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

A.

To hire the best employees for the organization

B.

To calculate the exact profit margin of a future project

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.

Maslow's Hierarchy

C.

PESTLE Analysis

D.

Inventory Turnover Ratio

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

A.

Weaknesses and Threats

B.

Opportunities and Threats

C.

Strengths and Weaknesses

D.

Strengths and Opportunities

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.

Copy exactly what the competitor is doing

B.

Determine the stock price of the company

C.

Avoid paying taxes

D.

Identify the gap between current reality and desired future results

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 that is currently satisfied by existing products

C.

A need mandated by government regulation

D.

A need the customer is fully aware of and actively seeking

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

A.

Cash

B.

Brand Reputation

C.

Raw Materials

D.

Machinery

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

A.

Conducting personal interviews

B.

Government census reports

C.

Direct observation of competitors

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 secure final funding from a bank

C.

To launch the marketing campaign

D.

To determine if a detailed feasibility study is justified

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

A.

Whether the project will generate enough profit

B.

Whether the marketing strategy is sound

C.

Whether the project is legally permissible

D.

Whether the technology and skills required are available

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

A.

Manufacturing Sector

B.

Extraction Sector

C.

Service Sector

D.

Primary Sector

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

A.

Intangibility of output

B.

Inseparability of production and consumption

C.

High reliance on direct customer interaction during production

D.

Tangible output and inventory capability

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

A.

Total Revenue > Total Cost

B.

Total Revenue = Total Cost

C.

Fixed Cost = Variable 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.

1000 units

C.

500 units

D.

200 units

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

A.

Employee background checks

B.

Analyzing the tensile strength of materials

C.

Market demand and supply analysis

D.

Code of conduct assessment

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

A.

Return on Investment

B.

Return on Inventory

C.

Risk of Insolvency

D.

Rate of Inflation

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

A.

Running a digital marketing agency

B.

Opening a gym

C.

Starting a textile mill

D.

Providing legal counsel

18 $What is the Payback Period ?$

A.

The time taken to pay employee salaries

B.

The duration of the bank loan

C.

The time taken to recover the initial cost of investment

D.

The time taken to manufacture one unit

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

A.

Availability of machinery

B.

Availability of electrical power

C.

Availability of skilled and unskilled labor

D.

Availability of raw materials

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

A.

Rate of technological change

B.

Changes in tax policy and trade tariffs

C.

Level of education in society

D.

Consumer disposable income

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

A.

Calculating the number of competitors

B.

Assessing the quality of raw materials

C.

Evaluating the profitability of a project using time value of money

D.

Recruiting staff

22 $If, the project is generally considered:$

A.

Technically impossible

B.

Financially unviable

C.

Legally void

D.

Financially viable

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

A.

Focus group discussions initiated by the entrepreneur

B.

Competitor annual reports

C.

Industry association newsletters

D.

Economic survey of the country

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.

Easy to stockpile

B.

Highly durable

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.

Heavy Manufacturing

B.

Knowledge/Service Sector

C.

Mining

D.

Agriculture

28 $What is Market Saturation ?$

A.

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

B.

When there are no competitors

C.

When government subsidizes the market

D.

When a market is rapidly growing

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

A.

Climate change

B.

Patent laws

C.

Lifestyle changes

D.

Interest rates and exchange rates

30 $In project selection, Scalability refers to:$

A.

The ability of the business to grow revenue faster than costs

B.

The physical size of the factory

C.

The ability to weigh raw materials

D.

The number of legal cases against the company

31 $Which represents a Technological Opportunity ?$

A.

Decrease in raw material tax

B.

New labour laws

C.

Rising aging population

D.

Emergence of AI and Automation tools

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

A.

The fiscal year duration

B.

The validity period of a patent

C.

The time between idea generation and commercial production

D.

The lunch break duration for employees

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

A.

Venture Capital

B.

Government Grants

C.

Personal savings and skills

D.

Bank Loans

34 $Trend spotting helps in:$

A.

Reducing product quality

B.

Ignoring customer preferences

C.

Predicting future market needs and opportunities

D.

Calculating historical taxes

35 $Food Processing is an example of:$

A.

IT Industry

B.

Service Industry

C.

Agro-based Manufacturing Industry

D.

Financial Institution

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

A.

Marketing efficiency

B.

Ability to service/pay back debt obligations

C.

Employee satisfaction

D.

Machine depreciation

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

A.

High customer demand

B.

Low interest rates

C.

Patents held by competitors

D.

Availability of cheap labor

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

A.

Risk Factors

B.

Market Potential

C.

Personal Hobby (irrespective of profit)

D.

Investment Availability

39 $Operational Feasibility asks:$

A.

Can we afford it?

B.

Is the technology available?

C.

Is it legal?

D.

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

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

A.

Costs = Benefits

B.

Costs > Benefits

C.

Benefits > Costs

D.

Benefits are zero

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

A.

The CEO's speech

B.

Advertising slogans

C.

Feedback and preferences directly from the customer

D.

Employee complaints

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

A.

The cost of marketing opportunities

B.

The cost of hiring a consultant

C.

The entry fee for a trade show

D.

The potential benefit lost by choosing one alternative over another

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

A.

Raw material cost

B.

Lifestyle trends towards health and wellness

C.

Corporate Tax Rate

D.

Internet speed

44 $A Project Report is primarily used to:$

A.

Present the roadmap and feasibility to investors/lenders

B.

List the personal expenses of the owner

C.

Record daily attendance

D.

Decorate the office

45 $In manufacturing, Capacity Utilization refers to:$

A.

The amount of electricity used

B.

The number of trucks owned

C.

The percentage of total potential output actually being produced

D.

The size of the warehouse

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

A.

A movie theater

B.

A corporate payroll processing firm

C.

A hair salon

D.

A retail grocery store

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.

Prices dropping due to fierce competition

B.

Customers asking for products that don't exist

C.

Only one company providing the service

D.

High profit margins for all players

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 tells you which employees to hire

D.

It guarantees profit

Unit 2 - Practice Quiz