CHAPTER 6: FROM IDEAS TO STARTUPS
50 MULTIPLE CHOICE QUESTIONS (MCQs)
1. What is entrepreneurship?
(A) The process of collecting taxes
(B) The process of converting an idea into a business venture
(C) The process of working only for the government
(D) The process of spending money without planning
Answer: (B) The process of converting an idea into a business venture
2. Who is an entrepreneur?
(A) A person who avoids all business decisions
(B) A person who only purchases goods for personal use
(C) A person who identifies opportunities, takes risks, and develops a business
(D) A person who works only in government offices
Answer: (C) A person who identifies opportunities, takes risks, and develops a business
3. Which of the following is an important task performed by an entrepreneur?
(A) Identifying problems and developing innovative solutions
(B) Avoiding all risks and responsibilities
(C) Preventing new ideas from being developed
(D) Refusing to make business decisions
Answer: (A) Identifying problems and developing innovative solutions
4. What is profit?
(A) The total amount borrowed by a business
(B) The money spent on producing goods
(C) The total number of products sold
(D) The money earned after deducting business expenses from revenue
Answer: (D) The money earned after deducting business expenses from revenue
5. Which qualities are important for an entrepreneur?
(A) Carelessness and lack of planning
(B) Creativity, determination, and willingness to take calculated risks
(C) Avoiding responsibility and teamwork
(D) Refusing to learn from mistakes
Answer: (B) Creativity, determination, and willingness to take calculated risks
6. In the story “From a Dead Mouse to Riches”, how did the young man begin his journey?
(A) By borrowing a large amount from a bank
(B) By purchasing a factory
(C) By selling a dead mouse to a shopkeeper
(D) By opening a hotel immediately
Answer: (C) By selling a dead mouse to a shopkeeper
7. What lesson does the story “From a Dead Mouse to Riches” convey?
(A) Small opportunities, hard work, and smart decisions can lead to success
(B) Success is possible only with a large initial investment
(C) Business owners should avoid learning new skills
(D) Wealth can be created only through inheritance
Answer: (A) Small opportunities, hard work, and smart decisions can lead to success
8. When did seven homemakers begin the initiative that later became Lijjat Papad?
(A) 1947
(B) 1962
(C) 1980
(D) 1959
Answer: (D) 1959
9. What was the initial amount used by the seven homemakers to begin their papad-making venture?
(A) ₹800
(B) ₹80
(C) ₹8,000
(D) ₹8000 per member
Answer: (B) ₹80
10. In which year was Shri Mahila Griha Udyog Lijjat Papad registered as a cooperative society?
(A) 1959
(B) 1975
(C) 1962
(D) 1991
Answer: (C) 1962
11. What was an important feature of the Lijjat Papad cooperative?
(A) Members were equal owners and profits were shared equally
(B) Only the oldest member could receive profits
(C) All work was performed by a single owner
(D) Members were not allowed to participate in decisions
Answer: (A) Members were equal owners and profits were shared equally
12. Apart from earning income, how did Lijjat Papad benefit society?
(A) By preventing women from working
(B) By eliminating the need for education
(C) By discouraging cooperative ownership
(D) By helping women become financially independent and supporting their children’s education
Answer: (D) By helping women become financially independent and supporting their children’s education
13. Who founded the hotel business associated with the Oberoi Group?
(A) Dhirubhai Ambani
(B) Mohan Singh Oberoi
(C) J. R. D. Tata
(D) Verghese Kurien
Answer: (B) Mohan Singh Oberoi
14. What was Mohan Singh Oberoi’s first job in the hospitality industry?
(A) Hotel owner
(B) Hotel architect
(C) Hotel desk clerk
(D) Restaurant supplier
Answer: (C) Hotel desk clerk
15. Which functional area is responsible for hiring and training employees?
(A) Human Resources
(B) Marketing and Sales
(C) Finance and Accounting
(D) Management and Operations only
Answer: (A) Human Resources
16. What is a business plan?
(A) A list of employees’ personal expenses
(B) A record of taxes paid by citizens
(C) A document containing only the business name
(D) A written document explaining business goals and the steps to achieve them
Answer: (D) A written document explaining business goals and the steps to achieve them
17. Which of the following should be considered while preparing a business plan?
(A) Only the colour of the shop
(B) Customer needs, costs, location, pricing, marketing, and risks
(C) Only the owner’s personal preferences
(D) Only the number of competitors
Answer: (B) Customer needs, costs, location, pricing, marketing, and risks
18. Why is identifying potential customers important for a business?
(A) It eliminates all business expenses
(B) It guarantees immediate profit
(C) It helps determine which products or services should be offered
(D) It removes the need for marketing
Answer: (C) It helps determine which products or services should be offered
19. Which of the following is an example of a fixed cost?
(A) Monthly rent of business premises
(B) Flour used for every additional loaf of bread
(C) Packaging used for each additional product
(D) Raw materials consumed in proportion to production
Answer: (A) Monthly rent of business premises
20. Which of the following is an example of a variable cost?
(A) Fixed monthly rent
(B) An annual licence fee that does not change with output
(C) A fixed insurance premium
(D) Raw materials used in production
Answer: (D) Raw materials used in production
21. What is the main purpose of the management and operations functional area?
(A) To calculate personal income tax only
(B) To manage daily activities and ensure efficient production and delivery
(C) To advertise products exclusively
(D) To hire employees without considering production
Answer: (B) To manage daily activities and ensure efficient production and delivery
22. Which functional area manages the financial resources of a business?
(A) Human Resources
(B) Marketing and Sales
(C) Finance and Accounting
(D) Customer Relations only
Answer: (C) Finance and Accounting
23. What is accounting?
(A) Recording, organising, and reporting financial transactions
(B) Advertising products on social media
(C) Hiring and training employees
(D) Manufacturing goods without recording expenses
Answer: (A) Recording, organising, and reporting financial transactions
24. What does a profit and loss account show?
(A) Only the number of employees
(B) Only the number of products manufactured
(C) Only the location of a business
(D) Whether a business has made a profit or loss over a period
Answer: (D) Whether a business has made a profit or loss over a period
25. Which formula is used to calculate profit before tax?
(A) Total Expenses + Total Revenue
(B) Total Revenue – Total Expenses
(C) Total Expenses – Total Revenue
(D) Total Revenue × Total Expenses
Answer: (B) Total Revenue – Total Expenses
26. According to the sample profit and loss account of ABC Bakery, what was its total income for March 2026?
(A) ₹2,22,000
(B) ₹73,000
(C) ₹2,95,000
(D) ₹60,000
Answer: (C) ₹2,95,000
27. According to the sample profit and loss account of ABC Bakery, what were its total expenses?
(A) ₹2,22,000
(B) ₹2,95,000
(C) ₹73,000
(D) ₹13,000
Answer: (A) ₹2,22,000
28. What was ABC Bakery’s profit before tax?
(A) ₹60,000
(B) ₹13,000
(C) ₹2,22,000
(D) ₹73,000
Answer: (D) ₹73,000
29. What was ABC Bakery’s profit after tax?
(A) ₹73,000
(B) ₹60,000
(C) ₹13,000
(D) ₹2,95,000
Answer: (B) ₹60,000
30. Which functional area focuses on attracting customers and increasing sales?
(A) Human Resources
(B) Finance and Accounting
(C) Marketing and Sales
(D) Management and Operations exclusively
Answer: (C) Marketing and Sales
31. Which of the following is an example of a marketing strategy?
(A) Promoting products through social media
(B) Ignoring customer feedback
(C) Stopping all advertising
(D) Refusing to communicate with customers
Answer: (A) Promoting products through social media
32. What is the role of the Human Resources department?
(A) Managing only the business’s bank account
(B) Deciding only the selling price
(C) Recording only sales transactions
(D) Recruiting, training, and supporting employees
Answer: (D) Recruiting, training, and supporting employees
33. Which community is described in the chapter as a traditional entrepreneurial community from Tamil Nadu?
(A) Ahom
(B) Chettiar
(C) Rajput
(D) Maratha
Answer: (B) Chettiar
34. What were the traditional occupations of the Chettiar community?
(A) Only farming and fishing
(B) Only teaching and administration
(C) Trading, banking, and moneylending
(D) Only manufacturing automobiles
Answer: (C) Trading, banking, and moneylending
35. What is a startup?
(A) A young, early-stage company founded to offer an innovative product or service
(B) A business that must have existed for more than 100 years
(C) A government department that collects taxes
(D) A company that is not allowed to innovate
Answer: (A) A young, early-stage company founded to offer an innovative product or service
36. According to the chapter, what is the position of India in the global startup ecosystem?
(A) First
(B) Second
(C) Fifth
(D) Third
Answer: (D) Third
37. According to the chapter, approximately how many unicorns did India have in 2025?
(A) 12
(B) 120
(C) 1,200
(D) 12,000
Answer: (B) 120
38. What is a unicorn in the startup ecosystem?
(A) A business that operates only in rural areas
(B) A business that has no employees
(C) A startup valued at over one billion US dollars
(D) A company that sells only agricultural products
Answer: (C) A startup valued at over one billion US dollars
39. Which of the following is an example of a startup-related technology sector mentioned in the chapter?
(A) Fin-tech
(B) Ancient sculpture only
(C) Traditional poetry only
(D) Handwritten record keeping exclusively
Answer: (A) Fin-tech
40. What is the main objective of the Startup India initiative?
(A) To discourage innovation
(B) To prevent new businesses from starting
(C) To eliminate all private enterprises
(D) To support entrepreneurship and promote innovation
Answer: (D) To support entrepreneurship and promote innovation
41. What is the purpose of the Atmanirbhar Bharat framework?
(A) To increase dependence on foreign imports in every sector
(B) To promote self-reliance, domestic manufacturing, and local solutions
(C) To prevent technological development
(D) To discourage Indian entrepreneurs
Answer: (B) To promote self-reliance, domestic manufacturing, and local solutions
42. What does the vision of Viksit Bharat 2047 aim to achieve?
(A) To end all business activities by 2047
(B) To eliminate innovation from the economy
(C) To transform India into a fully developed nation by 2047
(D) To replace all startups with government departments
Answer: (C) To transform India into a fully developed nation by 2047
43. Which of the following is a contribution of entrepreneurship to society?
(A) Creating jobs and income
(B) Preventing new products from being developed
(C) Reducing all opportunities for innovation
(D) Stopping the production of useful goods
Answer: (A) Creating jobs and income
44. How do businesses contribute to government revenue?
(A) By avoiding every legal obligation
(B) By refusing to employ workers
(C) By preventing the production of goods
(D) By paying taxes
Answer: (D) By paying taxes
45. What is Corporate Social Responsibility (CSR) associated with?
(A) Increasing waste without taking responsibility
(B) Supporting social and environmental welfare, such as education, healthcare, and the environment
(C) Avoiding all community activities
(D) Focusing only on advertising
Answer: (B) Supporting social and environmental welfare, such as education, healthcare, and the environment
46. Why should entrepreneurs learn from business failures?
(A) Failure proves that planning is useless
(B) Failed businesses can never improve
(C) Failures can provide lessons for developing stronger ideas and better businesses
(D) Entrepreneurs should never try again after failure
Answer: (C) Failures can provide lessons for developing stronger ideas and better businesses
47. Which of the following is a possible market barrier to business growth?
(A) Competition and limited access to customers
(B) Proper financial planning
(C) Effective employee training
(D) Consistent product quality
Answer: (A) Competition and limited access to customers
48. Which of the following is a technical barrier to business growth?
(A) Lack of customer interest only
(B) Difficulty in choosing a business name
(C) A lack of promotional posters only
(D) Outdated machinery and limited access to technology
Answer: (D) Outdated machinery and limited access to technology
49. What is the main purpose of market research before starting a business?
(A) To avoid understanding customers
(B) To learn about customer needs, existing products, and how the proposed idea differs
(C) To eliminate the need for a business plan
(D) To guarantee that competitors will close down
Answer: (B) To learn about customer needs, existing products, and how the proposed idea differs
50. Why should a business consider its social and environmental impact?
(A) To avoid meeting customer needs
(B) To increase unnecessary waste
(C) To understand how its activities can benefit people and the environment
(D) To remove the need for financial planning
Answer: (C) To understand how its activities can benefit people and the environment
CLASS 9 SOCIAL SCIENCE (Part 2)
CHAPTER 6: FROM IDEAS TO STARTUPS
20 ASSERTION–REASON QUESTIONS
Choose the correct option:
(A) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
(B) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
(C) Assertion (A) is true, but Reason (R) is false.
(D) Assertion (A) is false, but Reason (R) is true.
1. Assertion (A): Entrepreneurship involves identifying opportunities and converting ideas into business ventures.
Reason (R): Entrepreneurs identify problems, develop innovative solutions, and take risks by investing money and time.
Answer: (A)
2. Assertion (A): Entrepreneurs should avoid making decisions about the operation of their businesses.
Reason (R): Entrepreneurs make important decisions regarding the functioning and management of their businesses.
Answer: (D)
3. Assertion (A): The Lijjat Papad cooperative helped women become financially independent.
Reason (R): Its members worked together, shared ownership, and shared profits equally.
Answer: (A)
4. Assertion (A): A business plan is a written document that explains business goals and the steps to achieve them.
Reason (R): A business plan helps entrepreneurs organise resources, set priorities, and make informed decisions.
Answer: (B)
5. Assertion (A): Identifying potential customers is important when preparing a business plan.
Reason (R): Understanding customers helps entrepreneurs decide which products or services to offer.
Answer: (A)
6. Assertion (A): Monthly rent is generally an example of a fixed cost.
Reason (R): Fixed costs generally remain constant regardless of production volume in the short term.
Answer: (A)
7. Assertion (A): The cost of raw materials used in production is generally a variable cost.
Reason (R): Variable costs change with the volume of goods or services produced or sold.
Answer: (A)
8. Assertion (A): Management and operations help a business produce and deliver goods or services efficiently.
Reason (R): This functional area is responsible only for advertising products on social media.
Answer: (C)
9. Assertion (A): Accounting helps entrepreneurs understand the financial performance of a business.
Reason (R): Accounting involves recording, organising, and reporting financial transactions.
Answer: (A)
10. Assertion (A): Profit is calculated by subtracting total expenses from total revenue.
Reason (R): Revenue is the total money earned by a business from its main operations or sale of goods and services.
Answer: (B)
11. Assertion (A): Human Resources is responsible for recruiting and training employees.
Reason (R): Employees contribute their skills and efforts to the functioning and growth of a business.
Answer: (B)
12. Assertion (A): Marketing and Sales help attract customers and promote business growth.
Reason (R): Advertising, promotions, and sales are examples of activities performed by this functional area.
Answer: (A)
13. Assertion (A): The four functional areas of a business can operate successfully without coordinating with one another.
Reason (R): Management and Operations, Finance and Accounting, Human Resources, and Marketing and Sales work together to support business success.
Answer: (D)
14. Assertion (A): The Chettiar community has a long history of entrepreneurship.
Reason (R): The community was traditionally involved in trading, banking, and moneylending and was known for accounting and record-keeping skills.
Answer: (A)
15. Assertion (A): Every startup succeeds as soon as it is launched.
Reason (R): Startups may face challenges or failure, and entrepreneurs can learn from unsuccessful attempts.
Answer: (D)
16. Assertion (A): Startups can contribute to economic growth by creating jobs and developing innovative solutions.
Reason (R): Startups in India operate in sectors such as e-commerce, fin-tech, health-tech, and agri-tech.
Answer: (B)
17. Assertion (A): The Startup India initiative supports entrepreneurship and innovation.
Reason (R): Atmanirbhar Bharat focuses on making India more self-reliant through domestic capabilities and local solutions.
Answer: (B)
18. Assertion (A): Businesses contribute to society only by earning profits for their owners.
Reason (R): Businesses can create jobs, produce goods and services, pay taxes, develop innovations, and support social welfare.
Answer: (D)
19. Assertion (A): A business plan should consider potential challenges and risks.
Reason (R): Competition, rising raw-material costs, changing customer preferences, and fluctuating cash flows can affect business operations.
Answer: (A)
20. Assertion (A): Entrepreneurship can contribute to India’s vision of Viksit Bharat 2047.
Reason (R): Entrepreneurship can promote innovation, create employment, empower communities, and support economic growth.
Answer: (A)
