IBPS PO Prelims Full Mock Test 04

1. Read the following passage carefully and answer the questions given after it. Many young Indians now dream of starting their own businesses rather than taking a salaried job. Low-cost smartphones, cheap data and digital payment systems have made it easier than ever to reach customers. A home cook can sell meals through a delivery app, and a weaver can sell sarees to buyers in other states. Yet most new ventures fail within a few years. The reasons are familiar: too little money to survive the early months, poor understanding of costs, and a product that customers do not really need. Many founders spend heavily on advertising before they know whether people will return to buy again. Successful founders often start small. They test their idea with a few customers, listen carefully to complaints and change the product before spending large sums. They also keep careful accounts, so that they know exactly how much each sale earns after costs. Support from banks and the government can help, but it cannot replace these basic habits. A loan can keep a business alive for a while; only a product that people want, sold at a price that covers its costs, can keep it alive for good.

   Q1.What has made it easier for young Indians to start businesses?

   • A.Lower taxes on all goods
   • B.Cheap smartphones, data and digital payments
   • C.Guaranteed bank loans for all
   • D.Free land from the government
   • E.Ban on salaried jobs

2. Q2.Which of the following is NOT given as a reason why new ventures fail?

   • A.Heavy advertising before testing demand
   • B.Too many loyal customers
   • C.Poor understanding of costs
   • D.A product customers do not need
   • E.Too little money in the early months

3. Q3.How do successful founders usually begin?

   • A.By borrowing as much as possible
   • B.By opening many branches at once
   • C.By ignoring complaints
   • D.By testing the idea with a few customers before spending large sums
   • E.By spending heavily on advertising

Start the test to answer these. Correct answers and explanations are shown after you submit.