Chapter 2 Entrepreneurship (MCQs) PDF

multiple-choice questions (MCQs) Chapter 2: Opportunity Identification and Idea Generation: 1. What is the primary goal of opportunity identification in business? A) To increase production B) To generate profits C) To find unmet needs in the market D) To create job opportunities Answer: C) To fin...

multiple-choice questions (MCQs) Chapter 2: Opportunity Identification and Idea Generation: 1. What is the primary goal of opportunity identification in business? A) To increase production B) To generate profits C) To find unmet needs in the market D) To create job opportunities Answer: C) To find unmet needs in the market 2. Which of the following tools is commonly used for identifying trends in the market? A) Google Trends B) SWOT Analysis C) Mind Mapping D) SCAMPER Answer: A) Google Trends 3. A gap in the market refers to: A) Excessive competition B) Lack of customer demand C) Unfulfilled customer needs D) Overpriced products Answer: C) Unfulfilled customer needs 4. SWOT analysis includes all the following components EXCEPT: A) Strengths B) Weaknesses C) Opportunities D) Techniques Answer: D) Techniques 5. What is one way to discover unmet customer needs? A) Focus groups B) Trend analysis C) Brainstorming D) Competitive pricing Answer: A) Focus groups 6. A successful business idea often begins with: A) High initial investment B) Identifying a market gap C) Copying competitors D) Offering discounts Answer: B) Identifying a market gap 7. Which of the following is NOT a step in the brainstorming process? A) Encouraging criticism B) Generating a large number of ideas C) Building on others' ideas D) Allowing wild ideas Answer: A) Encouraging criticism 8. The SCAMPER method is used for: A) Market analysis B) Identifying risks C) Generating new ideas D) Financial planning Answer: C) Generating new ideas 9. Which of the following is an example of disruptive innovation? A) Improving customer service B) Offering a product discount C) Introducing electric vehicles D) Developing a new logo Answer: C) Introducing electric vehicles 10. Mind mapping is primarily used for: A) Problem-solving B) Competitive analysis C) Generating and organizing ideas D) Financial forecasting Answer: C) Generating and organizing ideas 11. What does the "S" in SCAMPER stand for? A) Strength B) Substitute C) Support D) Simplify Answer: B) Substitute 12. Market research is crucial for: A) Idea generation B) Risk mitigation C) Understanding customer preferences D) Legal compliance Answer: C) Understanding customer preferences 13. Which of the following is a method for evaluating the feasibility of a business idea? A) SWOT Analysis B) Competitor Analysis C) Feasibility Study D) Brainstorming Answer: C) Feasibility Study 14. In the SCAMPER method, "E" stands for: A) Eliminate B) Enhance C) Elevate D) Evaluate Answer: A) Eliminate 15. Which of the following involves solving customer problems to generate business ideas? A) Trend Analysis B) Problem-Solving Approach C) Brainstorming D) Competitor Analysis Answer: B) Problem-Solving Approach 16. An MVP (Minimum Viable Product) is used to: A) Test market demand B) Maximize profits C) Increase operational efficiency D) Develop a final product Answer: A) Test market demand 17. What is a key benefit of competitor analysis? A) Reducing production costs B) Understanding market gaps C) Increasing profit margins D) Improving employee retention Answer: B) Understanding market gaps 18. Which tool focuses on Strengths, Weaknesses, Opportunities, and Threats? A) Mind Mapping B) SWOT Analysis C) SCAMPER D) Feasibility Study Answer: B) SWOT Analysis 19. Trend analysis helps businesses to: A) Identify financial risks B) Recognize future opportunities C) Develop new logos D) Analyze internal weaknesses Answer: B) Recognize future opportunities 20. What does prototyping help businesses to achieve? A) Immediate profits B) Reducing market competition C) Testing ideas before scaling D) Improving customer loyalty Answer: C) Testing ideas before scaling 21. Which of the following is an internal factor in SWOT analysis? A) Opportunities B) Threats C) Strengths D) Market trends Answer: C) Strengths 22. Brainstorming sessions should: A) Focus on one idea at a time B) Criticize every idea immediately C) Encourage the free flow of ideas D) Limit participation to a few members Answer: C) Encourage the free flow of ideas 23. The SCAMPER method encourages innovation through: A) Legal research B) Trend analysis C) Modifying existing ideas D) Monitoring competitors Answer: C) Modifying existing ideas 24. Which of the following is a technique for assessing market demand? A) Competitive pricing B) Focus groups C) SWOT analysis D) Idea generation Answer: B) Focus groups 25. Market gap analysis aims to: A) Decrease production costs B) Identify unmet customer needs C) Monitor industry trends D) Increase profit margins Answer: B) Identify unmet customer needs 26. What does the "M" in SCAMPER stand for? A) Manage B) Modify C) Maximize D) Minimize Answer: B) Modify 27. What is the goal of trend analysis? A) Copy competitors B) Forecast future market changes C) Decrease production costs D) Improve communication Answer: B) Forecast future market changes 28. Prototyping is often used to: A) Finalize the product design B) Test early versions of a product C) Generate revenue quickly D) Attract investors Answer: B) Test early versions of a product 29. A feasibility study typically includes which of the following elements? A) Idea generation methods B) Market demand analysis C) Brainstorming techniques D) Market research tools Answer: B) Market demand analysis 30. What does "C" in SCAMPER represent? A) Challenge B) Combine C) Compare D) Correct Answer: B) Combine 31. In idea generation, what does "Blue Ocean Strategy" refer to? A) Entering a crowded market B) Creating uncontested market space C) Competing directly with rivals D) Improving existing products Answer: B) Creating uncontested market space 32. Risk analysis helps to: A) Increase profits immediately B) Eliminate competitors C) Identify potential threats to a business D) Improve branding strategies Answer: C) Identify potential threats to a business 33. Mind mapping is a tool to: A) Reduce risks B) Generate and organize ideas visually C) Determine financial viability D) Analyze competitors Answer: B) Generate and organize ideas visually 34. Which of the following is an external factor in a SWOT analysis? A) Strengths B) Weaknesses C) Opportunities D) Organizational culture Answer: C) Opportunities 35. Which of the following is NOT part of the SCAMPER method? A) Substitute B) Create C) Modify D) Eliminate Answer: B) Create 36. Competitor analysis involves studying: A) Internal operations B) Market trends C) Other businesses in your industry D) Feasibility studies Answer: C) Other businesses in your industry 37. Market demand analysis helps in: A) Estimating customer needs B) Reducing operational costs C) Generating new ideas D) Improving customer service Answer: A) Estimating customer needs 38. An MVP stands for: A) Maximum Value Product B) Minimum Viable Product C) Minimum Value Proposition D) Maximum Viable Proposition Answer: B) Minimum Viable Product 39. Which of the following methods focuses on innovation through small, continuous improvements? A) Disruptive Innovation B) Incremental Innovation C) Blue Ocean Strategy D) Trend Analysis Answer: B) Incremental Innovation 40. The purpose of a risk analysis is to: A) Increase profits B) Avoid competition C) Identify and mitigate potential business risks D) Create marketing strategies Answer: C) Identify and mitigate potential business risks 41. What does "A" in SCAMPER stand for? A) Apply B) Adapt C) Analyze D) Assess Answer: B) Adapt 42. Prototyping allows businesses to: A) Finalize a product for market launch B) Test product concepts with early users C) Eliminate competition D) Increase product prices Answer: B) Test product concepts with early users