27 extra multiple-choice questions for Government Schemes for Entrepreneurial Development (12th Standard Commerce, Samacheer Kalvi), beyond the ones printed in the textbook — each with the correct option highlighted and a clear, worked explanation. Free to read in English and Tamil.
Q1
Since when has the Startup India initiative been in operation?
- A. September 2014
- B. July 2015
- C. January 2016Correct
- D. January 2014
Explanation. The Startup India initiative was launched in January 2016. It mentors, nurtures and facilitates startups throughout their life cycle. September 2014 is when Make in India began and July 2015 is when the National Skill Development Mission was unveiled.
Q2
A 'Fund of Funds' has been created to help startups gain access to funding under which initiative?
- A. Make in India
- B. Startup IndiaCorrect
- C. Digital India
- D. Jan Dhan-Aadhaar-Mobile
Explanation. Under Startup India, the Government created a 'Fund of Funds' so that startups can gain access to funding, alongside mentoring and nurturing them through their life cycle.
Q3
The Make in India initiative was launched in
- A. January 2016
- B. September 2014Correct
- C. July 2015
- D. January 2014
Explanation. Make in India was launched in September 2014 to transform India into a global design and manufacturing hub and to invite partners and investors from around the world.
Q4
Which ministry launched the Support to Training and Employment Programme for Women (STEP)?
- A. Ministry of Skill Development and Entrepreneurship
- B. Ministry of Women and Child DevelopmentCorrect
- C. Ministry of Corporate Affairs
- D. Ministry of Commerce and Industry
Explanation. STEP was launched by the Ministry of Women and Child Development. Its guidelines were later redrafted with the Ministry of Skill Development and Entrepreneurship and NITI Aayog to suit present-day needs.
Q5
Consider the following statements about Jan Dhan-Aadhaar-Mobile (JAM):
1. It is a technological intervention that enables direct transfer of subsidies to intended beneficiaries.
2. It eliminates intermediaries and leakages in the system.
3. It provides loans of Rs.10 lakh to Rs.1 crore to set up greenfield enterprises.
Which of the statements given above is/are correct?
- A. 1 only
- B. 1 and 2 onlyCorrect
- C. 2 and 3 only
- D. 1, 2 and 3
Explanation. JAM transfers subsidies directly to beneficiaries and so removes intermediaries and leakages. Loans of Rs.10 lakh to Rs.1 crore for greenfield enterprises belong to Stand-Up India, so statement 3 is wrong.
Q6
Under Stand-Up India, loans are granted to set up greenfield enterprises in the range of
- A. Up to Rs.25 lakh
- B. Rs.10 lakh to Rs.1 croreCorrect
- C. Rs.1 crore to Rs.10 crore
- D. Rs.1 lakh to Rs.10 lakh
Explanation. Stand-Up India leverages institutional credit for women, Scheduled Caste and Scheduled Tribe entrepreneurs, granting loans between Rs.10 lakh and Rs.1 crore for greenfield enterprises in manufacturing, services or trading. Up to Rs.25 lakh relates to New Gen IEDC.
Q7
Under the TREAD programme, credit is made available to interested women through
- A. Commercial banks directly
- B. Non-governmental organizations (NGOs)Correct
- C. District Industries Centres
- D. Angel investors
Explanation. TREAD addresses the access to credit of underprivileged women. Credit reaches them through registered non-governmental organizations, which also help with counselling and training for non-farm activities.
Q8
Pradhan Mantri Kaushal Vikas Yojana (PMKVY) is a flagship initiative of the
- A. Ministry of Women and Child Development
- B. NITI Aayog
- C. Ministry of Skill Development and Entrepreneurship (MSDE)Correct
- D. Ministry of Science and Technology
Explanation. PMKVY is a flagship initiative of the Ministry of Skill Development and Entrepreneurship. It trains youth in industry-relevant skills to improve their employment opportunities and livelihood.
Q9
The National Skill Development Mission was unveiled in
- A. January 2016
- B. September 2014
- C. July 2015Correct
- D. January 2015
Explanation. The National Skill Development Mission was unveiled in July 2015 with the vision of building a 'Skilled India', providing skills at scale without compromising on quality or speed.
Q10
Which scheme provides opportunities to motivated scientists and field level workers to undertake action-oriented, location-specific projects for socio-economic gain, particularly in rural areas?
- A. STEP
- B. SEEDCorrect
- C. TREAD
- D. PMKVY
Explanation. Science for Equity Empowerment and Development (SEED) supports scientists and field workers in location-specific rural projects and stresses equity, so that the benefits of technology reach the disadvantaged.
Q11
Match the scheme with its feature:
(i) STEP - (1) Credit to women through NGOs
(ii) TREAD - (2) Skills to women in sectors such as horticulture and handlooms
(iii) JAM - (3) Benefits of technology to the disadvantaged
(iv) SEED - (4) Direct transfer of subsidies to beneficiaries
- A. (i)-2, (ii)-1, (iii)-4, (iv)-3Correct
- B. (i)-1, (ii)-2, (iii)-3, (iv)-4
- C. (i)-2, (ii)-4, (iii)-1, (iv)-3
- D. (i)-4, (ii)-1, (iii)-2, (iv)-3
Explanation. STEP imparts skills to women in sectors like agriculture, horticulture and handlooms; TREAD gives women credit through NGOs; JAM transfers subsidies directly; SEED spreads the benefits of technology to the disadvantaged.
Q12
The Modified Special Incentive Package Scheme (M-SIPS) provides a capital subsidy of ____ in SEZ and ____ in non-SEZ.
- A. 25% and 20%
- B. 20% and 25%Correct
- C. 20% and 30%
- D. 10% and 25%
Explanation. M-SIPS gives a capital subsidy of 20% to units in a Special Economic Zone (SEZ) and 25% to units outside an SEZ, in fields such as Internet of Things, automotive and renewable energy.
Q13
New Gen IEDC provides a limited one-time, non-recurring financial assistance to entrepreneurs of up to
- A. Rs.10 lakh
- B. Rs.25 lakhCorrect
- C. Rs.1 crore
- D. Rs.50 lakh
Explanation. The New Gen Innovation and Entrepreneurship Development Centre gives a one-time, non-recurring financial assistance of up to Rs.25 lakh to entrepreneurs in fields such as chemicals, healthcare, agriculture and textiles.
Q14
The Single Point Registration Scheme (SPRS) gives Micro and Small Enterprises an exemption from payment of
- A. Security Deposit
- B. Earnest Money Deposit (EMD)Correct
- C. Seed capital
- D. Sales tax
Explanation. SPRS exempts Micro and Small Enterprises from paying Earnest Money Deposit, and the tenders under the scheme are issued free of cost.
Q15
The Atal Innovation Mission (AIM), under which Atal Incubation Centres are set up, was established at NITI Aayog in
- A. 2014
- B. 2015
- C. 2016Correct
- D. 2018
Explanation. The Government of India set up AIM at NITI Aayog in 2016 to promote innovation and entrepreneurship. Atal Incubation Centres provide high-class incubation facilities across India.
Q16
Which scheme helps entrepreneurs set up small dairy farms and provides incentives to cover the cost of the required equipment?
- A. Dairy Entrepreneurship Development SchemeCorrect
- B. Single Point Registration Scheme
- C. Stand-Up India
- D. Make in India
Explanation. The Dairy Entrepreneurship Development Scheme helps entrepreneurs set up small dairy farms and gives incentives towards the cost of equipment or establishing the facility.
Q17
Arrange the following steps in promoting an entrepreneurial venture in the order given in the book:
1. Selection of site
2. Selection of the product
3. Preparation of project report
4. Selection of form of ownership
5. Designing capital structure
- A. 2, 4, 1, 5, 3Correct
- B. 2, 1, 4, 5, 3
- C. 4, 2, 1, 3, 5
- D. 2, 4, 5, 1, 3
Explanation. The book lists the steps as selection of the product, selection of form of ownership, selection of site, designing capital structure, acquisition of manufacturing know-how, and then preparation of the project report.
Q18
Find the odd one out with reference to agencies that may allot a plot to an entrepreneur.
- A. SIDCO
- B. SIPCOT
- C. TNHB
- D. TREADCorrect
Explanation. SIDCO, SIPCOT, MMDA, TNHB and the Directorate of Industries are state development bodies that may allot plots to entrepreneurs. TREAD is a credit scheme for women, not a plot-allotting agency.
Q19
Which of the following is NOT mentioned in the book as a source of manufacturing know-how for an entrepreneur?
- A. Government research laboratories
- B. Research and development divisions of industries
- C. Foreign technical collaboration
- D. Angel investorsCorrect
Explanation. Know-how can come from government research laboratories, R&D divisions of industries, individual consultants, main units, machinery suppliers and foreign technical collaboration. Angel investors provide finance, not know-how.
Q20
In a project report, non-recurring costs, recurring expenses, probable cost of production and profit on expected sales are covered under
- A. Technical feasibility
- B. Economic viability
- C. Financial viabilityCorrect
- D. Managerial competency
Explanation. Financial viability covers non-recurring costs such as land, building and machinery, recurring expenses such as wages and overheads, the probable cost of production and profit on expected sales.
Q21
Consider the following statements about the project report:
1. Technical feasibility mentions raw materials availability, manufacturing process and quality control measures.
2. Economic viability involves demand for domestic and export market, installed capacity, market share and price structure.
3. Managerial competency covers wages, salaries and overheads.
Which of the statements given above is/are correct?
- A. 1 only
- B. 1 and 2 onlyCorrect
- C. 2 and 3 only
- D. 1, 2 and 3
Explanation. Statements 1 and 2 match the book. Wages, salaries and overheads are recurring expenses under financial viability; managerial competency deals with the mechanism and organisation structure for managing the venture.
Q22
For a power connection, the entrepreneur has to apply to the
- A. Inspector of Factories
- B. Assistant Divisional Engineer of the State Electricity BoardCorrect
- C. District Industries Centre
- D. Municipal authority
Explanation. The entrepreneur applies to the Assistant Divisional Engineer of the State Electricity Board for a power connection after paying the security deposit and completing the prescribed formalities.
Q23
Assertion (A): An entrepreneur requires long-term finance.
Reason (R): Long-term requirements are needed for acquiring fixed assets.
- A. Both A and R are true and R is the correct explanation of ACorrect
- B. Both A and R are true but R is not the correct explanation of A
- C. A is true but R is false
- D. A is false but R is true
Explanation. An entrepreneur needs long-term and short-term finance. Long-term finance is needed because fixed assets must be acquired, while short-term finance meets working capital needs, so R explains A.
Q24
The promoters' contribution that an entrepreneur has to bring in, as prescribed by financing agencies, is known as
- A. Seed capitalCorrect
- B. Working capital
- C. Earnest Money Deposit
- D. Security deposit
Explanation. While arranging finance, the entrepreneur has to bring in the promoters' contribution prescribed by financing agencies. The book calls this seed capital.
Q25
Angel investors are also known as
- A. Business angels or investment angelsCorrect
- B. Promoters or underwriters
- C. Intrapreneurs
- D. Venture managers
Explanation. Angel investors, also called business angels or investment angels, give financial backing to small startups or entrepreneurs, often investing in the person rather than in the viability of the business.
Q26
Under the single window clearance system, the entrepreneur files the common application form with the
- A. Pollution Control Board
- B. District Industries CentreCorrect
- C. Local body
- D. Inspector of Factories
Explanation. Under the single window clearance system, all clearances come under one roof: the common application form is filed with the District Industries Centre, which forwards it to the agencies and passes the clearances back to the entrepreneur.
Q27
An entrepreneur becomes eligible to get a Permanent Registration Certificate
- A. As soon as the project report is prepared
- B. When the venture has commenced production or is ready to commence productionCorrect
- C. When the site is selected
- D. When the Municipal licence is applied for
Explanation. Once the venture has commenced production, or is ready to commence it, the entrepreneur is eligible for a Permanent Registration Certificate. Before that, a Provisional Registration Certificate is issued.
