CMAT Temporary Questions

Entrepreneurial Orientation (EO) refers to the strategy-making processes, methods, and practices that companies use to act entrepreneurially, focusing on innovation, risk-taking, and proactiveness to create competitive advantages.

Managerial efficiency is a quality specific to managers.

Strategic intention refers to the intent to deploy a strategy to the tasks at hand.

Innovative cognition refers to the application of fundamental mental processes (such as memory retrieval, conceptual combination, and analogical thinking) to existing knowledge structures in order to generate new, original, and valuable ideas or products.

Hence, entrepreneurial orientation is the right choice.

Let us assume the height and radius to be R.
Volume of the cylinder = $$\pi\ \times\ R^2\times\ height\ =\ \pi\ \times\ R^3$$
==> $$\frac{22}{7}\times\ R^3=\frac{176}{7}$$
This gives R = 2 cm i.e. Option C.

Past Participle usually ends in -ed, -en, -d, -t, used in perfect tenses or passive voice. Example: He has broken the glass. / The work was finished.

So, the selected paper was published is the past participle.

To distinguish Gerund from Present Participle: Both end in -ing, but the gerund acts as a noun (Reading is fun) while the present participle acts as a verb or adjective (She is reading / a reading lamp).

A compound sentence joins two or more independent clauses (each of which can stand alone as a sentence). These clauses are joined by coordinating conjunctions, semicolons, and adverbs, such as no, but, however, whereas, etc.

Christ was hated by his persecutors; nonetheless, he loved them is a compound sentence because first it has a coordinating conjunction- nonetheless and second, because each of the two clauses (Christ was hated by his persecutors, he loved them) is an independent clause that can be used as a sentence of their own.

All other sentences have clauses that cannot be used as sentences on their own, and therefore, they are not compound sentences.

In indirect speech, " will " is replaced by " would,

After all the parts of the sentence are reported using commas + and, the last part starts with ‘and that’.

Options A and C distort the structure slightly

Option D is wrong because it uses will instead of would

To assess the adequacy of the market for a business, demand in domestic and international markets, competition analysis, and customer taste and preference analysis are important and directly relevant. But treasury bond yields are a macroeconomic factor used to judge financial markets, not specifically business markets, unless investor funding is directly taken into account.

For example, setting up a sugar-free ice cream startup would not directly consider bond yields when assessing the ice cream market landscape.

Ideation -> Validation -> Financing -> Growth -> Exit is the correct sequence of stages from idea to exit in entrepreneurial financing.

Ideation is the first step because it is the root of an endeavour; next, the idea needs to be validated by assessing its feasibility, demand, and other logistical metrics. Thereafter, financing comes into play, before anything can be implemented, because everything needs capital. After financing, growth will occur, followed by an exit (a premeditated sale, merger, or liquidation).

Market entry and licensing costs, depreciation, and patent registration fees are all directly quantifiable and tangible.

Brand equity and social impact cannot be directly measured in monetary terms; they add long-term value but cannot be assigned a monetary value and are therefore intangible.

Mezzanine financing is a hybrid, subordinated debt-equity instrument that bridges the gap between senior debt and equity, typically used by mature, mid-to-late-stage companies for growth, acquisitions, or restructuring.

Locking down financing involves securing specific terms on loans or investments to mitigate risk

Staged Financing is known for the risk mitigation it offers because by releasing funds in stages (e.g., seed, Series A, B, C), VCs can stop funding if a project is underperforming, preventing further losses. Hence, it is the right answer.

Look-up is not a type of financing.

Ideation is about creating fresh ideas.

Concept development involves defining value propositions and business models.

Implementation involves translating ideas into prototypes and tangible items.

Commercialisation is the launch of a product into the market.

And, these steps are followed in the particular order given above.

Joseph Schumpeter defined the entrepreneur as an innovator and a "disruptive force" who drives economic development by carrying out "new combinations". Instead of just managing, the Schumpeterian entrepreneur breaks the stationary, circular flow of economic activity through creative destruction, introducing new products, methods, markets, or organisational structures. These attributes are those of an innovator; hence, innovator is the correct choice.

The standard steps of the design thinking process, by definition, are- ideate, define, test, prototype and empathise.

So here, brainstorming and incubation do not come.

Brainstorming is part of the ideation process itself; hence, it is not a separate step.

Incubation is a later stage of structured support to enable growth and is not part of the design thinking process.

Entrepreneurs identify a market need and take the associated risks to solve the problem. Hence, entrepreneurs are those who introduce modernisation and innovation. They do not specifically avoid risk or follow global trends.

NABARD is the National Bank for Agricultural and Rural Development, and hence, the right match for NABARD is rural development.

Atal Innovation Mission was launched to support grass-roots and social innovation and incubation.

Entrepreneurial development programs are for self-employment and the growth of small-scale ventures.

India permits 100% Foreign Direct Investment (FDI) in Single Brand Retail Trading (SBRT) under the automatic route, allowing foreign entities to own and operate stores without prior government approval.

Externalities are costs or benefits arising from economic activity (production or consumption) that affect third parties who did not choose to be involved. Hence, social or environmental spillover effects can be termed as externalities.

Ex ante analysis involves forecasting future synergies—such as cost savings from shared resources or revenue growth from cross-selling—before a merger or project begins.

Startups face intense margin pressures due to rising production costs and fierce competition, forcing them to focus on optimising gross and operating margins.

To combat this, they leverage synergies through strategic partnerships, collaborative ecosystems, and resource sharing.

The Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry, drives India's entrepreneurship policy primarily through the Startup India initiative launched in 2016.

Avoidance refers to the tendency to skip or ignore certain aspects to create a sense of comfort.

Resilience refers to quickly recovering from setbacks and getting into action mode; hence, it is the correct choice.

Agility refers to the ability to adjust, move or think quickly.

Leadership involves motivating and guiding individuals toward a common goal.

Bootstrapping refers to launching and growing a business or project using only personal savings and operating revenue, without relying on external funding like venture capital or bank loans. It signifies self-sufficiency, financial discipline, and the retention of full control. Hence, it indicates financial discipline and validates the business before external funding.

It decreases the control dilution, so A is incorrect.

Bootstrapping is unrelated to accounting standards.

Bootstrapping does not directly facilitate negotiation.

Make in India refers to the country’s focus on domestic manufacturing and the related incentives.

Launched by Prime Minister Narendra Modi on September 25, 2014, Make in India is a major national initiative aimed at transforming India into a global design and manufacturing hub. The initiative aims to boost the manufacturing sector's contribution to GDP to 25%, create 100 million additional jobs, and encourage both domestic and foreign companies to produce in India.

The Atal Innovation Mission (AIM) provides extensive support for establishing and upgrading world-class incubators, offering up to INR 10 Crores in grant-in-aid over 3-5 years for capital and operational expenses. Key initiatives include Atal Incubation Centres (AICs) for new setups and Scale-up support for existing ones, aimed at fostering sector-specific startups in areas such as health, clean tech, and AI.

The SIDBI SMILE (Soft Loan Fund for Micro, Small, and Medium Enterprises) scheme supports MSMEs in manufacturing and service sectors, with a strong focus on 25 "Make in India" sectors. It targets new startups and existing businesses for expansion, modernisation, technology upgrades, and equipment finance.

It is for new and small businesses, so there is no focus on industrialisation or export prospects, and high collateral security is not expected, as these are not extremely capital-intensive loans. The SMILE scheme offers quasi-loans.