CMAT 2023 Slot 1 Question Paper

The buying and selling of manufactured goods are related to the Trading entrepreneur ( Option C)

B) Novice entrepreneur: A novice entrepreneur is someone who is new to the world of entrepreneurship and is in the early stages of starting their own business. They may lack significant experience and expertise but are eager to learn and embark on their entrepreneurial journey.

B) Portfolio entrepreneur: A portfolio entrepreneur is an individual who manages multiple businesses or ventures simultaneously. They diversify their investments and interests across different industries or sectors, aiming to create a balanced portfolio of businesses. This type of entrepreneur often seeks opportunities for growth and innovation across various fields.

D) Drone entrepreneur: The term "Drone entrepreneur" is not a commonly used or established category of entrepreneurship. However, it can refer to an entrepreneur who is involved in the drone industry, such as developing, manufacturing, or offering services related to drones. This may include drone photography, drone delivery services, or drone technology development.

A) Both A and R are correct, and R is the correct explanation of A.

Assertion A states that the Industrial Development Bank of India (IDBI) caters to the financial needs of budding industries. This is true as IDBI is a specialized financial institution in India that provides financial assistance and support to various industries, including startups and emerging businesses.

Reason R states that financial constraint is one of the biggest reasons for business failures in entrepreneurship, and there is a need to provide financing support to them. This is also true as many businesses, especially startups and budding industries, face challenges related to lack of adequate financial resources, and providing financing support can help address these constraints and contribute to their success.

In this case, Reason R provides a correct explanation for Assertion A, as it establishes the connection between the IDBI's role in catering to the financial needs of budding industries and the importance of addressing financial constraints to prevent business failures.

Therefore, the most appropriate answer is A) Both A and R are correct, and R is the correct explanation of A.

The Diffusion of Innovation theory is associated with C) Everett Rogers.

Everett Rogers, a professor of communication studies, developed the Diffusion of Innovation theory. This theory focuses on how new ideas, products, or innovations spread and are adopted by individuals and groups within a society or social system. It explains the factors that influence the adoption and diffusion process, such as the characteristics of the innovation, the communication channels, the social system, and the individual's attributes.

Therefore, the correct answer is C) Everett Rogers.

A) Both A and R are correct, and R is the correct explanation of A.

Assertion A states that AICTE (All India Council for Technical Education), UGC (University Grants Commission), NITI Aayog (National Institution for Transforming India), and commercial banks are coming up with many offerings to promote entrepreneurship. This is true, as these entities and institutions in India have indeed taken initiatives to promote and support entrepreneurship. They may provide financial support, mentorship programs, incubation centers, policy frameworks, and other resources to encourage and nurture entrepreneurship.

Reason R states that the government wants to develop a pro-entrepreneurship and supporting environment in the country. This is also true, as governments around the world, including the Indian government, recognize the importance of entrepreneurship for economic growth, job creation, innovation, and overall development. They often implement various policies, initiatives, and collaborations to create an ecosystem that supports and encourages entrepreneurship.

In this case, Reason R provides a correct explanation for Assertion A, as it establishes the connection between the actions of AICTE, UGC, NITI Aayog, commercial banks, and the government's objective of fostering a pro-entrepreneurship and supporting environment.

Therefore, the most appropriate answer is A) Both A and R are correct, and R is the correct explanation of A.

The term 'entrepreneur' has been derived from the French word "entreprendre."

The correct order of sequence is:

C. Generating a business idea

D. Performing a project-specific factor analysis

E. Conducting a pre-feasibility analysis

A. Carrying out a detailed project analysis

B. Developing an infrastructure prototype for project development

In this sequence, the project approval process starts with generating a business idea. Then, a project-specific factor analysis is performed to assess the various factors and considerations specific to the project. Next, a pre-feasibility analysis is conducted to evaluate the feasibility and viability of the project. After that, a detailed project analysis is carried out, taking into account all relevant aspects of the project. Finally, an infrastructure prototype is developed for project development.

Therefore, the correct sequence is CDEAB.

A) Both Statement I and Statement II are correct.

Statement I: Venture capital firms are usually organized as limited partnerships. This is generally true as venture capital firms often operate as limited partnerships. Limited partnerships are a common structure for pooling investment capital from various limited partners and managing it through the venture capital firm.

Statement II: A venture capitalist is a money manager who is involved in making risk investments from equity capital with the objective of gaining better returns. This statement accurately describes the role of a venture capitalist. Venture capitalists invest in high-risk ventures or startups using equity capital, expecting to earn significant returns on their investments.

Both statements align with the characteristics and functions of venture capital firms and venture capitalists, making A) Both Statement I and Statement II are correct the most appropriate answer.

A) Both Statement I and Statement II are correct.

Statement I: Urbanization around the world is an opportunity to innovate. This statement is true as urbanization brings about various challenges and demands, such as the need for efficient infrastructure, sustainable transportation systems, affordable housing, and smart city solutions. These challenges provide opportunities for innovation in areas like urban planning, technology, renewable energy, and resource management.

Statement II: Urbanization around the world is an issue because of overpopulation. This statement is also true as rapid urbanization often leads to overpopulation in cities, which can strain resources, infrastructure, and services. Overpopulation can lead to challenges such as overcrowding, increased pollution, traffic congestion, and pressure on housing, healthcare, and education systems.

Both statements acknowledge different aspects of urbanization, one focusing on the opportunities it presents for innovation and the other highlighting the issues arising from overpopulation. Therefore, the most appropriate answer is A) Both Statement I and Statement II are correct.

The most appropriate answer is D) Venture capitalists.

Angel investors are individuals who provide early-stage funding to startups and entrepreneurs in exchange for equity ownership. They typically invest their own personal funds and often provide mentorship and expertise to the companies they invest in.

On the other hand, venture capitalists (VCs) are professional investors who manage funds provided by limited partners. They invest in startups and early-stage companies in exchange for equity and play an active role in the company's growth and development.

While angel investors and venture capitalists both provide funding to startups, they differ in their investment approach, source of funds, and level of involvement. Therefore, venture capitalists are considered to be the opposite of angel investors, making option D) the correct answer.

The characteristic that belongs to low-end disruptive innovation is:

B) It delivers products at a lower cost

Low-end disruptive innovation focuses on providing products or services at a lower cost compared to existing offerings in the market. It aims to reach a segment of customers who are currently underserved or unable to afford the existing products or services. It seeks to disrupt the established market and gain market share by offering a more affordable alternative. This type of innovation often involves simplifying or streamlining processes, utilizing cost-effective materials, or finding innovative ways to reduce production or operational costs.