Income Tax Department (ITD) on all TDS returns.

8 : In how many Classes are MSME classified ?

1. 2
2. 3
3. 4
4. 5
   CORRECT ANSWER: 3
   DESCRIPTION: MSME are classified in 3 classes.

9 : which form is to be filled by Indian citizens including those who are located outside India for the Application for allotment of PAN?

1. FORM 49A
2. FORM 49AA
3. both of them
4. none of them
   CORRECT ANSWER: FORM 49A
   DESCRIPTION: FORM 49A: – To be filled by Indian citizens including those who are located outside India.

10 : NOC/PA document is issued by which department?

1. DGFT
2. FSSAI
3. both of them
4. none of them
   CORRECT ANSWER: FSSAI
   DESCRIPTION: NOC/PA document issued by FSSAI.

MODULE IV: ENTREPRENEUR’S SKILL SETS

1. Determination
2. Discipline
3. True Assesment
4. All of these
   CORRECT ANSWER: All of these
   DESCRIPTION: How to change behavior Changes take true assessment, determination and discipline. Behavior changes come through when we choose the way we act upon in any given situation. When we react upon the situation spontaneously, without analyzing the situation, its called reactive behavior. On the other hand when we analyse the situation and then choose whether to act upon it or not and how to act upon it then its becomes a responsive and responsible behavior.

2 : Which one is the one of the 7C’s of Communication?

1. Clear
2. Complete
3. Concise
4. All of these
   CORRECT ANSWER: All of these
   DESCRIPTION: 7 Cs Of Effective Communication Clear Complete Concise Correct Courteous Considerate Concrete.

3 : Which of the following can be termed as soft skills?

1. Initiative
2. Persistence
3. Efficiency orientation
4. All of these
   CORRECT ANSWER: All of these
   DESCRIPTION: Soft skills are skills, which cannot be acquired through education or work experience. They are generally inherent in an individual or are developed by him/her consciously or unconsciously. For example, communication skills, interpersonal skills, entrepreneurial competencies etc.

4 : ___________is the ability to use language (receptive) and express (expressive) information.

1. Thinking
2. Behavior
3. Communication skills
4. None of these
   CORRECT ANSWER: Communication skills
   DESCRIPTION: Communication skills is the ability to use language (receptive) and express (expressive) information. Effective communication skills are a critical element in your career and personal lives.

5 : which one of them is the most used mode of Communication?

1. Verbal
2. Non-verbal
3. Visual
4. Vocal
   CORRECT ANSWER: Visual
   DESCRIPTION: Visual mode is the most used mode of communication with 55% of use against all.

MODULE V: ESTABLISHING THE ENTERPRISE

1 : Which of the following is an Important method of Industry analysis?

1. PORTER’S 5 FORCES
2. PEST ANALYSIS
3. SWOT Analysis
4. All of the Above
   CORRECT ANSWER: All of the Above
   DESCRIPTION: The three important methods of Industry Analysis are Porter’s 5 Forces, Pest Analysis and SWOT Analysis.

2 : What displays a reporting or a relationship hierarchy?

1. Organisational Chart
2. Pie Chart
3. Bar Chart
4. Line Chart
   CORRECT ANSWER: Organisational Chart
   DESCRIPTION: Organisational Chart is a diagram that displays a reporting or relationship hierarchy.

3 : Why is strategic planning done?

1. To Accelerates Growth
2. To Bring external factors to light
3. To Expand data and intuition
4. All of the Above
   CORRECT ANSWER: All of the Above
   DESCRIPTION: Reasons for strategic planning include all A, B, C.

4 : Which of the following Objectives are achieved through internal control?

1. Effectiveness and efficiency of operations
2. Reliability of financial reporting
3. Compliance with applicable laws and regulations
4. All of the Above
   CORRECT ANSWER: All of the Above
   DESCRIPTION: The objectives that are achieved through internal control are: • Effectiveness and efficiency of operations • Reliability of financial reporting • Compliance with applicable laws and regulations.

5 : Which one of these causes excessive risk?

1. increased bureaucracy
2. Loss of assets, donor grant
3. compliance
4. Increased complexity
   CORRECT ANSWER: Loss of assets, donor grant
   DESCRIPTION: Loss of assets, donor grant causes excessive risk.

MODULE VI: OPERATING THE ENTERPRISE

1 : A Company can analyse all three types of profits using which of the following?

1. Actual Profit
2. Profit Margin
3. Gross Profit
4. All of these
   CORRECT ANSWER: Profit Margin
   DESCRIPTION: Profit margins allow investors to compare the success of large companies versus small ones. A large company will have a lot of profit due to its size. But a small company might have a higher margin, and be a better investment, because it is more efficient.

2 : Which of the following is not an inventory?

1. Machines
2. Raw material
3. Finished products
4. Supplies
   CORRECT ANSWER: Machines
   DESCRIPTION: TYPES OF INVENTORIES • Raw Materials – Basic inputs that are converted into finished product through the manufacturing process • Work-in-progress – Semi-manufactured products need some more works before they become finished goods for sale • Finished Goods – Completely manufactured products ready for sale • Supplies – Office and plant cleaning materials not directly enter production but are necessary for production process and do not involve significant Investment.

3 : Which of these is not a type of profit?

1. Operating Profit
2. Gross Profit
3. Net Profit
4. Actual Profit
   CORRECT ANSWER: Actual Profit
   DESCRIPTION: Businesses use three types of profit: 1) Gross profit: It subtracts variable costs to revenue for each product line. Variable costs consist of only those costs that are needed to produce each product, like assembly workers, materials, and fuel. They don’t include fixed costs, like plants, Equipment, and the human resources department. Companies compare product lines to see which is most profitable. 2) Operating profit: It includes both variable and fixed costs. Since it doesn’t include certain financial costs, it’s also commonly called EBITA. (Earnings Before Interest, Tax, Depreciation, and Amortization). It’s the most commonly used, especially for service companies that don’t have products. 3) Net profit: It includes all costs. It is the most accurate representation of how much money the business is making. On the other hand, it may be misleading. For example, if the company generates a lot of cash, and it’s invested in a rising stock market, it may look like it’s doing well. But it might just have a good finance department, and not be making money on its core products.

4 : __ ________are related with repair, replacement and service of components or some identifiable group of components in a manufacturing plant so that it may continue to operate at a specified ‘availability’ for a specified period.

1. Maintenance activities
2. Purchasing Techniques
3. Quality Management
4. None of these
   CORRECT ANSWER: Maintenance activities
   DESCRIPTION: MAINTENANCE MANAGEMENT Maintenance activities are related with repair, replacement and service of components or some identifiable group of components in a manufacturing plant so that it may continue to operate at a specified ‘availability’ for a specified period. Thus, maintenance management is associated with the direction and organization of various resources so as to control the availability and performance of the industrial unit to some specified level.

5 : Benefits of Accounting & Billing Software are ____________.

1. Simplification
2. Security
3. Productivity
4. All of these
   CORRECT ANSWER: All of these
   DESCRIPTION: Following are the Uses of Accounting and Billing Software: Simplification, Security, Productivity, Cost savings, Accurate Forecasting, Tax Compliance.

6 : Which of the following materials is capable of being shaped after initial heating and solidifying by cooling?

1. Thermoplastics
2. Thermosets
3. Rubber
4. Metals
   CORRECT ANSWER: Thermoplastics
   DESCRIPTION: Thermoplastics are capable of being shaped after initial heating and solidifying by cooling. Resistant to breakage and cheap to produce and providing the right plastics are chosen will provide the necessary protection of the product in an attractive container. E.g. Polystyrene, polyethylene and polyvinyl chloride.

7 : What are the Characteristics of packaging?

1. non – toxic
2. FDA approved
3. Non reactive
4. All of the above
   CORRECT ANSWER: All of the above
   DESCRIPTION: Characteristics of packaging are:FDA approved,non-toxic,taste/odour of product,non reactive,tamper resistance

8 : What is the key skill set in the Purchasing field?

1. None of these
2. Accounting
3. Negotitaion
4. Sales
   CORRECT ANSWER: Negotiation
   DESCRIPTION: Negotiating is a key skill set in the Purchasing field.

9 : What are the objectives of Purchasing?

1. Purchase of satisfactory material
2. Timely Deliveries
3. Quality
4. All of the above
   CORRECT ANSWER: All of the above
   DESCRIPTION: The objectives of Purchasing: • Purchase of satisfactory material.• Proper negotiations with suppliers.• Co-ordination with other departments• Timely deliveries• Minimized Wastages• Quality• Continuous and regular supply.

10 : Which of these industries can be classified under fund management?

1. Financial investment industry
2. Infrastructure industry
3. Public sector
4. All of the above
   CORRECT ANSWER: Financial investment industry
   DESCRIPTION: Fund management may be divided into 4 industries: Financial Investment industry, infrastructure industry, public sector & bussiness and enterprise industry.

MODULE VII: MARKETING, BRANDING & SALESMANSHIP

1 : Value chain analysis is a means to_________.

1. Achieve higher customer satisfaction
2. Manage costs more effectively
3. Focusing on simplification
4. Both A and B
   CORRECT ANSWER: Both A and B
   DESCRIPTION: Value chain analysis is a means of achieving higher customer satisfaction and managing costs more effectively. The value chain is the linked set of value creating activities all the way from basic raw materials’ sources, component suppliers, to the ultimate end-use product or service delivered to the customer.

2 : On which social media you tend to find the highest average disposable income?

1. Facebook
2. Instagram
3. Twitter
4. Linkedin
   CORRECT ANSWER: Linkedin
   DESCRIPTION: LinkedIn is another unique social platform that revolves primarily around the B2B market. LinkedIn has an estimated 227 million monthly active users, evenly split between male and female users. 61% of users fall into the 30-64 age range bracket LinkedIn is where you tend to find the highest average disposable income, with 75% of LinkedIn users earning $50,000 per year or more. It’s also where you tend to find the highest quality leads, particularly in certain industries. Unlike most social platforms, which excel at B2C advertising, LinkedIn is uniquely suited for B2B ads and social media marketing campaigns.

3 : __________ is the process of gathering information about names and requirements of the firm’s future customers

1. Prospecting
2. Pre-Approach
3. Approach
4. None of these
   CORRECT ANSWER: Prospecting
   DESCRIPTION: The process of gathering information about names and requirements of the firm’s future customers. Ranking the customers in terms of their urgency of need and sales volume etc. Prospecting could be done through friends and relatives, satisfied customers, through telephone calls, advertisement, inquiries, observation, trade associations and using directories etc.

4 : What is the importance of Services?

1. A key Differentiator
2. Building a long-lasting relationship
3. Customer Relation
4. All of these
   CORRECT ANSWER: All of these
   DESCRIPTION: A key differentiator Due to the increasing homogeneity in product offerings, the attendant services provided are emerging as a key differentiator in the mind of the consumers. Eg: In case of two fast food chains serving a similar product (Pizza Hut and Domino’s), more than the product it is the service quality that distinguishes the two brands from each other.

5 : What should you do to build a long-term relationship with your customers?

1. Communication and Be open with Customer
2. Appeal to the consumers need
3. Make your client feel valued
4. All of these
   CORRECT ANSWER: All of these
   DESCRIPTION: • COMMUNICATION One key part of creating a long-term customer relationship is to have excellent communication with your clients. Being able to help your clients when they ask is an essential part as they are paying for a service from you and could.

6 : Why is After Sales Service needed?

1. Customer satisfaction
2. Customer retention
3. Generates Loyalty
4. All of these
   CORRECT ANSWER: All of these
   DESCRIPTION: After sales service plays an important role in customer satisfaction and customer retention. It generates loyal customers.

7 : What are the important market factors affecting choice of channel of distribution?

1. Size of the market
2. Geographical Concentration
3. Quantity Purchased
4. All of these
   CORRECT ANSWER: All of these
   DESCRIPTION: a) Size of Market: If the number of customers is small like in case of industrial goods, short channels are preferred while if the number of customers is high as in case of convenience goods, long channels are used. b) Geographical Concentration: Generally, long channels are used if the consumers are widely spread while if they are concentrated in a small place, short channels can be used. c) Quantity Purchased: Long channels are used in case the size of order is small while in case of large orders, direct channel may be used.

8 : Marketing is a strategical mix of___ C’s?

1. 1
2. 2
3. 3
4. 4
   CORRECT ANSWER: 4
   DESCRIPTION: Marketing is a strategical mix of four C’s, i.e. Consumer, Cost, Communication, and Convenience

9 : What methods of social network marketing should a company always use?

1. Blogging
2. Twitter
3. Instagram
4. Depends on the company, their product, their audience
   CORRECT ANSWER: Depends on the company, their product, their audience
   DESCRIPTION: The success of a social media marketing strategy can be determined by understanding the product and its audience and planning the startegy accordingly.

10 : Branding means___________.

1. Creating a Brand
2. Define a Brand
3. Both A and B
4. None of these
   CORRECT ANSWER: Both A and B
   DESCRIPTION: CREATING A BRAND • To attract customers who fit your customer profile, your business’s image should align with your customers’ needs and expectations. • An image makes a company distinctive, or unique, compared to others in the market. • By emphasizing your competitive advantage as part of your image, you can position your products or services to stand out in the market and attract more customers. • An image describes how customers feel about your business. Branding helps you figure out who to target and how to speak their language.

MODULE VIII: UNDERSTANDING OF BANKING AND FUNDING

1 : Which part of the Project Summary gives each and every detail about the project?

1. Executive summary
2. Sensitivity analysis
3. Project Details
4. Promoters’ details
   CORRECT ANSWER: Project Details
   DESCRIPTION: PROJECT DETAILS Project details include each and every detail about the project should be mentioned under this head to make the project report meaningful and self – explanatory.

2 : Banking Ombudsman Scheme enable the people to file complain to resolve the banking issues. This scheme was started in the year _______

1. 2006
2. 2000
3. 2010
4. 2008
   CORRECT ANSWER: 2006
   DESCRIPTION: Banking Ombudsman is a quasi judicial authority functioning under India’s Banking Ombudsman Scheme 2006. The Banking Ombudsman is a senior official appointed by the Reserve Bank of India to redress customer complaints against deficiency in certain banking services.

3 : Which type of investment policy offers services to indemnify your life, assets and money besides providing satisfactory and risk free profits?

1. Bank Fixed Deposits
2. Insurance Policies
3. Pension System
4. None of these.
   CORRECT ANSWER: Insurance Policies
   DESCRIPTION: Insurance features among the best investment alternative as it offers services to indemnify your life, assets and money besides providing satisfactory and risk free profits. Indian Insurance Market offers various investment options with reasonably priced premium.

4 : What is the type of account that is opened by the investor while registering with an investment broker?

1. Demat account
2. Fixed Deposit account
3. Mutual Funds
4. None of these.
   CORRECT ANSWER: Demat account
   DESCRIPTION: In India, shares and securities are held electronically in a dematerialized (or “Demat”) account, instead of the investor taking physical possession of certificates. A Dematerialized account is opened by the investor while registering with an investment broker (or sub-broker).

5 : For how many years, the Governor of the Reserve Bank of India are appointed?

1. 4
2. 2
3. 1
4. 5
   CORRECT ANSWER: 4
   DESCRIPTION: The Central board of directors comprise of: Official Directors – The governor who is appointed/nominated for a period of four years.

6 : The basic functions of a banker are to give financial advices to the customers on matter relating to __

1. Loans
2. Investments
3. Securities and savings
4. All of the above
   CORRECT ANSWER: All of the above
   DESCRIPTION: A banker also gives clients financial advice on matters relating to loans, investments, securities and savings. Their financial advice not only helps clients to solve financial needs, but also increases their firm’s profits.

7 : Which scheme is headed by National Bank for Agriculture and Rural Development (NABARD)?

1. SIDBI Make In India Soft Loan Fund For Micro Small And
   Medium Enterprises
2. Venture Capital Assistance Scheme
3. Dairy Entrepreneurship Development Scheme
4. Pradhan Mantri Mudra Yojana (PMMY)
   CORRECT ANSWER: Dairy Entrepreneurship Development Scheme
   DESCRIPTION: Dairy Entrepreneurship Development Scheme Headed By: National Bank for Agriculture and Rural Development (NABARD)

8 : The investment of willing investors are invested in share market in _

1. Bank Fixed Deposits
2. Stock Market
3. Mutual Funds
4. None of these.
   CORRECT ANSWER: Mutual Funds
   DESCRIPTION: Mutual Fund firms accumulate cash from willing investors and invest it in share market. Like stock market, mutual fund investment are also entitled for various market risks but with a fair share of profits.

9 : Which type of bank accounts are suitable for people who do not have lump sum amount of savings, but are ready to save a small amount every month?

1. Recurring Deposit Account
2. Saving Bank Account
3. Fixed Deposit Account
4. Current Account
   CORRECT ANSWER: Recurring Deposit Account
   DESCRIPTION: Recurring Deposit Accounts (RD accounts) are special kind of Term Deposits and are suitable for people who do not have lump sum amount of savings, but are ready to save a small amount every month.

10 : Which of these schemes is for the target group of manufacturers as well as merchant exporters?

1. Credit Guarantee Fund Trust for Micro and Small Enterprises
   (CGTMSE)
2. Venture Capital Assistance Scheme
3. Export Packing Credit
4. Coir Udyami Yojana
   CORRECT ANSWER: Export Packing Credit
   DESCRIPTION: Export Packing Credit Nature of Facility :Pre-shipment finance extended as working capital. Target Group: Manufacturers as well as merchant exporters, are eligible to avail Rupee Packing Credit at concessional rate of interest.

MODULE IX: TAXATION AND OTHER STATUTORY COMPLIANCES

1 : The definition of “Previous Year” is given under which section of the act?

1. 3
2. 4
3. 5
4. 6
   CORRECT ANSWER: 3
   DESCRIPTION: Income earned during the year is taxable in the next year. The definition of “Previous Year” is given under section 3 of the Act.

2 : A __ mentioning the objective or the purpose for which the society is being formed will be annexed to the beginning of the application.

1. security letter
2. request letter
3. covering letter
4. none of them
   CORRECT ANSWER: covering letter
   DESCRIPTION: A covering letter mentioning the objective or the purpose for which the society is being formed will be annexed to the beginning of the application. It will be signed by all the founding members of the society.

3 : ___________is the new unified, multi-stage and consumption based tax levied on manufacture, sale and consumption of Goods and Services at national level to replace all the existing national and state tax systems like VAT, Service Tax, Excise Duty, etc.

1. GST
2. CBDT
3. Both of them
4. none of them
   CORRECT ANSWER: GST
   DESCRIPTION: Goods and Services Tax is the new unified, multi-stage and consumption based tax levied on manufacture, sale and consumption of Goods and Services at national level to replace all the existing national and state tax systems like VAT, Service Tax, Excise Duty, etc.

4 : The exemption under Section 11 is available to__________

1. private religious purposes
2. public religious trusts
3. both of them
4. none of them
   CORRECT ANSWER: public religious trusts
   DESCRIPTION: The exemption under Section 11 is available to public religious trusts only and not to trust for private religious purposes.

5 : Income Tax and Wealth Tax are the part of__________

1. Direct Tax
2. Indirect Tax
3. both of them
4. none of them
   CORRECT ANSWER: Direct Tax
   DESCRIPTION: Income Tax and Wealth Tax are the part of Direct Tax.

6 : Form 3CA is a type of _______.

1. audit form
2. statement form
3. both of them
4. none of them
   CORRECT ANSWER: audit form
   DESCRIPTION: Form 3CA is a type of audit form.

7 : Up to ?2,50,000* income are supposed to pay income tax_______

1. nil
2. 5% of total income
3. ?12,500 + 20% of total income
4. ?1,12,500 + 30% of total income
   CORRECT ANSWER: nil
   DESCRIPTION: Up to ?2,50,000* income are free from income tax.

8 : The body which looks after the administration of Direct Tax?

1. CFDT
2. CBDT
3. both of them
4. none of them
   CORRECT ANSWER: CBDT
   DESCRIPTION: Central Board of Direct Taxes (CBDT) is the body which looks after the administration of Direct Tax. The CBDT is empowered to make rules for carrying out the purpose of this Act.

9 : Taxes can be broadly classified into how many types?

1. 4
2. 3
3. 2
4. 1
   CORRECT ANSWER: 2
   DESCRIPTION: Taxes are levied by the government on the taxpayer. Taxes are broadly divided into two parts .

10 : TYPES OF BUSINESS STRUCTURES are____________

1. One Person Company (OPC)
2. LimitedLiabilityPartnership(LLP)
3. Private Limited Company (PLC)
4. all of them
   CORRECT ANSWER: all of them
   DESCRIPTION: TYPES OF BUSINESS STRUCTURES One Person Company (OPC) Limited Liability Partnership(LLP) Private Limited Company (PLC) Public Limited Company (PLC)

MODULE X: GOVERNMENT SCHEMES FOR MSME

1 : What is the basic purpose of the Mudra Loan?

1. Business
2. Capacity Expansion
3. Modernization
4. All of the above
   CORRECT ANSWER: All of the above
   DESCRIPTION: Mudra Loan The purposes of the Mudra Loan are: Business purpose Capacity expansion and Modernization.

2 : What is the duration of long term loans in NABARD scheme?

1. 1 year to 3 years
2. 18 months to 3 years
3. 18 months to 5 years
4. None of the above
   CORRECT ANSWER: 18 months to 5 years
   DESCRIPTION: National Bank for Agriculture and Rural Development (NABARD) The tenor of the long-term loan is from 18 months to maximum of 5 years.

3 : What is the Processing (Upfront) Fee in SHISHU and KISHORE categories of Mudra Loan?

1. Nil
2. 0.05
3. 0.1
4. 0.2
   CORRECT ANSWER: Nil
   DESCRIPTION: Mudra Loan Processing Fee/Upfront Fee Nil for Shishu and Kishore to MSE Units.

4 : How many types of funds that are available in NABARD Scheme?

1. 5
2. 9
3. 12
4. None of the above
   CORRECT ANSWER: 9
   DESCRIPTION: National Bank for Agriculture and Rural Development (NABARD) Various types of funds that are available in NABARD Scheme are: • Rural Infrastructure Development Fund (RIDF) • Long-Term Irrigation Fund (LTIF) • Pradhan Mantri Awaas Yojana – Grameen (PMAY-G) • Warehouse Infrastructure Fund • Food Processing Fund • Direct Lending to Cooperative Banks • Credit Facility

5 : In which year, the Credit Linked Capital Subsidy Scheme (CLCSS) was launched by Government of India ?

1. 1990
2. 2000
3. 2005
4. 2010
   CORRECT ANSWER: 2000
   DESCRIPTION: Credit Linked Capital Subsidy Scheme (CLCSS) Launched by Government of India in 2000, Credit Linked Capital Subsidy Scheme (CLCSS) was introduced for technology upgradation of Micro and Small Enterprises (MSMEs) to facilitate technology upgradation of Small Scale Industries (SSIs) units in the defined products or sub-sectors.

6 : The full form of CGFMU is ___________?

1. Capital Gain for Micro Units
2. Capital Guarantee for Micro Units
3. Credit Guarantee Fund for Micro Units
4. None of the above
   CORRECT ANSWER: Credit Guarantee Fund for Micro Units
   DESCRIPTION: Mudra Loan The loans under Mudra Scheme are guaranteed by Credit Guarantee Fund for Micro Units (CGFMU)

7 : How many schemes are there under Small Industries Development Bank of India (SIDBI)?

1. 2
2. 3
3. 6
4. 10
   CORRECT ANSWER: 6
   DESCRIPTION: Small Industries Development Bank of India (SIDBI) Schemes under Small Industries Development Bank of India (SIDBI) are: • National Equity Fund Scheme • Technology Development & Modernization Fund Scheme • Single Window Scheme • Single Composite Loan Scheme • Composite Loan Scheme • Scheme for financing activities relating to marketing

8 : The grant in Food Processing Scheme is released in two installments of _____?

1. 25% and 75% respectively
2. 50% each
3. 40% and 60% respectively
4. None of the above
   CORRECT ANSWER: 50% each
   DESCRIPTION: Food Processing Scheme Grant is released in two instalments each @50% of grant.

9 : Charge required by the CGTMSE for loans above Rs.5 Lakh and below Rs.100 Lakh is ________?

1. 0.0075
2. 0.0085
3. 0.01
4. 0.015
   CORRECT ANSWER: 0.0085
   DESCRIPTION: Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) The CGTMSE requires the charge of 0.85% for loans above Rs.5 Lakh and below Rs.100 Lakh.

10 : What are the prime areas of agriculture sector where NABARD focuses?

1. Finance
2. Development
3. Supervision
4. All of the above
   CORRECT ANSWER: All of the above
   DESCRIPTION: National Bank for Agriculture and Rural Development (NABARD) The prime areas of agriculture sector where NABARD focuses are mentioned below: • Finance • Development • Supervision

MODULE XI: SUSTAINABILITY AND GROWTH OF BUSINESS

1 : An act of acquiring effective control over assets or management of a company without any amalgamation of both the companies is called _____?

1. Mergers
2. Acquisitions
3. Takeovers
4. None of the above.
   CORRECT ANSWER: Acquisitions
   DESCRIPTION: Acquisitions It is an act of acquiring effective control by one company over assets or management of another company without any amalgamation of companies.

2 : High growth of a business is directly proportional to ______?

1. Longer working hours
2. More workload
3. High uncertainity
4. Good profits
   CORRECT ANSWER: High uncertainity
   DESCRIPTION: Unexpected Growth While business growth is anticipated, growing too fast can create some serious challenges. High growth is directly proportional to high uncertainty.

3 : In which level, integration of new knowledge,word processing, email, and internet, etc. is done?

1. Management Level
2. Operational Level
3. Knowledge Level
4. None of the above.
   CORRECT ANSWER: Knowledge Level
   DESCRIPTION: Knowledge Level: Integrate new knowledge and lower the flow of paper work, Research and Development, word processing, email, and internet, etc.

4 : Fast food, retail, restaurant, fitness etc are examples of which type of franchise?

1. Business Format Franchise
2. Product Franchise
3. Manufacturing Franchise
4. None of the above.
   CORRECT ANSWER: Business Format Franchise
   DESCRIPTION: Business Format Franchises The franchisor company usually aids the independent owners significantly in initiation and running their businesses. In return, the business owners pay charges and royalties. The franchisee also often purchases supplies from the franchisor. Fast food restaurants are good examples of this type of franchise.

5 : What does the happiness of customers translates into for the firm?

1. More investments.
2. Positive word of mouth.
3. More demands
4. Better profits
   CORRECT ANSWER: Better profits
   DESCRIPTION: —The happiness of the customers translates into better profits for the firms. Their happiness may be easily adjudged by the social media and other feedback processes available to the consumer.