CMAT 2026 Innovation & Entrepreneurship section is designed to test your understanding of Startups, Business Fundamentals, Innovation concepts, Government schemes, and well-known Entrepreneurial and Business personalities. With 20 MCQs carrying 80 marks, this medium-difficulty section tests familiarity with terms such as MVP, Lean Startup, Unicorns, Angel Investing, and current business scenario. CMAT Innovation & Entrepreneurship section preparation requires awareness of India’s business and startup ecosystem, and regular practice through previous year papers, business news, and topic-wise revision. Check details on CMAT 2026 Innovation and Entrepreneurship Section Pattern, Syllabus, Type of Questions, How to Prepare in this article.
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To prepare for the CMAT Innovation and Entrepreneurship section, you should first familiarise with the pattern of questions asked in this section, as below:
Below are the topics in the syllabus of Innovation and Entrepreneur section of CMAT exam 2026. Candidates must go through these topics in detail:
Here are the key topics and subtopics in CMAT Innovation and Entrepreneurship section.
Topic | Sub-Topics |
|---|---|
Entrepreneurship | Meaning, qualities of an entrepreneur, types of entrepreneurs |
Business Plans and Models | Writing business plans, understanding business models |
Innovative Strategies | Types of innovation, competitive strategies, technological innovation |
Marketing and Branding | Basics of marketing, branding, customer satisfaction |
Financial Management for Startups | Funding options, venture capital, financial planning for startups |
Start-up Ecosystem | Understanding incubators, accelerators, and startup culture |
Legal and Ethical Aspects | Legalities of starting a business, intellectual property, ethical considerations |
Challenges in Entrepreneurship | Risk management, failure, adaptability, and crisis management |
Preparing for this section requires a balanced approach, combining theoretical understanding with practical application. Below are some strategies for preparation:
1. Understand the Basic Concepts
To begin preparing, focus on understanding key topics like entrepreneurship, types of innovation, business models, startup ecosystem, and the challenges faced by entrepreneurs.
2. Stay Updated with Current Affairs
Innovation and entrepreneurship are constantly evolving fields. Stay updated with the latest news, startup stories, and innovations in the business world.
3. Focus on Application
Instead of memorizing definitions, try to understand the real-world applications of entrepreneurial concepts.
4. Solve Previous Year Question Paper
Solving CMAT previous year question paper on Innovation and Entrepreneurship section to understand the type of questions asked in this section. Check questions from the past paper below.
1. Given below are two statements: One is labelled as Assertion (A) and the other is labelled as Reason (R).
Assertion (A): The management of technological innovation is usually required under circumstances with increased vagueness, uncertainty and risk, and companies are giving importance to it.
Reasons (R): Given that technological innovation is for many companies a primary way of competition in the twenty- rst century, its management is an activity of vital importance.
In light of the above statements, choose the most appropriate answer from the options given below:
A Both (A) and (R) are correct, and (R) is the correct explanation of (A).
B Both (A) and (R) are correct, but (R) is NOT the correct explanation of (A).
C (A) is correct, but (R) is not correct.
D (A) is not correct, but (R) is correct.
2. Given below are two statements: One is labelled as Assertion (A) and the other is labelled as Reason (R).
Assertion (A): Bootstrapping entrepreneurship is one of the most adopted forms of entrepreneurship in India.
Reasons (R): Managing a business through one's own nancial resources is the rst and easiest option available for the entrepreneur to start a business.
In light of the above statements, choose the most appropriate answer from the options given below :
A Both (A) and (R) are correct and (R) is the correct explanation of (A)
B Both (A) and (R) are correct but (R) is NOT the correct explanation of (A)
C (A) is correct but (R) is not correct
D (A) is not correct but (R) is correct
3. Given below are two statements: One is labelled as Assertion (A) and the other is labelled as Reason (R).
Assertion (A): As India moves progressively towards becoming a global knowledge economy, it must meet the rising aspirations of its youth. This can be partially achieved through a focus on the advancement of skills that are relevant to the emerging economic environment.
Reason (R): 62% of India's population is in the working age group (15-59 years), and more than 54% of the total population is below 25 years of age. Our country presently faces a dual challenge of paucity of a highly trained workforce as well as non-employability of the large workforce of the conventionally educated youth.
In light of the above statements, choose the correct answer from the options given below :
A Both (A) and (R) are correct, and (R) is the correct explanation of (A).
B Both (A) and (R) are correct, but (R) is NOT the correct explanation of (A).
C (A) is correct, but (R) is not correct.
D (A) is not correct, but (R) is correct.
4. The 'Stand up India Scheme' focuses on providing nancial support for:
(A) Innovators for rural and semi-urban areas.
(B) Women entrepreneurs.
(C) Scheduled Caste (SC) entrepreneurs.
(D) Scheduled Tribes (ST) entrepreneurs.
Choose the most appropriate answer from the options given below:
A (A) and (D) only
B (B) and (C) only
C (B), (C) and (D) only
D (B) and (D) only
5. Given below are two statements :
Statement I: An intrapreneur operates within a large organisation to drive innovation.
Statement II: An intrapreneur is the same as an entrepreneur, working independently to start a new business.
In light of the above statements, choose the most appropriate answer from the options given below :
A Both Statement I and Statement II are correct
B Both Statement I and Statement II are incorrect
C Statement I is correct but Statement II is incorrect
D Statement I is incorrect but Statement II is correct
6. A word, symbol, name or device that a business uses to identify its goods and distinguish itself from competitors is known as:
A Patent
B Copyright
C Trademark
D Trade secret
7. Financial Institutions are not merely transactional entities but key architects of economic progress. Their roles also span:
(A) Capital formation
(B) J Risk management
(C) Inclusive nance
(D) Arbitration
(E) Consultation in project report preparation to intern during their internship program. Choose the correct answer from the options given below:
A (A) and (B) only
B (A), (B), and (C) only
C (B), (C), and (D) only
D (B), (C), (D), and (E) only
8. Match List I with List II :
Choose the correct answer from the opt ions given below :
A (A)-(III), (B)-(II), (C)-(I), (D)-(IV)
B (A)-(III), (B)-(II), (C)-(IV), (D)-(I)
C (A)-(III), (B)-(IV), (C)-(II), (D)-(I)
D (A)-(III), (B)-(I), (C)-(II), (D)-(IV)
9. Match List I with List II :
Choose the correct answer from the opt ions given below :
A (A)-(I), (B)-(III), (C)-(II), (D)-(IV)
B (A)-(II), (B)-(III), (C)-(I), (D)-(IV)
C (A)-(II), (B)-(III), (C)-(IV), (D)-(I)
D (A)-(IV), (B)-(III), (C)-(II), (D)-(I)
10. Given below are two statements:
Statement I: A startup's valuation is usually lower during the seed funding stage compared to later stages. Statement II: Venture capital is typically the rst source of funding for most startups.
In light of the above statements, choose the correct answer from the options given below:
A Both Statement I and Statement II are true.
B Both Statement I and Statement II are false.
C Statement I is true but Statement II is false.
D Statement I is false but Statement II is true.
11. Feasibility analysis may be processed as follows.
A Only part (iii) is correct
B Only part (i), (ii) and (iv) correct
C Only part (i), (ii), (iii) and (iv) correct
D Only part (ii) is correct
12. Venture Capital nancing is ___________
(A) Type of nancing by venture capital.
(B) It is private equity capital provided as seed funding to early-stage.
(C) Investment in blue-chip companies for an assured return.
(D) It is a high-risk investment made with the intention of creating high returns.
(E) Done in technology projects only.
Choose the correct answer from the options given below :
A (A), (B), (D) and (E) only are correct statements.
B (A), (B) and (D) only are correct statements.
C (A), (B) and (E) only are correct statements.
D (C), (D) and (E) only are correct statements.
13. An entrepreneur is a person who
A moderately takes calculated risk.
B only follow instructions as a subordinate.
C works as an employee in a rm or company.
D manage the given task professionally as a manager of a rm or company.
14. Match List I with List II :
Choose the correct answer from the options given below :
A (A)-(III), (B)-(II), (C)-(IV), (D)-(I)
B (A)-(III), (B)-(IV), (C)-(II), (D)-(I)
C (A)-(II), (B)-(III), (C)-(IV), (D)-(I)
D (A)-(IV), (8)-(II), (C)-(III), (D)-(I)
15. Given below are two statements:
Statement I: Lean start-up methodology prioritises extensive market research before any product. Statement II: Lean start-up methodology focuses on creating a Minimal Viable Product (MVP) to test hypotheses.
In light of the above statements, choose the correct answer from the options given below :
A Both Statement I and Statement II are true
B Both Statement I and Statement II are false
C Statement I is true but Statement II is false
D Statement I is false but Statement II is true
16. Which of the following funding sources is speci cally aimed at helping early-stage startups?
A Series funding
B Angel investment
C Corporate bonds
D Initial Public Offering (IPO)
17. Given below are two statements:
Statement I: Cost-Bene t Analysis (CBA) measures a project's societal effects and does a cost-bene t comparison in monetary terms.
Statement II: CBA is the most widely applied tool for the appraisal of transport projects. In light of the above statements, choose the correct answer from the options given below:
A Both Statement I and Statement II are true.
B Both Statement I and Statement II are false.
C Statement I is true but Statement II is false.
D Statement I is false but Statement II is true.
18. 'Feasibility analysis' is described as follows:
(A) It is the process of assessing whether the business idea is viable.
(B) It is the preliminary evaluation of a business idea done for the purpose of determining whether the idea is worth pursuing.
(C) It is to guess the time span in which the investment made in the project can be recovered.
(D) It is to nd whether the technology adopted will work correctly.
(E) It is to estimate demand and to plan supply accordingly. Choose the correct answer from the options given below :
A Only (A) is correct statement
B Only (B) is correct statement
C Only (A) and (B) are correct statements
D Only (C), (D) and (A) are correct statements
19. Given below are two statements:
Statement I: Creativity is a function of novel, useful, and potentially valuable ideas.
Statement II: Creativity is a complicated and multidimensional concept with many components, such as knowledge, cognition, personality, intelligence and motivation.
In light of the above statements, choose the correct answer from the options given below:
A Both Statement I and Statement II are true.
B Both Statement I and Statement II are false.
C Statement I is true but Statement II is false.
D Statement I is false but Statement II is true.
20. Who is a Fabian Entrepreneur?
A Innovators who rapidly adopt changes.
B Entrepreneurs who cannot adopt to changes and prefer old fashioned business practices.
C Entrepreneurs who copy ideas from others.
D. Entrepreneurs who take signi cant risk
Answer Keys
1.A 2.A 3.A 4.C 5.C 6.C 7.B 8.C 9.D 10.C 11.C 12.B 13.A 14.C 15.D 16.B 17.A 18.C 19.A 20.B
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