1 $What is the primary objective of Environment Scanning in entrepreneurship?$

A.

To calculate the exact profit margin of a future project

B.

To hire the best employees for the organization

C.

To identify opportunities and threats affecting the business

D.

To design the logo and branding materials

2 $Which framework is commonly used to analyze the macro-environment of a business opportunity?$

A.

PERT Analysis

B.

Inventory Turnover Ratio

C.

PESTLE Analysis

D.

Maslow's Hierarchy

3 $In SWOT analysis, which two components refer to external factors?$

A.

Strengths and Opportunities

B.

Opportunities and Threats

C.

Strengths and Weaknesses

D.

Weaknesses and Threats

4 $Which of the following is considered a demographic factor during environment scanning?$

A.

Population age structure

B.

Inflation rate

C.

Environmental pollution laws

D.

Technological obsolescence

5 $When assessing business needs,'Need Assessment' primarily helps an entrepreneur to:$

A.

Identify the gap between current reality and desired future results

B.

Determine the stock price of the company

C.

Copy exactly what the competitor is doing

D.

Avoid paying taxes

6 $Which of the following represents a Latent Need ?$

A.

A need that customers are not consciously aware of until a solution is presented

B.

A need mandated by government regulation

C.

A need the customer is fully aware of and actively seeking

D.

A need that is currently satisfied by existing products

7 $In the context of Resource Assessment, which of the following is an Intangible Resource ?$

A.

Machinery

B.

Cash

C.

Brand Reputation

D.

Raw Materials

8 $Which of the following is a Secondary Source of information for business opportunity identification?$

A.

Conducting personal interviews

B.

Direct observation of competitors

C.

Government census reports

D.

Distributing surveys to potential customers

9 $What is the primary purpose of a Pre-Feasibility Study ?$

A.

To hire the project manager

B.

To determine if a detailed feasibility study is justified

C.

To launch the marketing campaign

D.

To secure final funding from a bank

10 $When selecting a viable project, Technical Feasibility assesses:$

A.

Whether the marketing strategy is sound

B.

Whether the technology and skills required are available

C.

Whether the project is legally permissible

D.

Whether the project will generate enough profit

11 $Which sector does a Consultancy Firm fall under?$

A.

Extraction Sector

B.

Primary Sector

C.

Manufacturing Sector

D.

Service Sector

12 $Which of the following is a key characteristic of a Manufacturing business opportunity?$

A.

Intangibility of output

B.

Tangible output and inventory capability

C.

High reliance on direct customer interaction during production

D.

Inseparability of production and consumption

13 $The Break-Even Point (BEP) is the point where:$

A.

Fixed Cost = Variable Cost

B.

Total Revenue = Total Cost

C.

Total Revenue > Total Cost

D.

Total Revenue < Total Cost

14 $Calculate the Break-Even Point in units if Fixed Cost is 50, and Variable Cost per unit is $30.$

A.

300 units

B.

200 units

C.

1000 units

D.

500 units

15 $Which analysis is used to determine the Commercial Viability of a project?$

A.

Market demand and supply analysis

B.

Code of conduct assessment

C.

Analyzing the tensile strength of materials

D.

Employee background checks

16 $In the context of Financial Feasibility, what does ROI stand for?$

A.

Return on Investment

B.

Risk of Insolvency

C.

Rate of Inflation

D.

Return on Inventory

17 $Which of the following is a Manufacturing opportunity?$

A.

Running a digital marketing agency

B.

Opening a gym

C.

Providing legal counsel

D.

Starting a textile mill

18 $What is the Payback Period ?$

A.

The duration of the bank loan

B.

The time taken to recover the initial cost of investment

C.

The time taken to pay employee salaries

D.

The time taken to manufacture one unit

19 $During Resource Assessment, evaluating'Manpower' refers to:$

A.

Availability of raw materials

B.

Availability of skilled and unskilled labor

C.

Availability of electrical power

D.

Availability of machinery

20 $Which of the following is a Political Factor in environment scanning?$

A.

Level of education in society

B.

Consumer disposable income

C.

Rate of technological change

D.

Changes in tax policy and trade tariffs

21 $The NPV (Net Present Value) method is used for:$

A.

Evaluating the profitability of a project using time value of money

B.

Calculating the number of competitors

C.

Recruiting staff

D.

Assessing the quality of raw materials

22 $If, the project is generally considered:$

A.

Technically impossible

B.

Legally void

C.

Financially unviable

D.

Financially viable

23 $Which source of information is considered Primary Data ?$

A.

Economic survey of the country

B.

Focus group discussions initiated by the entrepreneur

C.

Competitor annual reports

D.

Industry association newsletters

24 $Which feasibility study aspect deals with pollution control and waste disposal compliance?$

A.

Managerial Feasibility

B.

Legal and Environmental Feasibility

C.

Market Feasibility

D.

Financial Feasibility

25 $The formula for Return on Investment (ROI) is approximately:$

A.

B.

concept

C.

D.

26 $In the service sector, inventory is often described as:$

A.

Highly durable

B.

Easy to stockpile

C.

Perishable (Time-dependent)

D.

Physical assets only

27 $A business opportunity that relies heavily on intellectual property and expertise is likely in which sector?$

A.

Mining

B.

Knowledge/Service Sector

C.

Heavy Manufacturing

D.

Agriculture

28 $What is Market Saturation ?$

A.

When government subsidizes the market

B.

When a market is rapidly growing

C.

When the volume of a product or service has maximized in a marketplace

D.

When there are no competitors

29 $Which of the following is an Economic Factor in PESTLE?$

A.

Patent laws

B.

Lifestyle changes

C.

Climate change

D.

Interest rates and exchange rates

30 $In project selection, Scalability refers to:$

A.

The physical size of the factory

B.

The ability of the business to grow revenue faster than costs

C.

The number of legal cases against the company

D.

The ability to weigh raw materials

31 $Which represents a Technological Opportunity ?$

A.

New labour laws

B.

Rising aging population

C.

Emergence of AI and Automation tools

D.

Decrease in raw material tax

32 $What is the Gestation Period of a project?$

A.

The fiscal year duration

B.

The lunch break duration for employees

C.

The validity period of a patent

D.

The time between idea generation and commercial production

33 $Which factor is Internal to the entrepreneur during resource assessment?$

A.

Venture Capital

B.

Bank Loans

C.

Government Grants

D.

Personal savings and skills

34 $Trend spotting helps in:$

A.

Calculating historical taxes

B.

Reducing product quality

C.

Predicting future market needs and opportunities

D.

Ignoring customer preferences

35 $Food Processing is an example of:$

A.

Agro-based Manufacturing Industry

B.

Service Industry

C.

Financial Institution

D.

IT Industry

36 $What is DSCR (Debt Service Coverage Ratio) used to assess?$

A.

Machine depreciation

B.

Marketing efficiency

C.

Employee satisfaction

D.

Ability to service/pay back debt obligations

37 $Which of the following creates a Legal Barrier to entry for a new project?$

A.

Low interest rates

B.

Patents held by competitors

C.

Availability of cheap labor

D.

High customer demand

38 $Which of the following is NOT a criterion for selecting a viable project?$

A.

Market Potential

B.

Risk Factors

C.

Personal Hobby (irrespective of profit)

D.

Investment Availability

39 $Operational Feasibility asks:$

A.

Is the technology available?

B.

Will it work in our organization's culture and processes?

C.

Can we afford it?

D.

Is it legal?

40 $In a Cost-Benefit Analysis, a project is viable if:$

A.

Costs = Benefits

B.

Benefits > Costs

C.

Benefits are zero

D.

Costs > Benefits

41 $Which refers to the Voice of the Customer (VOC) ?$

A.

The CEO's speech

B.

Employee complaints

C.

Feedback and preferences directly from the customer

D.

Advertising slogans

42 $What is an Opportunity Cost in project selection?$

A.

The cost of hiring a consultant

B.

The cost of marketing opportunities

C.

The potential benefit lost by choosing one alternative over another

D.

The entry fee for a trade show

43 $Which of the following is a Social Factor affecting business opportunity?$

A.

Raw material cost

B.

Lifestyle trends towards health and wellness

C.

Internet speed

D.

Corporate Tax Rate

44 $A Project Report is primarily used to:$

A.

Decorate the office

B.

Present the roadmap and feasibility to investors/lenders

C.

List the personal expenses of the owner

D.

Record daily attendance

45 $In manufacturing, Capacity Utilization refers to:$

A.

The percentage of total potential output actually being produced

B.

The size of the warehouse

C.

The number of trucks owned

D.

The amount of electricity used

46 $Which is an example of a B2B (Business to Business) service opportunity?$

A.

A hair salon

B.

A retail grocery store

C.

A corporate payroll processing firm

D.

A movie theater

47 $Location is a critical viability factor. For a retail store, the most important location attribute is usually:$

A.

Proximity to raw materials

B.

Proximity to industrial waste disposal

C.

High footfall and visibility

D.

Remote quiet area

48 $The Contribution Margin per unit is calculated as:$

A.

B.

C.

D.

49 $Which of the following indicates a Saturated Market ?$

A.

Only one company providing the service

B.

Prices dropping due to fierce competition

C.

High profit margins for all players

D.

Customers asking for products that don't exist

50 $Why is Government Policy a critical source of information?$

A.

It provides the technology for production

B.

It dictates subsidies, incentives, and banned sectors

C.

It guarantees profit

D.

It tells you which employees to hire

Unit 2 - Practice Quiz