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

A.

To identify opportunities and threats affecting the business

B.

To design the logo and branding materials

C.

To calculate the exact profit margin of a future project

D.

To hire the best employees for the organization

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

A.

Inventory Turnover Ratio

B.

PESTLE Analysis

C.

PERT Analysis

D.

Maslow's Hierarchy

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

A.

Strengths and Weaknesses

B.

Opportunities and Threats

C.

Strengths and Opportunities

D.

Weaknesses and Threats

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

A.

Technological obsolescence

B.

Inflation rate

C.

Environmental pollution laws

D.

Population age structure

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

A.

Avoid paying taxes

B.

Copy exactly what the competitor is doing

C.

Determine the stock price of the company

D.

Identify the gap between current reality and desired future results

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

A.

A need that is currently satisfied by existing products

B.

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

C.

A need the customer is fully aware of and actively seeking

D.

A need mandated by government regulation

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

A.

Raw Materials

B.

Machinery

C.

Brand Reputation

D.

Cash

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

A.

Distributing surveys to potential customers

B.

Direct observation of competitors

C.

Government census reports

D.

Conducting personal interviews

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

A.

To launch the marketing campaign

B.

To hire the project manager

C.

To determine if a detailed feasibility study is justified

D.

To secure final funding from a bank

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

A.

Whether the project is legally permissible

B.

Whether the marketing strategy is sound

C.

Whether the technology and skills required are available

D.

Whether the project will generate enough profit

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

A.

Extraction Sector

B.

Primary Sector

C.

Service Sector

D.

Manufacturing 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.

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.

500 units

B.

300 units

C.

1000 units

D.

200 units

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

A.

Code of conduct assessment

B.

Employee background checks

C.

Market demand and supply analysis

D.

Analyzing the tensile strength of materials

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

A.

Risk of Insolvency

B.

Return on Investment

C.

Return on Inventory

D.

Rate of Inflation

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

A.

Opening a gym

B.

Providing legal counsel

C.

Starting a textile mill

D.

Running a digital marketing agency

18 $What is the Payback Period ?$

A.

The time taken to pay employee salaries

B.

The time taken to manufacture one unit

C.

The time taken to recover the initial cost of investment

D.

The duration of the bank loan

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

A.

Availability of machinery

B.

Availability of electrical power

C.

Availability of raw materials

D.

Availability of skilled and unskilled labor

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

A.

Changes in tax policy and trade tariffs

B.

Rate of technological change

C.

Consumer disposable income

D.

Level of education in society

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.

Financially viable

B.

Legally void

C.

Technically impossible

D.

Financially unviable

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

A.

Industry association newsletters

B.

Economic survey of the country

C.

Focus group discussions initiated by the entrepreneur

D.

Competitor annual reports

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

A.

Managerial Feasibility

B.

Market Feasibility

C.

Legal and Environmental 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.

Perishable (Time-dependent)

C.

Highly durable

D.

Physical assets only

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

A.

Agriculture

B.

Heavy Manufacturing

C.

Knowledge/Service Sector

D.

Mining

28 $What is Market Saturation ?$

A.

When government subsidizes the market

B.

When there are no competitors

C.

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

D.

When a market is rapidly growing

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

A.

Lifestyle changes

B.

Climate change

C.

Patent laws

D.

Interest rates and exchange rates

30 $In project selection, Scalability refers to:$

A.

The number of legal cases against the company

B.

The ability of the business to grow revenue faster than costs

C.

The physical size of the factory

D.

The ability to weigh raw materials

31 $Which represents a Technological Opportunity ?$

A.

Decrease in raw material tax

B.

Rising aging population

C.

New labour laws

D.

Emergence of AI and Automation tools

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

A.

The lunch break duration for employees

B.

The validity period of a patent

C.

The fiscal year duration

D.

The time between idea generation and commercial production

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

A.

Personal savings and skills

B.

Bank Loans

C.

Venture Capital

D.

Government Grants

34 $Trend spotting helps in:$

A.

Ignoring customer preferences

B.

Calculating historical taxes

C.

Predicting future market needs and opportunities

D.

Reducing product quality

35 $Food Processing is an example of:$

A.

Financial Institution

B.

Service Industry

C.

Agro-based Manufacturing Industry

D.

IT Industry

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

A.

Employee satisfaction

B.

Ability to service/pay back debt obligations

C.

Machine depreciation

D.

Marketing efficiency

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

A.

Low interest rates

B.

High customer demand

C.

Availability of cheap labor

D.

Patents held by competitors

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.

Is the technology available?

B.

Can we afford it?

C.

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

D.

Is it legal?

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.

Feedback and preferences directly from the customer

B.

The CEO's speech

C.

Advertising slogans

D.

Employee complaints

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

A.

The cost of hiring a consultant

B.

The potential benefit lost by choosing one alternative over another

C.

The entry fee for a trade show

D.

The cost of marketing opportunities

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

A.

Corporate Tax Rate

B.

Lifestyle trends towards health and wellness

C.

Internet speed

D.

Raw material cost

44 $A Project Report is primarily used to:$

A.

Present the roadmap and feasibility to investors/lenders

B.

Record daily attendance

C.

List the personal expenses of the owner

D.

Decorate the office

45 $In manufacturing, Capacity Utilization refers to:$

A.

The amount of electricity used

B.

The percentage of total potential output actually being produced

C.

The size of the warehouse

D.

The number of trucks owned

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.

Remote quiet area

B.

Proximity to industrial waste disposal

C.

Proximity to raw materials

D.

High footfall and visibility

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

A.

B.

C.

D.

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

A.

Customers asking for products that don't exist

B.

Only one company providing the service

C.

Prices dropping due to fierce competition

D.

High profit margins for all players

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

A.

It dictates subsidies, incentives, and banned sectors

B.

It guarantees profit

C.

It tells you which employees to hire

D.

It provides the technology for production

Unit 2 - Practice Quiz