MCQ
Startups MCQ - Practice Questions with Answers
Solve 84 Startups questions for RAS/RPSC preparation.
Practice questions
Q1Consider the following statements about Atal Innovation Mission (AIM) and Atal Incubation Centres (AICs): 1. AIM is a Government of India flagship initiative to create and promote a culture of innovation and entrepreneurship. 2. AIM supports AICs that nurture innovative startup businesses to become scalable and sustainable enterprises. 3. AICs are meant only for school-level tinkering and do not provide incubation support to startups. 4. AIC guidelines mention mentoring, access to seed capital, industry partners and trainings as components of incubation support. Which of the statements given above are correct?
Statements 1, 2 and 4 are supported by AIM's official website and AIC guidelines. Statement 3 is false because AICs are explicitly incubation centres for innovative startup businesses, distinct from school-level Atal Tinkering Labs.
Q2Consider the following statements about Section 80-IAC tax exemption for startups: 1. Eligible startups can avail a 100% tax deduction for three consecutive financial years within their first ten years of incorporation. 2. Only a private limited company or LLP is eligible for tax exemption under Section 80-IAC. 3. A startup incorporated before 1 April 2016 satisfies the incorporation-date condition for this exemption. Which of the statements given above are correct?
Statement 1 is correct: the exemption is a 100% deduction for three consecutive financial years within the first ten years. Statement 2 is correct because Section 80-IAC eligibility is restricted to private limited companies or LLPs. Statement 3 is incorrect: the condition is incorporation on or after 1 April 2016.
Q31. The SIPP scheme is aimed at encouraging innovation and creativity of startups by protecting intellectual property rights. 2. Startups are given an 80% rebate on patent filing fees under SIPP-related support. 3. Startups are given a 50% rebate in trademark filing fees vis-a-vis other companies. 4. SIPP makes startups ineligible for expedited examination of patent applications. Which of the statements given above are correct?
Statements 1, 2 and 3 are correct. Statement 4 is incorrect because startups are given a facility for expedited examination of patent applications.
Q4Consider the following statements about DPIIT recognition and tax benefits for startups: 1. DPIIT is a Central Government department under the Ministry of Commerce and Industry. 2. DPIIT recognition is mandatory for claiming certain benefits under the Income-tax Act. 3. A startup recognized by DPIIT automatically becomes eligible for deduction under Section 80-IAC. 4. Section 80-IAC deduction is allowed to an eligible startup for 100% of profits and gains for 3 consecutive assessment years out of 10 years beginning from incorporation or registration. Which of the statements given above are correct?
Statements 1 and 2 are true as per the Income Tax Department page. Statement 3 is false because the page clarifies that DPIIT recognition alone does not automatically qualify a startup for Section 80-IAC. Statement 4 states the 80-IAC deduction rule correctly.
Q5Consider the following statements about eligibility for Startup India recognition: 1. A startup may be incorporated as a private limited company. 2. A cooperative society is included among eligible entity forms on the recognition page. 3. An entity formed by splitting up an existing business is not considered a startup. Which of the statements given above are correct?
Statement 1 is correct because the recognition page lists private limited company as an eligible form. Statement 2 is correct because cooperative society is also listed. Statement 3 is correct because entities formed by splitting up or reconstructing an existing business are excluded.
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More questions
61. Rajasthan Startup Policy 2022 is linked to ease of doing business for new startup ventures. 2. Under iStart, all pre-seed stage startups registered under the programme may be eligible for a grant of INR 2,40,000, subject to evaluation criteria. 3. Startups with more than 50% equity with women founders get an additional INR 6,00,000 under the pre-seed ideation grant. 4. The iStart viability grant applies to seed-stage startups. Which of the statements given above are correct?
7Consider the following statements about biotechnology startups in the Startup India Action Plan: 1. DBT aimed to nurture about 300-500 new startups each year in biotechnology. 2. DBT aimed for about 2,000 biotechnology startups by 2020. 3. The plan proposed 5 new bio-clusters. Which of the statements given above are correct?
81. Startups are eligible for fast-tracked patent application examination and disposal under Startup India support for intellectual property protection. 2. The Government bears the entire fees of registered facilitators for any number of patents, trademarks or designs. 3. Startups must bear both facilitator fees and statutory fees under this intellectual property support. Which of the statements given above are correct?
91. Under iStart, startup selection is sector-agnostic. 2. iStart uses an assess-improve-access model. 3. iStart excludes mobile and information technology or Internet of Things startup ideas from its focus areas. Which of the statements given above are correct?
10Consider the following statements about the Fund of Funds for Startups (FFS): 1. FFS was unveiled by the Prime Minister on 16 January 2016 in line with the Start-up India Action Plan. 2. It has an approved corpus of Rs 10,000 crore for contribution to SEBI-registered Alternative Investment Funds. 3. AIFs supported under FFS must invest at least the same amount as SIDBI's contribution in startups. 4. FFS directly gives grants to individual startups for prototype development. Which of the statements given above are correct?
11Consider the following statements about the Fund of Funds for Startups: 1. The scheme was approved and established in 2016 with a corpus of Rs. 10,000 crore. 2. It directly invests in startups selected by the Government. 3. SIDBI has the mandate of operating the fund through selection of suitable daughter funds. Which of the statements given above are correct?
121. iStart Rajasthan is the flagship programme of the Department of Information Technology & Communication, Government of Rajasthan. 2. iStart Rajasthan is a single-window resource for startups, investors, incubators, accelerators and mentors. 3. The focus of iStart Rajasthan is limited to listed companies that are already in the growth stage. Which of the statements given above are correct?
13Consider the following statements about iStart Rajasthan: 1. iStart Rajasthan is the flagship programme of the Department of Information Technology and Communication, Government of Rajasthan. 2. It is described as a single-window resource for startups, investors, incubators, accelerators and mentors. 3. Its focus is only on large listed companies, not idea-stage or early-stage startups. 4. Startups seeking to work in Rajasthan can use the iStart portal for registering, approval or applying for funds. Which of the statements given above are correct?
14Consider the following statements about the Startup India Seed Fund Scheme: 1. The scheme was to be implemented with effect from 1 April 2021. 2. It had a corpus of Rs. 945 crore divided over the next four years. 3. The scheme was meant only for market entry, and did not cover proof of concept or prototype development. Which of the statements given above are correct?
151. The National Startup Advisory Council was notified by the Central Government in January 2020. 2. The Council is chaired by the Minister for Commerce and Industry. 3. The term of non-official members of the Council is five years. 4. Joint Secretary, DPIIT is the Convener of the Council. Which of the statements given above are correct?