CUET Entrepreneurship-Chapter-Managing Market

  • Board
    CBSE
  • Textbook
    NCERT
  • Class
    Class 12
  • Subject
    Entrepreneurship
  • Chapter
    CUET Entrepreneurship-Chapter-Managing Market
  • Chapter Name
    Managing Market
  • Category
    CUET (Common University Entrance Test) UG

Important MCQ Questions on CUET Entrepreneurship-Chapter-Managing Market with Detailed explanation

HT having an expert teacher prepared the most important MCQ Questions on CUET Entrepreneurship-Chapter-Managing Market with Detailed explanations. All the concepts of Entrepreneurship in the syllabus of CUET are covered with coverage of the entire syllabus. This page is prepared for Entrepreneurship-Chapter-Managing Market and covers all important topics of the competitive exam CUET for domain subject test. Check out MCQ Based questions for CUET Entrepreneurship uploaded by the HT experts. 

MCQ Questions for CUET Entrepreneurship-Chapter-Managing Market Set-1

Entrepreneurship - MCQ on Managing Market

Class XII

Q.1.The best suitable source for demand analysis for ice cream would be

a. primary source.

b. secondary source.

c. sample source.

d. census source.

Answer:

(b)

Explanation: The secondary source would be the best suitable source for demand analysis because secondary sources provide published data about the pattern of income of the people and give an idea about their liking.

Q.2. One of the different methods to be followed for creating demand is

a. understanding psychological need.

b. understanding social set-up.

c. adopting personal selling strategies.

d. smoothing the progress of liking.

Answer:

(d)

Explanation: Smoothing the progress of liking is one of the various activities to be followed for creating demand while the others are the strategies to be adopted for firm foothold in the market.

Q.3. In case of demand analysis for ceiling fans, the best method would be a

a. sample survey.

b. census survey.

c. primary survey.

d. secondary survey.

answer:

(a)

Explanation: Sample survey is best suitable for the products whose demand changes with the change in the income of consumers.

Q.4. Primary source is useful where target area is

a. small.

b. large.

c. restricted.

d. expanded.

answer:

(a) Explanation: The primary source is related to personal contact between the receiver and the supplier. It is applicable when customers are concentrated in a limited area.

Q.5. The main aim of the entrepreneur is to have

a. minimum profits.

b. maximum sales.

c. maximum profits.

d. minimum sales.

Answer:

(c) Explanation: The main aim of an entrepreneur is to earn maximum profits by satisfying the needs of the customers. The entrepreneur aims to understand their needs, tastes, habits and preferences so that he can design goods accordingly and sell the same in the market.

Q.6. The pattern of expenditure is an issue of concern under the process of

a. market competition.

b. demand analysis.

c. market survey.

d. creating demand.

Answer:

(b)

Explanation: Demand analysis is a component of market assessment. The analysis involves various concerns such as identification of a customer as an individual or a company, economic condition of the customers, the pattern of expenditure, need of customers and important industries forming major part of customers.

Q.7. Goodwill means reputation in the market and the trust of the people dealing with

a. consumers.

b. distributors.

c. producers.

d. entrepreneurs.

Answer:

(d) Explanation: Being an entrepreneur, the methods to be followed to obtain the goodwill of customers are: continuous market study, improvement in quality at nominal cost, maximum satisfaction to customer’s needs etc.

Q.8. An agreement where buyers and sellers assemble to exchange their goods and services for money is called a/an

a. unit.

b. business.

c. market.

d. enterprise.

Answer:

(c) Explanation: Market is an agreement between the buyers and sellers of goods and services at a particular given price and time. Every entrepreneur aims at increasing its market share i.e., the ratio of its sales to the total sales in the economy.

Q.9. One of the various activities to be followed for creating a demand is

a. assurance about quality.

b. personal selling strategies.

c. proper supply.

d. understanding psychological need.

Answer:

(a) Explanation: Assurance about quality is one of the various activities to be followed for creating demand while the others are the strategies to be adopted for firm foothold in the market.

Q.10. The assessment of desires, willingness and ability of the customer to purchase goods and services at a particular period of time is called

a. supply analysis.

b. demand analysis.

c. cost analysis.

d. sales analysis.

Answer:

(b)

Explanation: Market demand for a product is the total volume that would be bought by the customers in a defined time period. The assessment of market demand is called demand analysis.

Q.11. The decision about manpower force and the arrangement of their training is called

a. directing.

b. controlling.

c. staffing.

d. organising.

Answer:

(c) Explanation: To decide about the manpower force, arrangement of their training and formulation of policies regarding their remuneration is called staffing.

Q.12. The sum of strategies adopted by various entrepreneurs for the selling of their products is called

a. malpractices.

b. trade practices.

c. joint practices.

d. sales practices.

Answer:

(b) Explanation: Trade practices are different for different regions, different categories of consumers and for different types of products.

Q.13. Market survey helps an entrepreneur to ensure

a. high prices.

b. goodwill.

c. high production.

d. competition.

Answer:

(b)

Explanation: Goodwill means the reputation of a firm or business in the market. It develops the confidence of the customers in the products and services.

Q.14. Goodwill of the product in customer’s mind is called

a. image of the product.

b. quality of the product.

c. strength of the product.

d. weakness of the product.

Answer:

(a) Explanation: There are many consumers in a market. Different consumers demand different products. Thus, an entrepreneur follows various methods and strategies for different customers. Image of the product is the goodwill of the product in customer’s mind.

Q.15. A most suitable method applicable when customers are scattered over a vast area is

a. primary sources.

b. secondary sources.

c. tertiary sources.

d. scattered sources.

Answer:

(b) Explanation: There are many consumers in a market. Different consumers demand different products. Thus, an entrepreneur follows various methods and strategies for different customers. Secondary sources are useful when target area is large and the customers are scattered over a vast area.

MCQ Questions for CUET Entrepreneurship-Chapter-Managing Market Set-2

Q.16. A most suitable method applicable when customers are concentrated in a limited area is

a. primary sources.

b. secondary sources.

c. tertiary sources.

d. scattered sources.

Answer:

(a) Explanation: Primary sources are useful where the target area is small. Results obtained through primary sources are more accurate because there is direct contact between the receiver and the supplier.

Q.17. The demand for goods and services is created by

a. producers.

b. consumers.

c. shopkeepers.

d. sellers.

Answer:

(b) Explanation: In an economy, the consumer is considered as the king because he is able to create demand for goods and services.

Q.18. A study that deals with important aspects like quality of product, supply of services, location and delivery mechanism is called market

a. share.

b. assessment.

c. mechanism.

d. demand.

Answer:

(b) Explanation: The tools employed by an entrepreneur for market assessments are demand analysis, understanding the competition in the market, project innovations etc.

Q.19. The product best suited for demand analysis through primary sources is

a. tooth paste.

b. ceiling fan.

c. ice cream.

d. computer.

Answer:

(d)

Explanation: Primary sources are useful when the target area is small. Computer being an expensive product has less number of customers.

Q.20. The most important component of a market is the

a. seller.

b. producer.

c. customer

d. product.

Answer:

(c)

Explanation: A customer is the central point around whom all the marketing activities revolve. Thus, a customer is called a king.

Q.21. The component related to secondary sources is

a. an individual customer.

b. small area.

c. direct contact.

d. a published data.

Answer:

(d) Explanation: A published data is associated with secondary sources while the other three are related to primary sources.

Q.22. One feature of primary sources is

a. wide area.

b. census data.

c. direct contact.

d. published data.

Answer:

(c) Explanation: Direct contact is associated with primary sources while the other three are related to secondary sources.

Q.23. A component of demographical segment is

a. autonomy.

b) age factor.

c) hard work.

d. attitude.

Answer:

(b) Explanation: Age factor is a demographical segment while the others are psychographic segments. In demographic segmenting, the customers vary across the geographical location and are classified on the basis of population.

Q.24. The component associated with psychographic segment is

a. liberal thoughts.

b) age.

c) income.

d. education.

Answer:

(a) Explanation: Liberal thoughts fall under attitude which is associated with psychographic segment while the others are demographical segments. In demographic segmenting the customers vary across the geographical location and are classified on the basis of population.

Q.25. The component that helps in securing a firm foothold in the market is

a. price justification.

b. proper market supply.

c. stimulation for product experience.

d. reinforcing the desire.

Answer:

(b) Explanation: There are various strategies to be followed for firm foothold in the market. These strategies involve understanding psychological need, understanding social set-up, personal selling strategies, proper supply etc.

Q.26. Customers’ satisfaction leads to

a. high prices.

b. more production.

c. goodwill.

d. competition.

Answer:

(c)

Explanation: Goodwill means the reputation of a firm or business in the market. It develops the confidence of the customers in the products and/or services.

Q.27. The indicator for the competition in the market is

a. low price.

b. trade practice.

c. survey.

d. controlling.

Answer:

(b)

Explanation: There are various kinds of products and an entrepreneur has to follow different methods and strategies for different customers. Thus, trade practices act as the indicator for competition.

Q.28. Random sample model is associated with

a. trade practices.

b. primary sources.

c. secondary sources.

d. sample survey.

Answer:

(d) Explanation: Statistical services are associated with sample survey as it is based on a random sample model.

Q.29. Reputation in the market is judged by

a. profits.

b. product demand.

c. competition.

d. goodwill.

Answer:

(d)

Explanation: Goodwill means the reputation of a firm or business in the market. It develops the confidence of the customers in the products and/or services.

Q.30. Published data is the term associated with

a. trade practices.

b. primary sources.

c. secondary sources.

d. sample survey

Answer:

(c) Explanation: Secondary sources are related to the printed data regarding population, production etc.