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

A.

To identify opportunities and threats affecting the business

B.

To calculate the exact profit margin of a future project

C.

To design the logo and branding materials

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.

PERT Analysis

B.

Inventory Turnover Ratio

C.

Maslow's Hierarchy

D.

PESTLE Analysis

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

A.

Opportunities and Threats

B.

Strengths and Opportunities

C.

Strengths and Weaknesses

D.

Weaknesses and Threats

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

A.

Inflation rate

B.

Population age structure

C.

Technological obsolescence

D.

Environmental pollution laws

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

A.

Copy exactly what the competitor is doing

B.

Avoid paying taxes

C.

Identify the gap between current reality and desired future results

D.

Determine the stock price of the company

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

A.

A need mandated by government regulation

B.

A need that is currently satisfied by existing products

C.

A need the customer is fully aware of and actively seeking

D.

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

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

A.

Brand Reputation

B.

Cash

C.

Raw Materials

D.

Machinery

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

A.

Government census reports

B.

Direct observation of competitors

C.

Distributing surveys to potential customers

D.

Conducting personal interviews

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

A.

To hire the project manager

B.

To launch the marketing campaign

C.

To secure final funding from a bank

D.

To determine if a detailed feasibility study is justified

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 will generate enough profit

D.

Whether the project is legally permissible

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

A.

Service Sector

B.

Primary Sector

C.

Extraction Sector

D.

Manufacturing Sector

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

A.

High reliance on direct customer interaction during production

B.

Tangible output and inventory capability

C.

Intangibility of output

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.

500 units

B.

1000 units

C.

200 units

D.

300 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 Inventory

B.

Risk of Insolvency

C.

Return on Investment

D.

Rate of Inflation

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

A.

Opening a gym

B.

Running a digital marketing agency

C.

Starting a textile mill

D.

Providing legal counsel

18 $What is the Payback Period ?$

A.

The time taken to manufacture one unit

B.

The time taken to pay employee salaries

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 skilled and unskilled labor

B.

Availability of electrical power

C.

Availability of machinery

D.

Availability of raw materials

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

A.

Level of education in society

B.

Consumer disposable income

C.

Changes in tax policy and trade tariffs

D.

Rate of technological change

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

A.

Assessing the quality of raw materials

B.

Evaluating the profitability of a project using time value of money

C.

Recruiting staff

D.

Calculating the number of competitors

22 $If, the project is generally considered:$

A.

Technically impossible

B.

Legally void

C.

Financially viable

D.

Financially unviable

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

A.

Competitor annual reports

B.

Industry association newsletters

C.

Focus group discussions initiated by the entrepreneur

D.

Economic survey of the country

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

A.

Legal and Environmental Feasibility

B.

Financial Feasibility

C.

Market Feasibility

D.

Managerial Feasibility

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

A.

B.

C.

concept

D.

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

A.

Physical assets only

B.

Easy to stockpile

C.

Perishable (Time-dependent)

D.

Highly durable

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

A.

Knowledge/Service Sector

B.

Heavy Manufacturing

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 a market is rapidly growing

D.

When government subsidizes the market

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 physical size of the factory

B.

The ability to weigh raw materials

C.

The ability of the business to grow revenue faster than costs

D.

The number of legal cases against the company

31 $Which represents a Technological Opportunity ?$

A.

New labour laws

B.

Decrease in raw material tax

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.

Government Grants

B.

Venture Capital

C.

Bank Loans

D.

Personal savings and skills

34 $Trend spotting helps in:$

A.

Reducing product quality

B.

Ignoring customer preferences

C.

Calculating historical taxes

D.

Predicting future market needs and opportunities

35 $Food Processing is an example of:$

A.

Service Industry

B.

Financial Institution

C.

Agro-based Manufacturing Industry

D.

IT Industry

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

A.

Ability to service/pay back debt obligations

B.

Marketing efficiency

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.

Personal Hobby (irrespective of profit)

B.

Market Potential

C.

Risk Factors

D.

Investment Availability

39 $Operational Feasibility asks:$

A.

Is it legal?

B.

Is the technology available?

C.

Can we afford it?

D.

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

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

A.

Benefits > Costs

B.

Benefits are zero

C.

Costs = Benefits

D.

Costs > Benefits

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

A.

Advertising slogans

B.

Employee complaints

C.

The CEO's speech

D.

Feedback and preferences directly from the customer

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

A.

The potential benefit lost by choosing one alternative over another

B.

The entry fee for a trade show

C.

The cost of hiring a consultant

D.

The cost of marketing opportunities

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

A.

Raw material cost

B.

Corporate Tax Rate

C.

Internet speed

D.

Lifestyle trends towards health and wellness

44 $A Project Report is primarily used to:$

A.

Decorate the office

B.

Present the roadmap and feasibility to investors/lenders

C.

Record daily attendance

D.

List the personal expenses of the owner

45 $In manufacturing, Capacity Utilization refers to:$

A.

The amount of electricity used

B.

The size of the warehouse

C.

The number of trucks owned

D.

The percentage of total potential output actually being produced

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

A.

A corporate payroll processing firm

B.

A hair salon

C.

A movie theater

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 industrial waste disposal

B.

Proximity to raw materials

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.

Only one company providing the service

C.

Customers asking for products that don't exist

D.

High profit margins for all players

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

A.

It tells you which employees to hire

B.

It guarantees profit

C.

It dictates subsidies, incentives, and banned sectors

D.

It provides the technology for production

Unit 2 - Practice Quiz