KVIC PMEGP EDP Training Questions & Answers

KVIC PMEGP EDP Training Questions & Answers

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PMEGP Scheme

MODULE I: PROGRAM ORIENTATION

1 : 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.

2 : What does PMEGP stands for?

1. Prime Minister’s Educatrion Generation Programme
2. Prime Minister’s Employment Generation Programme
3. Prime Minister’s Entreprenuership Generation Programme
4. Prime Minister’s Entreprenuership Graqduation Programme
   CORRECT ANSWER: Prime Minister’s Employment Generation Programme.

3 : Which one of these is the first step of “The How to of Entrepreneurship”

1. Establish a Market.
2. Find the right business for you.
3. Network.
4. Find your target group/audience.
   CORRECT ANSWER: Find the right business for you.

4 : Who are Entrepreneurs?

1. Who buys a local Franchise outlet
2. Who operate a Self-Employed servie business
3. Founder of business that become large scale enterprises
4. All of these
   CORRECT ANSWER: All of these.

5 : What theory contends/states that there is a degree to which one believe that he/she is in control of one’s destiny?

1. Locus of control
2. Psycodynamic Model
3. Risk Taking Propencity
4. None of these
   CORRECT ANSWER: Locus of control.

MODULE II: STARTING A NEW VENTURE

1 : Entrepreneurial alertness help an individual in following ways ________?

1. More aware of changes
2. Seeks for opportunities
3. Overlooked possibilities
4. None of the above
   CORRECT ANSWER: Overlooked possibilities.

2 : Which of the following are types of idea generating techniques for generating ideas?

1. Focus Group
2. Reverse Brainstorming
3. Brainstorming
4. All the above
   CORRECT ANSWER: All the above.

3 : ________ is established when the parent company establishes a new child company?

1. Strategic Allience
2. Joint Venture
3. Equity Strategic Alliance
4. None of the above
   CORRECT ANSWER: Joint Venture.

4 : The process of building and maintaining relationships with people whose interests are similar or whose relationship could bring advantages to the
firm is called___________?

1. Socializing
2. Networking
3. Associating
4. Connecting
   CORRECT ANSWER: Socializing.

5 : Which of these are referred to as the external source of business idea?

1. Research and development
2. Employees
3. Competitors
4. None of these
   CORRECT ANSWER: Competitors.

MODULE III: VARIOUS STATUTORY AND BUSINESS REGISTRATIONS

1 : You start a shop, you have to register your shop in the labor department of the State Government. Under which act will you register?

1. Shop & Establishment Act
2. the Companies Act
3. Indian Contract Act
4. none of them
   CORRECT ANSWER: Shop & Establishment Act.

2 : Documents Required for Application for new PAN Card by For Individuals & HUF?

1. Proof of Identity
2. Proof of Address
3. Proof of date of Birth
4. all of them
   CORRECT ANSWER: all of them.

3 : IE code document is issued by ______?

1. FSSAI
2. DGFT
3. CSO
4. none of them
   CORRECT ANSWER: DGFT.

4 : Under GST, a registered dealer has to file GST returns that include_________?

1. Purchases
2. Sales
3. Output GST (On sales)
4. all of them
   CORRECT ANSWER: all of them.
   DESCRIPTION: Under GST, a registered dealer has to file GST returns that include: • Purchases • Sales • Output GST (On sales) • Input tax credit (GST paid on purchases)

5 : 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.

6 : Is there restriction on filing more than one Udyog Aadhaar Memorandum using the same Aadhaar Number?

1. yes
2. no
3. may be not
4. don’t know
   CORRECT ANSWER: yes.

7 : What is a GSTIN?

1. GST information number
2. GST identification number
3. GST ideal number
4. none of them
   CORRECT ANSWER: GST identification number.

8 : PAN enables to link all transactions of a person. What are these transactions ?

1. tax payments
2. TDS/TCS credits
3. returns of income/wealth/gift/FBT
4. all of them
   CORRECT ANSWER: all of them.

9 : Form 49B is for ?

1. Application for issuance of new TAN
2. Form for change or correction in TAN data for TAN allotted.
3. both of them
4. none of them
   CORRECT ANSWER: Application for issuance of new TAN.

10 : Classes of MSME are___________?

1. Manufacturing Enterprises
2. Service Enterprises
3. both of them
4. none of them
   CORRECT ANSWER: both of them.

MODULE IV: ENTREPRENEUR’S SKILL SETS

1 : ___________ is the process of starting a business or other organization.

1. Entrepreneurship
2. Marketing
3. Planning
4. None of these
   CORRECT ANSWER: Entrepreneurship.

2 : Which one of the following is the component of Communication Speaking and Listning?

1. Verbal
2. Non-verbal
3. Both A & B
4. None of these
   CORRECT ANSWER: Both A & B.

3 : Which of the following points should be kept in mind while negotiating?

1. create the right environment
2. evaluate strength and weakness
3. decide who you are and who your opponent i
4. All of these
   CORRECT ANSWER: All of these.

4 : Behavior change takes:

1. Determination
2. Discipline
3. True Assesment
4. All of these
   CORRECT ANSWER: All of these.

5 : Emotional Resources are also known as?

1. Support Systems
2. Industry knows how?
3. Premises and Equipment
4. None of these
   CORRECT ANSWER: Support Systems.

MODULE V: ESTABLISHING THE ENTERPRISE

1 : What is the Benefit of an organisational chart?

1. Improve lines of communication
2. Create a visual employee directory.
3. Present information such as business entity structures and
   data hierarchies
4. All of the Above
   CORRECT ANSWER: All of the Above.

2 : Primary data is not collected from ______?

1. Manufacturers
2. Reports
3. Suppliers
4. Customers
   CORRECT ANSWER: Reports.

3 : What is the most important section of a business summary?

1. Marketing
2. Description
3. Executive summary
4. Operations
   CORRECT ANSWER: Executive summary.

4 : 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.

5 : Approval of DIN is required for which of the following organisation?

1. Company
2. Limited Liability Partnership
3. Non Profit Organisation
4. All of the Above
   CORRECT ANSWER: All of the Above.

MODULE VI: OPERATING THE ENTERPRISE

1 : Launching the product at a high price and at a high promotional level is called?

1. Slow skimming
2. Rapid penetration
3. Rapid skimming
4. None of these
   CORRECT ANSWER: Rapid skimming.

2 : What are the steps that can be taken in Cost Control?

1. Planning
2. Communication
3. Motivation
4. All of these
   CORRECT ANSWER: All of these.

3 : ________is an amount owed to a supplier or vendor for goods or services that were provided in advance of payment?

1. Account Payable
2. Credit Sale
3. Accounting Receivables
4. Both A and C
   CORRECT ANSWER: Account Payable.

4 : Uncollectible Accounts occurs when ___________?

1. Customers do not pay for item
2. Bad Debt
3. Uncollectible Expense placed as selling expense
4. All of the above
   CORRECT ANSWER: All of the above.

5 : Which of the following is a type of maintenance?

1. Preventive maintenance
2. Routine maintenance
3. Corrective maintenance
4. All of these
   CORRECT ANSWER: All of these.

6 : A trial balance is a list of all the _________?

1. financial record of a company’s revenues
2. General Ledger Accounts
3. Reports of profit
4. None of the above
   CORRECT ANSWER: General Ledger Accounts.

7 : Semi-manufactured products need some more works in which of the following?

1. Raw Materials
2. Supplies
3. Work In Progress
4. None of these
   CORRECT ANSWER: Work In Progress.

8 : Which one of the following bookkeeping systems uses a Book keeping Software?

1. Computerized Book keeping
2. Double Entry System
3. Manual Book keeping
4. Single Entry System
   CORRECT ANSWER: Computerized Book keeping.

9 : Which of the following are known as Methods of Purchasing?

1. Market Purchasing
2. Contract Purchasing
3. Schedule Purchasing
4. All of these
   CORRECT ANSWER: All of these.

MODULE VII: MARKETING, BRANDING & SALESMANSHIP

1 : ____________ in the e-commerce may be a holder of a payment card such as credit card or debit card from an issuer?

1. customer
2. issuer
3. Merchant
4. Acquirer
   CORRECT ANSWER: customer.

2 : Service Marketing focus on__________?

1. Selling values
2. Selling Relationship
3. Both A and B
4. None of these
   CORRECT ANSWER: Selling Relationship.

3 : Strategies to build loyalty in customer include _______?

1. Delivering on your promises
2. Listening to customers
3. Training staff in customer service and basic sales processes.
4. All of these
   CORRECT ANSWER: All of these.

4 : Needs for Successful E-Commerce?

1. Website Design
2. Payment Method
3. None of these
4. Both A and B
   CORRECT ANSWER: Both A and B

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.

6 : 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.

7 : What are the ways to manage Social Advertising campaign?

1. Run your ad campaigns manually
2. Run your ad campaigns via automated software
3. Hire a managed service to run your ad campaigns
4. All of these
   CORRECT ANSWER: All of these.

8 : What are the ways in which value can be added to the product or service?

1. Bundling and packaging
2. Service levels
3. Recognition and reward levels
4. All of these
   CORRECT ANSWER: All of these.

9 : Segmentation of Target Markets is based on?

1. Geography
2. Demographics
3. Behavior and Lifestyle
4. All of these
   CORRECT ANSWER: All of these.

10 : What are the Company Characteristics offering choice of channel of distribution?

1. Financial Strength
2. Control
3. Both A and B
4. None of these
   CORRECT ANSWER: Both A and B.

MODULE VIII: UNDERSTANDING OF BANKING AND FUNDING

1 : The __ analysis helps in assessing the strengths, weaknesses, opportunities and threats related to the project.

1. SWOT
2. Competitive
3. Senstivity
4. None of these.
   CORRECT ANSWER: SWOT.

2 : Which is the most fluctuating type of investment?

1. Bank Fixed Deposits
2. Stock Market
3. Mutual Funds
4. None of these.
   CORRECT ANSWER: Stock Market.

3 : What are the cons of taking a loan?

1. Cannot close the account
2. No tax benefits on the interest
3. Cannot change the account type
4. All of the above
   CORRECT ANSWER: All of the above.

4 : An institution that deals in money is called as?

1. Corporation
2. Bank
3. Franchise
4. Sole trader
   CORRECT ANSWER: Bank.

5 : 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.

6 : What type of non-transactional tasks a bank customer can perform through online banking?

1. View account balance
2. View recent transaction
3. Downloading bank statements
4. All of the above
   CORRECT ANSWER: All of the above.

7 : Which type of bank account are the most popular deposits for individual accounts?

1. Saving Bank Account
2. Recurring Deposit Account
3. Current Account
4. Fixed Deposit Account
   CORRECT ANSWER: Saving Bank Account.

8 : 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.

9 : The scheme started for textile and jute industries from ministry of textiles, government of india is _______?

1. Technology Upgradation Fund Scheme (TUFS)
2. Venture Capital Assistance Scheme
3. Export Packing Credit
4. Coir Udyami Yojana
   CORRECT ANSWER: Technology Upgradation Fund Scheme (TUFS).

10 : What are the benefits of Credit Information Bureau India Limited (CIBIL)?

1. Effective decision about grant of credit
2. Knowledge about credit worthiness of borrowers
3. Lower cost of credit evaluation
4. All of the above
   CORRECT ANSWER: All of the above.

MODULE IX: TAXATION AND OTHER STATUTORY COMPLIANCES

1 : A person who under the income tax act is subject to pay taxes or any other sum of money, as defined under___________ of the Act.

1. section 2 (7)
2. section 2 (5)
3. section 2 (6)
4. none of them
   CORRECT ANSWER: section 2 (7).

2 : ___________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.

3 : Medical insurance and Preventative health comes under___________?

1. Section 80D
2. Section 80C
3. Section 80G
4. none of them
   CORRECT ANSWER: Section 80D.

4 : eWAY BILL stands for?

1. Embedded Way bill
2. Electricity bill
3. Electronic Way bill
4. none of them
   CORRECT ANSWER: Electronic Way bill.

DESCRIPTION: EWay Bill is an Electronic Way bill .

5 : EBN stands for?

1. Eway Broad Number
2. Eway Bill Number
3. Eway book Number
4. Eway border Number
   CORRECT ANSWER: Eway Bill Number.

6 : who presents the budget to the parliament?

1. Home Minister of Government of India
2. Prime minister
3. Finance Minister of Government of India
4. president
   CORRECT ANSWER: Finance Minister of Government of India.

7 : 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.

8 : The person who pays the tax, shifts the burden to the person who consumes the goods or services this comes under which type of tax?

1. Direct Tax
2. Indirect Tax
3. both of them
4. none of them
   CORRECT ANSWER: Indirect Tax.

9 : From July 1st, 2017 all such Indirect Taxes are submerged in one tax law which was named as___________?

1. The Goods and Services Tax
2. Customs Duty
3. Value Added Tax
4. Sales Tax
   CORRECT ANSWER: The Goods and Services Tax.

10 : Gifts up to Rs._ received in Cash do not constitute tax liability?

1. 50000
2. 60000
3. 70000
4. none of them
   CORRECT ANSWER: 50000.

MODULE X: GOVERNMENT SCHEMES FOR MSME

1 : What is the target group of Startup India loan?

1. Scheduled castes entrepreneurs
2. Scheduled tribes entrepreneurs
3. Women entrepreneurs
4. All of the above
   CORRECT ANSWER: All of the above.

2 : The purpose of Startup India loan is to meet all kinds of credit requirement for _______?

1. Manufacturing
2. Services
3. Trading sector
4. All of the above
   CORRECT ANSWER: All of the above.

3 : What is the duration in which PSB Loans in 59 minutes can disbursed?

1. 7-8 working days
2. 15-30 working days
3. 30 – 60 working days
4. None of the above
   CORRECT ANSWER: 7-8 working days.

4 : In the Mudra loan categorized as TARUN, the loan amount is _____?

1. Rs 10 lacs to Rs.50,000
2. Rs.50,001 to Rs.500,000
3. Rs.500,001 to Rs.10,00,000
4. None of the above
   CORRECT ANSWER: Rs.500,001 to Rs.10,00,000.

5 : 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.

6 : What type of companies are eligible for Startup Scheme?

1. Private Limited Companies
2. Registered Partnership Firms
3. Limited Liability Partnership
4. All of the above
   CORRECT ANSWER: All of the above.

7 : What are the features of NABARD scheme?

1. Building infrastructure in rural areas
2. Preparing credit plans at district level
3. Designing new projects for rural development
4. All of the above
   CORRECT ANSWER: All of the above.

8 : For a company to be eligible for Startup Scheme, its annual turnover should not exceed __ for any of the financial years since its incorporation.

1. Rs 10 crore
2. Rs 50 crore
3. Rs 100 crore
4. None of the above
   CORRECT ANSWER: Rs 100 crore.

9 : Which financial institution under government of India manages credit related concerns for agriculture and rural undertakings?

1. National Bank for Agriculture and Rural Development (NABARD)
2. Small Industries Development Bank of India (SIDBI)
3. National Housing Bank (NHB)
4. None of the above
   CORRECT ANSWER: National Bank for Agriculture and Rural Development (NABARD).

10 : How many types of loans that are available in NABARD Scheme?

1. 2
2. 3
3. 5
4. 1
   CORRECT ANSWER: 2.

MODULE XI: SUSTAINABILITY AND GROWTH OF BUSINESS

1 : What does a ‘forced’ or ‘unwilling’ acquisition called?

1. Mergers
2. Acquisitions
3. Takeovers
4. None of the above.
   CORRECT ANSWER: Takeovers.

2 : What is the best example of a Manufacturing Franchise?

1. Retail
2. Fast food resturants
3. Tyre stores
4. Soft drink companies
   CORRECT ANSWER: Soft drink companies.

3 : What does the development in the business due to the influence of unexpected, surprising exterior features called?

1. Natural Growth
2. Accidental Growth
3. Planned Growth
4. None of the above.
   CORRECT ANSWER: Accidental Growth.

4 : How did the liberalization in 1991 alter work area of business?

1. Escalated the competition.
2. Better market options.
3. Large number of companies.
4. Quality of the products.
   CORRECT ANSWER: Escalated the competition..

5 : External Expansion of the Business includes which of the following?

1. Mergers
2. Acquisitions
3. Takeovers
4. All of the above.
   CORRECT ANSWER: All of the above.

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