1. How does the Indian government define a startup?
A. Any business incorporated less than 15 years ago with annual turnover below ₹50 crore
B. Any business with at least 50 employees and incorporated in India
C. An entity incorporated less than 10 years ago with turnover not exceeding ₹100 crore and working towards innovation, development, or improvement
D. Any company listed in NSE or BSE with startup certification
In India, a startup is defined as an entity incorporated less than 10 years ago, with annual turnover not exceeding ₹100 crore, and working towards innovation, development, or improvement of products, processes, or services.
2. Which of the following is a key benefit for startups under the Startup India initiative?
A. Income tax exemption on profits for 3 consecutive years
B. Automatic listing on stock exchanges
C. Guaranteed government contracts worth ₹10 crore annually
D. Exemption from all labor laws
The Startup India initiative offers benefits including income tax exemption on profits for 3 consecutive years to encourage innovation and growth in startups.
3. Which organization is primarily responsible for recognizing startups in India?
A. Reserve Bank of India (RBI)
B. Securities and Exchange Board of India (SEBI)
C. Ministry of Finance
D. Department for Promotion of Industry and Internal Trade (DPIIT)
The DPIIT under the Ministry of Commerce & Industry is responsible for recognizing and granting certification to startups in India.
4. Which of the following is NOT a benefit offered to startups under the Startup India plan?
A. Easier public procurement norms
B. Guaranteed funding from the government for all startups
C. Fast-track patent examination
D. Exemption from angel tax under certain conditions
The Startup India plan offers several benefits like tax exemptions and easier compliance, but it does not guarantee funding to all startups; funding is subject to government schemes and approvals.
5. What is the primary objective of the Startup India initiative?
A. Promote entrepreneurship, innovation, and ease of doing business for startups
B. Privatize public sector banks
C. Ensure 100% foreign investment in startups
D. Mandate startups to list on stock exchanges within 5 years
The main objective of Startup India is to promote entrepreneurship, encourage innovation, and simplify business compliance to help startups grow in India.
6. Which of the following is a major financial challenge faced by startups in India?
A. Excessive government grants
B. Overabundance of skilled labor
C. Difficulty in raising seed capital and venture funding
D. Too much initial revenue from customers
Startups often face difficulty in raising initial capital from banks, investors, or venture capitalists due to high risk and unproven business models.
7. Regulatory compliance is a challenge for startups because:
A. They are automatically exempt from all labor and tax laws
B. Understanding and adhering to multiple laws and regulations can be complex and time-consuming
C. They are not required to maintain any records
D. Startups are fully regulated by international authorities
Startups often struggle with regulatory compliance because multiple laws—labor, tax, company, and environmental regulations—apply, and understanding them requires effort and expertise.
8. Which of the following is a challenge related to market competition for startups?
A. Entering markets dominated by established players
B. Excessive government subsidies for all competitors
C. Guaranteed first-mover advantage
D. No access to marketing channels
Startups often face strong competition from established companies with larger resources, brand recognition, and customer loyalty.
9. What is the primary purpose of a State Startup Policy?
A. To centralize all startup funding under one state bank
B. To regulate imports and exports of startups
C. To merge startups into large corporations
D. To promote entrepreneurship and innovation at the state level by providing incentives and support
State Startup Policies aim to create a supportive ecosystem at the state level by offering incentives, incubation support, funding access, and policy guidance to entrepreneurs.
10. Which of the following incentives is commonly provided under State Startup Policies?
A. Mandatory listing on national stock exchanges
B. Financial support, tax rebates, and incubation facilities
C. Government takeover of all startup assets
D. Exclusive rights to sell products in international markets
State Startup Policies often provide financial incentives, tax benefits, access to incubators, mentorship, and other support to encourage entrepreneurship within the state.
11. What is the main purpose of a startup pitch presentation?
A. To submit a government compliance report
B. To evaluate the financial statements of the startup
C. To convince investors or stakeholders about the viability of the business idea
D. To register the startup with DPIIT
A startup pitch presentation is designed to present the business idea, potential market, revenue model, and growth strategy to investors or stakeholders to secure funding or support.
12. Which of the following is an essential component of an effective pitch presentation?
A. Clear problem statement and solution offered
B. Detailed personal biography of every team member
C. List of unrelated business achievements
D. Only financial projections without market context
A successful pitch includes a clear problem statement, innovative solution, business model, market opportunity, and financial projections to convince investors.
13. Which of the following government programmes helps startups showcase their ideas and compete for recognition or funding?
A. RBI Financial Literacy Programme
B. Startup India Innovation Challenges and Competitions
C. SEBI Stock Market Awareness Campaign
D. National Pension Scheme
Government initiatives like Startup India Innovation Challenges, competitions, and hackathons provide platforms for startups to present ideas, gain mentorship, and compete for funding or awards.
14. How do startup competitions benefit entrepreneurs?
A. They guarantee government contracts for all winners
B. They automatically provide foreign investment
C. They exempt startups from all regulatory compliance
D. They provide visibility, networking, mentorship, and potential funding opportunities
Startup competitions help entrepreneurs gain visibility, network with investors and mentors, receive feedback, and sometimes secure funding or incubation support.
15. Which of the following is NOT typically included in a startup pitch presentation?
A. Market analysis and target customers
B. Personal opinions unrelated to the business idea
C. Revenue model and financial projections
D. Problem-solution fit and competitive advantage
Effective pitch presentations focus on the business idea, market, solution, revenue model, and competitive advantage. Personal opinions unrelated to the startup are not relevant.
16. Under the Startup India initiative, which tax exemption is available for eligible startups?
A. Income tax exemption on profits for 3 consecutive years
B. Exemption from GST for all products indefinitely
C. Complete exemption from corporate filing requirements
D. Exemption from all customs duties
Eligible startups can claim income tax exemption on profits for three consecutive years under the Startup India initiative, subject to DPIIT certification.
17. Which of the following is a common source of funding for startups?
A. Only government grants
B. Bank fixed deposits
C. Angel investors, venture capital, and crowdfunding
D. Personal loans for large corporations
Startups typically raise funds from angel investors, venture capitalists, incubators, accelerators, or crowdfunding platforms to support early-stage growth.
18. Which factor most influences an investor’s outlook towards a startup?
A. The founder’s personal lifestyle
B. Market potential, scalability, and revenue model of the startup
C. The number of competitors in unrelated sectors
D. Government ownership of the startup
Investors primarily evaluate market potential, scalability, revenue model, competitive advantage, and team capability when deciding to invest in a startup.
19. Which of the following is a key advantage of raising funds through venture capital for startups?
A. Access to strategic guidance and networking along with capital
B. Guaranteed government tax benefits
C. Exemption from financial reporting requirements
D. Free legal services for life
Venture capital funding provides startups not only with capital but also with strategic advice, mentorship, and access to investor networks.
20. Angel investors are usually interested in startups that:
A. Have no clear business plan but high publicity
B. Are already publicly listed
C. Operate in heavily regulated government sectors only
D. Show innovative ideas, early traction, and potential for high growth
Angel investors typically fund startups with innovative ideas, early traction, and potential for rapid growth, taking higher risk for higher returns.
21. Which of the following is a prominent government funding scheme for startups in India?
A. Pradhan Mantri Jan Dhan Yojana
B. Fund of Funds for Startups (FFS) by SIDBI
C. National Pension Scheme
D. Atal Pension Yojana
The Fund of Funds for Startups (FFS) by SIDBI provides capital support to venture capital funds that invest in startups, facilitating growth and innovation.
22. Which of the following programs is designed to provide mentorship, incubation, and funding support to startups?
A. Pradhan Mantri Mudra Yojana
B. National Skill Development Mission
C. Atal Innovation Mission and incubator programs
D. Digital India Programme
The Atal Innovation Mission and associated incubator programs provide mentorship, incubation, funding, and networking support to startups across India.
23. Which of the following is an international challenge faced by Indian startups?
A. Navigating foreign regulations and cross-border taxation
B. Excess domestic funding opportunities
C. Guaranteed foreign market entry
D. No competition in international markets
Indian startups face international challenges such as understanding foreign laws, taxation, market entry barriers, and competition in global markets.
24. What is a key bridge that helps Indian startups expand internationally?
A. Mandatory listing on domestic stock exchanges
B. Complete exemption from foreign regulations
C. Unlimited foreign funding without approvals
D. Government-backed programs, international incubators, and startup missions
Government initiatives, international incubators, startup missions, and trade facilitation programs provide bridges for Indian startups to enter and succeed in global markets.
25. Which of the following international programs supports Indian startups in global networking and exposure?
A. National Digital Health Mission
B. Global Entrepreneurship Network (GEN) and G20 Startup initiatives
C. Atal Tinkering Labs
D. BharatNet Project
International networks such as GEN and global startup initiatives provide Indian startups with exposure, mentorship, funding opportunities, and networking at a global scale.
