Top CMAT Questions on Innovation and Entrepreneurship PDF

An angel investor (also known as a private investor, seed investor or angel funder) is a high-net-worth individual who provides financial backing for small startups, in exchange for ownership equity in the company. The answer is option C.

Offering innovative technologies, acquiring competitors, and strengthening customer loyalty help companies increase their market share. 

The answer is option D.

Electronic Gold Receipts can be defined as depository gold receipts that can be traded on the stock exchanges. They are similar to stocks, and are traded, held in Demat accounts. The answer is option D.

An innovative entrepreneur is the one who introduces new product, new service or new market. Entrepreneurs who imitate the techniques and technologies innovated by innovative entrepreneurs are called Adoptive Entrepreneurs. 

The answer is option A.

Options A and B are correct.
A CEO doesn't have responsibility for the organization's day-to-day affairs. Managing director is responsible for the daily business of organization. This implies option C is incorrect.
The answer is option C.

Value creation is the process of discovering what people need or want and then creating based on the findings.

Thus, the correct option is D.

ASPIRE is a scheme dedicated to the promotion of Innovation, Rural Industries and Entrepreneurship.

The correct option is C.

Multilevel marketing is a sales structure where members of a company are encouraged to recruit new members. Once recruited, this salesperson receives a cut of their recruiter's sales. Therefore, the answer is option C.

Karnataka has topped the NITI Aayog's India Innovation Index, 2022. The state has ranked first in the Major States category in all three editions of the Index. The answer is option C.

A company with a valuation of more than $10 billion is termed as a 'superunicorn'.

The answer is option D.

The first edition of Indian Innovation Index is launched in October, 2019.
The answer is option C.

The term xenocurrency refers to any currency that is traded in markets outside of its domestic borders. Its name derives from the Greek prefix "xeno," meaning "foreign." Therefore, the answer is option A.

The Swiss Re Foundation concludes the 2023 cycle of the flagship initiative declaring Innovasalud the winner of the edition.

SISFS - Startup India Seed Fund Scheme

The answer is option D.

Inflation can cause prices of raw materials and other inputs to rise which increases operating costs, lower sales due to increase in price and this leads lower profits. Therefore, the answer is option B.

Tiger Global Management is a Venture Capital Investor and hence the correct answer is option D.

In a command economy, the central government dictates the level of production of goods and controls their distribution and prices.

The answer is option A.

An investment that has already been spent and cannot be recovered is known as sunk cost.

The seed stage refers to investments made for product development, marketing, and market research.

Pradhan Mantri Mudra Yojana (PMMY) is a scheme set up by the Government of India (GoI) through MUDRA (a subsidiary of SIDBI) that helps in facilitating micro credit upto Rs. 10 lakh to small business owners.

HDFC Bank launched a new campaign called “Vigil Aunty”. Vigil Aunty Campaign attempts to motivate citizens all around the nation to adopt secure banking practices.

The correct option is C.

Razorpay is a fintech company.

A purely competitive market is characterised by having many firms, good substitutes available, barriers to entry are low and have no pricing power.

A monopoly is characterised by having a very few firm, no good substitutes available, barriers to entry are high and have significant pricing power.

Rohan Verma  is the CEO of the digital mapping startup, MapmyIndia.

A money manager who is involved in making risky investments from equity capital with the objective of gaining better returns is Venture Capitalist. The answer is option B.

CEO of Barclays : C.S. Venkatakrishnan

Amazon : Andy Jassy

IBM : Arvind Krishna

Infosys : Salil Parekh

Thus, the correct option is A

Slice is the fintech startup founded by Rajan Bajaj, that offers payment cards and credit cards to millennial and Generation Z customers.

An entrepreneur whose entrepreneurial activity is restricted to just one or two innovations and refuses to adopt changes in production even at the risk of reduced returns is a drone entrepreneur.

A decacorn is a company with a valuation of more than $10 billion.

Eurocurrency is a currency held on deposit by governments or corporations operating outside of their home market.

Minority interest is the minority shareholders’ pro-rata share of the net assets (equity) of a subsidiary that is not wholly owned by the parent.

Continuous innovation is when a company makes a constant improvement to the products, services, or technologies that they are responsible for.

Capitalist Economy is referred to as the economic system where the factors of production such as capital goods, labour, natural resources, and entrepreneurship are controlled and regulated by private businesses.

A traditional economic system is based on customs, history and time-honored beliefs. A traditional economy is an economic system in which traditions, customs, and beliefs help shape the goods and services the economy produces, as well as the rule and manner of their distribution.

A corporate manager who starts a new initiative for their company which entails setting up a new distinct business unit and board of directors can be regarded as intrapreneur.

Statutory liquidity ratio is the share of a bank’s deposits kept with RBI in the form of Liquid assets to ensure bank’s solvency and money flow in the economy.

The next stage to the Concept Stage of Product Planning and Development Process is product development stage.

Small businesses important to a country’s economy because, they can provide specialist support to larger companies, can be innovators of new products and give an outlet for entrepreneurs.

Large investment is made in fixed assets, the project will be termed as capital intensive.

The clientele is the target market that an entrepreneur puts all of his energy into serving, they are the ones who determine if a particular company will succeed or fail in the market. Clientele of a place or organisation are its customers or clients.

Technical feasibility is the process of formally determining whether it is technologically viable to produce a good or service.

Promoter is a person who takes part in the incorporation of a company.

A decision for which a certain criteria is not well defined and does not follow a set procedure is called as non-programmed decisions.

Prototyping is an experimental process where design teams implement ideas into tangible forms from paper to digital.

Dogecoin is an example of blockchain technology.

DIC - District Industrial Centre

The answer is option B.

Pine labs is a Fintech startup.
The correct option is B.

Spencer Johnson wrote the book, 'Who moved my cheese'.

The correct option is C.