MCQ
Startup India Funding MCQ - Practice Questions with Answers
Solve 89 Startup India Funding questions for RAS/RPSC preparation.
Practice questions
Q1Consider the following statements about incubator eligibility under the Startup India Seed Fund Scheme: 1. An incubator must have facilities to seat at least 25 individuals. 2. An incubator must have at least 5 startups undergoing physical incubation on the date of application. 3. Every incubator must be operational for at least 5 years on the date of application. Which of the statements given above are correct?
Statements 1 and 2 are correct. The Gazette specifies seating capacity for at least 25 individuals and at least 5 physically incubated startups. Statement 3 is incorrect because the basic operational requirement is at least 2 years; a 3-year rule applies in a specified case for incubators not assisted by Central or State Governments.
Q2Consider the following statements about CGSS guarantee quantum: 1. The maximum amount of debt eligible for guarantee cover is Rs 20 crore per borrower. 2. For loans exceeding Rs 10 crore, transaction-based cover is 100% of the amount in default. 3. Umbrella-based cover is subject to a maximum of Rs 20 crore per borrower, net of collateral if any. Which of the statements given above are correct?
Statements 1 and 3 are correct. The maximum eligible debt and the umbrella-based borrower cap are both Rs 20 crore. Statement 2 is incorrect because transaction-based cover for loans exceeding Rs 10 crore is 75% of amount in default, not 100%.
Q3Consider the following statements about operational design of Startup India Fund of Funds 2.0: 1. The operational guidelines introduce segments such as deep tech-focused funds and micro venture capital funds supporting early-growth startups. 2. AIF selection is a single-stage process done only by DPIIT, without an investment committee. 3. FoF 2.0 is designed to act as a catalyst rather than a direct investor. Which of the statements given above are correct?
Statements 1 and 3 are correct. The guidelines segment AIFs into categories including deep tech and micro venture capital funds, and FoF 2.0 is meant to be catalytic rather than a direct investor. Statement 2 is incorrect because the AIF selection process is two-stage, with screening and due diligence followed by evaluation by a Venture Capital Investment Committee.
Q4Consider the following statements about the selection and governance of Startup India FoF 2.0: 1. AIF proposals are first screened and put through due diligence by the Implementation Agency. 2. A Venture Capital Investment Committee evaluates proposals after the Implementation Agency stage. 3. The Empowered Committee is chaired by the Secretary, DPIIT. 4. The operational guidelines are issued by the Ministry of Finance rather than DPIIT. Which of the statements given above are correct?
Statements 1 and 2 are correct: the process has Implementation Agency screening/due diligence followed by VCIC evaluation. Statement 3 is correct because the Gazette places the Empowered Committee under the Secretary, DPIIT. Statement 4 is false because the operational guidelines are to be issued by DPIIT, not the Ministry of Finance.
Q5Consider the following statements about SISFS incubator-linked processes: 1. A selected incubator must maintain a transparent process of selection, monitoring and disbursement for the fund. 2. Seed fund is disbursed to selected startups after due diligence by the incubator. 3. A startup selected by an incubator for SISFS assistance must pay a mandatory selection fee to the incubator. Which of the statements given above are correct?
Statements 1 and 2 are correct: the incubator must maintain a transparent process and disburse seed fund after due diligence. Statement 3 is incorrect because a selected startup cannot be charged fees for assistance under the scheme.
You've seen 5 of 89 sample questions
Unlimited practice on Startup India Funding comes with the RAS Test Series + Practice pack or Gate Pass.
More questions
6Consider the following statements about FoF 2.0 implementation and investment route: 1. SIDBI will commence operationalization of FoF 2.0 as the implementation agency from the date of notification. 2. Another domestic implementation agency will also be selected to implement the proposed scheme. 3. FoF 2.0 will contribute to the corpus of SEBI-registered AIFs for investing in entities recognised as startups by the Central Government. 4. The corpus fact in the provided corpus bank says FoF 2.0 deploys capital primarily through direct grants to state governments. Which of the statements given above are correct?
7Consider the following statements about startup eligibility under the Startup India Seed Fund Scheme: 1. A startup should be incorporated not more than 5 years ago at the time of application. 2. The startup should be using technology in its core product, service, business model, distribution model or methodology. 3. A startup remains eligible even if it has already received more than Rs. 50 lakh of monetary support under another Central or State Government scheme. Which of the statements given above are correct?
8Consider the following statements about AIFs supported under the Fund of Funds for Startups: 1. Supported AIFs must invest at least twice the FFS contribution in startups. 2. Applying funds must be registered as Category I or II AIFs with SEBI, or have applied for the same. 3. Funds with corpus of less than Rs 1,000 crore are automatically guaranteed sanction of FFS contribution. Which of the statements given above are correct?
9Consider the following statements about startup selection under SISFS: 1. Applicants can apply for seed fund to any three selected incubators in order of preference. 2. The ISMC selects startups for Seed Fund within 45 days of receipt of application. 3. An applicant rejected once is permanently barred from applying afresh. Which of the statements given above are correct?
10Consider the following statements about applications under SISFS: 1. An online call for applications is hosted on an ongoing basis on the Startup India portal. 2. Applicants can apply for seed fund to any three selected incubators in order of preference. 3. Applicants may apply to exactly one incubator only and cannot state any preference order. Which of the statements given above are correct?
111. FoF 2.0 continues the broad structure adopted for the 2016 Fund of Funds for Startups. 2. FoF 2.0 contributes to the corpus of SEBI-registered AIFs. 3. FoF 2.0 invests in grants and subsidies to entities recognised as startups. 4. Under FoF 2.0, AIFs evaluate startups for investments after raising funds from other investors. Which of the statements given above are correct?
12Consider the following statements about the 2017 Cabinet decisions on FFS: 1. AIFs supported by FFS must invest at least twice the FFS contribution in qualifying startups. 2. FFS can contribute up to a maximum of 35% of the corpus of the concerned AIF. 3. Operating expenses for due diligence and related appraisal can be met from FFS to the extent of 0.50% of commitments made to AIFs and outstanding. 4. FFS was designed only for late-stage listed companies. Which of the statements given above are correct?
13Consider the following statements about CGSS borrower eligibility: 1. The borrower should be a startup recognised by DPIIT. 2. The startup should not be in default to any lending or investing institution and should not be classified as an NPA as per RBI guidelines. 3. A startup classified as an NPA is expressly eligible for guarantee cover under CGSS. Which of the statements given above are correct?
14Consider the following statements about the guarantee limit under CGSS: 1. The maximum amount of debt eligible for guarantee cover has been revised to Rs. 20 crore per borrower. 2. For transaction-based guarantee cover, the Trust provides 85% cover for loan amount up to Rs. 10 crore. 3. For transaction-based guarantee cover, the Trust provides 100% cover for every loan exceeding Rs. 10 crore. Which of the statements given above are correct?
15Consider the following statements about Startup India Action Plan funding support: 1. The Action Plan proposed a Fund of Funds with a total corpus of Rs. 10,000 crore. 2. The Action Plan mentioned an initial corpus of Rs. 2,500 crore for the Fund of Funds. 3. The Action Plan fixed the corpus at Rs. 945 crore for the Fund of Funds. Which of the statements given above are correct?