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MGT602 Solved MCQ from Books C
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MGT602 Entrepreneurship
1
The venture's form of ownership should be included and described in the production plan section of the
business plan.
A)True
B)False
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2
Investors consider the section on description of the venture as important because they can determine the
amount of investment needed without having to read through the entire plan.
A)True
B)False
3
Most entrepreneurs have difficulty with gathering operations information and do not often know where to
begin.
A)True
B)False
4
Potential investors are not very insistent on specifications that need to be included in the business plan.
A)True
B)False
5
The business plan is an integration of functional plans such as marketing, finance, manufacturing, and
human resources.
A)True
B)False
6
Typically business plan projections are made on a ____________.
A)bi-monthly schedule
B)quarterly schedule
C)six-month schedule
D)12-month schedule
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7
The names, addresses, and resumes of the directors and officers of the corporation forms part of the
_______________ plan.
A)operations
B)organizational
C)production
D)marketing
8
A production plan usually includes:
A)pricing.
B)evaluation of the weaknesses of the business.
C)names of suppliers of raw materials.
D)flow of orders for goods and/or services.
9
Raw materials, labor skills, space and location form a part of __________ information needs.
A)marketing
B)financial
C)operations
D)planning
10
Which of the following is not among the three perspectives that should be considered in preparing a
business plan?
A)marketing perspective
B)perspective of the entrepreneur
C)investor perspective
D)technical perspective
1
If the entrepreneur closely monitors the progress of the existing plan, he or she need not be concerned
about contingencies.
A)True
B)False
http://www.vuzs.info/

2
If the market for a new venture is highly concentrated, it is advisable to consider direct sales.
A)True
B)False
3
During situation analysis, the entrepreneur should provide a review of past performance of the product
and the company.
A)True
B)False
4
While a marketing plan may enable the entrepreneur to understand and recognize the critical issues, it
may not help in the event of any change in the environment.
A)True
B)False
5
Gathering information from primary sources is the first step in market research.
A)True
B)False
6
Monitoring ___________ during the implementation of the marketing plan allows the entrepreneur to
establish controls on the process.
A)sales data
B)research data
C)consumer data
D)technical data
7
Advertising and promotion for the business-to-business market involve all of the following EXCEPT:
A)indirect sales
B)trade magazine advertising.
C)direct sales.
D)trade shows.
8http://www.vuzs.info/

What is a target market?


A)A group of customers a venture reaches by accident.
B)All consumers who purchase the venture's product.
C)A specific group of potential customers toward which a venture aims its marketing plan.
D)A chain of discount stores.
9
Which of the following is NOT a characteristic of a marketing plan?
A)It should provide a strategy.
B)It should be based on facts and valid assumptions.
C)It should be flexible.
D)It should be long and detailed.
10
Which of the following is NOT an example of collecting primary data?
A)Observation
B)Using the Internet
C)Interviewing
D)Focus groups
1
The leaders of the organization need not always consider themselves role models for their employees.
A)True
B)False
2
In an S corporation capital gains or losses from the corporation are treated as personal income or losses.
A)True
B)False
3
The most attractive type of business formation for raising capital is partnership.vuzs
A)True
B)False
4
A sole proprietorship is dissolved in the event of the owner's death.
A)True
B)False
5
The proprietor is not personally liable for any aspects of the business.
A)True
B)False
6
The board of advisors:
A)is subject to regulations stipulated in the Sarbanes-Oxley Act.
B)has no legal status.
C)is not advisable in a family-owned business.
D)is likely to meet more frequently.
7
In a(n) ______________________, only one class of stock is permitted.
A)sole proprietorship
B)C corporation
C)S corporation
D)partnership
8
________________ distribute profits to owners through dividends.
A)Sole proprietorship
B)General partnerships
C)Limited partnerships
D)Corporations
9
In a ______________, bonds can be used to raise capital.
A)corporation
B)limited partnership
C)general partnership
D)sole proprietorship
http://www.vuzs.info/

10
The least expensive form of ownership to start is a:
A)corporation.
B)limited liability company.
C)partnership.
D)sole proprietorship.

MGT602 SOLVED MCQs (A)


solved by vuZs team
Join this Group Main Study Portal
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1-Writing business plan can ensure that
a) You achieve your expense projections.
b) You figure out how to make your business work.
c) You meet your target revenue goals.
d) You make a profit.

2-Your ________ is a concise communication of your strategy including your business definition
and your competitive advantage
a) Target market analysis
b) Mission statement
c) Values statement
d) Business plan

3-High-potential ventures are


a) Ventures that have high growth potential and therefore receive great investor's
interest
b) Very low growth venture
c) Small ventures that support the owners and usually do not grow
d) None of the mentioned options

4-Inner control (discipline), risk taking, innovativeness, change oriented personality are
a) Business management skills
b) Technical skills
c) Personal entrepreneurial skills
d) None of the mentioned options

5-Proactiveness includes
a) Initiative taking
b) Risk taking
c) Competitive aggressiveness
d) All of the mentioned options

6-Some of the world's greatest entrepreneurs have overcome challenges from their childhood
and youth, including:
a) Learning disabilities
b) Extreme poverty
c) Abuse
d) All of the mentioned options

7-Entrepreneurs view change as


a) An opportunity
b) An inevitable situation
c) A problem
d) None of the above options

8-Profit is a sign that an entrepreneur has added value to the “scarce” ________ that he or she
is using.
a) Resources
b) Employees
c) Goods
d) Ideas

9-Breakthrough innovations are


a) A new product with just physical change
b) A new product with some technological change
c) Same product with some technological change
d) None of the mentioned options

1-Combination of at least two firms doing similar businesses at the same level is:
Horizontal Merger
Vertical Merger
Product Extension Merger
Diversified Activity Merger

2-A ______________ is an entity formed between two or more parties to undertake economic
activity together.
Indirect Exporting
Joint Venture
Licensing
Entrepreneurship

3-Combination of at least two firms at different market levels is:


Horizontal Merger
Vertical Merger
Product Extension Merger
Diversified Activity Merger

-____________ is a method of developing new ideas when the individuals are unaware of the
problem.
Checklist Method
Free Association Method
Gordon Method
Scientific Method

5-A spirit of entrepreneurs must be:


Ethically influenced
Managerial
Voluntary
None of the given option

6-Most of the innovations are:


Iterative Synthesis
Ordinary Innovation
Technological innovations
Breakthrough innovations

7-The _________________ refers to the ways managers make decisions.


Administrative domain
Entrepreneurial domain
Intrapreneurial domain
All of the given options

8-Without _______________ , the organization will never be able to make the


necessary Changes.
Lower Management
Top Management
Middle Management
None of the given options

9-The companies use the technology to make itself:


Faster and Flexible
Faster and Stiff
Inflexible and rigid
All of the given options

10-The___________________ is the term used to describe the complete process


of bringing a new product or service to market.
Idea Stage
Concept Stage
Product Development
Test Marketing Stage
Ref: http://en.wikipedia.org/wiki/New_product_development
In business and engineering, new product development (NPD) is the term used to describe the
complete process of bringing a new product or service to market. ...

Which of the following areas are preferred by women entrepreneurs?


► Administration
► Utilities
► Manufacturing
► None of the above

Degree of influence and control on other people is called:


► Locus of control
► Locomotion of control
► Locust of control
► Loss of control

Individuals influencing an entrepreneur’s career choice and style are known as which of the
following?
► Role model
► Moral-support network
► Professional support network
► Support system

The activity which occurs when the new venture is started is called:
► Motivation
► Business skills
► Departure point
► Goal orientation

What is the process by which individuals pursue opportunities without regard to resources they
currently control?
► Startup management
► Entrepreneurship
► Financial analysis
► Feasibility planning

Which one of the following is the process of entrepreneurs developing new products that over
time make current products obsolete?
► New business model
► Anatomization
► Creative destruction
► None of the given options

Which of the following shows the process of creating something new?


► Business model
► Modeling
► Innovation
► Creative flexibility

Which of the following factors is the most important in forcing U.S companies to focus on new
product development and increased productivity?
► Entrepreneurship
► Hyper competition
► Governmental laws
► Organizational culture

There is an evidence that an entrepreneur usually has _______________ parents.


Self employed
Discouraged
Non supportive
Strict

Following are the problems in developing the economies EXCEPT:


Gap of knowledge
Variable rate of return
Same communication style
Different accounting system

Which one of the following is the next stage to the Concept Stage of Product Planning and
Development Process?
Idea Stage
Product Planning Stage
Product Development Stage
Test Marketing Stage
Product planning and development process
Generally divided into five major stages: idea stage, concept stage, product development stage,
test marketing stage, test marketing stage, and commercialization stage

Which of the following is a more structured method of problem solving, including principles and
rules for concept formation, making observations and experiments, and finally validating the
hypothesis?
Scientific method
Heuristics
Attribute listing
Value analysis
Scientific method
This is a more structured method of problem solving, including principles and rules for concept
formation, making observations and experiments, and finally validating the hypothesis.

Which of the following is used by entrepreneurs to acquire experience in an international market


before making a major commitment?
Merger
Joint venture
Minority interest
Majority interest

Which of the following plan shows the economically feasibility of business?


Business
Financial
Economic
Marketing
What are the number of questions a marketing plan usually answers?
5
2
3
4
1=What business are you in? 2=What are the priorities for the growth of your
business? 3=What are the barriers to growth? 4=What business marketing strategy, structure
and actions will accelerate the growth of your company? 5=What steps can you take
immediately to improve the effectiveness of your business marketing?

Which of the following allows the entrepreneur to establish controls on the process during the
implementation of the marketing plan?
Sales data
Research data
Consumer data
Technical data

Which of the following shows the characteristic of the venture that has experience in related
business?
Strength
Weakness
Opportunity
Threat
Advertising and promotion for the business-to-business market involve all of the following
EXCEPT:
Indirect sales
Trade magazine advertising
Direct sales
Trade shows

Which of the following shows the characteristic of the venture that has experience in related
business?
Strength
Weakness
Opportunity
Threat

In which of the following, banks are usually reluctant to give loan?


Sole Proprietor
Public Limited Companies
Partnership firm
Private Limited Companies

In which of the following majority holds the management control?


Partnership
Corporation
Limited liability company
All of the given options

Which of the following represents the environment in which entrepreneurship can’t grow?
Boom
Vacuum
Maturity
Introductory Phase
Its correct answer is "vacuum" because rest three are not environment rather these are
different stages of business. As the main feature of entrepreneurship is "independence”. So in
vacuum environment an entrepreneur cannot grow.

"What the entrepreneur hopes to accomplish" includes in which section of business plan?
Vision statement
Mission Statement
Goal Statement
All of the above
The description of the venture should be detailed in this section. This should begin with the
mission statement or company mission, which describes the nature of the business and what
the entrepreneur hopes to accomplish.

Which of the following shows the standard acceptable term of a Limited Liability Company?
Three
Ten
Twenty
Thirty
Page no 73
6. The standard acceptable term of an LLC is 30 years.

Which one of the following provides a guideline in determining hiring procedures?


Job description
Job specification
Job analysis
Job evaluation
Before writing the organization plan, it is helpful to prepare a job analysis. The job analysis
serves as a guide in determining hiring procedures and job descriptions and specifications.

The S corporation combines the tax advantages of which one of the following?
Proprietorship and limited liability company
Partnership and corporation
Corporation and limited liability company
Partnership and proprietorship
Page no 73
1. A popular new entity is the limited liability company (LLC), which offers similar
Advantages as the S Corporation but with more liberal tax rules under subchapter K. This form is a
partnership-corporation hybrid with the following characteristics:

Which of the following is the base of Job Advertisement?


Job Description
Job Specification
Job identification
All of the above options

Which of the following shows the results from the difference between actual cash receipts and
cash payments?
Revenue
Profit
Cash flow
Income statement
What is the primary concern of entrepreneurs, who trade equity for their growing venture?
Control
Valuation
Investor capabilities
Capitalization

When the business does not have assets to support a loan, the entrepreneur may go for which
one of the following options?
Character loan
Straight commercial loan
Installment loan
Long term loan
.Character loans.
a. When the business does not have assets to support a loan, the entrepreneur may need
a character loan.
b. These loans must have assets of an individual pledged as collateral, or have the
loan cosigned by another

Which of the following number of years a mortgage loan may possibly cover?
10
20
30
40

In which of the following techniques, money is given to a firm for developing a technology and
involves a tax shelter?
Small business administration loans
Cash flow financing
Small business innovation research grant
Research and development limited partnership

This method of financing provides funds from inventors looking for tax shelters. A
typical R&Dpartnership arrangement is established with a sponsoring company developing the technology
with funds being provided by a limited partnership of individual investors. Research and development
limited partnerships are particularly good when the project involves a high degree of risk or significant
expense.

The overall coordinating party in an agreement is:


Limited partner
Major partner not sure
Minor partner
General partner

Which of the following includes grants from the U.S. government to small technology based
businesses?
Small business administration loans
Small business innovation research grant
Research and development limited partnership
Installment loans
Page no 87

Which of the following is a formalized method for obtaining funds from private investors?
Private placement
Private offering
Regulation D
Bootstrap financing

http://books.google.com.pk/books?id=s01P0agnLPUC&pg=PA336&lpg=PA336&dq=Which+of+the+followi
ng+is+a+formalized+method+for+obtaining+funds+from+private+investors%3F&source=bl&ots=rCMCD
s_3s4&sig=lluTX1HCWjFtSAv_r4tiNO6P5l4&hl=en&ei=Fr2OS4TsFYa3rAeRotiICw&sa=X&oi=book_result&ct
=result&resnum=1&ved=0CAYQ6AEwAA#v=onepage&q=&f=false

When did the Sindh Small Industries Corporation launch its credit scheme?
1972-73
1978-79
1988-89
1992-93
The SSIC also launched a credit scheme in 88,/89.
Which of the following is a type of leverage ratio?
Debt ratio
Net profit margin
Return on investment
Current ratio

The mean age of entrepreneurial enterprises in Pakistan is:


12 years
15 years
20 years
22 years
Age Pattern in Pakistan:
“The mean age of entrepreneur was found to be 42 years and of their enterprises 12 years. It is
comparable to the Korean age pattern (46)”.

In most cases, the venture capitalist:


Seeks control of the company
Never expects a seat on the board of directors
Expects the management team to run the daily operations
Prefers not to interfere in planning and expertise areas

Conflicts in Management thoughts and Entrepreneur thoughts are resolved by which of the
following company?
Xerox page 16
Unilever
Walls
Volta

The entrepreneur must possess the abilities:


Creative
Conceptualization
Understanding environment
All of the given options

In which of the following era entrepreneur enters into a contract with government to perform a
service?
20th century
Earliest period
Middle ages
17th century
In the 17th century the entrepreneur was a person who entered into a contract with the government toper
form a service Richard Cantillon, a noted economist of the 1700s, developed theories of the entrepreneur
and is regarded as the founder of the term.

Which one of the following is a firm that achieves modest growth?


High potential growth firm
Foundation firm
Life style
Public company

In entrepreneurial domain the commitment to opportunity has short time span but in
managerial domain it is:
For 1 month
For 6 months
For long time span
For 1 year

Moral support network includes all of the following EXCEPT:


Spouses
Friends
Business associates sure
Relatives
page no 26

There is evidence that an entrepreneur usually has _______________ parents.


Self employed
Discouraged
Non supportive
Strict

Following are the problems in developing the economies EXCEPT:


Gap of knowledge
Variable rate of return
Same communication style
Different accounting system
Which of the following has not yet been empirically established as a distinguishing
characteristic of entrepreneurs?

► Locus of control
► Feeling about independence
► Need for achievement
► Risk taking
Risk Taking
Risk taking seems a part of the entrepreneurial process. However, it has not yet been empirically
A typical inventor is usually ________________________.

► Highly creative & in love with the invention


► Does not encourage change
► Willing to modify the invention in order to augment commercial benefit
► None of the given options

The level at which an individual is viewed by society is called:

► Financial status
► Qualification
► Social status
► Achievement

An individual’s need to be recognized is called:

► Need for independence


► Need for affiliation
► Need of fame
► Need for achievement

Which one of the following is an important source of idea generation due to their familiarity
with the needs of market?

► Existing products and services


► Distribution channels
► Federal government
► Consumers

The concept of World Wide Web pages was developed in:

► 1960s
► 1970s
► 1980s
► 1990s

How many perspectives should be considered while preparing business plan?

► One
► Three
► Four
► Not specific

Which one of the following can be registered under design patent?

► New product
► Original product
► Ornamental
► All of the given options

Which of the following is a characteristic of a good partner?

► Help to achieve goals


► Share entrepreneur’s vision
► Do not exploit the partnership
► All of the given options

Which of the following is a method of selling goods to another country by taking care of
transactions?

► Indirect exporting
► Direct exporting
► Importing
► Management contract

Most of the finance for the new firm comes from following resources EXCEPT:

► Friends
► Foreign aid
► Relatives
► Personal savings

Which one of the following receives highest investment?

► Public company
► Life style
► High potential venture
► Foundation firm

Which of the following is a second step in the entrepreneurial process?


► Developing successful business ideas
► Deciding to become an entrepreneur
► Growing the entrepreneurial firm
► Moving from an idea to an entrepreneurial firm

Which of the following is NOT included in the opportunity evaluation process?

► Length of the opportunity


► Real and perceived value of opportunity
► Goals and objectives of customers
► Risks and rewards of opportunity

Which one of the following is true regarding female entrepreneurs?

► Currently the number of companies owned by female entrepreneurs exceeds those


owned by their male counterparts
► Women-owned businesses grow thrice that national rate for all private companies
► 53 percent of all private companies are women-owned businesses
► One-third of women-owned businesses are connected with health care and
social services

In terms of chronological age, most entrepreneurs initiate their entrepreneurial carrier


between ages of:

► 15 and 22
► 22 and 45
► 45 and 57
► 57 and 63

It has been observed that usually the entire country is organized under single:

► Economic system
► Culture
► Living standard
► Legal environment

Following are the types of non-equity arrangements EXCEPT:


► Licensing
► Management contracts
► Direct export
► Turnkey projects

Which of the following abilities must be possessed by an entrepreneur?

► Creative
► Conceptualization
► Understanding environment
► All of the given options

An individual’s desirability to form a new venture depends upon all of the following Except:
► Culture
► Family
► Teachers
► Personal savings
The perception that starting a new company is desirable results from an individual’s culture,
subculture, family, teachers and peers.

Identify the type of innovation which refers to new products with significant technological
advancement.
► Ordinary innovation
► Technological innovation
► Breakthrough innovation
► Technical innovation

• Most innovations introduced in the market are ordinary innovations, with little uniqueness.
• Technological innovations refer to new products with significant technological
advancements. • Breakthrough innovations mean the development of new products with
some technological change

“Management of enterprise” is an important aspect of entrepreneurial process. Which involves


all of the following EXCEPT:
► Implementation of a management style
► Determination of key variables for success
► Implementation of control system
► Creation of opportunity

Which of the following is NOT a goal of an Intrapreneurial culture?


► To take responsibility and ownership
► To be rewarded for actions taken
► To develop visions, goals, and action plans
► To follow given instructions
The guiding principles of intrapreneur
1. Develop visions, goals, and action plans
2. Be rewarded for actions taken
3. Suggest, try, and experiment
4. Create and develop
5. Take responsibility and ownership

Which of the following best defines “minority interest”?


► It refers to having less than 50 percent ownership position
► It refers to forming a third company by combining two companies
► It refers to having more than 50 percent ownership position
► It refers to selling goods made in one country to another country

Which of the following is an idea generation method that focuses on parameters?


► Brainstorming
► Reverse brainstorming
► Creative problem solving
► Synectics

Question No: 31 ( M - 1 ) .
Which of the following best describes “contract”?
► It refers to a legally binding agreement between two parties
► It grants holder protection from others making, using or selling similar idea
► It may be a word, symbol, design or some combination that identifies the source of
certain goods
► It refers to a legal document giving official permission to do something

There are three perspectives that should be considered when preparing the plan. Which of the
following does NOT refer to the plan?
► Entrepreneurial perspective
► Marketing perspective
► Investor’s perspective
► Religious perspective
The entrepreneur understands the new venture better than anyone. The marketing
perspective considers the venture through the eyes of the customer. The investor looks for
sound financial projections. The depth of the business plan depends on the size and scope of
the proposed venture. The business plan is valuable to the entrepreneur and investors because:

Business plan should be prepared by an entrepreneur. All of the following should be consulted
while preparing this plan EXCEPT:
► Lawyers
► Accountants
► Marketing consultants
► General public
WHO SHOULD WRITE THE PLAN
The business plan should be prepared by the entrepreneur; however, he or she may consult
many sources. Lawyers, accountants, marketing consultants, and engineers are useful
supplemental sources. Other resources are the Small Business Administration, Service Core of
Retired Executives, Small Business Development Centers, universities, friends, and relatives. To
help determine whether to hire a consultant, the entrepreneur needs to make an objective
assessment of his or her own skills.
Data that support the opportunity for the venture should be briefly stated in the executive
summary. If this venture is an internet business, all of the following facts should be stated by
an entrepreneur EXCEPT:
► Growth in the number of internet users
► Growth in the average amount of time spent on the internet
► Growth in sales dollars generated on the internet
► Growth rate of population
Which one of the following can serve entrepreneur as a consultant of the business plan?

► Lawyers
► Accountants
► Marketers
► All of the given options

A typical inventor is usually ________________________.

► Highly creative & in love with the invention


► Does not encourage change
► Willing to modify the invention in order to augment commercial benefit
► None of the given options
Inventor
An individual who creates something new

Being one’s own boss is a need of:

► Independence
► Achievement
► Affiliation
► Authority
Need for independence. Being one’s own boss-one of the strongest needs of an entrepreneur

The difference between the value of a country’s imports and exports over time is called:

► Deficit exports
► Deficit imports
► Balance of payment
► Balance of debt
Ref: http://en.mimi.hu/business/exports.html
The difference between the value of a country's imports and exports during a specific period of times
called the balance of trade.

A/an ______ is an online connection between the company and its customers.

► Internet advertising
► Website
► E-Commerce
► World Wide Web
Website A website is an online connection between the company and its customers and can be
developed in-house or outsourced. There are several important features of every website.

Which of the following grants protection to owner from anyone else making, using and selling
the identified innovation?

► Utility patent
► Design patent
► Plant patent
► International patent
1. Utility Patents
A utility patent has a term of 17 years, beginning on the date the Patent and Trademark Office (PTO)
issues it. NAFTA (North American Free Trade Agreement) establishes a minimum period of 20 years. The
patent grants the owner protection from anyone making, using, and/or selling the invention.

All of the following are essentials to maintain secrecy, EXCEPT:

► Train employees to refer sensitive questions to one person


► Discuss business in public places
► Provide escorts for all office visitors
► Use simple security such as locked file cabinets
To maintain secrecy
1. Train employees to refer sensitive questions to one person.
2. Provide escorts for all office visitors.
3. Avoid discussing business in public places.
4. Use simple security such as locked file cabinets and shredders.

Who should prepare the business plan?

► Entrepreneurs
► Consultants
► Engineers
► Small business administration services
A business plan is a written document prepared by the entrepreneur that describes all the
relevant external and internal elements involved in starting a new venture.

Which of the following body issues patents?


► GATT
► NAFTA
► FTA
► PTO
Patents are issued by the Patent and Trademark Office (PTO.)

The product life cycle starts with which stage of product planning and development process?

► Test marketing stage


► Product development stage
► Commercialization stage
► Product planning and development process is a part of product life cycle
Product planning and development process
Generally divided into five major stages: idea stage, concept stage, product development
stage, test marketing stage, test marketing stage, and commercialization stage

Which one of the following gives suggestions for new product and also help to market new
products?

► Existing products and services


► Distribution channels
► Federal government
► Consumers
Distribution Channels Because they are familiar with the needs of the market, channel
members often have suggestions for new products. These channel members can also help in
marketing the new product.

Trade barriers cause:

► Increase in cost
► Decrease in cost
► Increase in profit
► None of the given options
Trade barriers pose problems for entrepreneurs who want to become involved in international
business. Trade barriers increase the costs of exporting projects to a country.

A person who managed large project was termed as the entrepreneur in the _________.

► Earliest period
► Middle ages
► 17th century
► 19th and 20th century
Middle Ages
In this age the term entrepreneur was used to describe both an actor and a person who
managed large production projects.

Which of the following is NOT a potential cost of becoming an entrepreneur?

► Financial reward
► Long hours
► Financial insecurity
► Loneliness

Factors contribute to the creation of new venture EXCEPT:

► Government
► Finance
► High interest rates
► Role models

Most of the finance for the new firm comes from following resources EXCEPT:

► Friends
► Foreign aid
► Relatives
► Personal savings

What is the process by which individuals pursue opportunities without regard to resources they
currently control?

► Startup management
► Entrepreneurship
► Financial analysis
► Feasibility planning
Conceptualized entrepreneurship as a process by which individuals - either on their own or
inside organizations - pursue opportunities without regard to the resources which they currently
control.

Which of the following is NOT included in the opportunity evaluation process?

► Length of the opportunity


► Real and perceived value of opportunity
► Goals and objectives of customers
► Risks and rewards of opportunity

a. The evaluation process involves looking at


b. The creation and length of the opportunity
c. Its real and perceived value
d. Its risks and return.
e. It’s fit with the skills and goals of the entrepreneur
f. Its differential advantage in its competitive environment

Which is the most common cause of business failure?


► Insufficient capital
► Unstable market
► Insufficient experience
► Poor entrepreneurship
In which one of the following countries the entrepreneurial success has been significant because
of the culture, the political and economic systems?

► European countries
► Asian countries
► Far East countries
► Middle East countries
Page 37 Entrepreneurial success in some Asian countries has been significant because of the
culture and the political and economic systems.

Moral support network includes all of the following EXCEPT:

► Spouses
► Friends
► Business associates
► Relatives
Moral support network of family and friends. Most entrepreneurs indicate that their spouses are their
biggest supporters. Friends can provide advice that is more honest than that received from others, plus
encouragement, understanding, and assistance. Relatives can also be sources of moral support,
particularly if they are also entrepreneurs.

Professional support network includes all of the following EXCEPT:

► Personal affiliations
► Mentor
► Trade associations
► Friends
Page 26 read Professional-Support Network

The former USSR received technology and syrup from Pepsi and provided it with Soviet vodka
and rights to distribute it in the US. This is an example of:

► Economic development
► Barter system
► Balance of payment
► International trade
Type of System Barter or third-party arrangements have been used to increase business
activity with the Commonwealth of Independent States, the former U.S.S.R.

__________ is prepared on the bases of levels of the internal structure of the business.
► Organizational Plan
► Production Plan
► Marketing Plan
► Financial Plan
The organizational plan section should describe the venture’s form of ownership. If the venture
is a corporation, this should include the number of shares authorized, share options, and names
and addresses of the directors and officers. It is helpful to provide an organization chart
indicating the line of authority. This chart shows the investor who controls the organization and
how members interact.

Which of the following abilities must be possessed by an entrepreneur?


► Creative
► Conceptualization
► Understanding environment
► All of the given options

Which
of the following is NOT a guiding principle in a traditional corporate culture?
► Follow given instructions
► Take responsibility and ownership
► Do not take initiative
► Do not make mistakes
The guiding principles in a traditional corporate culture are:
1. Follow instructions given 2. Do not make mistakes 3. Do not fail 4. Do not take initiative 5. Stay within
your turf and protect your backside 6. This restrictive environment is not conducive to creativity,
flexibility, and risk taking

In order to minimize the negative effect of any disruption in an organization, which of the
following characteristics an intrapreneur must possess?
► He should be diplomatic
► He should be conservative
► He should be autocratic
► He should be authoritative
PAGE 20
The intrapreneur must be a good diplomat to minimize disruption.

According to research, when do the female entrepreneurs tend to start their first significant
venture?
► In their mid 20s
► In their mid 30s
► In their mid 40s
► In their mid 50s

Which of the following best defines “horizontal merger”?


► It refers to combining at least two firms doing similar businesses at the same
market level
► It refers to forming a third company by combining two companies
► It refers to having more than 50 percent ownership position
► It refers to combining at least two firms at different market levels
Horizontal merger
Combination of at least two firms doing similar businesses at the same market level

Which of the following is an example of rising number of women entrepreneurs in China?


► Guau Guarymei
► Wataru Ohashi
► Kazuhiko Nishi
► Li Ka-Shing

Identify the statement which best defines “checklist method”


► It refers to developing a new idea through a list of related issues
► It refers to a group method for obtaining new ideas focusing on the negative
► It refers to a method for individuals to solve problems through one of four mechanisms
► It refers to a method for developing new ideas when the individuals are unaware of the
problem
Checklist method
Developing a new idea through a list of related issues is checklist method of problem solving.

Which of the following best describes “contract”?


► It refers to a legally binding agreement between two parties
► It grants holder protection from others making, using or selling similar idea
► It may be a word, symbol, design or some combination that identifies the source of
certain goods
► It refers to a legal document giving official permission to do something
Contract is an agreement between two or more parties, that if it contains the elements of a valid legal
agreement is enforceable by law[1] or by binding arbitration. That is to say, a contract is an exchange of
promises with a specific remedy for breach.

Which of the following is the title or cover page that provides a brief summary of the business
plan’s content?
► Introductory page
► Executive summary
► Environmental and industry analysis
► Description of venture
PAGE 57
The title page provides a brief summary of the business plan’s contents,
Virtual University MCQs BANK - MCQs Collection
from Online Quizzes
MGT602 Solved MCQs by Asim,SalmanAsif A
View Comments

ALL NEW QUIZES DATA


SOLVED BY 4 MAD’s GROUP
TEAM: SALMAN ASIF, ASIM, AYESHA, AMNA

1. Good entrepreneurs are usually from families which are:


Landlords
Capitalists
Can be from any family with supportive parents
Conservative parents
2. GATT is established in 1947, under:
Japan leadership
China leadership
U.S. leadership
U.K. leadership
3. The person with capital was differentiated from the one who needed the
capital in the:
Middle ages
17th century
18th century
20th century
4. Which of the following number of years a mortgage loan may possibly cover?
20
30
10
40
5. __________ aim to facilitate direct contact between the manufacturers and
distribution channels members
Personal selling
Direct selling
Trade shows
Publicity
6. The combining of two or more independent bodies into a single body is known
as:
Joint venture
Merger
Rivalry
Protectionist attitudes
7. Banks are usually reluctant to give loan to the
Private Limited Companies
Partnership firm
Public Limited Companies
Sole Proprietor
8. Normally sponsor links are used in which of the following type of promotion?
Publicity
Trade shows
Personal selling
Internet advertising
9. Which of the following are the key factors for choosing the type of financing?
Availability of funds
Assets of the venture
Prevailing interest rates
All of the above options
10. Investors usually prefers the income statement which projects the sales
volume of _____ years
1
2
3
4
11. In which of the following year implementation of SBA Financial plan took
place?
1971
1972
1973
1974
12. In which of the following business, the records are needed to be maintained
on the basis of monthly charges paid by the customers?
Pharmaceutical
Service venture
Online venture
Auto industry
13. Which one of the following gives suggestions for new product but also helps
to market new product in the market?
Existing products and services
Distribution channels
Federal government
Consumers
14. SIDB was established for the province of __________.
NWFP
Sindh

Punjab

Balochistan
15. Which one of the following culture that has a climate and reward system that
favor conservative decision making?
Entrepreneurial
Intrapreneurial
Corporate
None of the given options
16. LMM stands for:
Locally Manufactured Machinery
Locally Manufactured Marble
Local Marble Market
Local Meat Market
17. Which one of the following is NOT an external factor?
New regulations
Competition
Social changes
Manufacturing
18. What can be the effect on cash flows due to delays in payments by the
clients?
Positive cash flows
Negative cash flows
No effect on cash flows
None of the given options
19. Which of the following is independently owned and operated and not
dominant in its field of operation?
Diversified Organization
International Business
Small Business
Entrepreneurship
20. __________ is commonly used to measure the short-term solvency of the
venture?
Debt to equity ratio
Current ratio
Profitability ratio
Activity ratio
21. A ______ is also essential if a new venture is a manufacturing concern.
Market analysis
Operations plan
Bank loan
Organizational plan
22. In which rule under ‘Regulation-D’, a company can sell up to $500,000 of
securities to any number of investors in any 12-month period?
Rule 502
Rule 503
Rule 504
Rule 505
23. A marketing Plan answers the _______ types of questions
1
2
3
4
24. All of the following are essential to maintain secrecy EXCEPT:
Train employees to refer sensitive questions to one person
Discuss business in public places
Provide escorts for all office visitors
Use simple security such as locked file cabinets
25. Which one of the following method shows the term which is related to
starting from scratch to a bigger picture?
Upward movement method
Incremental method
Downward movement method
None of the above options
26. Which type of Job analysis enlists the qualification of individual?
Job Description
Job Specification
Job identification
All of the above options
27. Which of the following factor can create the managerial difficulties in the joint
ventures between foreign companies?
Cultural differences
Economic policies
Public ignorance
Government taxes
28. In which of the following situation the company is considered to be on
breakeven point?
No Profit no lose
Profits are higher then expenses
Expenses are higher then profits
None of the given options
29. Which one of the following is a method for obtaining new ideas and solutions
by focusing on problems?

Product inventory analysis

Gordon method

Checklist method

Scientific method Final Term File

30. Which of the following is NOT an advantage of the acquisition?

Goodwill

Skilled employees

Favorable location

Political instability

A marketing Plan answers the _______ types of questions

Select correct option:

Which one of the following plans should contain control points to ascertain progress and to initiate
contingency plans if necessary?

Financial plan

Marketing plan

Business plan
Operational plan

Which of the following section of business plan provides complete overview of the product, service and
operations of a new venture?

Production plan

Marketing plan

Description of venture

Industry analysis

Which of the following business size has lot of adjustment capacity against the changes?

Small

Middle

Large

High growth

Which one of the following contracts should be in written?

Real estates

Lease

Rentals

All of the given options

The members of the board should be carefully selected by considering which of the following criteria?

Select individuals who can work with a diverse group and will commit to the venture’s mission

Select candidates who understand the market environment

Select candidates who will show good judgment in business decision making

All of the given options


“Decide what general market or industry you wish to pursue” is the first step of:

Segmentation

Saturation

Marketing plan

Marketing system

Which of the following term describes the situation of two or more firms that offer essentially the same good or
service in the market?

Direct channel

Indirect competition

Direct competition

Indirect exports

Job description should include all of the following EXCEPT:

The major duties relevant to a particular job

Expected performance standards

The equipment needed by the worker

An evaluation of the worker’s personal needs

Which of the following business form has advantage of no capital stock tax or penalty for retained earnings in
the business?

Proprietorship

Limited liability company

Corporation

S corporation

A short-term, internal source of funds can be obtained by reducing all of following EXCEPT

Short-term assets

Cash

Fixed assets

Inventory
Which form of the business has the most freedom in terms of selling one’s interest in the business?

Sole proprietorship

Partnership

Corporation

S Corporation

SBA provides:

Finance without interest

Finance with interest

Guarantees for getting loans

Financing up to 90 % of principal amount

In USA Public Limited Companies may have ______ Director/s

On the part of entrepreneur which of the following has/ have a great concern to the Investors

Experience

Commitment

Knowledge

All of the above

On which of the following factors the death or withdrawal of a limited partner has no effect?

Continuity of the business

Cost of the business

Ownership of the business

Growth of the business


Before leaving his job as a brand manager for a leading toy manufacturer in France, John smith was asked to
update his __________,including the job’s objectives, type of work he did and other responsibilities.

Job analysis

Job description

Job specification

Job evaluation

SBIR grant program is controlled by:

10 Agencies

11 Agencies

12 Agencies

13 Agencies

Equipment can be used to secure long term financing, usually on a ______ basis.

1 to 2 years

3 to 6 years

3 to 10 years

4 to 5 years

A marketing Plan answers the _______ types of questions

4
Targeting the market consists of ______ Procedures

Corporations generally possess not more than two of the following four characteristics: (1) limited liability, (2)
centralized management, (3) one time taxation, and (4) least expensive to start. The two characteristics most
likely to be absent in corporations are __________.

Limited liability and centralized management

Centralized management and one time taxation

Centralized management and least expensive to start

One time taxation and least expensive to start

Before setting the product price, which of the following elements the entrepreneur needs to consider?

Costs

Markups

Competition

All of the above

From which of the following R & D limited partnerships provide funds to entrepreneurs in high technology
fields?

Equity contribution from investors

Debt from lenders

Cash from company operations

Investors looking for tax shelters

Which of the following is the most important for the entrepreneur, while starting a new venture, to make an
assessment of?

Risk

Profit

Market
Competitors

Which of the following is used to finance floor plans of retailers such as automobile and appliance dealers?

Line of credit

Trust receipt

Accounts receivable

Real estate

Which of the following is NOT an example of gathering data from secondary sources?

Trade magazines

Newspaper

Government agencies

Focus group

Which of the following financing does not require any collateral and offers the investor some form of
ownership position in the venture?

Commercial bank loan

Line of credit

Equity

Character loan

Corporation has______ Taxation system

No

Triple

Single

Double
Which of the following section of business plan provides complete overview of the product, service and
operations of a new venture?

Production plan

Marketing plan

Description of venture

Industry analysis

Which of the following statement is calculated from projected revenues minus projected costs?

Pro forma income

Pro forma expense

Pro forma revenue

Pro forma sales

Which of the following is a major disadvantage of the corporate form of business?

Double taxation of dividends

Limited liability of shareholders

Transferability of interest

Inability of the firm to raise large sums of additional capital

In which of the following royalty partnership and joint venture are used to reap the benefits of the effort?

Funding stage

Development stage

Growth stage

Exit stage

Which one of the following best describes the flow of goods and services from production to the customer?

Organizational plan
Marketing plan

Operations plan

Financial plan

Which of the following is included in the description of the business?

Location

Products offered

History

All of the given options

Which statement of the following relates with the ultimate goal of Business

Profit Statement

Goal Statement

Mission Statement

Vision Statement

Which of the following factors can be directly influenced or controlled?

Economy

Material price

Inflation

Fuel price

Banks are usually reluctant to give loan to the

Private Limited Companies

Partnership firm

Public Limited Companies

Sole Proprietor

Investors usually prefer the income statement which projects the sales volume of _____ years

1
2

Which one of the following responds to the question of: “Where do we want to go?” and specify things such as
market share, profits, sales, market penetration etc.?

Marketing goals and objectives

Mission statement

Vision statement

Market strategy and action programs

Which variable of the following has the critical decisions of media alternatives, message, role of personal
selling, media budget and coupons, etc?

Product

Price

Channel of Distribution

Promotion

What is the primary concern of founders who trade equity for capital for their growing

venture?

Select correct option:

Capitalization

Investor capabilities

Valuation

Control

All of the following are the major components of any research and development partnership EXCEP

Contract

Sponsoring company

Tax shelter
Limited partnership

Which statement of the following relates with the ultimate goal of Business

Select correct option:

Profit Statement

Goal Statement

Mission Statement

Vision Statement

LLC is more flexible than

Select correct option:

S Corporation

Limited Partnership

Sole Proprietor

All of the above

On the part of entrepreneur which of the following has/ have a great concern to the

Investors

Select correct option:

Experience

Commitment

Knowledge

All of the above


MGT602 – Entrepreneurship
Quiz No.4 FEB 02, 2013

Idea of new product is tested in potential consumers to determine consumer


acceptance at _________ stage.

Select correct option:


Concept (Right Answer)

Product development

Test marketing

Commercialization

Which of the following is NOT followed in brainstorming?

Select correct option:


Criticism is done by the group members (Right Answer)

The wilder idea is better

Quantity of ideas is required

The session should be fun, with no on dominating the discussion

According to the governing bodies of common laws, the life of trade secret is:

Select correct option:

12 years

17 years

20 years
As long as it remains confidential (Right Answer)

Which one of the following depends on the type of production system but is
designed to make sure that the product performs satisfactorily?
Select correct option:

Inventory control

Quality control

Sales control
Production control (Right Answer)

The most important characteristic of a successful business website is::

Select correct option:


Speed (Right Answer)

Innovation

Graphics

Products

Which of the following is used as most common approach to gather market


information?

Select correct option:

Interviewing
Focus group (Right Answer)

Questionnaire

Observation

Which one of the following has the critical decisions of materials, style, features,
options, brand name, packaging, sizes and warranties?

Select correct option:

Product

Price
Channel of distribution (Right Answer)

Promotion

Which one of the following contracts should be in written?

Select correct option:

Real estates

Lease

Rentals
All of the given options (Right Answer)

Which one of the following best describes the flow of goods and services from
production to the customer?

Organizational plan

Marketing plan
Operations plan (Right Answer)

Financial plan

Customers may sometimes prefer to do business with a corporation because of


its:
Long time Continuity (Right Answer)

Double taxation

Centralized Management

Distribution of profits and losses


Which of the following should consider in economy while conducting
environmental analysis?
GNP (Right Answer)

Disposable income

Unemployment

All of the given options

The marketing perspective of business plan considers the venture through the
eyes of:

Investor
Customer(Right Answer)

Entrepreneur

Marketing manager

Which one of the following is the method of developing new idea through a
thought process progression?
Synetics (Right Answer)

Heuristics

Forced relationships

Value analysis

Which one of the following plans should contain control points to ascertain
progress and to initiate contingency plans if necessary?
Financial plan(Right Answer)

Marketing plan

Business plan

Operational plan
Which of the following includes duties, purpose, responsibilities, scope and
working conditions of a job along with the job’s title and the designation of the
person to whom the employee reports?

Job design

Job specification
Job description(Right Answer)

Job analysis

The importance of intellectual property should be understood by entrepreneur


even before:

Hiring a manager
Engaging an attorney (Right Answer)

Developing a product

Establishing new venture

Which of the following form of business has no double taxation system?

Proprietorship

Partnership

S corporation
All the given options (Right Answer)

Which of the following is not considered a mode of conducting interviews?

By telephone

Face to face

Online
Newspaper (Right Answer)

Which one of the following is the systematic assembly of all the facts about a job?

Select correct option:

Job Specification

Job Description

Job Identification
Job Analysis

Which of the following is/are used by successful ventures to focus on information


about competitors, the customers and the industry

Networking

Trade associations

Recent publication
All of the above

In USA Public Limited Companies may have ______ Director/s

1
2

3
4

Which one of the following is NOT an external factor?

Select correct option:

New regulations

Competition

Social changes
Manufacturing

Which of the following should be considered in economy while conducting


environmental analysis?

GNP\

Disposable income

Which one of the following is an important source of idea generation due to their

familiarity with the needs of market?

Select correct option:

Existing products and services


Distribution channels

Federal government

Consumers

A marketing Plan answers the _______ types of questions

Select correct option:

3
4

Which one of the following plans should contain control points to ascertain
progress and to initiate contingency plans if necessary?
Financial plan

Marketing plan

Business plan

Operational plan

Which one of the following contracts should be in written?

Real estates

Lease

Rentals
All of the given options

The members of the board should be carefully selected by considering which of


the following criteria?

Select individuals who can work with a diverse group and will commit to the
venture's mission

Select candidates who understand the market environment

Select candidates who will show good judgment in business decision making
All of the given options

A short-term, internal source of funds can be obtained by reducing all of following


EXCEPT

Short-term assets

Cash
Fixed assets

Inventory

SBA provides:

Finance without interest

Finance with interest


Guarantees for getting loans

Financing up to 90 % of principal amount

In USA Public Limited Companies may have ______ Director/s

1
2

On the part of entrepreneur which of the following has/ have a great concern to
the Investors

Experience

Commitment

Knowledge
All of the above

Before leaving his job as a brand manager for a leading toy manufacturer in
France, John smith was

SBIR grant program is controlled by:


10 Agencies

11 Agencies

12 Agencies
13 Agencies

Targeting the market consists of ______ Procedures

3
4

Before setting the product price, which of the following elements the entrepreneur
needs to consider?
Costs

Markups

Competition

All of the above

Which of the following is the most important for the entrepreneur, while starting a
new venture, to make an assessment of?
Risk

Profit

Market

Competitors

Why should an entrepreneur do a feasibility study?

Select correct option:


To see if there are possible barriers to success

To identify possible sources of funds

To estimate the expected sales

To explore potential customers


Which of the following is used for calculating the financial projections to assess
the impact of different scenarios?

Inventory management program.

The Internet.
Spreadsheet program.

Graphics program.

Which of the following information is included in industry analysis?

Market size

Suppliers

Economic conditions
All the given options

The creative process for problem solving that involves making the strange
familiar in first

step and then making the familiar strange through personal, direct or symbolic
analogy is

called:
Synectics

Gordon method

Checklist method

Scientific method

The business plan should be prepared by:

Select correct option:


Entrepreneurs

Consultants

Engineers

Small business administration services


Which of the following is the most frequently used source of short term funds
when collateral is available?

SBA loans
Commercial bank loans

R & D limited partnership

SBA microloans

Which type of business form has least perpetual life?

Partnership

Sole proprietorship

Limited liability Company


Corporation

Which type of Job analysis enlists the qualification of individual?

Select correct option:

Job Description
Job Specification

Job identification

All of the above options

Which of the following is NOT a characteristic of a marketing plan?

Select correct option:


It should be flexible
It should be long and detailed

It should be based on facts and valid assumptions

It should provide a strategy

Which of the following plans help to provide an organization chart indicating the
lines of

authority?

Select correct option:

Physical

Business
Organizational

Marketing

On the part of entrepreneur which of the following has/ have a great concern to
the

Investors

Select correct option:

Experience

Commitment

Knowledge
All of the above

Which of the following techniques is an excellent method for initially screening


ideas and
concepts in addition to generating new ideas?

Select correct option:


Focus group

Problem inventory analysis

Brain storming

Reverse brainstorming

Which of the following is the previous name of SME?

Select correct option:

SPCC

SMEDA
SBFC

FMBC

Developing a new idea through inquiry and testing is called:

Select correct option:

Heuristics

Forced relationship
Scientific method

Value analysis

Which of the following term is used to identify, "what the job


holder does"? "How it is done"? & "why it is done"?
A. Job specification
B. Job evaluation
C. Job description
D. Job title

MGT501- Human Resource Management (Session - 5)


Organizational Behavior is a study of investigating the impact of:
► Employees' behavior in an organization
► Societal behavior on an organization
► Country's culture on an organization
► Country's economy on an organization

Which of the following term is used to identify, "what the job holder does"? "how it is
done"? & "why it is done"?
► Job specification ► Job evaluation ► Job description ► Job title

Which of the following term is used to identify the physical & mental skills, required to
perform by an individual within a particular position in an organization?
► Job title ► Job specification ► Job description ► Job evaluation

Jobs are compensated on the basis of:

► Job analysis ► Job specification ► Job worth ► Job description

_______________ is the main source of innovations.

► Upgraded technology ► Human mind


► Competitors' pressure ► Research & Development

Which of the following HR function is the basic element of recruitment?


► Attract the job applicants for the particular post
► Select the best one among all applicants
► Train the people as per organizational requirements
► Fire the non-performing employees

“A person is known by the company he/she keeps”; is well described by which of the
term?

► Prejudice ► Stereotype ► Introversion ► Extroversion

Terms "Interpersonal skills" and "Human skills" are used for:


► Two different skills ► Different managerial skills
► Operational skills ► Same managerial skills

Which of the following abilities are categorized as the Technical skill of an individual?
► Judgment & creativity ► Analysis & communication
► Knowledge & proficiency ► Innovation & advancement

The intellectual & mechanical process used by an organization to transform inputs into
outputs is termed as:
► Task ► People ► Structure ► Technology

Under which of the following authority, an HR manager took the decision to provide
training to its employees regarding the operations of newly installed machine?
► Staff ► Functional ► Line ► Implied

Which one of the following is NOT the benefit of making teams?

► Every member is mutually accountable within a team


► Teams enable organizations to better utilize employees' talents
► Teams create trust and a collaborative culture
► Teams always perform better than individuals in all situations

Which one of the following is NOT the characteristic of a Virtual Team?

► Lack of nonverbal signals ► Limited social contact


► Increased social relationship
► Ability to overcome time and space constraints

Which of the following functions of HRM deals with 'Collective Bargaining'?


► Staffing ► Forcasting
► Employee-assistance management
► Employee-relations management

'There is no need to make any new appointment'; therefore, the organization has
transfered Mr. Azam to another branch. This step of the organization is taken to:
► Increase the labor supply than demand
► Maintain the balance of labor supply and demand
► Decrease the labor supply than demand
► Devastate the balance of labor supply and demand

A test conducted to ensure the biological fitness of an individual by identifying the


presence of any inherited diseases like diabetese, heart diseases, neurological disorders
etc, is termed as:

► Hereditary testing ► Gene testing ► Instinct testing ► Genetic testing

Which of the given employment testing approach requires individuals to perform


activities similar to those they might encounter in an actual job?
► In-basket technique ► Role playing ► Interview simulations► Case study
According to which of the following interview type, several applicants are being
interviewed by one or more company representatives?
► One-to-one interview► Panel interview ► Group interview►Stress interview

Question No: 19 ( Marks: 1 ) - Please choose one


'Material wastage has increased to greater extent due to using outdated machinery'.
This issue can be resolved by:
► Train machine operators regarding its operations
► Replacing the existing machinery with the new one
► Using new raw material in production
► No action is required as it is not a noticeable issue

Previous company records & customer satisfaction surveys may serve as a source for:
► Cultivating learning culture within the organization
► Determining deficiencies that require training
► Developing career development plans for employees
► Identifying training outcomes through evaluation

Evaluation of training program is conducted:


► At the initial stage while design a training ►Prior to need assessment phase
► Parallel to design a training content ► At the last stage of training

HR managers play vital role in:

► Setting production targets ► Formulating strategies


► Publishing financial statements ► Preparing reports for shareholders

Which of the following are the groups of social nature that are formed around friendship
and common interests?

► Formal ► Structured ► Informal ► Unstructured

Initially the personnel department was only involved in:


► Recruitment & selection ► Compensation & benefits
► Training & development ► Scheduling vacations

'Career counseling' is part of which of the following functions of HRM?


► Compensation & benefits ► Planning & selection
► Training & development ► Maintainence of HRIS

'Fair employment legislation' is applicable to which of the following?


► Collective bargaining ► Planning & selection
► Training & development ► Grapevine network

Which one of the following is NOT included in 'Training and Development'?


► Orientation ► Career development ► Employee education ► Recruitment

Jamal Enterprises' top management refused to consider its female marketing manager
for the post of Vice President. This action of the company is representing which of the
following?
► Gender discrimination ► Legal consideration
► Reverse discrimination ► Glass ceiling effect

The process of discovering potential candidates for actual or anticipated organizational


vacancies is known as:
► HR planning ► Job analysis ► Recruitment ► Selection

The hiring process comprises which of the following steps?


► Selection, Recruitment & performance appraisals
► Recruitment, Selection & Socialization
► Selection, Orientation & Development
► Job analysis, Selection & Training

Which of the following defines the process of 'Recruitment'?


► Forecasting the demand of human resources
► Forecasting the supply of human resources
► Discovering potential job candidates for a particular position
► Making a “hire” or “no hire” decisions

The number of people hired for a particular job compared to the number of individuals in
the applicant pool is often expressed as:

► Application ratio ► Recruitment ratio ► Selection ratio ► Employment ratio

The extent to which an employment selection test provides consistent results is known
as:
► Reliability ► Dependability ► Consistency► Trustworthiness

Which of the following test indicates the person’s inclination towards a particular
occupation that provides satisfaction to that individual?

► Vocational interest test ► Cognitive aptitude test


► Personality test ► Psychomotor abilities test

All of the following areas are covered in an employee orientation program, EXCEPT:
► Organizational history ► Employee benefits
► Organizational issues ► Organizational politics

Which of the following term reflects the process of preparing organizational people
according to the future needs?
► Learning ► Training ► Development ► Need analysis

Which of the following term best represents the individuals who have interests in an
organization and are influenced by it?

► Workforce ► Stakeholders ► Customers ► Stockholders

Mr. Ahmed was working as a computer operator, but he was unable to work in Ms Excel
with the required speed. Due to this reason management has forcefully retired him &
appointed a new person to replace him, the company is said to be indulged in:
► Rightsizing ► Affirmative action ► Downsizing ► Discrimination

“Self-motivated & result oriented individuals with sound knowledge of combined cycle
gas turbine power plant operations and practical experience of mechanical, electrical and
I&C maintenance of plant.”
This section of job advertisement represents which of the given term?

► Job analysis ► Job description ► Job specification ► Job evaluation

Which of the following statement represents "effectiveness"?

► Achieve most output in less time ► Achieve mass production


► Achieve most output with least input ► Achieve organizational goals

How hesitation among newly hired employees can be eliminated through socialization
within an organization?

Socialization: In order to reduce the anxiety that new employees may experience,
attempts should be made
to integrate the person into the informal organization.

HRM department can conduct the orientation in order to socialize


the newly hired employees with the working environment of the organization. HRM plays
a major role in new employee orientation-the role of coordination, which ensures that
the
appropriate components are in place. In addition HRM also serves as a participant in
program. As job offers are made and accepted, HRM should instruct the new employee
when to report to work. However, before the employee formally arrives, HRM must be
prepared to handle some of the more routine needs of these individuals.

Permalink Reply by + M.Tariq Malik on May 10, 2012


at 5:52pm
J Solved by umair sid J

MGT501- Human Resource Management

Which of the following defines the levels of authority to perform the assigned tasks?

►Labor union►Competitor's threat► Organizational structure Pressure group

The actions of people at work place are studied under which of the following discipline?

► Psychology ► Organizational behavior ► Sociology ► Anthropology

Job specification is a statement that represents:

► Required skills ► Specific qualification


► Personality traits ► All of the given options

'Job specification' is said to be an outcome of which of the given term?

► Job analysis ► Job title ► Job evaluation ► Job worth

Jobs are compensated on the basis of:

► Job analysis ► Job specification ► Job worth ► Job description

Which of the following is served as criteria for declaring a particular job as worth-full?

► Physical motion ►Significance of task ►Mental stress►Long working hours

The thorough & detailed study regarding jobs within an organization is termed as:

► Job analysis ► Job description ► Job specification ► Job evaluation


The three most important job-related attitudes are:
► Job involvement, organizational commitment and job enrichment
► Job satisfaction, job orientation and organizational commitment
► Job satisfaction, job involvement and organizational commitment
► Job satisfaction, job enlargement and organizational behavior

Which of the following term describes the unique combination of psychological traits that
describes a person’s behaviors?

► Perception ► Personality ► Attitude ► Ability

Successful managers are:

► Efficient & effective ► Goal achievers►Strict to employees ►Policy makers

Which of the following is an online recruitment method engaged in by a single employer


or group of employers to attract a large number of applicants?

► Job fairs ► Recent grads ► Internship programs ► Recruiting sites

Which of the given statement reflects the Relationship between HRM & Management?

► Both are same ► Management is one aspect of HRM


► HRM is one aspect of Management ► No relationship exists

Which of the following HR function is the basic element of recruitment?

► Attract the job applicants for the particular post


► Select the best one among all applicants
► Train the people as per organizational requirements
► Fire the non-performing employees

Entrepreneurs are said to perform the:

► Interpersonal role► Informational role► Supportive role ►Decisional role

The intellectual & mechanical process used by an organization to transform inputs into
outputs is termed as:

► Task ► People ► Structure ► Technology


Which of the following approach emphasizes the effect of psychological & social factors
on employees’ performance?

► Scientific approach ► Rational approach


► Human relations approach ► Systematic approach

Under which of the following authority, an HR manager took the decision to provide
training to its employees regarding the operations of newly installed machine?

► Staff ► Functional ► Line ► Implied

Which one of the following is NOT the advantage of Workforce Diversity?

► Increased creativity and flexibility ► Decreased problem-solving skill


► Multiple perspectives ► Greater openness to new ideas

The best hiring occurs when the goals of which of the following should consistent to each
other?

► HR managers, Finance managers ► Head office, Branch


► Organization, Individual ► Lower managers, Top managers

Which of the following method includes the exchange of information between


organizational member & the applicant through a goal-oriented conversation?

► Counseling simulations ► Vocational interest test


► Role playing ► Employment interview

The process by which people acquire skills & abilities required to perform jobs at hand, is
known as:
► Learning ► Training ► Development ► Need analysis

Which of the following department is responsible for handling safety & health issues of
employees?

► HR department ► Procurement department


► Finance department ► Marketing department

Organizations started giving more focus on the quality of work life (QWL) during:

► 1960-70 ► 1970-80 ► 1980-90 ► 1990-2000

Which of the following is a forecasting technique that involves experimenting a real-


world situation through a mathematical model?
► Simulation ► Modeling ► Mock-up ► Replication

Which of the following information is NOT collected through observation method while
conducting job analysis?

► Who is monitoring the task? ► What task has done?


► How task has done? ► How long a task has taken to complete?

Which of the following is a process of attracting individuals on timely basis, in sufficient


numbers and with appropriate qualifications, to apply for jobs with an organization?

► Selection ► Recruitment ► Staffing ► Enrollment

Which of the following method is used to inform employees about the company's job
openings?

► Job publishing ► Job declaration ► Job posting ► Job listing

Which of the following is a test validation method that determines whether a test
measures certain traits that are important in performing a job or not?

► Concept validity ► Criterion validity ► Construct validity ► Content validity

During which of the following interview, an interviewer asks probing and open-ended
questions?

► Structured interview ► Unstructured interview


► Formal interview ► Planned interview

Which of the following source can be used to ensure the authentication of the
information provided by the job applicant?

► Reference check ► Criminal record ► Application form ► Credit history

All of the following areas are covered in an employee orientation program, EXCEPT:

► Organizational history ► Employee benefits


► Organizational issues ► Organizational politics

Which of the following department of an organization performs the managerial function


of matching organizational needs with the skills & abilities of the employees?

► Finance department ► Marketing department


► Production department ► Human Resource department
Which of the following term best represents the individuals who have interests in an
organization and are influenced by it?

► Workforce ► Stakeholders ► Customers ► Stockholders

Which of the following component of attitude represents a person’s opinions, knowledge,


and information?

► Affective component ► Cognitive component


► Behavioral component ► Objective component

The mental process to interpret environment as per one's own understanding is known
as:

► Perception ► Personality ► Attitude ► Ability

Which of the following act represents a situation in which employment decisions are NOT
affected by illegal discrimination?

► Fair employment ► Legal compliance


► Litigation process ► Affirmative action

If in a country women advocates are not encouraged to be appointed as high court


judges; which of the following constraint applies in this situation?

► Grievance practices ► Equal employment opportunity


► Glass ceiling effect ► Reverse discrimination

Read carefully the following section of job advertisement.


ü “Management, both technical & administrative affairs.
ü Promotion of marine R&D activities for the purpose of protection/preservation of
marine environment.
ü Exploration & management of marine research & development within the marine
zone of Pakistan."
This section of job advertisement represents which of the following term?

► Job analysis ► Job description ► Job specification ► Job summary

'Job description' provides which of the following information?



►Defined job activities & responsibilities
►Set of KSA required to perform a job
►Level of experience mandatory for a particular job
►Individual’s general attitude that affects the job performance

Which of the following statement represents "effectiveness"?

►Achieve most output in less time ►Achieve mass production


►Achieve most output with least input ►Achieve organizational goals

There are several sources that can identify the training needs. List & explain any five of
such sources.

Permalink Reply by + M.Tariq Malik on May 10, 2012


at 5:53pm
MIDTERM EXAMINATION
Fall 2008
MGT501- Human Resource Management (Session - 2)

The re-arrangement of organizational structure & change in organizational


culture is accomplished during:

►Task analysis ►Organizational analysis ► Person analysis ► Management analysis

Decision regarding the delivery medium for training is made prior to which of
the following step?

► Evaluating the training program ►Designing the contents of training to be


delivered► Identifying whether the training is required or not
► Conducting need assessment to identify issues

Organization, where employees are provided with the opportunity to learn on


continuous basis is known as:

► Formal ► Informal ► Bureaucratic ► Learning

Which of the following statement defines 'Socialization'?


► The formation of an attachment bond between an infant and its career
► The tendency of social theorists to explain everything in terms of social causes
► The process of becoming part of a society by learning its norms and values
► The historical process by which societies change from traditional to modern ones

The screening used to reduce absenteeism on the basis of medical problems


and to establish a baseline for future health insurance claims, is:

► Physical examination ► Personality test ► Polygraph test► Substance abuse

In order to appoint a lecturer for management, the senior faculty asked Mr. Ali
to deliver a sample lecture to one of the MBA batch. The evaluation form is
provided to students to grade Mr. Ali as a competent teacher in terms of his
communication & convincing abilities. What type of test is said to be conducted
for the evaluation of Mr. Ali?

► Reliable test ► Content-valid test ► Face-valid test ► Construct-valid test

What measure should be needed to ensure effective recruitment?

► Keep pool of large size to get best out of it► Address personnel needs of
applicants
► Meet economies of scale for an organization► Clearly understand organizational goals

Which of the following identifies the minimum acceptable qualification that the
incumbent must possess to perform a particular job successfully?

► Job analysis ► Job specification ► Job description ► Job evaluation

SWOT Analysis is a tool for:

► Determining the mission ► Dividing missions into goals


► Scanning the environment ► Monitoring frequent performances

People within a group who initiate the work, give new ideas and also collect
information about the task, are actually performing:
► Information collector roles ► Task oriented roles
► Relationship oriented roles ► Individual roles

Individual's behavior comprises of:

► Heritage ► Perception ► Emotions ► All of the given options

Which of the following term is used to study the collective behavior of


individuals within an organization?

► Organizational culture ► Organizational norms


► Organizational behavior ► Organizational rules

Which of the following skills are required most by the Top-level managers?
► Technical skills ► Interpersonal skills ► Conceptual skills► All of the given

Which of the following department of an organization perform the managerial


function of matching organizational needs with the skills & abilities of the
employees?
► Finance department ► Marketing department ► Production department
► Human Resource department

A practice used by different companies to reduce costs by transferring portions


of work to outside provider rather than completing it internally is termed as:

► Planning ► Decentralization ► Restructuring ► Outsourcing

Which of the following aspect should be considered during task analysis, before
conducting the training in an organization?
► Individuals who require training ► Shortcomings in existing technology
► Ineffective feedback system of organization ► Areas where training is required

As an HR manager you have collected and reviewed the information\data


related to a particular job, while conducting the job analysis. What will be your
next step in this situation?
► Maintaining and updating the jobs ► Identify objectives of job analysis
► Identify the job to be analyzed ► Draft job description & job specification

Which of the following step is MOST important in creating job-fit?

► An effective selection process ► Promotion and transfer of existing employees


► Training of employees ► Competitive compensation packages

Members of an effective team should be more:

► Extrovert ► Homogeneous ► Inflexible ► Introvert

________ team allows groups to meet without concern for space or time and
enables organizations to link workers together.

► Process ► Self-managed ► Virtual ► Cross-functional

Which one of the following is NOT the characteristic of a Virtual Team?

► Lack of nonverbal signals ► Limited social contact


► Increased social relationship ► Ability to overcome time and space constraints

_____________ is an attribute of work teams which results in a level of


performance that is greater than the sum of the individual inputs.
► Synergy ► Enthusiasm ► Energy ► Initiative

Which is NOT a weakness of group decision-making?

► Group decisions are time-consuming


► Groups enhance creativity through diverse views
► Group members suffer from ambiguous responsibilities
► Groups can be dominated by one or a few members

Managers who are indulged in establishing policies & procedures are fall under
which category?

► Staff ► Line ► Functional ► Operational

Which of the following term best represents the individuals who have interests
in an organization and influenced by it?

► Workforce ► Stakeholders ► Customers ► Stockholders


Who collects information from institutions & organizations outside their own,
and facilitate the organizational personnels with that gathered information?

► Monitor ► Liaison ► Disseminator ► Figurehead

Being a Figurehead, manager has to perform which of the following role?

► Informational roles ► Decisional roles ► Interpersonal roles ► Sequential roles

How many levels of management are in a traditional organization?

►5 ►3 ►8 ►4

The ability to think about abstract & complex situations is refered to as:

► Mechanical skill ► Technical skill ► Interpersonal skill ► Conceptual skill

Controlling is mandatory to:

► Large organizations ► Small & medium enterprises ► All of the given


options ► Private organizations

"Management" is concerned with the administration of:

► Human resource ► Financial resource ► Physical resource►All of the given

A special form of recruitment that involves placing a student in a temporary


job with no obligation either by the company to hire the student permanently
or by the student to accept a permanent position with the firm following
graduation, is known as:
► Cooperative work ► Student placement ► Internship program ► Student leasing

Which of the following terminology describes the legal legislation in which job
applicant should not be rejected on the basis of discriminatory practices?

► Affirmative action ► Legal compliance ► Equal employment opportunity


► Stereotype

If the workforce of an organization represents true proportion of the


community sectors in all its job classifications, it represents the
_____________________ of its affirmative action.
► Performance ► Gaps ► Effectiveness ► Discrepancies

Which of the following emerged when individuals realized the strength they
could gain by joining together to negotiate with employers?
► Trade unions ► Human relation movement► Employment legislations ►None of

HR department became the main force behind all changes during:

► Mechanistic period ► Catalytic period► Organistic period ► Strategic period

As a result of which of the following activity, HRIS is gaining popularity day by


day?
► Generating organizational reports ► Managing resources effectively
► Retrieving timely information ► Handling bundles of data

Achievable & quality performance standards can be set with the help of
accurate:

► Job analysis ► Job description ► Job specification ► Job evaluation

Organizational Behavior is a study of investigating the impact of:

► Employees' behavior in an organization ► Societal behavior on an organization


► Country's culture on an organization ► Country's economy on an organization

Which of the following is the main focus of Organizational Behavior?

► Society ► Stockholders ► People at work ► Union

Explain the following terms:


Personality
Perception
Attitude
Values
Ethics
ANSWER:
PERSONALITY: Personality is a combination of psychological traits that describes a
person.

PERCEPTION: Perception is the mental process to pay attention selectively to some


stimuli in the environment.

ATTITUDE: Attitude comprises of feelings, beliefs and behaviors.

VALUES: Values are the basic conviction about what is right and wrong.

ETHICS: Ethics are the rules and principles that tell what is right and wrong.

Permalink Reply by + M.Tariq Malik on May 10, 2012


at 5:53pm
J umair sid J
MGT501- Human Resource Management (Session - 5)

Question No: 1 ( Marks: 1 ) - Please choose one


Organizational Behavior is a study of investigating the impact of:
► Employees' behavior in an organization
► Societal behavior on an organization
► Country's culture on an organization
► Country's economy on an organization

Question No: 2 ( Marks: 1 ) - Please choose one


Which of the following term is used to identify, "what the job holder does"?
"how it is done"? & "why it is done"?
► Job specification

► Job evaluation

► Job description

► Job title
Question No: 3 ( Marks: 1 ) - Please choose one
Which of the following term is used to identify the physical & mental skills,
required to perform by an individual within a particular position in an
organization?
► Job title

► Job specification

► Job description

► Job evaluation

Question No: 4 ( Marks: 1 ) - Please choose one


Jobs are compensated on the basis of:

► Job analysis
► Job specification
► Job worth
► Job description

Question No: 5 ( Marks: 1 ) - Please choose one


_______________ is the main source of innovations.

► Upgraded technology

► Human mind

► Competitors' pressure

► Research & Development

Question No: 6 ( Marks: 1 ) - Please choose one


Which of the following HR function is the basic element of recruitment?
► Attract the job applicants for the particular post

► Select the best one among all applicants

► Train the people as per organizational requirements

► Fire the non-performing employees


Question No: 7 ( Marks: 1 ) - Please choose one
“A person is known by the company he/she keeps”; is well described by which
of the term?

► Prejudice
► Stereotype
► Introversion
► Extroversion

Question No: 8 ( Marks: 1 ) - Please choose one


Terms "Interpersonal skills" and "Human skills" are used for:
► Two different skills

► Different managerial skills

► Operational skills

► Same managerial skills

Question No: 9 ( Marks: 1 ) - Please choose one


Which of the following abilities are categorized as the Technical skill of an
individual?
► Judgment & creativity

► Analysis & communication

► Knowledge & proficiency

► Innovation & advancement

Question No: 10 ( Marks: 1 ) - Please choose one


The intellectual & mechanical process used by an organization to transform
inputs into outputs is termed as:
► Task

► People

► Structure

► Technology
Question No: 11 ( Marks: 1 ) - Please choose one
Under which of the following authority, an HR manager took the decision to
provide training to its employees regarding the operations of newly installed
machine?
► Staff

► Functional
► Line
► Implied

Question No: 12 ( Marks: 1 ) - Please choose one


Which one of the following is NOT the benefit of making teams?

► Every member is mutually accountable within a team

► Teams enable organizations to better utilize employees' talents

► Teams create trust and a collaborative culture

► Teams always perform better than individuals in all situations

Question No: 13 ( Marks: 1 ) - Please choose one


Which one of the following is NOT the characteristic of a Virtual Team?

► Lack of nonverbal signals

► Limited social contact

► Increased social relationship

► Ability to overcome time and space constraints

Question No: 14 ( Marks: 1 ) - Please choose one


Which of the following functions of HRM deals with 'Collective Bargaining'?
► Staffing
► Forcasting
► Employee-assistance management
► Employee-relations management

Question No: 15 ( Marks: 1 ) - Please choose one


'There is no need to make any new appointment'; therefore, the organization
has transfered Mr. Azam to another branch. This step of the organization is
taken to:
► Increase the labor supply than demand
► Maintain the balance of labor supply and demand
► Decrease the labor supply than demand
► Devastate the balance of labor supply and demand

Question No: 16 ( Marks: 1 ) - Please choose one


A test conducted to ensure the biological fitness of an individual by identifying
the presence of any inherited diseases like diabetese, heart diseases,
neurological disorders etc, is termed as:

► Hereditary testing
► Gene testing
► Instinct testing
► Genetic testing

Question No: 17 ( Marks: 1 ) - Please choose one


Which of the given employment testing approach requires individuals to
perform activities similar to those they might encounter in an actual job?
► In-basket technique
► Role playing
► Interview simulations
► Case study

Question No: 18 ( Marks: 1 ) - Please choose one


According to which of the following interview type, several applicants are
being interviewed by one or more company representatives?
► One-to-one interview
► Panel interview
► Group interview
► Stress interview

Question No: 19 ( Marks: 1 ) - Please choose one


'Material wastage has increased to greater extent due to using outdated
machinery'. This issue can be resolved by:
► Train machine operators regarding its operations
► Replacing the existing machinery with the new one
► Using new raw material in production
► No action is required as it is not a noticeable issue

Question No: 20 ( Marks: 1 ) - Please choose one


Previous company records & customer satisfaction surveys may serve as a
source for:
► Cultivating learning culture within the organization
► Determining deficiencies that require training
► Developing career development plans for employees
► Identifying training outcomes through evaluation

Question No: 21 ( Marks: 1 ) - Please choose one


Evaluation of training program is conducted:
► At the initial stage while design a training
► Prior to need assessment phase
► Parallel to design a training content
► At the last stage of training

Question No: 22 ( Marks: 1 ) - Please choose one


HR managers play vital role in:

► Setting production targets


► Formulating strategies
► Publishing financial statements
► Preparing reports for shareholders

Question No: 23 ( Marks: 1 ) - Please choose one


Which of the following are the groups of social nature that are formed around
friendship and common interests?
► Formal
► Structured
► Informal
► Unstructured

Question No: 24 ( Marks: 1 ) - Please choose one


Initially the personnel department was only involved in:
► Recruitment & selection
► Compensation & benefits
► Training & development
► Scheduling vacations

Question No: 25 ( Marks: 1 ) - Please choose one


'Career counseling' is part of which of the following functions of HRM?
► Compensation & benefits
► Planning & selection
► Training & development
► Maintainence of HRIS

Question No: 26 ( Marks: 1 ) - Please choose one


'Fair employment legislation' is applicable to which of the following?
► Collective bargaining
► Planning & selection
► Training & development
► Grapevine network

Question No: 27 ( Marks: 1 ) - Please choose one


Which one of the following is NOT included in 'Training and Development'?
► Orientation
► Career development
► Employee education
► Recruitment

Question No: 28 ( Marks: 1 ) - Please choose one


Jamal Enterprises' top management refused to consider its female marketing
manager for the post of Vice President. This action of the company is
representing which of the following?
► Gender discrimination
► Legal consideration
► Reverse discrimination
► Glass ceiling effect

Question No: 29 ( Marks: 1 ) - Please choose one


The process of discovering potential candidates for actual or anticipated
organizational vacancies is known as:
► HR planning
► Job analysis
► Recruitment
► Selection

Question No: 30 ( Marks: 1 ) - Please choose one


The hiring process comprises which of the following steps?
► Selection, Recruitment & performance appraisals
► Recruitment, Selection & Socialization
► Selection, Orientation & Development
► Job analysis, Selection & Training

Question No: 31 ( Marks: 1 ) - Please choose one


Which of the following defines the process of 'Recruitment'?
► Forecasting the demand of human resources
► Forecasting the supply of human resources
► Discovering potential job candidates for a particular position
► Making a “hire” or “no hire” decisions

Question No: 32 ( Marks: 1 ) - Please choose one


The number of people hired for a particular job compared to the number of
individuals in the applicant pool is often expressed as:
► Application ratio
► Recruitment ratio
► Selection ratio
► Employment ratio

Question No: 33 ( Marks: 1 ) - Please choose one


The extent to which an employment selection test provides consistent results
is known as:
► Reliability
► Dependability
► Consistency
► Trustworthiness

Question No: 34 ( Marks: 1 ) - Please choose one


Which of the following test indicates the person’s inclination towards a
particular occupation that provides satisfaction to that individual?

► Vocational interest test


► Cognitive aptitude test
► Personality test
► Psychomotor abilities test

Question No: 35 ( Marks: 1 ) - Please choose one


All of the following areas are covered in an employee orientation program,
EXCEPT:
► Organizational history
► Employee benefits
► Organizational issues
► Organizational politics

Question No: 36 ( Marks: 1 ) - Please choose one


Which of the following term reflects the process of preparing organizational
people according to the future needs?
► Learning
► Training
► Development
► Need analysis

Question No: 37 ( Marks: 1 ) - Please choose one


Which of the following term best represents the individuals who have interests
in an organization and are influenced by it?
► Workforce
► Stakeholders
► Customers
► Stockholders

Question No: 38 ( Marks: 1 ) - Please choose one


Mr. Ahmed was working as a computer operator, but he was unable to work in
Ms Excel with the required speed. Due to this reason management has
forcefully retired him & appointed a new person to replace him, the company is
said to be indulged in:
► Rightsizing
► Affirmative action
► Downsizing
► Discrimination

Question No: 39 ( Marks: 1 ) - Please choose one


“Self-motivated & result oriented individuals with sound knowledge of
combined cycle gas turbine power plant operations and practical experience of
mechanical, electrical and I&C maintenance of plant.”
This section of job advertisement represents which of the given term?
► Job analysis
► Job description
► Job specification
► Job evaluation

Question No: 40 ( Marks: 1 ) - Please choose one


Which of the following statement represents "effectiveness"?

► Achieve most output in less time


► Achieve mass production
► Achieve most output with least input
► Achieve organizational goals

Question No: 41 ( Marks: 10 )


How hesitation among newly hired employees can be eliminated through
socialization within an organization?

Socialization: In order to reduce the anxiety that new employees may experience,
attempts should be made
to integrate the person into the informal organization.

HRM department can conduct the orientation in order to socialize


the newly hired employees with the working environment of the organization. HRM plays
a major role in new employee orientation-the role of coordination, which ensures that
the
appropriate components are in place. In addition HRM also serves as a participant in
program. As job offers are made and accepted, HRM should instruct the new employee
when to report to work. However, before the employee formally arrives, HRM must be
prepared to handle some of the more routine needs of these individuals.


Permalink Reply by + M.Tariq Malik on May 10, 2012
at 5:54pm
UMAIR SID ……………………… SOLVED BY SID
MIDTERM EXAMINATION
Spring 2010
MGT501- Human Resource Management (Session - 2)

HRIS helps managers to perform which of the following functions more


effectively &systematically?

► controlling functions ► planning functions ► Human resource functions


► Management functions

Technically HRIS is a/an:


► System software ► System hardware ► Database system ► Operating
system

HRIS is used to facilitate the decisions related to:

► Overall organization ► Employment planning


► Sales forecasting ► Resource allocation

The major concern of the organizations during 1990s was:

► Productivity ► Efficiency ► Quality ► All of the given options

Which of the following is NOT a method of an external recruitment?

► Job advertisements ► Job postings ► Internship programs ► Job fairs

Controlling involves all EXCEPT:


► Goal attainment ► Corrective measures ► Standards achievement ►
Employees motivation

Controlling is mandatory to:


► Small & medium enterprises ► Private organizations► All of the given options
► Large organizations

Effectiveness is the degree to which organizations’ products/services respond


to:
► All of the given options ► Customer satisfaction ► Environmental needs
► Quality standard
Unofficial part of an organization formed on the basis of common interests is
known as:
► Formal organization Informal organization ► Bureaucratic organization ►
Virtual organization

According to Hawthorne Studies, which of the following work group influenced


productivity & employees' behavior?
► Formal ► Informal ► Reserved ► Ceremonial

Which of the following is categorized as the authority to give orders to


subordinates?
► Functional ► Staff ► Operational ► Line

Which one of the following is NOT the benefit of making teams?

► Every member is mutually accountable within a team


► Teams enable organizations to better utilize employees' talents
► Teams create trust and a collaborative culture
► Teams always perform better than individuals in all situations

The process of pursuing an inclusive culture where newcomers feel welcomed


by existing employees and everyone sees the value of his or her job, is termed
as:
► Management of uniformity ► Variety management
► Managing stereotypes ► Diversity management

How often HR planning process is implemented within an organization?

► Continuously ► Annually ► Bi-annually ► Quarterly


As an HR manager you are going to conduct job analysis, which one of the
following factor you should consider for its effectiveness?

► Ensure top management support ► Use a single source of information


► Conduct analysis for multiple jobs at once ► Review existing job documents

Which of the following skills are required most by the Top-level managers?

► Technical skills ► Interpersonal skills ► Conceptual skills ► All of the given


options

Individual's behavior comprises of:

► Heritage ► Perception ► Emotions ► All of the given options

Organizations started giving more focus on the quality of work life (QWL)
during:

► 1960-70 ► 1970-80 ► 1980-90 ► 1990-2000

Which of the following force makes an individual eligible to make decisions,


give orders & directing work activities of others?

► Power ► Influence ► Authority ► Command


Which of the following information is NOT collected through observation
method while conducting job analysis?

► Who is monitoring the task? ► What task has done?


► How task has done? ► How long a task has taken to complete?

Which of the following is a goal-directed summary of a person's experience,


education and training developed for use in the selection process?

► Curriculum vitae ► Educational record ► Career goal ► Interview questioning

Which of the following test can best evaluate the routine production activities
of job that require coordination & physical strength?

► Cognitive aptitude test ► Job knowledge test


► Vocational interest test ► Psychomotor abilities test

In order to appoint a lecturer for management, the senior faculty asked Mr. Ali
to deliver a sample lecture to one of the MBA batch. The evaluation form is
provided to students to grade Mr. Ali as a competent teacher in terms of his
communication & convincing abilities. What type of test is said to be conducted
for the evaluation of Mr. Ali?

► Reliable test ► Content-valid test


► Face-valid test NT SURE ► Construct-valid test

During which stage of socialization, employees successfully internalize the


organizational norms & beliefs?

► Pre-arrival stage ► Encounter stage►Metamorphosis stage►Post-retirement stage


Which of the following is considered as the last stage in the HRM/personnel
development?
► Bureaucratic management ► Records and administration
► Regulative accountability ► Competitive advantage

Decentralization offers several benefits to the organizations. Which one of the


following is/are considered benefit(s) of decentralization?
► Increased work schedule flexibility ► Increased pool of skilled workers
► Increased employees participation ► All of the given options

A human resource manager in a medium-sized manufacturing firm is


responsible to
comply with the implementation of working conditions and health and safety of
the
workers at the workplace according to the Factories Act 1934. Which of the
following external factors prompted this action?
► Labor union► Management thought ► Work force diversity ► Government
legislation

Ahmed, HR manager of Tri-Star Technologies is involved in human resource


planning process. What sort of information can be obtained through supply and
demand forecasts?
► overstaffing in sales department
► Shortage of machine operators in production department
► Estimates of changes in the external supply
► All of the given options

The corporate strategy of National Investment Bank was acquisition. What


would be the associated human resource strategies in order to achieve this
corporate strategy?
► Aggressive recruiting and hiring, rapidly rising wages, job creation, expanding training
and development
► Layoffs, wage reduction, productivity increases, job redesign, renegotiating labor
arrangement
► Specialized job creation, hiring of specialists, specialized training and development
► Selective layoffs, transfers/placement, job combinations, orientation and training,
managing cultural transition

The human resource manager of a large textile organization based


inFaisalabad is unable to hire best people for her company because of a new
restriction that no longer pays traveling cost to participate in job fairs of other
cities. Therefore he is limited to college job fairs within the city. What one of
the following recruiting constraints is most affecting her organization?

► Organizational image ► Internal organizational politics


► Government’s influence ► Costs

All of the following are advantages of internal recruiting except


► It is less costly than going outside to recruit
► Those chosen internally already know the organization
► It improves the probability of good selection
► It generate infighting among the rival candidates for promotion

For the post of CCR in a call center, candidate has passed the usual selection
criteria- the employment test, interview and background checks. What should
be the next step?
► To verify educational documents ► To pass screening interview
► To complete application blank ► To give him appointment letter

How does mentoring differ from the orientation?


► Mentoring is done when an employee is being prepared for jobs of greater
responsibility.
Orientation is done when an employee first joins an organization
► Mentoring is done by the supervisor. Orientation is conducted by the peers
► Mentoring is done to familiarize employees with procedures. Orientation is guiding
employee in task completion
► There is no difference in mentoring and orientation
Why are training programs evaluated in the industry?
► Evaluation is required for junior training programs
► Employees have the right to comment on the training they receive
► Evaluation is a necessary component of establishing training effectiveness
► Organizations are legally bound to evaluate training programs

What measures should be taken at the pre-arrival stage of socialization?


Pre-arrival stage of socialization: In this socialization stage, employee aware or
known the values and norms of this particular organization. Mean before
entering in a company or organization he has to know about attitudes, values,
norms which is called socialization.
Who are contingent workers? Discuss the significance of such workers for an
organization.

SOLVED
Contingent workers:
Defiant ion:” workers or employee who are hired in a organization for temporary or for a
short time called contingent workers”
Significance of such workers for an organization:
Easy to complete tasks:
Technically skilled:
Not required to give them High bounces:
May be Consultant:
Over all we can say this methodology may lead not poor or Garbage.

Question No: 37 ( Marks: 5 )


Being a human resource manager of a medium sized manufacturing
organization how you will make sure that the recruitment program of your
organization is non discriminatory? Discrimination: “Give equal opportunity to
male and female and also no discriminate to other employee for color, race,
etc.”
SOLVED
Discrimination: "make a difference between employee as base of Gender, race,
colour,etc "
EEO: Giving equal opportunity to both man and women not discourage them at all. So
EEO is base on a act which is made near 1964 and near ADA American disabilities act
1932. So the suppose I am manager of an organization and I have or require to identify
that whether in my organization all Requirement are conducting Equally and non
discrimination basis at all. So we check and observers himself or hire a consultant
He may be look different aspects to it
Affirmative action:
EEO basis:
ADA Acts: Encourage ability and discourage non Qualified :


Permalink Reply by + M.Tariq Malik on May 10, 2012
at 5:55pm
Jumair sid J
MIDTERM EXAMINATION

MGT501- Human Resource Management (Session - 2)

Question No: 1 ( Marks: 1 ) - Please choose one


There-arrangement of organizational structure & change in organizational
culture is accomplished during:

► Task analysis ► Organizational analysis ► Person analysis ►Management analysis

Decision regarding the delivery medium for training is made prior to which of
the
following step?

► Evaluating the training program


► Designing the contents of training to be delivered
► Identifying whether the training is required or not
► Conducting need assessment to identify issues

Organization, where employees are provided with the opportunity to learn on


continuous basis is known as:

► Formal ► Informal ► Bureaucratic ► Learning

Which of the following statement defines 'Socialization'?

► The formation of an attachment bond between an infant and its career


► The tendency of social theorists to explain everything in terms of social causes
► The process of becoming part of a society by learning its norms and values
► The historical process by which societies change from traditional to modern ones
The screening used to reduce absenteeism on the basis of medical problems
and to establish a baseline for future health insurance claims, is:

► Physical examination ► Personality test ► Polygraph test ► Substance


abuse
In order to appoint a lecturer for management, the senior faculty asked Mr. Ali
to deliver a sample lecture to one of the MBA batch. The evaluation form is
provided to students to grade Mr. Ali as a competent teacher in terms of his
communication & convincing abilities. What type of test is said to be conducted
for the evaluation of Mr. Ali?
► Reliable test ► Content-valid test ► Face-valid test ► Construct-valid test

What measure should be needed to ensure effective recruitment?

► Keep pool of large size to get best out of it


► Address personnel needs of applicants
► Meet economies of scale for an organization
► Clearly understand organizational goals

Which of the following identifies the minimum acceptable qualification that the
incumbent must possess to perform a particular job successfully?

► Job analysis ► Job specification ► Job description ► Job evaluation

SWOT Analysis is a tool for:


► Determining the mission ► Dividing missions into goals
► Scanning the environment ► Monitoring frequent performances

People within a group who initiate the work, give new ideas and also collect
information about the task, are actually performing:

► Information collector roles ► Task oriented roles ► Relationship oriented roles ►


Individual roles

Individual's behavior comprises of:

► Heritage ► Perception ► Emotions ► All of the given options

Which of the following term is used to study the collective behavior of


individuals within an organization?

► Organizational culture ► Organizational norms ► Organizational behavior


► Organizational rules

Which of the following skills are required most by the Top-level managers?

► Technical skills ► Interpersonal skills ► Conceptual skills


► All of the given options

Which of the following department of an organization perform the managerial


function of matching organizational needs with the skills & abilities of the
employees?

► Finance department ► Marketing department ► Production department ► Human


Resource department
A practice used by different companies to reduce costs by transferring portions
of work to outside provider rather than completing it internally is termed as:

► Planning ► Decentralization ► Restructuring ► Outsourcing


Which of the following aspect should be considered during task analysis, before
conducting the training in an organization?
► Individuals who require training ► Shortcomings in existing technology
► Ineffective feedback system of organization ► Areas where training is required
As an HR manager you have collected and reviewed the information\data
related to a particular job, while conducting the job analysis. What will be your
next step in this situation?
► Maintaining and updating the jobs ► Identify objectives of job analysis
► Identify the job to be analyzed ► Draft job description & job specification

Which of the following step is MOST important in creating job-fit?

► An effective selection process ► Promotion and transfer of existing employees


► Training of employees ► Competitive compensation packages

Members of an effective team should be more:

► Extrovert ► Homogeneous ► Inflexible ► Introvert


________ team allows groups to meet without concern for space or time and
enables
organizations to link workers together.

► Process ► Self-managed ► Virtual ► Cross-functional

Which one of the following is NOT the characteristic of a Virtual Team?

► Lack of nonverbal signals ► Limited social contact


► Increased social relationship ► Ability to overcome time and space constraints

_____________ is an attribute of work teams which results in a level of


performance that is greater than the sum of the individual inputs.

► Synergy ► Enthusiasm ► Energy ► Initiative

Which is NOT a weakness of group decision-making?

► Group decisions are time-consuming


► Groups enhance creativity through diverse views
► Group members suffer from ambiguous responsibilities
► Groups can be dominated by one or a few members

Managers who are indulged in establishing policies & procedures are fall under
which category?

► Staff ► Line ► Functional ► Operational

Which of the following term best represents the individuals who have interests
in an
organization and influenced by it?
► Workforce ► Stakeholders ► Customers ► Stockholders

Who collects information from institutions & organizations outside their own,
and facilitate the organizational personnels with that gathered information?

► Monitor ► Liaison ► Disseminator ► Figurehead

Being a Figurehead, manager has to perform which of the following role?

► Informational roles ► Decisional roles ► Interpersonal roles ► Sequential roles

How many levels of management are in a traditional organization?

►5 ►3 ►8 ►4

The ability to think about abstract & complex situations is refered to as:

► Mechanical skill ► Technical skill ► Interpersonal skill ► Conceptual skill

Controlling is mandatory to:


► Large organizations ► Small & medium enterprises
► All of the given options ► Private organizations

"Management" is concerned with the administration of:

► Human resource ► Financial resource ► Physical resource► All of the given

Aspecial form of recruitment that involves placing a student in a temporary job


with no obligation either by the company to hire the student permanently or by
the student to accept a permanent position with the firm following graduation,
is known as:
► Cooperative work ► Student placement ► Internship program ► Student leasing

Which of the following terminology describes the legal legislation in which job
applicant should not be rejected on the basis of discriminatory practices?

► Affirmative action ► Legal compliance ► Equal employment


opportunity ► Stereotype
Ifthe workforce of an organization represents true proportion of the community
sectors in all its job classifications, it represents the _____________________
of its affirmative action.

► Performance ► Gaps ► Effectiveness ► Discrepancies

Which of the following emerged when individuals realized the strength they
could gain by joining together to negotiate with employers?
► Trade unions ► Human relation movement
► Employment legislations ► None of the given options

HR department became the main force behind all changes during:

► Mechanistic period ► Catalytic period ► Organistic period ► Strategic period


As a result of which of the following activity, HRIS is gaining popularity day by
day?
► Generating organizational reports ► Managing resources effectively
► Retrieving timely information ► Handling bundles of data

Achievable & quality performance standards can be set with the help of
accurate:

► Job analysis ► Job description ► Job specification ► Job evaluation

Organizational Behavior is a study of investigating the impact of:

► Employees' behavior in an organization ► Societal behavior on an organization


► Country's culture on an organization ► Country's economy on an organization

Which of the following is the main focus of Organizational Behavior?

► Society ► Stockholders ► People at work ► Union

Explain the following terms:


Personality Perception Attitude Values Ethics

ANSWER:

PERSONALITY: Personality is a combination of psychological traits that describes a


person.

PERCEPTION: Perception is the mental process to pay attention selectively to some


stimuli in
the environment.

ATTITUDE: Attitude comprises of feelings, beliefs and behaviors.

VALUES: Values are the basic conviction about what is right and wrong.

ETHICS: Ethics are the rules and principles that tell what is right and wrong.
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Which is one of the most important leadership qualities among managers and employees
in the organization? Communication
Which one of the following is not a way of recruiting new employees? Bank page 96
All of the following are the advantages of establishing a partnership over a sole
proprietorship EXCEPT: not sure
Double taxation can be avoided in the corporate form of business if the income is
distributed to the entrepreneur(s) in the form of? Salary
Which one of the following options is NOT a total taxable entity? Limited partner page
87
Which one of the following has NO liability on the part of entrepreneur business? Board
of advisor
Which of the following statements is not true for the sole proprietorship? Not sure
Which of the following business form has no legal distinction between the assets and
liabilities of a business and those of its owner?
One of the following is the process of defining and subdividing a large homogeneous
market into clearly identifiable groups having similar needs, wants and demand
characteristics? Market segmentation
In which of the following business, the records are needed to be maintained on the basis
of monthly charges paid by the customers? Service venture
Which of the following is another exit to the equity partnership arrangement? Royal
partnership
Which of the following is the backbone of financial plan? Budgeting
Job description should include all of the following EXCEPT:
The major duties relevant to a particular job
Expected performance standards
The equipment needed by the worker
An evaluation of the worker's personal needs
Alternative sources of external financing need to be evaluated on all of the following
bases except: lesson 32
Which form of the business has the most freedom in terms of selling one’s interest in the
business? Sole proprietorship
Which of the following approach is important in early stage of the venture when capital
from debt financing or equity financing is more expensive?
Which statement of the following relates with the ultimate goal of Business? Mission
statement
Which of the following is the characteristic of Limited Liability Company?
Which of the following number of years a mortgage loan may possibly cover? 30
in which rule under ‘regulation-d’, a company can sell up to $500,000 of securities to
any number of investors in any 12-month period? 504
MGT602 solved MCQs from new quizzes 4/8/2010

solved by vuZs solution team


(Marina , shamir, glory, umeed, shafia, Tariq)

Which one of the following should consider in economy while conducting environmental analysis?
Select correct option:

GNP
Disposable income (Tariq)
Unemployment
Channel of distribution

Economic Trends: The macro economic environment analysis will identify


trends such as changes in personal disposable income, interest
rates, inflation and unemployment rates.
Which of the following source of capital is relatively faster and less costly than other funding? Select correct
option:
Outsourcing
Public offering
Private offering (shamir)
Bootstrap financing
page # 89: A private offering is faster and less costly than other funding.

future of the new venture depends on the ________. Select correct option:
Positive Cash flow (shafia)
Employees loyalty
Business ideas
Economy

following has NO liability on the part of entrepreneur business? Select correct option:
Partners
Board of advisors
Shareholders (shafia)
Board of directors

Which of the following ratio will be helpful for assessing the firm’s capital structure?
Select correct option:

Current ratio
Acid test ratio
Profitability ratio
Debt to equity ratio (MK)
page no 100 :Debt to equity ratio assesses the firm’s capital structure. It provides a measure of risk by
considering the funds invested by creditors and investors.

Following are the types of non equity arrangements EXCEPT:


Select correct option:

Licensing
Management contracts
Direct export (MK)
Turnkey projects
Pgae no 31 Lesson 11
Which of the following is essential if your business deals with the Paper production?.
Select correct option:

Operational Plan
Bank loan
Production plan (MK)
Organizational plan
Page 58
If a new venture is a manufacturing operation, a production plan is necessary. This plan should describe the
complete manufacturing process, including whether or not the process is to be subcontracted.

The startups which rarely go public are called: Select correct option:
Life style
Foundation Company (MK)
Small company
High potential venture

page no 8 : A type of company formed from research and development that usually does not go public. This
firm can grow in five to ten years from 40 to 400 employees.

following firm achieves modest growth: Select correct option:


High potential growth firm
Foundation firm (MK)
Life style
Public company

following factor can create the managerial difficulties in the joint ventures between foreign companies? Select
correct option:Cultural differences (MK)
Economic policies
Public ignorance
Government taxes
Page no 103 : Cultural differences can create managerial difficulties. Government policies sometimes can
have a negative impact on the venture. The benefits usually outweigh the drawbacks.

________ is commonly used to measure the short-term solvency of the venture? Select correct option:
Debt to equity ratio
Current ratio (MK)
Profitability ratio
Activity ratio
Page no 99 : Current ratio is commonly used to measure the short-term solvency of the venture or its ability to
meet its short-term debts.

Which of the following is NOT a characteristic of a marketing plan? Select correct option:
It should be flexible
It should be long and detailed (MK)
It should be based on facts and valid assumptions
it should provide a strategy

Which of the following is the best option for starting the business with equity financing? Select correct option:
Sole Proprietor
Corporation (doubted) mk
Partnership firm
None of the above
Page 81 : Equity financing offers the investor some form of ownership position in the venture.
a. The investor shares in the profits of the venture.
b. Key factors in choosing the type of financing are availability of funds, assets of the venture, and prevailing
interest rates.
c. Usually a combination of debt and equity financing is used.

SIDB was established for the province of ________.


Select correct option:

NWFP (glory)
Sindh
Punjab
Balochistan
ref at pg 84 under training center heading lec 37

Which one of the following is a method for obtaining new ideas and solutions by focusing on problems?
Select correct option:

Product inventory analysis


Gordon method
Checklist method
Scientific method
ref pg 35

Which of the following is NOT an advantage of the acquisition?


Select correct option:

Goodwill
Skilled employees
Favorable location
Political instability (umeed)

The private investors are primarily interested in recovering his/her investment plus a good________.
Select correct option:

Dividend
Shares prices
Rate of return (umeed)
Business repute

The creative process for problem solving that involves making the strange familiar in first step and then
making the familiar strange through personal, direct or symbolic analogy is called:
Select correct option:

Synectics (glory)

Gordon method
Checklist method
Scientific method
ref at pg 35 lec 16 under creative problem heading

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20 NOV 2011
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MGT602 Entrepreneurship Final Term


MCQ & Papers 100% Solved
MGT602 Entrepreneurship Final term Papers & MCQs

The resistance of employees in an organization against flexibility, growth, and diversification can be
overcome by developing:

 Entrepreneurship

 Intrapreneurship

 Managerial domain

 Administrative domain

For the success of business plan the goals should be

 Limitless

 Generalized

 Specific

 Imaginary

LMM stands for:

 Locally Manufactured Machinery

 Locally Manufactured Marble

 Local Marble Market

 Local Meat Market


Which of the following is NOT essential part of the contract?

 All the parties involved should be named

 Transaction should be described in detail

 Obtain signatures of the persons involved

 Place where contract takes place

Normally sponsor links are used in which of the following type of promotion?

 Publicity

 Trade shows

 Personal selling

 Internet advertising

The Grameen Bank model is affectively used by which of the following institute?

 Education sector

 Finance Sector

 Rural Sector

 NGOs

Which one of the factors should be considered while assessing the space for business?

 Parking

 Access from roadways to facility

 Delivery rates

 All of the given options


An actor and a person who managed large project were termed as the entrepreneur in the

_________.

 Earliest period

 Middle ages

 17th century

 19th and 20th century

Which of the following usually is NOT deducted to the salaries?

 Provident fund

 Income Tex

 Insurance

 Zakat

LLC is more flexible than

 S Corporation

 Limited Partnership

 Sole Proprietor

 All of the above

Which of the following is NOT an example of collecting primary data?

 Internet

 Focus Group
 Interview

 Observation

Which two work environments should be good for spawning the new enterprises?

 Finance and marketing

 Finance and R&D

 Marketing and R&D

 Marketing and IT

Which one of the following should consider in economy while conducting environmental analysis?

 GNP

 Disposable income

 Unemployment

 Channel of distribution

__________ is commonly used to measure the short-term solvency of the venture?

 Debt to equity ratio

 Current ratio

 Profitability ratio

 Activity ratio

Which one of the following is a barrier to new product creation and development?

 Trial and error


 Opportunity parameter

 Opportunity cost

 Intrapreneurship culture

What is a target market?

 A group of customers a venture reaches by accident

 All consumers who purchase the venture’s product

 A specific group of potential customers toward which a venture aims its marketing plan

 A chain of discount stores

In stage of responsibility allocation process the entrepreneur follows:

 Highly centralized decision making process

 Highly decentralized decision making process

 Somewhat centralized decision making process

 No particular standard

Which one of the following is the process of entrepreneurs developing new products that over time make
current products obsolete?

 Creative destruction

 New business model

 Anatomization

 None of the given options

Factors contribute to the creation of new venture EXCEPT:

 Government
 Finance

 High interest rates

 Role models

Which one of the following gives suggestions for new product but also helps to market

new product in the market?

 Existing products and services

 Distribution channels

 Federal government

 Consumers

The chief motivational factor for _________________ entrepreneurs to leave jobs is the frustration of not
being allowed to perform at the level of which they are capable.

 Male

 Female

 Young

 All of the given options

Which of the following is the most important for the entrepreneur, while starting a new

venture, to make an assessment of?

 Risk

 Profit

 Market

 Competitors
An entrepreneur doing business within the national border is called:

 International entrepreneurship

 Intrapreneurship

 Domestic entrepreneurship

 Imports

A typical inventor is usually ________________________.

 Highly creative & in love with the invention

 Does not encourage change

 Willing to modify the invention in order to augment commercial benefit

 None of the given options

According to the governing bodies of common laws, the life of trade secret is:

 12 years

 17 years

 20 years

 As long as it remains confidential

A contract must be signed by:

 At least one party

 Both the parties

 Not necessary to sign


 By third party

Selling goods to another country by taking care of transactions is called:

 Indirect exporting

 Direct exporting

 Importing

 Management contract

Which of the following is alternatively called corporate venturing?

 Entrepreneurship

 Intrapreneurship

 Act of stating a new venture

 Offering new products by an existing company

In USA Public Limited Companies may have ______ Director/s

1

2

3

4

Which one of the following is an important source of idea generation due to their

familiarity with the needs of market?

 Existing products and services


 Distribution channels

 Federal government

In which of the following situation the company is considered to be on breakeven point?

 No Profit no lose

 Profits are higher then expenses

 Expenses are higher then profits

 None of the given options

Which of the following shows the example of collateral?

 Real State

 Shares

 Tangible property

 All of the given options

The difference in the entrepreneurial and managerial domains has contributed towards an increase
interest in:

 Forming new firms

 Partnership

 Intrapreneurship

 Private firms

Which of the following is NOT a requirement of Disclosure Document?

 Description of the invention


 Claims for invention’s usefulness

 Photos of invention

 Cover letter

Professional support network includes following EXCEPT:

 Personal affiliations

 Mentor

 Trade associations

 Friends

Which of the following is NOT a characteristic of a marketing plan?

 It should be flexible

 It should be long and detailed

 It should be based on facts and valid assumptions

 It should provide a strategy

Degree of influence and control on other people is called:

 Locus of control

 Locomotion of control

 Locust of control

 Loss of control

Normally sponsor links are used in which of the following type of promotion?
 Publicity

 Trade shows

 Personal selling

 Internet advertising

Which of the following is essential if your business deals with the Paper production?.

 Operational Plan

 Bank loan

 Production plan

 Organizational plan

Which one of the following is NOT an internal factor?

 New technology

 Manufacturing

 Marketing

 Personnel

The longest lasting trade agreement with the objective of liberalizing trade by eliminating

or reducing tariffs, subsidies and quotas is:

 Free trade area – FTA

 European community – EC

 General agreement on tariffs and trade – GATT

 The North American free trade agreement – NAFTA


In which of the following business, the records are needed to be maintained on the basis

of monthly charges paid by the customers?

 Pharmaceutical

 Service venture

 Online venture

 Auto industry

Which of the following is the previous name of SME?

 SPCC

 SMEDA

 SBFC

 FMBC

The entrepreneur’s_______________ depends on his perception of the opportunity.

 Commitment to opportunity

 Commitment of resources

 Control of resources

 Strategic orientation

Which of the following are the key factors for choosing the type of financing?

 Availability of funds

 Assets of the venture


 Prevailing interest rates

 All of the above options

The difference between the value of a country’s imports and exports over time is called:

 Deficit exports

 Deficit imports

 Balance of payment

 Balance of debt

Licensing is a significant marketing strategy to:

 Use intellectual property of others

 Pirate others’ patents

 Grow the business in new markets

 Control the costs

The _________ plan should contain control points to ascertain progress.

 Business

 Marketing

 Financial

 Operational

Which one of the following method shows the term which is related to starting from

scratch to a bigger picture?


 Upward movement method

 Incremental method

 Downward movement method

 None of the above options

Which is one of the most important leadership qualities among managers and employees

in the organization?

 Entrepreneurship

 Communication

 Motivation

 Staffing

Which of the following contains large number of new ideas?

 Files of Patent office

 Official Gazette

 Government patent Board

 All of the given option

Which of the following firm achieves modest growth:

 High potential growth firm

 Foundation firm

 Life style

 Public company
Which of the following is representing a single expense account?

 Depreciation

 Cash account

 Wages & Salaries

 Utilities account

Which one of the following is a barriers to new product creation and development?

 Trial and error

 Opportunity parameter

 Opportunity cost

 Intrapreneurship culture

Targeting the market consists of ______ Procedures

1

2

3

4

Which one of the following is important for international business to avoid trade barriers?

 Protectionist attitude

 Entrepreneurial partnering

 Free trade areas


 None of the given options

Which of the following ratio will be helpful for assessing the firm’s capital structure?

 Current ratio

 Acid test ratio

 Profitability ratio

 Debt to equity ratio

A typical inventor is usually ________________________.

 Highly creative & in love with the invention

 Does not encourage change

 Willing to modify the invention in order to augment commercial benefit

 None of the given options

Following are the types of non equity arrangements EXCEPT:

 Licensing

 Management contracts

 Direct export

 Turnkey projects

In terms of chronological age, most entrepreneurs initiate their entrepreneurial carrier

between ages of:

 15 and 22
 22 and 45

 45 and 57

 57 and 63

Which of the following is included in the description of the business?

 Location

 Products offered

 History

 All of the given options

Companies identify their assets with the date of purchase, because it can be helpful in

determining depreciation for:

 Goodwill

 Trade rebate

 Tax purposes

 Capital structuring

What is the primary concern of founders who trade equity for capital for their growing

venture?

 Capitalization

 Investor capabilities

 Valuation

 Control
The creative process for problem solving that involves making the strange familiar in first

step and then making the familiar strange through personal, direct or symbolic analogy is

called:

 Synectics

 Gordon method

 Checklist method

 Scientific method

Capital rising entirely depends on the entrepreneur in which of the following entity?

 Corporation

 Sole Proprietorship

 Partnership

 All of the above

Which of the following is another exit to the equity partnership arrangement?

Impartial partnership

 General partnership

 Royalty partnership

 Minor partnership

Selling goods to another country through a person in the entrepreneur’s home country is known as:

 Trading

 Direct export
 Indirect export

 Domestic sales

Developing a new idea through inquiry and testing is called:

 Heuristics

 Forced relationship

 Scientific method

 Value analysis

What can be the effect on cash flows due to delays in payments by the clients?

 Positive cash flows

 Negative cash flows

 No effect on cash flows

 None of the given options

The Marketing Plan section should focus for the strategies of

 First Year

 First two years

 First Three Years

 First four years

The business plan should be prepared by:

 Entrepreneurs
 Consultants

 Engineers

 All of above options

All of the following are essential to maintain secrecy EXCEPT:

 Train employees to refer sensitive questions to one person

 Discuss business in public places

 Provide escorts for all office visitors

 Use simple security such as locked file cabinets

Assessment of the needed resources by the entrepreneur starts with:

 An appraisal of the entrepreneur’s present resources

 An assessment of economic conditions of the country

 A scanning of friends and family for funds

 A survey of banks and other financial institutions in the area

The former USSR received technology and syrup from Pepsi and provided it with Soviet

vodka and rights to distribute it in the US. This is an example of:

 Economic development

 Barter system

 Balance of payment

 International trade

Health insurance premium is less expensive if there is:


 One insured participants

 Ten participants

 Large group of participants

 Very small group of participants

In which of the following year implementation of SBA Financial plan took place?

 1971

 1972

 1973

 1974

The resources acquired from others(creditors, banks etc) are usually:

 Easily available

 Difficult to obtain

 Very useful

 Very cheap

Lenders are primarily interested in the:

 Personal relationship

 Ability to pay back loan

 Progress of the venture

The entrepreneur utilizes the resources through:

 Identifying and evaluating the opportunity

 Developing a business plan

 Implementing the business plan

 Manage the enterprise


Focus group discussion carries in

 Formal Way

 Informal Way

 Both of the above

 Problemat way

Which one of the following best represents the environment of an entrepreneurial

oriented organization?

 Corporate culture

 Entrepreneurial culture

 Intrapreneurial culture

 Traditional culture

Question No: 1 ( Marks: 1 ) – Please choose one The level at which an individual is viewed by society
is called:

► Financial status

► Qualification

► Social status

► Achievement

Question No: 2 ( Marks: 1 ) – Please choose one Individuals who help the entrepreneur in business
activities are called:

► Role models

► Moral support networks

► Professional support networks

► Business support networks

Question No: 3 ( Marks: 1 ) – Please choose one Following are the problems in developing the
economies EXCEPT:
► Gap of knowledge

► Variable rate of return

► Same communication style

► Different accounting system

Question No: 4 ( Marks: 1 ) – Please choose one Which one of the following is a business
arrangement in which someone else is allowed

to use something of the company?

► Patent

► Trade mark

► Copy right

► Licensing

Question No: 5 ( Marks: 1 ) – Please choose one Which of the following method entrepreneur can use
to do international business with

least risk?

► Turnkey projects

► Joint venture

► Merger

► Synergy

Question No: 6 ( Marks: 1 ) – Please choose one Combination of at least two firms at different market
levels is called:

► Joint venture

► Synergy

► Horizontal merger

► Vertical merger

Question No: 7 ( Marks: 1 ) – Please choose one A patent is granted for a specified amount of time
because of the assumption:
► That during this time firm will cover its development costs

► That firm will earn a sufficient profit during this period

► To limit the monopoly of the firm

► That it will stimulate idea and development of a better product

Question No: 8 ( Marks: 1 ) – Please choose one A/an ______ is an online connection between the
company and its customers.

► Internet advertising

► Website

► E-Commerce

► World Wide Web

Question No: 9 ( Marks: 1 ) – Please choose one

Which one of the following is the next stage to the Concept Stage of Product Planning

and Development Process?

► Idea Stage

► Product Planning Stage

► Product Development Stage

► Test Marketing Stage

Question No: 10 ( Marks: 1 ) – Please choose one Which of the followings give the owners a negative
right, preventing anyone from

making, using, or selling the invention?

► Patent

► Copyright

► Trade mark

► Trade secret
Question No: 11 ( Marks: 1 ) – Please choose one Which one of the following is a longest lasting trade
agreement with the objective of

liberalizing trade by eliminating or reducing tariffs, subsidies and quotas?

► Free trade area – FTA

► European community – EC

► General agreement on tariffs and trade – GATT

► The North American free trade agreement – NAFTA

Question No: 12 ( Marks: 1 ) – Please choose one Which of the following grants protection to owner
from anyone else making, using and selling the identified innovation?

► Utility patent

► Design patent

► Plant patent

► International patent

Question No: 13 ( Marks: 1 ) – Please choose one Which one of the followings statements is NOT true
about trademarks?

► The entrepreneur can not file after the mark already been in use

► A trademark could be a slogan or a particular sound

► Some trademarks have no relationship with the product

► The filing date for the trademark becomes the first date use of the mark

Question No: 14 ( Marks: 1 ) – Please choose one According to the governing bodies of common
laws, the life of trade secret is:

► 12 years

► 17 years

► 20 years

► As long as it remains confidential


Question No: 15 ( Marks: 1 ) – Please choose one Which one of the following is the main problem for
the entrepreneur in the beginning

stages of creating a new venture?

► Lack of experience

► Limited resources

► Lack of education

► None of the given options

Question No: 16 ( Marks: 1 ) – Please choose one Which one of the following protects continuity of
the business(specially in

partnership)?

► Property insurance

► Casualty insurance

► Life insurance

► Bonding

Question No: 17 ( Marks: 1 ) – Please choose one A legally binding agreement between two parties is
called:

► A contract

► Licensing

► Insurance

► A copyright

Question No: 18 ( Marks: 1 ) – Please choose one Information regarding all of the following is related
to operations, EXCEPT:

► Location

► Promotion

► Raw materials

► Labor skills
Question No: 19 ( Marks: 1 ) – Please choose one Which of the following is NOT studied in industry
analysis?

► Economic conditions

► Technology advancements

► Organizational culture

► Legal concerns

Question No: 20 ( Marks: 1 ) – Please choose one Which one of the factors should be considered
while assessing the location for

business?

► Parking

► Access from roadways to facility

► Delivery rates

► All of the given options

Question No: 21 ( Marks: 1 ) – Please choose one Which one of the following is NOT included in four
C’s evaluation by lender?

► Character

► Cost

► Continuity

► Contribution

Question No: 22 ( Marks: 1 ) – Please choose one Which of the following is a characteristic of a good
partner?

► Help to achieve goals

► Share entrepreneur’s vision

► Do not exploit the partnership

► All of the given options

Question No: 23 ( Marks: 1 ) – Please choose one Having more than 50% ownership position that
provides the entrepreneur with
managerial control is called:

► Joint venture

► Majority interest

► Horizontal merger

► Diversified activity merger

Question No: 24 ( Marks: 1 ) – Please choose one Which one of the following is a sound strategic
option for an entrepreneur when

synergy is present?

► Merger

► Joint venture

► Minority interest

► Majority interest

Question No: 25 ( Marks: 1 ) – Please choose one Which of the following is a method of selling goods
to another country by taking care

of transactions?

► Indirect exporting

► Direct exporting

► Importing

► Management contract

Question No: 26 ( Marks: 1 ) – Please choose one Following are the types of non-equity
arrangements EXCEPT:

► Licensing

► Management contracts
► Direct export

► Turnkey projects

Question No: 27 ( Marks: 1 ) – Please choose one Andrew Carnegie is an example of entrepreneur of
which century:

► Earliest period

► 19th and 20th century

► Middle ages

► 17th century

Question No: 28 ( Marks: 1 ) – Please choose one A person who managed large project was termed
as the entrepreneur in the _________.

► Earliest period

► Middle ages

► 17th century

► 19th and 20th century

Question No: 29 ( Marks: 1 ) – Please choose one In some countries, point of purchase displays are
not allowed in retail stores. Such

differences are studied by international entrepreneurs under __________.

► Economic Environment

► Political Environment

► Cultural Environment

► Technological Environment

Question No: 30 ( Marks: 1 ) – Please choose one

Which of the following factor is most important in forming a new business?

► Finance
► Marketing

► Government support

► Family support

Question No: 31 ( Marks: 1 ) – Please choose one Most of the finance for the new firm comes from
following resources EXCEPT:

► Friends

► Foreign aid

► Relatives

► Personal savings

Question No: 33 ( Marks: 1 ) – Please choose one The intersection of knowledge and a recognized
social need to start a product

development process is called which of the following?

► Iterative synthesis

► Product-evolution process

► Ordinary innovation

► Situation analysis

Question No: 34 ( Marks: 1 ) – Please choose one A foundation company is formed through which of
the following?

► Fashion

► Most popular business

► A winding up company

► Research and development


Question No: 35 ( Marks: 1 ) – Please choose one Which of the following factors is the most important
in forcing U.S companies to focus

on new product development and increased productivity?

► Entrepreneurship

► Hyper competition

► Governmental laws

► Organizational culture

Question No: 38 ( Marks: 1 ) – Please choose one Individuals influencing an entrepreneur’s career
choice and style are known as which of

the following?

► Role model

► Moral-support network

► Professional support network

► Support system

Question No: 39 ( Marks: 1 ) – Please choose one An entrepreneur is also successful in international
business as well if he understands:

► Difference of domestic and international business

► Domestic business

► International business

► None of the given options

Question No: 40 ( Marks: 1 ) – Please choose one Which of the following is NOT an important aspect
of international success?

► Planning
► Diversification

► Reporting

► Control

Question No: 41 ( Marks: 5 ) What is meant by role models? What role do they perform?

Question No: 42 ( Marks: 5 )

Briefly discuss the product planning and development process.

MIDTERM EXAMINATION

Spring 2009

MGT602- Entrepreneurship (Session – 4)

Time: 60 min

Marks: 50

Question No: 1 ( Marks: 1 ) – Please choose one

Which of the following has not yet been empirically established as a

distinguishing characteristic of entrepreneurs?

► Locus of control

► Feeling about independence

► Need for achievement

► Risk taking

Which one of the following is a business arrangement in which someone else is allowed

to use something of the company?

► Patent

► Trade mark

► Copy right
► Licensing

Question No: 4 ( Marks: 1 ) – Please choose one

Which of the following method entrepreneur can use to do international business with

least risk?

► Turnkey projects

► Joint venture

► Merger

► Synergy

Question No: 5 ( Marks: 1 ) – Please choose one

A company dealing in beer has a merger with cigarettes manufacturing firm. This merger

is called:

► Horizontal merger

► Product extension merger

► Market extension merger

► Vertical merger

Question No: 6 ( Marks: 1 ) – Please choose one

Which one of the following is an important source of idea generation due to their

familiarity with the needs of market?

► Existing products and services

► Distribution channels

► Federal government

► Consumers

Question No: 7 ( Marks: 1 ) – Please choose one

Members of distribution channels are excellent sources for new ideas because:
► They are familiar with the needs of the market

► They earn a handsome profit from new business

► They do not bother if entrepreneur bears a loss

► They have well-developed sales force

Question No: 8 ( Marks: 1 ) – Please choose one

Which one of the following is the most important characteristic of a successful

business websit?

► Speed

► Innovation

► Graphics

► Products

According to the governing bodies of common laws, the life of trade secret is:

► 12 years

► 17 years

► 20 years

► As long as it remains confidential

Question No: 11 ( Marks: 1 ) – Please choose one

SBA stands for:

► Small business accountants

► Small business administration

► Small business adequacy

► Small business advisors

Question No: 12 ( Marks: 1 ) – Please choose one

Why should an entrepreneur do a feasibility study for starting a new venture?


► To see if there are possible barriers to success

► To identify possible sources of funds

► To estimate the expected sales

► To explore potential customers

Question No: 13 ( Marks: 1 ) – Please choose one

Information regarding all of the following is related to operations, EXCEPT:

► Location

► Promotion

► Raw materials

► Labor skills

Question No: 14 ( Marks: 1 ) – Please choose one

Which one of the following guide the firm through the long term decision making?

► Mission statement

► Product forecast

► Industry analysis

► None of the given options

Question No: 15 ( Marks: 1 ) – Please choose one

Which of the following is included in the description of the business?

► Location

► Products offered

► History

► All of the given options

Question No: 16 ( Marks: 1 ) – Please choose one

For which of the following copy right acquisition is desirable?


► Songs

► Poems

► Models

► All of the given options

Question No: 17 ( Marks: 1 ) – Please choose one

Which of the following is TRUE for Disclosure Document?

► It gives recognition that he was the inventor of the idea in past

► It gives recognition that he is the first the inventor of the idea

► It gives recognition that he will be the invent an idea in future

► It gives recognition that he wants to copy the idea

Question No: 18 ( Marks: 1 ) – Please choose one

Which of the following is idea generation method that focuses on parameters?

► Brainstorming

► Reverse brainstorming

► Creative problem solving

► Synoptic

Question No: 19 ( Marks: 1 ) – Please choose one

The transitional disturbance and lack of reform has led to a booming black market in:

► China

► Hungary

► Singapore

► Poland

Question No: 20 ( Marks: 1 ) – Please choose one

Which of the following geographical area is of least interest to U.S entrepreneurs?


► Europe

► The Far East

► Central Asia

► Transition economies

Question No: 21 ( Marks: 1 ) – Please choose one

Which one of the following gives suggestions for new product and also help to market

new products?

► Existing products and services

► Distribution channels

► Federal government

► Consumers

Question No: 22 ( Marks: 1 ) – Please choose one

Which of the following is used by entrepreneurs to acquire experience in an international

market before making a major commitment?

► Merger

► Joint venture

► Minority interest (Doubted)

► Majority interest

Question No: 23 ( Marks: 1 ) – Please choose one

GATT is established in 1947, under:

► German leadership

► French leadership

► U.S. leadership

► U.K. leadership
Question No: 24 ( Marks: 1 ) – Please choose one

The entrepreneur was distinguished from capital provider in:

► Middle ages

► 18th century

► 17th century

► 19th and 20th century

Question No: 25 ( Marks: 1 ) – Please choose one

A person who managed large project was termed as the entrepreneur in the _________.

► Earliest period

► Middle ages

► 17th century

► 19th and 20th century

Question No: 26 ( Marks: 1 ) – Please choose one

Which of the following factor is most important in forming a new business?

► Finance

► Marketing

► Government support

► Family support

Question No: 27 ( Marks: 1 ) – Please choose one

What is the process by which individuals pursue opportunities without regard to

resources they currently control?

► Startup management

► Entrepreneurship

► Financial analysis
► Feasibility planning

Question No: 29 ( Marks: 1 ) – Please choose one

Which of the following shows the process of creating something new?

► Business model

► Modeling

► Innovation

► Creative flexibility

In the administrative domain, the commitment of resources is for which of the

following?

► Periodic intervals

► Total amount needed

► For certain tasks

► For long time

Question No: 32 ( Marks: 1 ) – Please choose one

Which of the following is alternatively called corporate venturing?

► Entrepreneurship

► Entrepreneurship

► Act of stating a new venture

► Offering new products by an existing company

Question No: 33 ( Marks: 1 ) – Please choose one

Which is the most common cause of business failure?

► Insufficient capital

► Unstable market

► Insufficient experience
► Poor entrepreneurship

Question No: 34 ( Marks: 1 ) – Please choose one

Which of the following areas are preferred by women entrepreneurs?

► Administration

► Utilities

► Manufacturing

► None of the above

Question No: 35 ( Marks: 1 ) – Please choose one

Degree of influence and control on other people is called:

► Locus of control

► Locomotion of control

► Locust of control

► Loss of control

Question No: 36 ( Marks: 1 ) – Please choose one

Individuals influencing an entrepreneur’s career choice and style are known as which of

the following?

► Role model

► Moral-support network

► Professional support network

► Support system

Question No: 37 ( Marks: 1 ) – Please choose one

The activity which occurs when the new venture is started is called:

► Motivation
► Business skills

► Departure point

► Goal orientation

1. An entrepreneur’s primary motivation for starting a business is

a. To make money

b. To be independent

c. To be famous

d. To be powerful

2. To be successful in an entrepreneurial venture, you need

a. Money

b. Luck

c. Hard work

d. A good idea

3. Entrepreneurs are best as

a. Managers

b. Venture capitalists

c. Planners

d. Doers
4. A successful entrepreneur relies on which of the following for critical management advice

a. Internal management team

b. External management professionals

c. Financial sources

d. No one

5. Entrepreneurs are:

a. High risk takers

b. Moderate risk takers

c. Small risk takers

d. Doesn’t matter

6. Entrepreneurs typically form

a. Service businesses

b. Manufacturing companies

c. Constructive companies

d. A variety of ventures

7. Entrepreneurs:

a. Are the life of the party

b. Are bores at a cocktail party

c. Will never go to parties

d. Just fit into the crowd at a party


8. Entrepreneurs and ventures capitalists:

a. Get along well

b. Are the best friends

c. Are cordial friends

d. Are in conflict

9. An entrepreneur’s primary motivation for high ego and need for

achievement is based upon a relationship with:

a. Spouse

b. Mother

c. Father

d. Children

10. An individual usually begins his or her first significant entrepreneurial

business enterprise at what age

a. Teens

b. Twenties

c. Forties

d. Fifties

1. Personal characteristics to be a successful entrepreneur includes

e. Understanding environment

f. Creating management options


g. Encourage open discussion

h. All of the above

2. Without top management commitment, the organization will

e. Be able to make changes

f. Not be able to make any changes

g. Not be able to make effective changes

h. None of the above

3. Entrepreneurial experience becomes increasingly important as

e. Work load increases

f. Complexity of venture increases

g. Complexity of wok increases

h. None of the above

4. Entrepreneurs are concerned about basic issues of:

e. Sales, costs and benefits

f. Customers, sales and costs

g. Risk, costs and benefits

h. None of the above

5. Licensing arrangements have

e. Low risk process involved

f. Easy way to generate incremental income

g. Several pitfalls

h. All of the above

6. Joint ventures have been used by entrepreneur:

e. When the entrepreneur wants to purchase local knowledge


f. When rapid entry in to the market is needed

g. Both of the options given

h. None of the above

7. A horizontal merger is

e. Is the combination of firms in successive stages of production

f. Is the combination of firms that produce closely related projects

in same area

g. Is the combination of firms that produce same products and sell in

different areas

h. None of the above

8. Main reason(s) for merger is (are)

e. When synergy is present

f. When complementary resources can be combined

g. Economies of scale can be achieved

h. All of the above

9. First stage of production planning and development processes is

e. Idea stage

f. Concept stage

g. Establishing and evaluating criteria stage

h. None of the above

1. NAFTA stands for:

a) North American Free Trade Agreements

b) North Asian Free Trade Agreements

c) National Asian Free Trade Agreements


d) National American Free Trade Agreements

2. The factor______________ is probably the most prevalent reason for mergers.

a) Taxation

b) Economies of scale

c) Inflation

d) Mergers

3. A _____________ merger is a combination of two firms producing the same products but
selling them in different geographic markets.

a) Diversified Activity Merger

b) Product Extension Merger

c) Vertical Merger

d) Market Extension Merger

4. One of the most frequent reasons an entrepreneur forms a joint venture is to share the
________________.

a) Resources b) Cos t c) Cost and risk of

a project d) Profit

5. _______________ involves having a foreign purchaser in the local market or using an export
management firm.

a) Direct Exporting

b) Indirect Exporting

c) Management Contracts

d) Turn-Key Projects

6. The ______________measures the payments that flow between any individual country and all
other countries.

a) International Business

b) Economies of Scales
c) Balance of Payment

d) None of the given options

7. ________________ is an entrepreneurial type who quickly identifies new promising business


opportunities but rarely, if ever, follows through on the opportunity to create a successful new
venture.

a) Simplicity Sue

b) Shotgun Sam

c) Hidden Agenda Harry

d) Inventor Irving

8. One study found that the typical minority business owner was the

a) Oldest child in a blue-collar family and married.

b) Oldest child in a white-collar family and married.

c) Youngest child in a blue-collar family and married.

d) Youngest child in a white-collar family and married.

9. Traditional managers are:

a) Deals with mistakes and failures

b) Tries to avoid mistakes and surprises

c) Attempts to hide risky projects from view until ready

d) None of the given Options

11. Risk decisions are often postponed until

a) Hard facts can be gathered or a consultant hired to illuminate the

unknown.

b) Hard facts can be gathered or an auditor hired to illuminate the

unknown.

c) There is no need to gather facts and hired a consultant/auditor


d) None of the given options

12. _________________ is one method of stimulating, and then

capitalizing on, individuals in an organization who think that

something can be done differently and better.

a) Strategic Orientation b) Capitalization

c) Intrapreneurship d) Management

13. The typical _________________ has a climate and reward system

that favor conservative decision making.

a) Entrepreneurship culture

b) Corporate culture

c) Intrapreneurial culture

d) None of the given options

14. Female entrepreneurs normally start their venture at the age of

_____________ years.

a) 35-45 b) 25-30 c) 20-25 d) 40-45

15. Male entrepreneurs normally start their venture at the age

of____________ years.

a) 20-25 b) 25-35 c) 40-50 d) After the age of retirement.

16. The ________________ is the process through which innovation develops and
commercializes through entrepreneurial activity, which in turn stimulates economic growth.

a) Product-evolution process

b) Technological innovations

c) Breakthrough innovations
d) None of the given options

17. A____________________ is a type of company formed from research and development that
usually does not go public.

a) Foundation

b) Life-Style Firm c) High-Potential Venture d) Both

b and c

18. _________________ involve such things as writing, listening, oral presentations, coaching
and technical know-how.

a) Business Management skills

b) Personal entrepreneurial skills

c) Technical skills

d) None of the given options

19. The ___________________ means to do things in his or her own

way and time.

a) Need per independence

b) Need for achievement

c) Personal values

d) Ethics

20. ________________ is a reason or set of reasons for engaging in a

particular behavior, especially human behavior.

a) Moral value

b) Act

c) Motivation

1. Any patents, trademarks , copyright or trade secrets held by the

entrepreneur is known as
a. Disclosure document

b. Patent

c. Intellectual property

d. None of the mentioned

2. The organization will never be able to make the necessary changes

without_________

a. Top management commitment

b. Employees

c. Workers

d. None of the mentioned

3. The ways entrepreneurs make decisions.

a. Entrepreneurial domain.

b. Reverse brain storming

c. Heuristics

d. Reverse brain storming

4. A trademark is

5. A word, symbol, name or device that a business uses to identify its

goods.

a. A legal protection for information on foreign products.

b. Legal protection for intellectual works.

c. Legal protection for a U.S. product exported to another country.

6. locus of control is

e. A feeling

f. Attitude
g. Attribute

h. None of the above

7. Licensing arrangements have

i. Low risk process involved

j. Easy way to generate incremental income

k. Several pitfalls

l. All of the above

8. Personal characteristics to be a successful entrepreneur includes

i. Understanding environment

j. Creating management options

k. Encourage open discussion

l. All of the above

9. International entrepreneurship is

a. Licensing

b. Exporting

c. Both of the mentioned options

d. None of the two mentioned

Which of the following is not a characteristic that is helpful for an


entrepreneur to have?

a. Self-esteem

b. Caution

c. Drive

10. Hindrance for going in the international business is known as

a. Synergy
b. Turn key point

c. Trade barrier

d. Minority interest

1. An entrepreneur’s primary motivation for starting a business is

m. To make money

n. To be independent

o. To be famous

p. To be powerful

2. To be successful in an entrepreneurial venture, you need

i. Money

j. Luck

k. Hard work

l. A good idea

4. A successful entrepreneur relies on which of the following for critical

management advice

i. Internal management team

j. External management professionals

k. Financial sources

l. No one

6. Entrepreneurs typically form

m. Service businesses

n. Manufacturing companies

o. Constructive companies

p. A variety of ventures
7. Entrepreneurs:

i. Are the life of the party

j. Are bores at a cocktail party

k. Will never go to parties

l. Just fit into the crowd at a party

8. Entrepreneurs and ventures capitalists:

i. Get along well

j. Are the best friends

k. Are cordial friends

l. Are in conflict

9. An entrepreneur’s primary motivation for high ego and need for achievement is based upon a
relationship with:

i. Spouse

j. Mother

k. Father

l. Children

10. An individual usually begins his or her first significant entrepreneurial business enterprise at what
age

i. Teens

j. Twenties

k. Forties

l. Fifties

10. Personal characteristics to be a successful entrepreneur includes

q. Understanding environment

r. Creating management options


s. Encourage open discussion

t. All of the above

11. Entrepreneurial experience becomes increasingly important as

m. Work load increases

n. Complexity of venture increases

o. Complexity of wok increases

p. None of the above

12. Entrepreneurs are concerned about basic issues of:

i. Sales, costs and benefits

j. Customers, sales and costs

k. Risk, costs and benefits

l. None of the above

13. Licensing arrangements have

q. Low risk process involved

r. Easy way to generate incremental income

s. Several pitfalls

t. All of the above

14. Joint ventures have been used by entrepreneur:

m. When the entrepreneur wants to purchase local knowledge

n. When rapid entry in to the market is needed

o. Both of the options given

p. None of the above

15. A horizontal merger is

m. Is the combination of firms in successive stages of production


n. Is the combination of firms that produce closely related projects

in same area

o. Is the combination of firms that produce same products and sell in

different areas

p. None of the above

16. Main reason(s) for merger is (are)

m. When synergy is present

n. When complementary resources can be combined

o. Economies of scale can be achieved

p. All of the above

17. First stage of production planning and development processes is

m. Idea stage

n. Concept stage

o. Establishing and evaluating criteria stage

p. None of the above

1. What causes people to do something?

Need for achievement

Need for independence

Motivation

None of the mentioned options

2. Individuals who help the entrepreneur in business activities

Role models

Professional-support network

Parents
None of the mentioned options

3. The managers in an organization strongly supporting

intrapreneurship is called ———

Top management commitment

Upper management commitment

Lower management intrapreneur

Upper management intrapreneur

4. ————- involves a manufacturer giving a foreign manufacturer

the right to use a patent, trademark or technology in return for a

royalty

Licensing

Turn-key projects

Management contracts

1. A set of reasons for engaging in a particular behavior, especially human

behavior is

known as _____________.

a. Values

b. Vision

c. Entrepreneurship

d. Motivation

2. Which of the following techniques is an excellent method for

initially screening ideas and concepts in addition to generating new

ideas?

a. Focus group
b. Brain storming

c. Problem inventory analysis

d. Reverse brainstorming

3. The creative process for problem solving that involves making the

strange familiar in first step and then making the familiar strange

through personal, direct or symbolic analogy is called _________.

a. Synoptic

b. Gordon method

c. Checklist method

d. Scientific method

4. When the multiplicity of environments become too complex to

handle, the international entrepreneurs often __________.

a. Go for mergers

b. Diversify

c. Decentralize operations

d. Sale out the foreign business

5. An entrepreneur into the hosiery business found out the reason his

hosiery was not selling was due to its color. What could be the best

source of this information?

a. Supplier

b. Retailer

c. Competition

d. Government bureau

7. Entrepreneurial success has been significant because of the culture


and the political and economic systems in _________.

a. European countries

b. Asian countries

c. Transition economies

d. Middle east

9. The under-developed or lesser developed countries need

manufacturing technology

and infrastructure and yet do not want to turn over substantial portion

of their

economy to foreign ownership. Which of the following is a solution to

this dilemma?

a. Management contract

b. Indirect exporting

c. Licensing

d. Turn-key project

10. The development of a new venture based on an inventor’s work

often requires

________.

a. Expertise of an entrepreneur

b. Heavy investment from financers

c. Skilled human resources

d. Highly educated staff

Solution No. 1

Gazelles are the firms with:


High growth rate

Moderate growth rate

Zero% growth rate

Low growth rate

The resources acquired from others(creditors, banks etc) are usually:

Easily available

Difficult to obtain

Very useful

Very cheap

Which of the following firm achieves modest growth:

High potential growth firm

Foundation firm

Life style

Public company

Which of the following statements about the intrepreneurial climate is (are) true?

Trial and error are discouraged.

Resources of the firm need to be available and easily accessible

A multidisciplinary approach is discouraged.

Failures are not allowed

The difference in the entrepreneurial and managerial domains has contributed

towards an increase interest in:

Forming new firms

Partnership

Intrapreneurship
Private firms

The commitment of administrative domain to the resources is for:

Periodic intervals

Total amount needed

For certain tasks

For long time

Which one of the following is NOT an intrapreneurial leadership characteristic?

Understands environment

Encourage the team work

Not flexible

Persistent

Factors contribute to the creation of new venture EXCEPT:

Government

Finance

High interest rates

Role models

The activities which occur when the new venture is started are called:

Motivation

Goal orientation

Departure point

Business skills

The entrepreneur must possess the abilities:

Creative

Conceptualization
Understanding environment

All of the given options

In terms of chronological age, most entrepreneurs initiate their entrepreneurial

carrier between ages of:

15 and 22

22 and 45 22 55

45 and 57

57 and 63

Which of the following factors does not affect a person for being an

entrepreneur?

Family background

Education

Personal values

Gender

The chief motivational factor for _________________ entrepreneurs to leave

jobs is the frustration of not being allowed to perform at the level of which they

are capable.

Male

Female

Young

All of the given options

The activities which occur when the new venture is started are called:

Motivation

Goal orientation
Departure point

Business skills

Which one of the following is NOT an intrapreneurial leadership characteristic?

Understands environment

Encourage the team work

Not flexible

Persistent

The startups which rarely go public are called:

Life style

Foundation Company

Small company

High potential venture

It is proved that most businesses failed because of improper planning of an/a:

Investor

Marketer

Entrepreneur

Consultant

Which one of the following culture that has a climate and reward system that

favor conservative decision making?

Entrepreneurial

Intrapreneurial

Corporate

None of the given options

Which one of the following is the fourth step in the entrepreneurial process?
Developing successful business ideas

Deciding to become an entrepreneur

Growing the entrepreneurial firm

Moving from an idea to an entrepreneurial firm

All of the following are the broad categories of External forces EXCEPT:

Economic forces

Socioeconomic forces

Technological forces

Competitive forces

External forces directly affect all of the following EXCEPT:

Market segmentation strategies

Types of products/services offered

Management structure of organization

Choice of businesses to acquire or sell

There is evidence that an entrepreneur usually has _______________ parents.

Self employed

Discouraged

Non supportive

Strict

Government can help in forming new venture by providing:

Finance

Technology

Infrastructure

Subsidiaries
The decision to start a new business is taken when one perceives that forming a

new business is:

Possible

Desirable

Accurate

Both a and b

entrepreneurs differ from male entrepreneurs in terms of following EXCEPT:

Motivation

Business skills

Departure point ???

Goal orientation

An entrepreneur into the hosiery business found out the reason his hosiery was

not selling was due to its color. What could be the best source of this

information?

Supplier

Retailer

Competition

Government bureau

of the following factors has allowed small companies to act like they are big

ones?

Competition

Economic development

Technology

Customers
Which two work environments should be good for spawning the new enterprises?

Finance and marketing

Finance and R&D

Marketing and R&D

Marketing and IT

Which of the following receives highest investment?

High potential venture

Foundation firm

Life style

Public company

of the following has a contradictory relationship with an individual for being an

entrepreneur?

His birth order

Parents’ social status

Parents’ occupation

Relationship with parents

Which one of the following is required to develop a good team for creating

something new?

Relationship with team members

Open discussion

Non flexible behavior

Discouragement of team member’s ideas

Good entrepreneurs are usually from families which are:

Landlords
Capitalists

Can be from any family with supportive parents ???????

Conservative parents

___________ is required if a company wants to be more flexible in adopting

changes.

Management commitment

Contact with customers

Technology

More productivity

It is proved that most businesses failed because of improper planning of an/a:

Investor

Marketer

Entrepreneur

Consultant

Female entrepreneurs differ from male entrepreneurs in terms of following

EXCEPT:

Motivation

Business skills

Departure point

Goal orientation

Q #2: ___________ Process of creating incremental wealth is called

Entrepreneurship.

A. Dynamic

B. Static
C. Continues

D. Systematic

Q #3: Most important factor in forming a new business is:

A. Finance

B. Marketing

C. Govt Support

D. Family Support

Q #4: Which one of the following is the process of entrepreneurs developing new

products that over time make current products obsolete?

A. Creative destruction

B. New business model

C. Anatomization

D. None of the given options

Q #6: Which one of the following is the primary cause of failure in small

businesses?

A. Poor financial control

B. Poor location

C. Management mistakes

D. Improper inventory control

Q #7: Which one of the following is the first step in the entrepreneurial process?

A. Developing successful business ideas

B. Deciding to become an entrepreneur

C. Growing the entrepreneurial firm

D. Moving from an idea to an entrepreneurial firm


Q #8: Which of the following is NOT included in the opportunity evaluation

process?

A. Length of the opportunity

B. Real and perceived value of opportunity

C. Goals and objectives of customers

D. Risks and rewards of opportunity

Q #9: The resistance of employees in an organization against flexibility, growth, and diversification can
be overcome by developing:

A. Entrepreneurship

B. Intrapreneurship

C. Managerial domain

D. Administrative domain

Q #10: The entrepreneur’s_______________ depends on his perception of the opportunity.

A. Commitment to opportunity

B. Commitment of resources

C. Control of resources

D. Strategic orientation

Q #11: Which of the following statements about the entrepreneurial climate is (are) true?

A. Trial and error are discouraged

B. Resources of the firm need to be available and easily accessible

C. A multidisciplinary approach is discouraged

D. Failures are not allowed

Q #12: Which of the following makes the formation of new venture difficult within corporate culture?

Lack of entrepreneurial talent


Lack of freedom to make autonomous decisions

Lack of market opportunity

D. All of the given options

Q #13: Which of the following factors has allowed small companies to act like they are big ones?

A. Competition

B. Economic development

C. Technology

D. Customers

Q #15: Being one’s own boss is a need of:

A. Independence

B. Achievement

C. Affiliation

D. Authority

Q #16: An individual’s need to be recognized is called:

A. Need for independence

B. Need for affiliation

C. Need of fame

D. Need for achievement

Q #17: Which one of the following factors does not affect a person for being an entrepreneur?

A. Family background

B. Education

C. Personal Values

D. Gender

Q #20: Which one of the following is NOT TRUE about male entrepreneurs?
A. Males often have investors, bank loans, or personal loans in addition to personal funds

B. Males often have more experience in manufacturing, finance, or technical areas

C. Men are often more confident and less flexible and tolerant

D. Men usually list outside advisors as the least important supporters

Plan Outline:

1.0 Executive Summary

a. Mission

b. Objectives

c. Keys to Success

2.0 Company Summary

d. Company Ownership

e. Company History

f. Company Locations and Facilities

3.0 Services

g. Service Description

h. Competitive Comparison

i. Sales Literature

j. Fulfillment

k. Technology

l. Future Services

4.0 Market Analysis Summary

m. Market Segmentation

n. Service Business Analysis

i. Main Competitors
ii. Competition and Buying Patterns

iii. Business Participants

iv. Distributing a Service

5.0 Strategy and Implementation Summary

o. Marketing Strategy

i. Promotion Strategy

ii. Distribution Strategy

iii. Positioning Statement

iv. Pricing Strategy

p. Sales Strategy

i. Sales Programs

ii. Sales Forecast

6.0 Management Summary

2. Organizational Structure

3. Appendix

There is an evidence that an entrepreneur usually has _______________ parents.

Self employed

Discouraged

Non supportive

Strict

Which one of the following makes formation of new ventures within a corporate structure

difficult?

Lack of intrapreneurial talent ??

Lack of freedom to make autonomous decisions


Lack of market opportunity

Lack of knowledge

Question # 8 of 10 Total Marks: 1

Professional support network includes following EXCEPT:

Personal affiliations

Mentor

Trade associations

Friends

Which of the following is NOT a characteristic of an entrepreneur?

Need for independence

Need for affiliation

Need for achievement

Risk taking

With a commercial history of only 300 years, which country was a new comer to

the international arena?

► Japan

► U.S

► China

► U.K

International entrepreneur’s decisions are more complex because of:

► Business expansion

► Analysis of Huge information is difficult

► Complex transactions

► Uncontrollable factors
Which of the following techniques is an excellent method for initial screening

of ideas and concepts?

► Focus group

► Problem inventory analysis

► Brain storming

► Reverse brainstorming

Which one of the following is a method for obtaining new ideas and solutions by

focusing on problems?

► Product inventory analysis

► Gordon method

► Checklist method

► Scientific method

The marketing perspective of business plan considers the venture through the

eyes of:

► Investor

► Customer

► Entrepreneur

► Marketing manager

Question No: 16 ( Marks: 1 ) – Please choose one

Which one of the following is NOT a condition of a contract?

► An offer is made

► An acceptance of offer

► Counter offer

► Consideration is given
Trade barriers cause:

► Increase in cost

► Decrease in cost

► Increase in profit

► None of the given options

Which of the following is a method of selling goods to another country through

a person in the entrepreneur’s home country?

► Trading

► Direct export

► Indirect export

► Domestic sales

Which of the following is required for a company that wants to be more flexible

in adopting changes?

► Management commitment

► Contact with customers

► Technology

► More productivity

Which of the following typical culture has a climate and reward system that

favors conservative decision making?

► Entrepreneurial

► Intrapreneurial

► Corporate

► None of the given options

Which of the following statement about the intrapreneurial climate is true?


► Trial and error are discouraged

► Resources of the firm need to be available and easily accessible

► A multidisciplinary approach is discouraged

► Failures are not allowed

Which of the following are known as barriers to new product creation and

development?

► Trial and error

► Opportunity parameters

► Opportunity cost

► Intrapreneurship culture

All of the following are true regarding male entrepreneurs EXCEPT:

► Typically most male entrepreneurs are first-borns ??

► Dissatisfaction with present job is a departure point for a male entrepreneur

► Male entrepreneurs mostly have a occupational background of middle-management

or administrative-experience in the field

► Male entrepreneurs tend to be opinionated and persuasive in their approach

Entrepreneurial endeavors consist of all of the following key elements Except:

► New business venturing

► Increasing productivity

► Innovativeness

► Proactiveness

Which of the following factor does not affect a person for being an

entrepreneur?

► Family background
► Education

► Personal values

► Gender ??

The former USSR received technology and syrup from Pepsi and provided it with

Soviet vodka and rights to distribute it in the US. This is an example of:

► Economic development

► Barter system

► Balance of payment

► International trade

An entrepreneur doing business within the national border is called:

► International entrepreneurship

► Intrapreneurship

► Domestic entrepreneurship

► None of the given options

Which one of the following may need the business plan?

► Employees

► Investors

► Advisors

► All of the given options

Following are the types of foreign direct investment EXCEPT:

► Joint venture

► Management contracts ??

► Minority interest

► Merger
Solved MCQs of Entrepreneurship (with proper reference and explanation)

Question No: 1
Which of the following shows the process of creating something new?
► Business model
► Modeling
► Innovation
► Creative flexibility
Reference:
(page # 4)
Innovation, the act of introducing something new,
Question No: 2

Which one of the following gives suggestions for new product and also help to market new
products?
► Existing products and services
► Distribution channels
► Federal government
► Consumers
Reference & Explanation:
(Page # 39 of handouts)
Consumers Potential entrepreneurs should pay close attention to the final focal point of a new
product-the customer. This can be an informal or formal survey of consumers expressing their
opinions. Care should be taken to ensure that the idea represents a large enough market.
Existing Companies Entrepreneurs should establish a formal method for monitoring and evaluating
the products and services in the market. This may uncover ways to improve on present products,
resulting in new product ideas.
Distribution Channels
Members of distribution channels are also excellent sources for new ideas because they are familiar
with the needs of the market. Not only do channel members frequently have suggestions for new
product, but they can also help in marketing the entrepreneur’s newly developed products.
Federal Government
The federal government can be source of new product ideas in two ways. First the files of the Patent
Office contain numerous new product possibilities. Although the patents may not be feasible new
product introduction, they can suggest other marketable product ideas. Several government agencies
and publications are helpful in monitoring patent applications. Second new product ideas can come
in response to government regulations. For example the Occupational Safety and Health Act
(OSHA), aimed at eliminating unsafe working condition in industry, mandated that first aid kits be
made available in business establishments employing more than three people. The kit had to contain
specific item that varied according to the company and the industry. In response to OSHA, both
established and newly formed ventures marketed a wide variety of first aid kits.
Question No: 3

Which of the following is used by entrepreneurs to acquire experience in an international


market before making a major commitment?
► Merger
► Joint venture
► Minority interest
► Majority interest
Reference & Explanation:
(http://books.google.com.pk/books?id=s01P0agnLPUC&pg=PA94&lpg=PA94&dq=Which+of+the+
following+is+used+by+entrepreneurs+to+acquire+experience+in+an+international+market+before+
making+a+major+commitment&source=bl&ots=rCNwzr1ZA_&sig=jOefpOz349LldzTxKVQZ_kL
b1fg&hl=en&ei=L47FS6i5OaXCmgP_r_XLDg&sa=X&oi=book_result&ct=result&resnum=4&ved
=0CBMQ6AEwAw#v=onepage&q&f=false )
(http://books.google.com.pk/books?id=Uvdw6E2-
1aIC&pg=PA203&lpg=PA203&dq=minority+interest+is+used+by+entrepreneurs+to+acquire+expe
rience+in+an+international+market+before+making+a+major+commitment&source=bl&ots=3tA-
y_kn4K&sig=Nt4k8-ZGwnTlYndb9RkicLgYlF8&hl=en&ei=9JvFS-
ncIsnbsAbfuPzAAQ&sa=X&oi=book_result&ct=result&resnum=6&ved=0CBoQ6AEwBQ#v=onep
age&q=minority%20interest%20is%20used%20by%20entrepreneurs%20to%20acquire%20experien
ce%20in%20an%20international%20market%20before%20making%20a%20major%20commitment
&f=false )
Note: Sorry we are unable to copy the reference text,
Question No:4

GATT is established in 1947, under:


► German leadership
► French leadership
► U.S. leadership
► U.K. leadership
Reference and Explanation:
GATT 1947 in the US

The GATT, as an international agreement, is a treaty. Under United States law it is classified as a
congressional-executive agreement. Based on the Reciprocal Trade Agreements Act it allowed the
executive branch negotiating power over trade agreements with temporary authority from Congress.
At the time it functioned as a provisional, but promising trade system.

(http://en.wikipedia.org/wiki/General_Agreement_on_Tariffs_and_Trade)
Question No: 5

The entrepreneur was distinguished from capital provider in:


► Middle ages
► 18th century
► 17th century
► 19th and 20th century
Referece and Explanation:
(Page # 3 of handouts)
Middle Ages
In this age the term entrepreneur was used to describe both an actor and a person who managed large
production projects. In such large production projects, this person did not take any risks, managing the
project with the resources provided. A typical entrepreneur was the cleric who managed architectural
projects.
18th Century
In the 18th century the person with capital was differentiated from the one who needed capital. In
other words, entrepreneur was distinguished from the capital provider.
17th Century
In the 17th century the entrepreneur was a person who entered into a contract with the government to
perform a service Richard Cantillon, a noted economist of the 1700s, developed theories of the
entrepreneur and is regarded as the founder of the term. He viewed the entrepreneur as a risk taker
who "buy[s] at certain price and sell[s] at an uncertain price, therefore operating at a risk."
19th and 20th Centuries
In the late 19th and early 20th centuries, entrepreneurs were viewed mostly from an economic
perspective. The entrepreneur "contributes his own initiative, skill and ingenuity in planning,
organizing and administering the enterprise, assuming the chance of loss and gain."
Question No: 6
A person who managed large project was termed as the entrepreneur in the _________.
► Earliest period
► Middle ages
► 17th century
► 19th and 20th century
Referece and Explanation:
(Page # 3 of handouts)
Earliest Period
In this period the money person (forerunner of the capitalist) entered into a contract with the go-
between to sell his goods. While the capitalist was a passive risk bearer, the merchant bore all the
physical and emotional risks.
Middle Ages
In this age the term entrepreneur was used to describe both an actor and a person who managed large
production projects. In such large production projects, this person did not take any risks, managing the
project with the resources provided. A typical entrepreneur was the cleric who managed architectural
projects.
17th Century
In the 17th century the entrepreneur was a person who entered into a contract with the government to
perform a service Richard Cantillon, a noted economist of the 1700s, developed theories of the
entrepreneur and is regarded as the founder of the term. He viewed the entrepreneur as a risk taker
who "buy[s] at certain price and sell[s] at an uncertain price, therefore operating at a risk."
19th and 20th Centuries
In the late 19th and early 20th centuries, entrepreneurs were viewed mostly from an economic
perspective. The entrepreneur "contributes his own initiative, skill and ingenuity in planning,
organizing and administering the enterprise, assuming the chance of loss and gain."
Question No: 7

What is the process by which individuals pursue opportunities without regard to resources
they currently control?
► Startup management
► Entrepreneurship
► Financial analysis
► Feasibility planning
Reference & Explanation:
Entrepreneurship is a process by which individuals - either on their own or inside organizations -
pursue opportunities without regard to the resources they currently control. (Stevenson & Jarillo,
1990, p. 23)
(http://findarticles.com/p/articles/mi_hb6648/is_n3_v19/ai_n28666393/)
Stevenson's definition would be as follows: The continuous process by which individuals pursue
opportunities without regard to resources they currently control, with the intent of increasing value
and/or advantage. I have made the underlined additions because entrepreneurship should never be
considered a single event. It is a continuing, non–ending process in search of increasing value and
ever increasing advantage.
(http://www.babson.edu/entrep/fer/papers97/mitton/mit6.htm)

Question No: 8

Having less than 50 percent of equity share in an international venture is called:

► Minority interest

► Joint venture

► Majority interest

► Exporting

Reference:

(page # 36)

Minority interest

Having less than 50 percent ownership position

Question No: 9

Having more than 50% ownership position that provides the entrepreneur with managerial
control is called:

► Joint venture

► Majority interest
► Horizontal merger

► Diversified activity merger

Reference:

(Page # 34)

Majority interest

Having more than 50 percent ownership position

Question No: 10 - (

Which one of the following is the process of entrepreneurs developing new products that over
time make current products obsolete?
► New business model
► Anatomization
► Creative destruction
► None of the given options
Reference :
Creative destruction occurs when something new kills something older. A great example of this is personal
computers. The industry, led by Microsoft and Intel, destroyed many mainframe computer companies, but in
doing so, entrepreneurs created one of the most important inventions of this century

(http://www.investopedia.com/terms/c/creativedestruction.asp)

(http://wps.prenhall.com/bp_barringer_entrep_1/29/7476/1913875.cw/content/index.html)

Question No: 11

Which of the following factors is the most important in forcing U.S companies to focus on new
product development and increased productivity?
► Entrepreneurship
► Hyper competition
► Governmental laws
► Organizational culture
Reference:
(page # 16)
Hyper competition has forced U.S. companies to focus on new product development and increased
productivity.
Question No: 12

Which of the following is alternatively called corporate venturing?


► Entrepreneurship
► Intrapreneurship
► Act of stating a new venture
► Offering new products by an existing company
Reference:
(Page # 21)
Intrapreneurship, also called corporate venturing,
Question No: 13
Individuals influencing an entrepreneur’s career choice and style are known as which of the
following?
► Role model
► Moral-support network
► Professional support network
► Support system
Reference:
(Page # 25)
Role models
Individuals influencing an entrepreneur’s career choice and style
Moral-support network
Individuals who give psychological support to an entrepreneur
Professional-support network
Individuals who help the entrepreneur in business activities
Question No: 14

The activity which occurs when the new venture is started is called:
► Motivation
► Business skills
► Departure point
► Goal orientation
Reference:
(Page # 23)
Departure points
The activities occurring when the venture is started
Question No: 15
The level at which an individual is viewed by society is called:
► Financial status
► Qualification
► Social status
► Achievement
Reference:
(Page # 25)
Social status
The level at which an individual in viewed by society
Question No: 16

Which one of the following is an important source of idea generation due to their familiarity
with the needs of market?
► Existing products and services
► Distribution channels
► Federal government
► Consumers
Reference & Explanation:
(Page # 39 of handouts)
Consumers Potential entrepreneurs should pay close attention to the final focal point of a new
product-the customer. This can be an informal or formal survey of consumers expressing their
opinions. Care should be taken to ensure that the idea represents a large enough market.
Existing Companies Entrepreneurs should establish a formal method for monitoring and evaluating
the products and services in the market. This may uncover ways to improve on present products,
resulting in new product ideas.
Distribution Channels
Members of distribution channels are also excellent sources for new ideas because they are
familiar with the needs of the market. Not only do channel members frequently have suggestions
for new product, but they can also help in marketing the entrepreneur’s newly developed products.
Federal Government
The federal government can be source of new product ideas in two ways. First the files of the Patent
Office contain numerous new product possibilities. Although the patents may not be feasible new
product introduction, they can suggest other marketable product ideas. Several government agencies
and publications are helpful in monitoring patent applications. Second new product ideas can come
in response to government regulations. For example the Occupational Safety and Health Act
(OSHA), aimed at eliminating unsafe working condition in industry, mandated that first aid kits be
made available in business establishments employing more than three people. The kit had to contain
specific item that varied according to the company and the industry. In response to OSHA, both
established and newly formed ventures marketed a wide variety of first aid kits.
Question No: 17

Members of distribution channels are excellent sources for new ideas because:
► They are familiar with the needs of the market
► They earn a handsome profit from new business
► They do not bother if entrepreneur bears a loss
► They have well-developed sales force
Reference & Explanation:
(Page # 39 of handouts)
Consumers Potential entrepreneurs should pay close attention to the final focal point of a new
product-the customer. This can be an informal or formal survey of consumers expressing their
opinions. Care should be taken to ensure that the idea represents a large enough market.
Existing Companies Entrepreneurs should establish a formal method for monitoring and evaluating
the products and services in the market. This may uncover ways to improve on present products,
resulting in new product ideas.
Distribution Channels
Members of distribution channels are also excellent sources for new ideas because they are
familiar with the needs of the market. Not only do channel members frequently have suggestions
for new product, but they can also help in marketing the entrepreneur’s newly developed products.
Federal Government
The federal government can be source of new product ideas in two ways. First the files of the Patent
Office contain numerous new product possibilities. Although the patents may not be feasible new
product introduction, they can suggest other marketable product ideas. Several government agencies
and publications are helpful in monitoring patent applications. Second new product ideas can come
in response to government regulations. For example the Occupational Safety and Health Act
(OSHA), aimed at eliminating unsafe working condition in industry, mandated that first aid kits be
made available in business establishments employing more than three people. The kit had to contain
specific item that varied according to the company and the industry. In response to OSHA, both
established and newly formed ventures marketed a wide variety of first aid kits.
Question No: 18

Which one of the following is the most important characteristic of a successful business
website?
► Speed
► Innovation
► Graphics
► Products
Reference:
(Page # 44)
A successful website has three characteristics: speed, speed, and speed. Short download time should be the
primary concern of website developers.
Question No: 19

Which one of the following is the next stage to the Concept Stage of Product Planning and
Development Process?
► Idea Stage
► Product Planning Stage
► Product Development Stage
► Test Marketing Stage
Reference:
(Page # 45)
Product planning and development process
Generally divided into five major stages: idea stage, concept stage, product development stage, test marketing
stage, and commercialization stage
Question No: 20 (

SBA stands for:


► Small business accountants
► Small business administration
► Small business adequacy
► Small business advisors
Reference:
(Page # 81, Lecture 32)
Small Business Administrative (SBA)
Question No: 21
Why should an entrepreneur do a feasibility study for starting a new venture?
► To see if there are possible barriers to success
► To identify possible sources of funds
► To estimate the expected sales
► To explore potential customers
Reference:
(Page # 56, Lecture # 22)
Before preparing a business plan, the entrepreneur should do a quick feasibility study to see if there are
possible barriers to success. The entrepreneur should clearly define the venture’s goals, which provide a
framework for the business plan. The business plan must reflect reasonable goals.
Question No: 22

Information regarding all of the following is related to operations, EXCEPT:


► Location
► Promotion
► Raw materials
► Labor skills
Reference:
(Page # 56, Lecture # 22)
Operations Information Needs

The entrepreneur may need information on:

1. Location

2. Manufacturing operations

3. Raw materials

4. Equipment

5. Labor skills

6. Space

7. Overhead
Question No: 23

For which of the following copy right acquisition is desirable?


► Songs
► Poems
► Models
► All of the given options
Reference:
all above thing even downloading books form internet is protected by copy rights except vu past
papers .heheehe
Question No: 24

Which of the following is TRUE for Disclosure Document?


► It gives recognition that he was the inventor of the idea in past
► It gives recognition that he is the first the inventor of the idea
► It gives recognition that he will be the invent an idea in future
► It gives recognition that he wants to copy the idea
Reference:
(Page # 47)
Disclosure of the invention, giving recognition that he or she was the first to develop the idea.
Question No: 25 (

In the administrative domain, the commitment of resources is for which of the following?

► Periodic intervals
► Total amount needed
► For certain tasks
► For long time
Reference:
Commitment of Resources

An entrepreneur is used to having resources at periodic intervals that are often based on certain tasks or
objects being reached. These resources, often acquired from others, are usually difficult to obtain, forcing the
entrepreneur to maximize any resources used. This multistage commitment allows the resource providers
(such as venture capitalist or private investors) to have as small an exposure as possible at each stage of
business development and to constantly monitor and track record being established. Even though the funding
may also be implemented in stages in the administrative domain, the commitment of the recourses is for the
total amount needed. Administratively oriented individuals respond to the resources of the rewards offered
and receive personal rewards by effectively administering the resources under this control.

(http://books.google.com/books?id=s01P0agnLPUC&pg=PA42&lpg=PA42&dq=In+the+administrative+domai
n,+the+commitment+of+resources+is+for+which+of+the+following&source=bl&ots=rCNwzs25w3&sig=08Td
nkl46ViZSrIM4ti5s0QNRPk&hl=en&ei=JLzFS4bNJY-
TsQadsJHBAQ&sa=X&oi=book_result&ct=result&resnum=1&ved=0CAYQ6AEwAA#v=onepage&q&f=false )

Question No: 26 ( Marks: 1 ) - Please choose one


Which of the following is a method of selling goods to another country by taking care of
transactions?

► Indirect exporting

► Direct exporting

► Importing

► Management contract

Reference:

(Page # 30)

Direct exporting through independent distributors or through one’s own overseas sales office is
another entry method. An independent foreign distributor directly contacts foreign customers and
takes care of all technicalities.

Question No: 27 ( Marks: 1 ) - Please choose one

Gazelles are the firms with:

► High growth rate

► Moderate growth rate

► Zero growth rate

► Low growth rate

Reference:

(page # 7)

Gazelles

Very high growth ventures.

Question No: 28 ( Marks: 1 ) - Please choose one

Which of the following are the Fast-growth young companies?


► Gazelles

► Life style

► Foundation Company

► None of the given options

Reference:

(page # 8)

A venture has high growth potential and therefore receives great investor interest. The company may
start out like a foundation company, but its growth is far more rapid. After five to ten years the
company could employ around 500 employees. These firms are also called gazelles and are most
important for the economic development of an area

Question No: 29 ( Marks: 1 ) - Please choose one

Which of the following factor has allowed small companies to act like they are big ones?

► Technology

► Customers

► Economic development

► Competition

Reference:

(Page #21)

A company needs to use technology to make itself faster and more flexible. Technology has
allowed small companies to act like they are big ones. Large companies can use technology to
make them responsive and flexible
Solved Exam papers
MGT602 Entrepreneurship Final Term 2009 Solved by
Mehreen Humayun 2
View Comments

FINALTERM EXAMINATION
Spring 2009
MGT602- Entrepreneurship
Shared By Shahaan Zulfiqar
Solved by vuZs Team
Mehreen Humayun
www.vuzs.info
Time: 120 min
M - 80
Question No: 1 ( M - 1 ) .
There is an evidence that an entrepreneur usually has _______________ parents.

Self employed
Discouraged
Non supportive
Strict
Entrepreneurs tend to have self-employed fathers, and many also have entrepreneurial mothers.

Question No: 2 ( M - 1 ) .
Following are the problems in developing the economies EXCEPT:

Gap of knowledge
Variable rate of return
Same communication style
Different accounting system
There are still many difficulties in doing business in developing and transition economies due to:
a. Gaps in the knowledge of the Western system regarding business plans, marketing, and profits
b. Widely variable rates of return.
c. Non-convertibility of the ruble.
d. Differences in the accounting system.
e. Nightmarish communications.

www.vuzs.info
Question No: 3 ( M - 1 ) .
Which of the following techniques is an excellent method for initial screening of ideas and concepts?

Focus group
Problem inventory analysis
Brain storming
Reverse brainstorming
Focus groups:
· number of group members from 6-12
· Moderator focuses discussion of the group in a directive or nondirective manner.
· An excellent method for initially screening ideas and concepts.
Question No: 4 ( M - 1 ) .
Which one of the following is the next stage to the Concept Stage of Product Planning and Development
Process?

Idea Stage
Product Planning Stage
Product Development Stage
Test Marketing Stage
Product planning and development process: Generally divided into five major stages: idea stage, concept
stage, product development stage, test marketing stage, test marketing stage, and commercialization stage.
www.vuzs.info
Question No: 5 ( M - 1 ) .
Which of the following is a more structured method of problem solving, including principles and rules for
concept formation, making observations and experiments, and finally validating the hypothesis?

Scientific method
Heuristics
Attribute listing
Value analysis
Scientific method: This is a more structured method of problem solving, including principles and rules for
concept formation, making observations and experiments, and finally validating the hypothesis.

Question No: 6 ( M - 1 ) .
Which of the following is used by entrepreneurs to acquire experience in an international market before
making a major commitment?

Merger
Joint venture
Minority interest
Majority interest
The joint venture provides ready access to new international markets.
Question No: 7 ( M - 1 ) .
Which of the following plan shows the economically feasibility of business?

Business
Financial
Economic
Marketing
Financial Plan: The financial plan determines the investment needed for the new venture and indicates
whether the business plan is economically feasible.

www.vuzs.info
Question No: 8 ( M - 1 ) .
What are the number of questions a marketing plan usually answers?

5
2
3
4
Understanding the marketing plan: The marketing plan should answer three basic questions:
Where have we been? -The history of the marketplace, marketing strengths and weaknesses, and market
opportunities.
Where do we want to go (short term)? - Marketing objectives and goals in the next twelve months.
How do we get there? -Specific marketing strategy that will be implemented.

Question No: 9 ( M - 1 ) .
Which of the following allows the entrepreneur to establish controls on the process during the implementation
of the marketing plan?

Sales data
Research data
Consumer data
Technical data
www.vuzs.info

Question No: 10 ( M - 1 ) .
Which of the following shows the characteristic of the venture that has experience in related business?

Strength
Weakness
Opportunity
Threat

Question No: 11 ( M - 1 ) .
Advertising and promotion for the business-to-business market involve all of the following EXCEPT:

Indirect sales
Trade magazine advertising
Direct sales
Trade shows

Question No: 12 ( M - 1 ) .
Which of the following shows the characteristic of the venture that has experience in related business?

Strength
Weakness
Opportunity
Threat
www.vuzs.info

Question No: 13 ( M - 1 ) .
In which of the following, banks are usually reluctant to give loan?

Sole Proprietor
Public Limited Companies
Partnership firm
Private Limited Companies

Question No: 14 ( M - 1 ) .
In which of the following majority holds the management control?

Partnership
Corporation
Limited liability company
All of the given options
In a partnership the majority usually rules unless the partnership agreement states otherwise.
www.vuzs.info
Question No: 15 ( M - 1 ) .
Which of the following represents the shares in borrowing of Large Enterprises in Pakistan?

68%
65%
66%
67%
Ref: Video Lecture#45, Time 10:45

Question No: 16 ( M - 1 ) .
Which of the following represents the environment in which entrepreneurship can’t grow?

Boom
Vacuum
Maturity
Introductory Phase
Ref: A business does not function in a vacuum. It has to act and react to what happens outside the factory
and office walls.

www.vuzs.info
Question No: 17 ( M - 1 ) .
"What the entrepreneur hopes to accomplish" includes in which section of business plan?

Vision statement
Mission Statement
Goal Statement
All of the above
The description of the venture should be detailed in this section. This should begin with the mission statement
or company mission, which describes the nature of the business and what the entrepreneur hopes to
accomplish.

Question No: 18 ( M - 1 ) .
Which of the following shows the standard acceptable term of a Limited Liability Company?

Three
Ten
Twenty
Thirty
Lesson 29
The standard acceptable term of an LLC is 30 years.
Question No: 19 ( M - 1 ) .
Which one of the following provides a guideline in determining hiring procedures?

Job description
Job specification
Job analysis
Job evaluation
The job analysis serves as a guide in determining hiring procedures.

www.vuzs.info
Question No: 20 ( M - 1 ) .
The S corporation combines the tax advantages of which one of the following?

Proprietorship and limited liability company


Partnership and corporation
Corporation and limited liability company
Partnership and proprietorship
S CORPORATIONS: The S Corporation combines the tax advantages of the partnership and the corporation.

Question No: 21 ( M - 1 ) .
Which of the following is the base of Job Advertisement?
Job Description
Job Specification
Job identification
All of the above options
Ref: Job Advertisement: Before you write your job ad, complete a job profile and/or job description.
A job advertisement is placed when a vacancy arises within a company or organization.

Question No: 22 ( M - 1 ) .
Which of the following shows the results from the difference between actual cash receipts and cash
payments?

Revenue
Profit
Cash flow
Income statement
Cash flow results from the difference between actual cash receipts and cash payments.

Question No: 23 ( M - 1 ) .
What is the primary concern of entrepreneurs, who trade equity for their growing venture?

Control
Valuation
Investor capabilities
Capitalization
Reference by Zubair Hussain
Capitalization: Its primary concern is capitalization, because Entrepreneurs offer share in his/her company in
return of money, when he lacks money to fulfill the need of capital.

www.vuzs.info
Question No: 24 ( M - 1 ) .
When the business does not have assets to support a loan, the entrepreneur may go for which one of the
following options?

Character loan
Straight commercial loan
Installment loan
Long term loan
Character loans: When the business does not have assets to support a loan, the entrepreneur may need a
character loan.

Question No: 25 ( M - 1 ) .
Which of the following number of years a mortgage loan may possibly cover?

10
20
30
40
Ref: As with other types of loans, mortgages have an interest rate and are scheduled
to amortize over a set period of time, typically 30 years.
www.vuzs.info
Question No: 26 ( M - 1 ) .
In which of the following techniques, money is given to a firm for developing a technology and involves a tax
shelter?

Small business administration loans


Cash flow financing
Small business innovation research grant
Research and development limited partnership
This method of financing provides funds from inventors looking for tax shelters. A typical R&D partnership
arrangement is established with a sponsoring company developing the technology with funds being provided
by a limited partnership of individual investors.

Question No: 27 ( M - 1 ) .
The overall coordinating party in an agreement is:

Limited partner
Major partner
Minor partner
General partner
Liability of Owners: The proprietor and general partners are liable for all aspects of the business.
www.vuzs.info

Question No: 28 ( M - 1 ) .
Which of the following includes grants from the U.S. government to small technology based businesses?

Small business administration loans


Small business innovation research grant
Research and development limited partnership
Installment loans
The Small Business Innovation Research (SBIR) grant program helps entrepreneurs obtain federal grant
money to develop an innovative idea. The act requires all federal agencies to share a portion of the R&D
funds with small businesses.

Question No: 29 ( M - 1 ) .
Which of the following is a formalized method for obtaining funds from private investors?

Private placement
Private offering
Regulation D
Bootstrap financing
Private placement refers to the process of obtaining funds from private parties such
as investors.

Question No: 30 ( M - 1 ) .
When did the Sindh Small Industries Corporation launch its credit scheme?

1972-73
1978-79
1988-89
1992-93
The SSIC also launched a credit scheme in 88, /89.
www.vuzs.info

Question No: 31 ( M - 1 ) .
Which of the following is a type of leverage ratio?

Debt ratio
Net profit margin
Return on investment
Current ratio
Debt ratio helps the entrepreneur assess the firm’s ability to meet all its obligations.

Question No: 32 ( M - 1 ) .
The mean age of entrepreneurial enterprises in Pakistan is:

12 years
15 years
20 years
22 years
Age Pattern: “The mean age of entrepreneur was found to be 42 years and of their enterprises 12 years. It is
comparable to the Korean age pattern (46)”.

www.vuzs.info
Question No: 33 ( M - 1 ) .
In most cases, the venture capitalist:

Seeks control of the company


Never expects a seat on the board of directors
Expects the management team to run the daily operations
Prefers not to interfere in planning and expertise areas
The venture capitalist will play an important role in management of the business and wants the entrepreneurs
to be pliable and willing to accept this involvement. These investors will also demand high rates of return and
will thus focus on the market and financial projections.

Question No: 34 ( M - 1 ) .
Conflicts in Management thoughts and Entrepreneur thoughts are resolved by which of the following
company?

Xerox
Unilever
Walls
Volta

Question No: 35 ( M - 1 ) .
The entrepreneur must possess the abilities:

Creative
Conceptualization
Understanding environment
All of the given options

www.vuzs.info
Question No: 36 ( M - 1 ) .
In which of the following era entrepreneur enters into a contract with government to perform a service?

20th century
Earliest period
Middle ages
17th century
17th Century: In the 17th century the entrepreneur was a person who entered into a contract with
the government to perform a service Richard Cantillon, a noted economist of the 1700s, developed theories
of the entrepreneur and is regarded as the founder of the term.

Question No: 37 ( M - 1 ) .
Which one of the following is a firm that achieves modest growth?

High potential growth firm


Foundation firm
Life style
Public company
A life-style firm exists primarily to support the owners and usually has little growth opportunity. This type of
firm may grow after several years to 30 or 40 employees.

Question No: 38 ( M - 1 ) .
In entrepreneurial domain the commitment to opportunity has short time span but in managerial domain it is:
For 1 month
For 6 months
For long time span
For 1 year

www.vuzs.info
Question No: 39 ( M - 1 ) .
Moral support network includes all of the following EXCEPT:

Spouses
Friends
Business associates
Relatives

Moral support network of family and friends. Most entrepreneurs indicate that their spouses are their
biggest supporters.

Question No: 40 ( M - 1 ) .
Professional support network includes all of the following EXCEPT:

Personal affiliations
Mentor
Trade associations
Friends
1. A mentor-protégé relationship is an excellent way to secure the needed professional
advice.
2. Affiliations with individuals developed in hobbies, sporting events, civic involvements
and school alumni groups are excellent sources of referrals, advice, and information.
3. Trade associations are good network additions, as they keep up with new
developments and can provide overall industry data.
Question No: 41 ( M - 5 )
Differentiate the operating budget from capital budget?

www.vuzs.info
Question No: 42 ( M - 5 )
It is said that advertising agencies are meant for the promotional tools. Why do you think that it is a correct
statement?

Question No: 43 ( M - 10 )
An "S Corporation" is a corporation which has elected to have its profits pass through to its shareholders, in
the same manner as a partnership or sole proprietorship. Write down the pros and cons of "S Corporation".

Question No: 44 ( M - 10 )
Suppose you want to calculate the net worth of your business. What kind of statement will you use in order to
calculate the net profit? Also discuss its key feature.

Question No: 45 ( M - 10 )
Product or service is the basis of building the marketing plan. What are the major factors which should be
included while writing the marketing plan of a product or service?
MGT602 latest MCQs for Final Papers
by
Mar 9, 2014
Question No: 1 ( Marks: 1 ) - Please choose one

If cash disbursement for some items becomes greater than budgeted then it may
indicate a need for tighter _______.

Select correct option:

Cash control
Cost control

Asset control

Debt control

Question No: 2 ( Marks: 1 ) - Please choose one

All of the following are the most effective sources of hiring entry level and less
skilled positions except:

Networking

Business associates

Personnel agencies
Venture capitalist

Question No: 3 ( Marks: 1 ) - Please choose one


Which of the following is a major disadvantage of the corporate form of business?

Double taxation of dividends

Limited liability of shareholders

Transferability of interest

Inability of the firm to raise large sums of additional capital

Question No: 4 ( Marks: 1 ) - Please choose one

Which one of the following shows the financial condition of the business at a
specific time?

Projected balance sheet

Projected income statement

Projected Cash flow statement

None of the above

Question No: 5 ( Marks: 1 ) - Please choose one

LMM stands for:

Locally Manufactured Machinery

Locally Manufactured Marble

Local Marble Market

Local Meat Market

Question No: 6 ( Marks: 1 ) - Please choose one


The small entrepreneurs of third world countries can take the advantage of taxes
through:

Ignorance
Small setup

Bad governance

Undocumented activity

Question No: 7 ( Marks: 1 ) - Please choose one

By which one of the following control elements the firm can ensure maximum
service to the customer?

Inventory control

Quality control

Sales control

Production control

Question No: 8 ( Marks: 1 ) - Please choose one

Which of the following is the maximum amount that SBA can guaranteed unless it
is a specialized program?

$65,000.

$350,000.

$750,000.
$1,000,000.
Question No: 9 ( Marks: 1 ) - Please choose one

In which of the following business, the records are needed to be maintained on


the basis of monthly charges paid by the customers?
Pharmaceutical
Service venture

Online venture

Auto industry

Question No: 10 ( Marks: 1 ) - Please choose one

Which of the following is independently owned and operated and not dominant in
its field of operation?

Diversified Organization

International Business
Small Business

Entrepreneurship

Question No: 11 ( Marks: 1 ) - Please choose one

Which of the following statements is incorrect for a sole proprietorship?

The sole proprietor has complete freedom to sell or transfer any part of business.

The sole proprietor makes all decisions and can act immediately
The owner of a sole proprietorship faces double taxation

The sole proprietor has unlimited liability

Question No: 12 ( Marks: 1 ) - Please choose one

In which form of the business the entrepreneur makes all decisions and can act
immediately?
Sole proprietorship

Partnership

Corporation

S Corporation

Question No: 13 ( Marks: 1 ) - Please choose one

Which of the following is the special type of partnership where liability is limited
and continuity options are more flexible?

General partnership

Limited partnership

Limited liability company (LLC)


S corporation
Question No: 14 ( Marks: 1 ) - Please choose one

Which of the following describes the interaction between internal and external
factors that affect venture’s ability to provide goods and services to meet
customer needs?

Marketing research

Marketing system

Marketing plan
Marketing mix

Question No: 15 ( Marks: 1 ) - Please choose one

Which one of the following is an advantage of Corporation that is not an


advantage as a limited partner in a partnership?
Limited liability
Easy transfer of ownership position

Double taxation

None of the given

Question No: 16 ( Marks: 1 ) - Please choose one

Considering strengths and weaknesses of the venture is one step for preparing:

Financial Plan
Marketing Plan

Business Plan

Organizational Plan

Question No: 17 ( Marks: 1 ) - Please choose one

Which of the following is not considered a reason for the entrepreneur to


business failure?

Business experience
Change in law

Overspending and under spending


Lack of commitment to the business or the family
Question No: 18 ( Marks: 1 ) - Please choose one

Which of the following is the process of gathering of data in order to determine


the information as who will buy the product, what price should be charged and
what is the most effective promotion strategy?

Marketing Plan
Marketing Research

Marketing Mix

Target Market

Question No: 19 ( Marks: 1 ) - Please choose one

From which of the following R & D limited partnerships provide funds to


entrepreneurs in high technology fields?

Equity contribution from investors

Debt from lenders

Cash from company operations


Investors looking for tax shelters

Question No: 20 ( Marks: 1 ) - Please choose one

A Focus Group mainly consists of a sample of


8-10 People
10-12 People

12-14 People

14-16 People
Virtual University MCQs BANK - MCQs Collection
from Online Quizzes
MGT602 solved MCQs from new quizzes 4/8/2010
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MGT602 solved MCQs from new quizzes 4/8/2010

solved by vuZs solution team

(Marina , shamir, glory, umeed, shafia, Tariq)

Which one of the following should consider in economy while conducting environmental analysis?
Select correct option:

GNP
Disposable income (Tariq)
Unemployment
Channel of distribution
Economic Trends: The macro economic environment analysis will identify trends such
as changes in personal disposable income, interest rates, inflation and unemployment
rates.

Which of the following source of capital is relatively faster and less costly than other funding? Select correct
option:

Outsourcing

Public offering

Private offering (shamir)

Bootstrap financing

page # 89: A private offering is faster and less costly than other funding.
future of the new venture depends on the ________. Select correct option:

Positive Cash flow (shafia)

Employees loyalty

Business ideas

Economy

following has NO liability on the part of entrepreneur business? Select correct option:

Partners

Board of advisors

Shareholders (shafia)

Board of directors

Which of the following ratio will be helpful for assessing the firm’s capital structure?
Select correct option:

Current ratio
Acid test ratio
Profitability ratio
Debt to equity ratio (MK)

page no 100 :Debt to equity ratio assesses the firm’s capital structure. It provides a measure of risk by
considering the funds invested by creditors and investors.

Following are the types of non equity arrangements EXCEPT:

Select correct option:

Licensing
Management contracts
Direct export (MK)
Turnkey projects

Pgae no 31 Lesson 11

Which of the following is essential if your business deals with the Paper production?.
Select correct option:

Operational Plan
Bank loan
Production plan (MK)
Organizational plan

Page 58

If a new venture is a manufacturing operation, a production plan is necessary. This plan should describe the
complete manufacturing process, including whether or not the process is to be subcontracted.
The startups which rarely go public are called: Select correct option:

Life style

Foundation Company (MK)

Small company

High potential venture

page no 8 : A type of company formed from research and development that usually does not go public. This

firm can grow in five to ten years from 40 to 400 employees.

following firm achieves modest growth: Select correct option:

High potential growth firm

Foundation firm (MK)

Life style

Public company

following factor can create the managerial difficulties in the joint ventures between foreign companies? Select
correct option:Cultural differences (MK)

Economic policies

Public ignorance

Government taxes

Page no 103 : Cultural differences can create managerial difficulties. Government policies sometimes can
have a negative impact on the venture. The benefits usually outweigh the drawbacks.

________ is commonly used to measure the short-term solvency of the venture? Select correct option:

Debt to equity ratio

Current ratio (MK)

Profitability ratio

Activity ratio

Page no 99 : Current ratio is commonly used to measure the short-term solvency of the venture or its ability to
meet its short-term debts.
Which of the following is NOT a characteristic of a marketing plan? Select correct option:

It should be flexible

It should be long and detailed (MK)

It should be based on facts and valid assumptions

it should provide a strategy

Which of the following is the best option for starting the business with equity financing? Select correct option:

Sole Proprietor

Corporation (doubted) mk

Partnership firm

None of the above

Page 81 : Equity financing offers the investor some form of ownership position in the venture.

a. The investor shares in the profits of the venture.

b. Key factors in choosing the type of financing are availability of funds, assets of the venture, and prevailing
interest rates.

c. Usually a combination of debt and equity financing is used.

SIDB was established for the province of ________.


Select correct option:

NWFP (glory)
Sindh
Punjab
Balochistan

ref at pg 84 under training center heading lec 37

Which one of the following is a method for obtaining new ideas and solutions by focusing on problems?
Select correct option:

Product inventory analysis


Gordon method
Checklist method
Scientific method

ref pg 35

Which of the following is NOT an advantage of the acquisition?

Select correct option:

Goodwill
Skilled employees
Favorable location
Political instability (umeed)

The private investors are primarily interested in recovering his/her investment plus a good________.
Select correct option:

Dividend
Shares prices
Rate of return (umeed)
Business repute

The creative process for problem solving that involves making the strange familiar in first step and then
making the familiar strange through personal, direct or symbolic analogy is called:
Select correct option:

Synectics (glory)

Gordon method
Checklist method
Scientific method

ref at pg 35 lec 16 under creative problem heading


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MGT602_Online_Quiz No 03c
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Entrepreneurship(MGT602)

Solved MCQ's

1. What causes people to do something?

Need for achievement

Need for independence

Motivation

None of the mentioned options

2. Individuals who help the entrepreneur in business activities

Role models

Professional-support network

Parents

None of the mentioned options

3. The managers in an organization strongly supporting intrapreneurship is called ----------


-------------

Top management commitment

Upper management commitment

Lower management intrapreneur

Upper management intrapreneur

4. ------------- involves a manufacturer giving a foreign manufacturer the right to use a


patent, trademark or technology in return for a royalty

Licensing
Turn-key projects

Management contracts

None of the mentioned options

5. Female entrepreneurs differ in terms of --------------------, -----------------------, and ------


---------------------

Motivation

Business skills

Occupational background

6. In terms of ------------------------------, most entrepreneurs initiate their entrepreneurial


careers between the ages of 22 and 45.

Chronological age

7. Creativity tends to decrease with age and education

True

False

8. Arriving activity occurring when the venture is started

True

False

9. The creator is an individual who creates something new

True

False

10. An attribute indicating the sense of control that a person has over life is called locus of
control

True

False
5) In chronological age , most entrepreneurs start their careers between ages

a) 22 and 55

b) 30 and 55

c) 40 and 65

d) None of the given options

6) ___________________ is the combination of at least two firms doing similar businesses


at the same market level.

a) Diversified activity Merger

b) Horizontal Merger

c) Joint Venture

d) Vertical Merger

7) Which of the following is NOT recognized as a misconception about entrepreneurship?

a) Entrepreneurship is found only is small businesses.

b) Entrepreneurship is easy.

c) Successful entrepreneurship needs only a great idea.

d) Entrepreneurial ventures and small businesses are different

9) All of the following are recognized as potential sources of entrepreneurial ideas EXCEPT:

a) Work experiences, skills, and abilities

b) Familiar and unfamiliar products and services

c) Personal interests or hobbies

d) All of the selections are recognized as potential sources of entrepreneurial ideas.

10) An _______________________ is an individual who creates something for the first time, is
a highly driven individual motivated by his or her own work and personal ideas.

a) Entrepreneur

b) Inventor

c) Both a and b

d) None of the given options


The importance of intellectual property should be understood by entrepreneur even before:

Select correct option:

Hiring a manager

Engaging an attorney

Developing a product

Establishing new venture

for more contents visit

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Which one of the following is NOT an external factor?

Select correct option:

New regulations

Competition

Social changes

Manufacturing

Which one of the following is NOT a condition of a contract?

Select correct option:

An offer is made

An acceptance of offer

Contract must be illegal

Consideration is given

Which one of the following is a sound strategic option for an entrepreneur when synergy is present?

Select correct option:


Merger

Joint venture

Minority interest

Majority interest

for more contents visit

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An entrepreneur doing business within the national border is called:

Select correct option:

International entrepreneurship

Intrapreneurship

Domestic entrepreneurship

Imports

Which of the following grants the owner protection from anyone else making, using and selling the
identified innovation?

Select correct option:

Utility patent

Design patent

Plant patent

International patent

Health insurance premium is less expensive if there is:

Select correct option:

One insured participants

Ten participants

Large group of participants

Very small group of participants

Which one of the following is not a source of idea generation?


Select correct option:

Consumers

Brain storming

Focus group

None of the given options

Quite confusing question Answer Required

The product life cycle starts with which stage of product planning and development process?

Select correct option:

Test marketing stage

Product development stage

Commercialization stage

Product planning and development process is a part of product life cycle

The creative process for problem solving that involves making the strange familiar in first step and then
making the familiar strange through personal, direct or symbolic analogy is called:

Select correct option:

Synectics

Gordon method

Checklist method

Scientific method

Which of the following geographical area is having least interest to U.S. entrepreneurs?

Select correct option:

Europe

The Far East

Central Asia

Transition economies
for more contents visit

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In an international perspective, which of the following decisions are NOT covered under strategic
planning of an entrepreneur?

Select correct option:

What are unique characteristics of each market?

Who should be involved in marketing decisions?

What customer benefits are provided by the product?

What are the company’s major strengths and weaknesses?

Which one of the following insurance is required by law?

Select correct option:

Life insurance

Property insurance

Disability and vehicle coverage

Health care coverage

When the multiplicity of environments become too complex to handle, the international entrepreneurs
often __________.

Select correct option:

Go for mergers

Diversify

Decentralize operations

Sale out the foreign business

for more contents visit

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Which of the following is NOT essential part of the contract?

Select correct option:


All the parties involved should be named

Transaction should be described in detail

Obtain signatures of the persons involved

Place where contract takes place (Page 53)

Entrepreneurship(MGT602)

Recent Online Quiz No 2

http://groups.google.com/group/vuZs

Question # 1 of 20 ( Start time: 05:04:17 PM ) Total M -


Visit this group
1

The creative process for problem solvin that involves makin the stranefamiliar in first step and
then makin the familiar strane throuh personal, direct or symbolic analoy is called:

Select correct option:

Synectics

ordon method

Checklist method

Scientific method Bottom of Form

Question # 2 of 20 ( Start time: 05:05:43 PM ) Total M - 1

Which of the followin is included in the description of the business?

Select correct option:

Location
Products offered

History

All of the iven options

Question # 3 of 20 ( Start time: 05:06:59 PM ) Total M - 1

Which of the followin can not be covered under the copyriht protection?

Select correct option:

Computer software

Computer hardware

Poems and sons

Models and sculpture

Question # 8 of 20 ( Start time: 05:10:58 PM ) Total M - 1

Why should an entrepreneur do a feasibility study?

Select correct option:

To see if there are possible barriers to success

To identify possible sources of funds

To estimate the expected sales

To explore potential customers

Question # 9 of 20 ( Start time: 05:11:23 PM ) Total M - 1

In an international perspective, which of the followin decisions are NOT covered under strateic plannin of
an entrepreneur?

Select correct option:

What are unique characteristics of each market?

Who should be involved in marketin decisions?

What customer benefits are provided by the product?

What are the company’s major strenths and weaknesses?

Question # 10 of 20 ( Start time: 05:12:48 PM ) Total M - 1


All of the followin are essential to maintain secrecy EXCEPT:

Select correct option:

Train employees to refer sensitive questions to one person

Discuss business in public places

Provide escorts for all office visitors

Use simple security such as locked file cabinets

for more contents visit

http://groups.google.com/group/vuZs

Question # 11 of 20 ( Start time: 05:14:09 PM ) Total M - 1

Which one of the followin contracts should be in written?

Select correct option:

Real estates

Lease

Rentals

All of the iven options

Question # 12 of 20 ( Start time: 05:14:25 PM ) Total M - 1

Which one of the factors should be considered while assessin the space for business?

Select correct option:

Parkin

Access from roadways to facility

Delivery rates

All of the iven options

Question # 13 of 20 ( Start time: 05:15:03 PM ) Total M - 1

Which of the followin is a more structured method of problem solvin, includin principles and rules for
concept formation, makinobservations and experiments, and finally validatin the hypothesis?

Select correct option:

Scientific method

Heuristics
Attribute listin

Value analysis

Question # 14 of 20 ( Start time: 05:15:58 PM ) Total M - 1

The importance of intellectual property should be understood by entrepreneur even before:

Select correct option:

Hirin a manaer

Enain an attorney

Developin a product

Establishin new venture

Question # 15 of 20 ( Start time: 05:17:10 PM ) Total M - 1

Which of the followin is/are a source of idea eneration?

Select correct option:

Consumers

Federal overnment

Brain stormin

All of the above

Question # 16 of 20 ( Start time: 05:17:51 PM ) Total M - 1

Idea of new product is tested in potential consumers to determine consumer acceptance at


_________ stae.

Select correct option:

Concept

Product development

Test marketin

Commercialization

Question # 17 of 20 ( Start time: 05:18:48 PM ) Total M - 1

Followin are the types of non equity arranements EXCEPT:

Select correct option:


Licensin

Manaement contracts

Direct export

Turnkey projects

Question # 18 of 20 ( Start time: 05:20:09 PM ) Total M - 1

Followin are the important aspects of international success EXCEPT:

Select correct option:

Plannin

Diversification

Reportin not sure

Control

Question # 19 of 20 ( Start time: 05:21:40 PM ) Total M - 1

Health insurance premium is less expensive if there is:

Select correct option:

One insured participants

Ten participants

Lare roup of participants

Very small roup of participants

21) Which one of the following is the next stage to the Concept Stage of Product Planning and
Development Process?

Idea Stage

Product Planning Stage

Product Development Stage

Test Marketing Stage

22) Which of the following contains large number of new ideas?


Files of Patent office

Official Gazette

Government patent Board

All of the given option

23) According to the governing bodies of common laws, the life of trade secret is:

Select correct option:

12 years

17 years

20 years

As long as it remains confidential

MGT602 MCQs From Quiz

http://groups.google.com/group/vuZs

Solved By vuZs Solution Team

(simple.look100@gmail.com)

The entrepreneur was distinguished from capital provider in:

Select correct option:

18th century

17th century

19th and 20th century


Middle ages

Individuals influencing an entrepreneur’s career choice and style are known as:

Select correct option:

Role model

Moral-support network
http://groups.google.com/group/vuZs

Professional support network Visit this group

Support system

Ref:

Role models

Individuals influencing an entrepreneur’s career choice and style

The person with capital was differentiated from the one who needed the capital in the:

Select correct option:

Middle ages

17th century

18th century

20th century

Ref:

In the 18th century the person with capital was differentiated from the one who needed capital. In other
words, entrepreneur was distinguished from the capital provider.
Many of the inventions developed during this time as was the case with the inventions of Eli Whitney and
Thomas Edison were unable to finance invention themselves. Both were capital users (entrepreneurs),
not capital providers (venture capitalists.) Whitney used expropriated crown property. Edison raised
capital from private sources.

Which one of the following is the next stage to the Concept Stage of Product Planning and Development
Process?

Select correct option:

Idea Stage

Product Planning Stage

Product Development Stage

Test Marketing Stage

Ref:

Concept Stage

In the concept stage the refined idea is tested to determine consumer acceptance without manufacturing
it. One method of testing is the conversational interview in which respondents are exposed to statements
that reflect attributes of the product. Features, price, and promotion should be evaluated in comparison
to major competitors to indicate deficiencies or benefits. The relative advantages of the new product
versus competitors should be determined.

Product Development Stage

In this stage, consumer reaction is determined, often through a consumer panel. The panel can be given
samples of the product and competitors’ products to determine consumer preference. Participants keep
the record of their use of product and comment on its virtues and deficiencies.

It is proved that most businesses failed because of improper planning of an/a:

Select correct option:

Investor

Marketer

Entrepreneur
Consultant

Ref:

Bankers say that most businesses fail because of the

entrepreneur’s inability to plan effectively. The entrepreneur can enhance efficient

Why should an entrepreneur do a feasibility study?

Select correct option:

To see if there are possible barriers to success

To identify possible sources of funds

To estimate the expected sales

To explore potential customers

Ref:

Before preparing a business plan, the entrepreneur should do a quick feasibility study to see if there are
possible barriers to success

Which of the following is NOT part of entrepreneurial strategy?

Select correct option:

A feedback loop

Generation of a new entry opportunity

Expansion of an existing opportunity

Exploitation of a new entry opportunity


Ref:

http://highered.mcgraw-hill.com/sites/0073210560/student_view0/chapters13/mixed_quiz.html

for more contents visit

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The long-term future of the new venture depends on the __________.

Select correct option:

Positive Cash flow

Employees loyalty

Business ideas

Economy

An ice cream producing company merges with a cotton spinning company this merger is an example of:

Select correct option:

Diversified activity merger

Product extension merger


Market extension merger

Vertical merger

Ref:

A diversified activity merger is a conglomerate merger involving the consolidation of two unrelated firms.

Banks are usually reluctant to give loan to the

Select correct option:

Private Limited Companies

Partnership firm

Public Limited Companies

Sole Proprietor

Following are the types of foreign direct investment EXCEPT:

Select correct option:

Joint venture

Management contracts

Minority interest

Merger

Ref:

Management contracts

Entrepreneurs can contract their management techniques and skills, often following a turn-key project.
The management contract allows the purchasing country to gain foreign expertise without turning
ownership over to a foreigner

Licensing is a significant marketing strategy to:


Select correct option:

Use intellectual property of others

Pirate others’ patents

Grow the business in new markets

Control the costs

Ref:

LICENSING Licensing is an arrangement between two parties, where one party has proprietary rights
protected by a patent, trademark, or copyright. This requires the licensee to pay a royalty to the holder
of the proprietary rights in return for permission to copy the

The entrepreneur utilizes the resources through:

Select correct option:

Identifying and evaluating the opportunity

Developing a business plan

Implementing the business plan

Manage the enterprise

Reference Handouts page # 14


''Phase 4: Manage the Enterprise.
The entrepreneur must employ these resources through implementation of the business plan.
Which one of the following culture that has a climate and reward system that favor conservative decision
making?

Select correct option:

Entrepreneurial

Intrapreneurial
Corporate

None of the given options

Ref:

The typical corporate culture has a climate and reward system that favors conservative decision making.
Emphasis is on gathering large amounts of data as the basis for a rational decision. Risky decisions are
often postponed until hard facts are gathered or a consultant is hired. Often there are so many approvals
required that no individual feels personally responsible for the

Which one of the following is the first step in the entrepreneurial process?

Select correct option:

Developing successful business ideas

Deciding to become an entrepreneur

Growing the entrepreneurial firm

Moving from an idea to an entrepreneurial firm

According to the governing bodies of common laws, the life of trade secret is:

Select correct option:

12 years

17 years

20 years

As long as it remains confidential

The most important characteristic of a successful business website is::


Select correct option:

Speed

Innovation

Graphics

Products

Which of the following cannot be used as basis of loan?

Select correct option:

Worth of the business

Inventory

Fixed asset

All of the above

Developing a new idea through inquiry and testing is called:

Select correct option:

Heuristics

Forced relationship

Scientific method

Value analysis

Professional support network includes following EXCEPT

Select correct option:

Personal affiliations

Mentor

Trade associations

Friends

Which one of the following is not a source of idea generation?

Select correct option:


Consumers

Brain storming

Focus group

None of the given options

Which of the following is NOT a requirement of Disclosure Document?

Select correct option:

Description of the invention

Claims for invention’s usefulness

Photos of invention

Cover letter

Which one of the following is a sound strategic option for an entrepreneur when synergy is present?

Select correct option:

Merger

Joint venture

Minority interest

Majority interest

Ref:

Two firms get together and form a third company in which they share the equity. Joint ventures have
been used by entrepreneurs in two situations:

1. When the entrepreneur wants to purchase local knowledge and an established facility.

2. When rapid entry into a market it needed. The keys to success of joint ventures have not been well
understood. Reasons for forming a joint venture today are different than those in the past. Originally,
joint ventures were used for trading purposes and were one of the oldest ways of transacting business.
Joint ventures in the U.S. took the form of vertical joint ventures used by mining concerns and railroads.
Motives for the significant increase in the use of joint ventures:

a. To share the costs and risks of an uncertain project.

b. ToTo gain synergy between the two firms.

Which of the following conversion system is most complex and requires careful evaluation of inventory?

Select correct option:


FIFO to LIFO

LIFO to FIFO

Single entry to double entry

Double entry to single entry

In stage of responsibility allocation process the entrepreneur follows:

Select correct option:

Highly centralized decision making process

Highly decentralized decision making process

Somewhat centralized decision making process

No particular standard

Government can help in forming new venture by providing:

Select correct option:

Finance

Technology

Infrastructure

Subsidiaries

Ref:

The government also contributes by providing the infrastructure to help a new venture.

In which of the following business, the records are needed to be maintained on the basis of monthly
charges paid by the customers?

Select correct option:


Pharmaceutical

Service venture

Online venture

Auto industry

Which of the following budget is required for the purchase of new equipment?

Select correct option:

Sales Budget

Operational Budget

Capital Budget

Manufacturing Budget

Ref:

A capital budget may project expenditures for new equipment, vehicles, or new facilities

There is an evidence that an entrepreneur usually has _______________ parents.

Select correct option:

Self employed

Discouraged

Non supportive
Strict

Which of the following is NOT followed in brainstorming?

Select correct option:

Criticism is done by the group members

The wilder idea is better

Quantity of ideas is required

The session should be fun, with no on dominating the discussion

The ______ plan describes how the product will be distributed and priced.

Select correct option:

Financial

Production

Venture

Marketing

Which one the following is the uncontrollable factor in international trade?

Select correct option:

Economic

Cultural
Technological

All of the given options

Degree of influence and control on other people is called:

Select correct option:

Locus of control

Locomotion of control

Locust of control

Loss of control

Lenders are primarily interested in the:

Select correct option:

Personal relationship

Ability to pay back loan

Progress of the venture

No concern

Foundation companies are formed from:

Select correct option:

Fashion

Most popular business


A winding up company

Research and development

Which one of the following ratios is a more careful test of the short-term liquidity of the venture?

Select correct option:

Debt ratio

Activity ratio

Acid test ratio

Profitability ratio

Ref:

Acid test ratio is a more rigorous test of the short-term liquidity of the venture

Which of the following gives the owners a negative right, preventing anyone from making, using, or
selling the invention?

Select correct option:

Patent

Copyright

Trade mark

Trade secret

Which of the following contains all backup material that is not included in the text of business plan?

Select correct option:

History of entrepreneur
Financial plan

Appendix

Bibliography

The commitment of administrative domain to the resources is for:

Select correct option:

Periodic intervals

Total amount needed

For certain tasks

For long time

When the Directorate of Industries, Balochistan was formed?

Select correct option:

1972

1973

1975

1976

Which of the following is the best option for starting the business with equity financing?

Select correct option:

Sole Proprietor

Corporation
Partnership firm

None of the above

Which of the following contains large number of new ideas?

Select correct option:

Files of Patent office

Official Gazette

Government patent Board

All of the given option

for more contents visit


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What can be the effect on cash flows due to delays in payments by the clients?

Select correct option:

Positive cash flows

Negative cash flows

No effect on cash flows

None of the given options

Ref:

Using internal credit makes the firm responsible for collecting delinquent payments, and payment delays
can create negative cash flows.

All of the following are essential to maintain secrecy EXCEPT:

Select correct option:

Train employees to refer sensitive questions to one person

Discuss business in public places

Provide escorts for all office visitors

Use simple security such as locked file cabinets

Andrew Carnegie is an example of entrepreneur of which century:

Select correct option:


Earliest period

19th and 20th century

Middle ages

17th century

The assessment of the needed resources by the entrepreneur starts with:

Select correct option:

An appraisal of the entrepreneur’s present resources

An assessment of economic conditions of the country

A scanning of friends and family for funds

A survey of banks and other financial institutions in the area

A typical inventor is usually ________________________.

Select correct option:

Highly creative & in love with the invention

Does not encourage change

Willing to modify the invention in order to augment commercial benefit

None of the given options

The activity which occurs when the new venture is started are called:
Select correct option:

Motivation

Business skills

Departure point

Goal orientation

Which statement of the following relates with the ultimate goal of Business

Select correct option:

Profit Statement

Goal Statement

Mission Statement

Vision Statemen

Which one of the following is the systematic assembly of all the facts about a job?

Select correct option:

Job Specification

Job Description

Job Identification

Job Analysis
___________ is required if a company wants to be more flexible in adopting changes.

Select correct option:

Management commitment

Contact with customers

Technology

More productivity

In which rule under ‘Regulation-D’, a company can sell up to $500,000 of securities to any number of
investors in any 12-month period?

Select correct option:

Rule 502

Rule 503

Rule 504

Rule 505

Ref:

Under Rule 504 a company can sell up to $500,000 of securities to any number of investors in any 12-
month period.

__________ is commonly used to measure the short-term solvency of the venture?

Select correct option:

Debt to equity ratio

Current ratio

Profitability ratio

Activity ratio

Ref:

Liquidity Ratios Current ratio is commonly used to measure the short-term solvency of the venture or its
ability to meet its short-term debts. The current liabilities must be covered from cash or its equivalent
On the part of entrepreneur which of the following has/ have a great concern to the Investors

Select correct option:

Experience

Commitment

Knowledge

All of the above

Being one’s own boss is a need of:

Select correct option:

Independence

Achievement

Affiliation

Authority

Ref:

Need for independence. Being one’s own boss-one of the strongest needs of an entrepreneur

An actor and a person who managed large project were termed as the entrepreneur in the _________.

Select correct option:

Earliest period

Middle ages

17th century

19th and 20th century

Ref:

Middle Ages

In this age the term entrepreneur was used to describe both an actor and a person who managed large
production projects. In such large production projects, this person did not take any risks, managing the
project with the resources provided. A typical entrepreneur was the cleric who managed architectural
projects.
for more contents visit

The business plan should be prepared by:

Select correct option:

Entrepreneurs

Consultants

Engineers

Small business administration services

Ref:

A business plan is a written document prepared by the entrepreneur

________________ distribute profits to owners through dividends

Select correct option:

Sole Proprietor

General Partnership

Limited Partnership

Corporation

Ref:

Corporations distribute profits through dividends to stockholders.

Which of the following shows the example of collateral?

Select correct option:

Real State

Shares

Tangible property

All of the given options

Ref:
The collateral or tangible assets being secured

Which one of the following culture that has a climate and reward system that favor conservative decision
making?

Select correct option:

Entrepreneurial

Intrapreneurial

Corporate

None of the given options

Ref:

The typical corporate culture has a climate and reward system that favors conservative decision making.

___________ is required if a company wants to be more flexible in adopting changes.

Select correct option

Management commitment

Contact with customers

Technology

More productivity

Ref:

Without top management commitment, the organization will never be able to make the necessary
changes.

When the multiplicity of environments become too complex to handle, the international entrepreneurs
often __________.

Select correct option:

Go for mergers

Diversify

Decentralize operations

Sale out the foreign business


MGT602 Solved MCQs Almost 700MCQs
By

http://www.vustudents.net
1-Which of the following factors has allowed small companies to act like they are big
ones?

Select correct option:

A. Competition

B. Economic development

C. Technology P:21

Technology has allowed small companies to act like they are big ones. Large
companies can use technology to make them responsive and flexible

D. Customers

2-The entrepreneur was distinguished from capital provider in:

Select correct option:

A. 18th century P:3


18th Century

In the 18th century the person with capital was differentiated from the one who needed
capital. In other words, entrepreneur was distinguished from the capital provider.

B. 17th century

C. 19th and 20th century

D. Middle ages

http://www.vustudents.net
1
3-Gazelles are the firms with:

Select correct option:

A. High growth rate P:7

Gazelles

Very high growth ventures.

B. Moderate growth rate

C. Zero% growth rate

D. Low growth rate

4-Female entrepreneurs differ from male entrepreneurs in terms of all of the following
EXCEPT:

Select correct option:

A. Motivation P:27

Factors in the start-up process for male and female entrepreneurs are different, especially
in such areas as support systems, sources of funds, and problems. Men are motivated by
the drive to control their own destinies. Women tend to be more motivated by the need for
achievement arising from job frustration.

B. Business skills

C. Departure point

D. Goal orientation
5-Foundation companies are formed from:

Select correct option:

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2
A. Fashion

B. Most popular business

C. A winding up company

D. Research and development P:7

Foundation companies:

A type of company formed from research and development that usually does not go
public.

6-Following are the types of non equity arrangements EXCEPT:

Select correct option:

A. Licensing

B. Management contracts

C. Direct export P:31

D. Turnkey projects

7-Which of the following areas are preferred by women entrepreneurs?

Select correct option:


A. Administration

B. Utilities

C. Manufacturing

D. None of the above

8- is required if a company wants to be more flexible in adopting changes.

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3
Select correct option

• Management commitment P: 20

Step 1:

The first step is to secure a commitment to intrapreneurship in the organization by top,


upper, and middle management. Without top management commitment, the organization
will never be able to make the necessary changes. Once top management has
committed to intrapreneurship for a sufficient length of time, the concept is introduced
throughout the organization.

• Contact with customers

• Technology

• More productivity

9-Which one of the following is the fourth step in the entrepreneurial process?

• Developing successful business ideas

• Deciding to become an entrepreneur

• Growing the entrepreneurial firm

The Entrepreneurial Process


The Entrepreneurial Process Consists of Four Steps

Step 1: Decision to become an entrepreneur

Step 2: Developing successful business ideas

Step 3: Moving from an idea to an entrepreneurial firm

Step 4: Managing and growing an entrepreneurial firm

• Moving from an idea to an entrepreneurial firm

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10-When the multiplicity of environments become too complex to handle, the
international entrepreneurs often .

• Go for mergers (doubted)

• Diversify

• Decentralize operations

• Sale out the foreign business

11-The activity which occurs when the new venture is started are called:

Select correct option:

• Motivation

• Business skills

• Departure point P:23

• Goal orientation

12-Individuals influencing an entrepreneur’s career choice and style are known as:

Role model (H.outs p: 26)

Moral-support network
Professional support network

Support system

13-Professional support network includes following EXCEPT:

• Personal affiliations

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• Mentor

• Trade associations

• Friends (H.outs p: 26)

14-All of the following are the broad categories of External forces EXCEPT:

Select correct option:

• Economic forces

• Socioeconomic forces

• Technological forces

• Competitive forces

15-An entrepreneur into the hosiery business found out the reason his hosiery was not
selling was due to its color. What could be the best source of this information?

Select correct option:

• Supplier

• Retailer Page No: 95


Retailers also like to have information on specific customers

• Competition

• Government bureau

Question No: 1 ( Marks: 1 ) 0 Please choose one

Being one’s own boss is a need of:

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6
► Independence P:25

Need for independence.

Being one’s own boss-one of the strongest needs of an entrepreneur

► Achievement

► Affiliation

► Authority

Question No: 2 ( Marks: 1 ) 0 Please choose one

With a commercial history of only 300 years, which country was a new comer to the
international arena?

► Japan

► U.S

► China

► U.K

Question No: 3 ( Marks: 1 ) 0 Please choose one

Which of the following is a obstacle to going in international business?

► Mergers

► Trade barriers
Trade barriers pose problems for entrepreneurs who want to become involved in
international business. Trade barriers increase the costs of exporting projects to a
country. Voluntary export restrictions may limit the ability to sell products in a country
from production facilities outside the country. An entrepreneur may have to locate
assembly or facilities in a country to conform to the local content regulations.

► Rivalry

► Protectionist attitudes

Question No: 4 ( Marks: 1 ) 0 Please choose one

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Which one of the following is an important source of idea generation due to their
familiarity with the needs of market?

► Existing products and services

► Distribution channels P:38

Distribution Channels

Because they are familiar with the needs of the market, channel members often have
suggestions for new products. These channel members can also help in marketing the
new product.

► Federal government

► Consumers

Question No: 5 ( Marks: 1 ) 0 Please choose one

Which of the followings is NOT followed in brainstorming?

► Criticism is done by the group members P:40

All ideas, no matter how illogical, must be recorded, with participants prohibited from
criticizing or evaluating during the brainstorming session.

► The wilder idea is better

► Quantity of ideas is required

► The session should be fun, with no on dominating the discussion


Question No: 6 ( Marks: 1 ) 0 Please choose one

A/an is an online connection between the company and its customers.

► Internet advertising

► Website P:44

Website

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A website is an online connection between the company and its customers and can be
developed n-house or outsourced. There are several important features of every website.

► E Commerce

► World Wide Web

Question No: 7 ( Marks: 1 ) 0 Please choose one

Which one of the following is the next stage to the Concept Stage of Product Planning
and Development Process?

► Idea Stage

► Product Planning Stage

► Product Development Stage P:45

Product planning and development process

Generally divided into five major stages: idea stage, concept stage, product
development stage, test marketing stage, test marketing stage, and commercialization
stage

► Test Marketing Stage

Question No: 8 ( Marks: 1 ) 0 Please choose one

All of the following are essentials to maintain secrecy, EXCEPT:

► Train employees to refer sensitive questions to one person

► Discuss business in public places P:50

To maintain secrecy
1. Train employees to refer sensitive questions to one person.

2. Provide escorts for all office visitors.

3. Avoid discussing business in public places.

4. Control information that might be presented by employees at conferences or in

journals.

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5. Use simple security such as locked file cabinets and shredders.

6. Have employees and consultants sign non-disclosure agreements.

7. Debrief departing employees.

8. Avoid faxing any sensitive information.

9. Mark documents "confidential" that need to be.

10. Protection against the leaking of trade secrets is difficult to enforce, and legal action
can be taken only after the secret has been revealed.

► Provide escorts for all office visitors

► Use simple security such as locked file cabinets

Question No: 9 ( Marks: 1 ) 0 Please choose one

Licensing is a significant marketing strategy to:

► Use intellectual property of others P:53

Licensing

Contractual agreement giving rights to others to use intellectual property in return for a
royalty or fee

► Pirate others’ patents

► Grow the business in new markets

► Control the costs

Question No: 10 ( Marks: 1 ) 0 Please choose one


Which one of the following is the main problem for the entrepreneur in the beginning
stages of creating a new venture?

► Lack of experience

► Limited resources

Control of Resources

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The administrator is rewarded by effective resource administration and has a drive to own
or accumulate as many resources as possible. The entrepreneur, under pressure of
limited resources strives to rent resources on an as-needed basis.

► Lack of education

► None of the given options

Question No: 11 ( Marks: 1 ) - Please choose one

How many perspectives should be considered while preparing business plan?

► One

► Three page # 54

The business plan is valuable to the entrepreneur and investors because:

1. It helps determine the viability of the venture in a designated market.

2. It gives guidance in organizing planning activities.

3. It serves as an important tool in obtaining financing. Potential investors are very


particular

► Four

► Not specific

Question No: 12 ( Marks: 1 ) - Please choose one


SBA stands for:

► Small business accountants

► Small business administration Page # 81

► Small business adequacy

► Small business advisors

Question No: 13 ( Marks: 1 ) - Please choose one

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Which one of the following is NOT an cfactor?

► Economy

► Culture

► Technology

► Competition P:57

Examples of environmental factors are:

Economy Culture Technology Legal concerns

Question No: 14 ( Marks: 1 ) - Please choose one

Which one of the following guide the firm through the long term decision making

► Mission statement Page # 58

► Product forecast

► Industry analysis

► None of the given options

Question No: 15 ( Marks: 1 ) http://www.vustudents.net - Please choose one

Which one of the following is NOT included in four C’s evaluation by lender?

► Character

► Cost
► Continuity page#85

Bank lending decisions can be summarized by the five C’s-Character, Capacity,

Capital, Collateral, and Conditions.

► Contribution

Question No: 16 ( Marks: 1 ) - Please choose one

For which of the following copy right acquisition is desirable?

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► Songs

► Poems

► Models

► All of the given options

Question No: 17 ( Marks: 1 ) - Please choose one

A utility patent has a term of:

► 10 years

► 40 years

► 20 years Page # 46

1. Utility Patents

A utility patent has a term of 17 years, beginning on the date the Patent and

Trademark Office (PTO) issues it. NAFTA (North American Free Trade

Agreement) establishes a minimum period of 20 years from the date of filing or

17 years from the date of the grant.

► 80 years

Question No: 18 ( Marks: 1 ) - Please choose one

Which of the following body issues patents?


► GATT

► NAFTA

► FTA

► PTO Page # 46

Patent and Trademark Office (PTO.)

Question No: 19 ( Marks: 1 ) - Please choose one

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Which of the following is a idea generation method that focuses on parameters?

► Brainstorming

► Reverse brainstorming

► Creative problem solving Page # 40

► Synectics

Question No: 20 ( Marks: 1 ) - Please choose one

Developing a new idea through inquiry and testing is called:

► Heuristics

► Forced relationship

► Scientific method Page # 41

► Value analysis

Question No: 21 ( Marks: 1 ) - Please choose one

Trade barriers cause:

► Increase in cost Page # 36

Trade barriers increase the costs of exporting projects to a country.

► Decrease in cost

► Increase in profit
► None of the given options

Question No: 22 ( Marks: 1 ) - Please choose one

Having less than 50 percent of equity share in an international venture is called:

► Minority interest Page#36

► Joint venture

► Majority interest

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► Exporting

Question No: 23 ( Marks: 1 ) - Please choose one

Having more than 50% ownership position that provides the entrepreneur with manager

► Joint venture

► Majority interest P:33

In technical sense anything over 50% of the equity of the firm is majority interest.

► Horizontal merger

► Diversified activity merger

Question No: 24 ( Marks: 1 ) - Please choose one

Which of the following is a method of selling goods to another country by taking care of all
technicalities?

► Indirect exporting

► Direct exporting Page#30


► Importing

► Management contract

Question No: 25 ( Marks: 1 ) - Please choose one

Which of the following two work environments should be good for spawning the new
venture?

► Finance and marketing

► Finance and R&D

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► Marketing and R&D

► Marketing and IT

Question No: 26 ( Marks: 1 ) - Please choose one

Gazelles are the firms with:

► High growth rate Page # 7

► Moderate growth rate

► Zero growth rate

► Low growth rate

Question No: 27 ( Marks: 1 ) - Please choose one

Which of the following are the Fast-growth young companies?

► Gazelles Page # 7

► Life style

► Foundation Company

► None of the given options


Question No: 28 ( Marks: 1 ) - Please choose one

Which one of the following is used to identify opportunity?

► Input from customers

► Input from channel members

► Input from business associates

► All of the given options

Question No: 29 ( Marks: 1 ) - Please choose one

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In some countries, points of purchase displays are not allowed in retail stores. Such
differentrepreneurs under which of the following type of environment?

► Economic

► Political

► Cultural

► Technological

Question No: 30 ( Marks: 1 ) - Please choose one

Which of the following factor has allowed small companies to act like they are big

► Technology Page # 21

Step 3: A company needs to use technology to make itself faster and more flexible.
Technology has allowed small companies to act like they are big ones. Large
companies can use technology to make them responsive and flexible.

► Customers

► Economic development

► Competition

Question No: 31 ( Marks: 1 ) - Please choose one

Which of the following is alternatively called corporate venturing?


► Entrepreneurship

► Intrapreneurship Page # 21

Intrapreneurship, also called corporate venturing, is not without problems

Intrapreneurship, also called corporate venturing,

► Act of stating a new venture

► Offering new products by an existing company

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Question No: 32 ( Marks: 1 ) - Please choose one

Which one of the following is not the intrapreneurial leadership characteristic?

► Understands environment

► Encourage the team work

► Not flexible Page # 20

INTRAPRENEURIAL LEADERSHIP CHARACTERISTICS

There are certain individual characteristics needed for a person to be successful


Entrepreneurs, including:

1. Understanding the environment

2. Being visionary and flexible

3. Creating management options

4. Encourage teamwork while employing a multi-disciplined approach

5. Encouraging open discussion

6. Building a coalition of supporters, and persisting


► Persistent

Question No: 33 ( Marks: 1 ) http://www.vustudents.net - Please choose one

Which of the following system is necessary for expansion or elimination of


intrapreneurial venture?

► Management

► Evaluation

► Reward

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► Training

Question No: 34 ( Marks: 1 ) - Please choose one

Which of the following typical culture has a climate and reward system that favors conse
conservative decision making.?

► Entrepreneurial

► Intrapreneurial

► Corporate Page NO 18

The typical corporate culture has a climate and reward system that favors conservative
decision making.

► None of the given options

Question No: 35 ( Marks: 1 ) - Please choose one

Which of the following makes the formation of new venture difficult within a corporate?

► Lack of intrapreneurial talent

► Lack of freedom to make autonomous decisions

► Lack of market opportunity

► All of the given options

Question No: 36 ( Marks: 1 ) - Please choose one

Which of the following are known as barriers to new product creation and development?
► Trial and error

► Opportunity parameters Page # 14

► Opportunity cost

► Intrapreneurship culture

Question No: 37 ( Marks: 1 ) - Please choose one

Which of the following factor does not affect a person for being an entrepreneur?

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► Family background

► Education

► Personal values

► Gender

Question No: 38 ( Marks: 1 ) - Please choose one

Degree of influence and control on other people is called:

► Locus of control

► Locomotion of control

► Locust of control

► Loss of control

Question No: 39 ( Marks: 1 ) - Please choose one

Which of the following plan describes market conditions and strategy related to

► Production plan

► Operational plan

► Financial plan

► Marketing plan

Question No: 40 ( Marks: 1 ) - Please choose one


Individuals who give psychological support to an entrepreneur are called:

► Role models

► Moral support networks Page # 23

► Professional support networks

► Informal networks

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1. A set of reasons for engaging in a particular behavior, especially human behavior is

known as

. a. Values

b. Vision

c. Entrepreneurship

d. Motivation PAGE NO 25

Motivations

That causes people to do something

2. Which of the following techniques is an excellent method for initially screening ideas and
concepts in addition to generating new ideas?

a. Focus group

1. Focus Groups – these are the groups of individuals providing information in a structural
format. A moderator leads a group of people through an open, in-depth discussion rather
than simply asking questions to solicit participant response. Such groups form comments in
open-end in-depth discussions for a new product area that can result in market success. In
addition to generating new ideas, the focus group is an excellent source for initially
screening ideas and concept.
b. Brain storming

c. Problem inventory analysis

d. Reverse brainstorming

3. The creative process for problem solving that involves making the strange familiar in

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21
First step and then making the familiar strange through personal, direct or symbolic

Analogy is called .

a. Synectics Page # 40

b. Gordon method

c. Checklist method

d. Scientific method

4. When the multiplicity of environments become too complex to handle, the

International entrepreneurs often .

a. Go for mergers

b. Diversify

c. Decentralize operations

d. Sale out the foreign business

5. An entrepreneur into the hosiery business found out the reason his hosiery was not
selling was due to its color. What could be the best source of this information?

a. Supplier

b.ssssRetailer Page No: 95


c. Competition

d. Government bureau

6. In some countries, points of purchase displays are not allowed in retail stores. Such
differences are studied by international entrepreneurs under

environment.

a. Economic

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22
b. Political

c. Cultural

d. Technological

7. Entrepreneurial success has been significant because of the culture and the political
and economic systems in . http://www.vustudents.net

a. European countries

b. Asian countries Page No: 37

c. Transition economies

d. Middle east

8. Having more than 50% ownership position that provides the entrepreneur with
managerial control is called .

a. Joint venture

b. Majority interest Page No: 33

c. Horizontal merger

d. Diversified activity merger


9. The under-developed or lesser developed countries need manufacturing technology and

infrastructure and yet do not want to turn over substantial portion of their

economy to foreign ownership. Which of the following is a solution to this dilemma?

a. Management contract

b. Indirect exporting

c. Licensing

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23
d. Turn-key project H.outs Page No: 31

Turn-key projects

Lesser-developed countries are able to obtain manufacturing technology

without surrendering economic control through turn-key projects. A foreign

Entrepreneur builds a facility, trains the workers, and trains the management to

run the installation.

10. The development of a new venture based on an inventor’s work often requires

a. Expertise of an entrepreneur Page NO:28

b. Heavy investment from financers

c. Skilled human resources

d. Highly educated staff

Q #1: The entrepreneur was distinguished from capital provider in:


A. Middle ages

B. 18th century P:03

C. 17th century

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24
D. 19th and 20th century

Q #2: Process of creating incremental wealth is called Entrepreneurship.

A. Dynamic P:04

Entrepreneurship is the dynamic process of creating incremental wealth. B.

Static

C. Continues

D. Systematic

Q #3: Most important factor in forming a new business is: A.

Finance

B. Marketing

C. Govt Support
D. Family Support

Q #4: Which one of the following is the process of entrepreneurs developing new
products that over time make current products obsolete?

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25
A. Creative destruction

B. New business model

C. Anatomization

D. None of the given options

Q #5: The intersection of knowledge and a recognized social need to start a product

development process is called:

A. Iterative synthesis
P:7

Iterative synthesis

The intersection of knowledge and social need that starts the product development
process

B. Product-evolution process

C. Ordinary innovation

D. Situation analysis
Q #6: Which one of the following is the primary cause of failure in small businesses?

A. Poor financial control

B. Poor location

C. Management mistakes

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26
D. Improper inventory control

Q #7: Which one of the following is the first step in the entrepreneurial process?

A. Developing successful business ideas

B. Deciding to become an entrepreneur

C. Growing the entrepreneurial firm

D. Moving from an idea to an entrepreneurial firm

Q #8: Which of the following is NOT included in the opportunity evaluation process? A.

Length of the opportunity

B. Real and perceived value of opportunity


C. Goals and objectives of customers P:13

D. Risks and rewards of opportunity

The evaluation process involves looking at


• The creation and length of the opportunity
• Its real and perceived value
• Its risks and return.
• It’s fit with the skills and goals of the entrepreneur
• Its differential advantage in its competitive environment

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Q #9: The resistance of employees in an organization against flexibility, growth, and
diversification can be overcome by developing:

A. Entrepreneurship

B. Intrapreneurship P:16

The resistance against flexibility, growth, and diversification can be overcome by


developing a spirit of entrepreneurship, called Intrapreneurship, within the existing
organization.

C. Managerial domain

D. Administrative domain

Q #10: The entrepreneur’s depends on his perception of


the opportunity.
A. Commitment to opportunity B.

Commitment of resources C.

Control of resources

D. Strategic orientation

Strategic Orientation

The entrepreneur’s strategic orientation depends on his or her perception of the


opportunity.

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28
Q #11: Which of the following statements about the entrepreneurial climate is (are)
true?

A. Trial and error are discouraged

B. Resources of the firm need to be available and easily accessible P:19

Fourth, the resources of the firm need to be available and easily accessible. Often,
insufficient funds are allocated not to creating something new but instead to solving a
problem that have an immediate effect on the bottom line.

C. A multidisciplinary approach is discouraged

D. Failures are not allowed

Q #12: Which of the following makes the formation of new venture difficult within a
corporate culture?

A. Lack of intrapreneurial talent

B. Lack of freedom to make autonomous decisions

C. Lack of market opportunity

D. All of the given options


Q #13: Which of the following factors has allowed small companies to act like they are

big ones?

A. Competition

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29
B. Economic development

C. Technology P:21

Technology has allowed small companies to act like they are big ones. Large

Companies can use technology to make them responsive and flexible

D. Customers

Q #14: Which of the following is alternatively called corporate venturing? A.

Entrepreneurship

B. Intrapreneurship

C. Act of stating a new venture

D. Offering new products by an existing company

Q #15: Being one’s own boss is a need of

A. Independence P:25

Need for independence.


Being one’s own boss-one of the strongest needs of an entrepreneur

B. Achievement

C. Affiliation

D. Authority
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Q #16: An individual’s need to be recognized is called:

A. Need for independence

B. Need for affiliation

C. Need of fame

D. Need for achievement

Need for achievement

An individual’s need to be recognized

Q #17: Which one of the following factors does not affect a person for being an
Entrepreneur?

A. Family background

B. Education

C. Personal Values

D. Gender

Q #18: Female entrepreneurs differ from male entrepreneurs in terms of all of the

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31
following EXCEPT:

A. MotivationP:27

Factors in the start-up process for male and female entrepreneurs are different, especially
in such areas as support systems, sources of funds, and problems. Men are motivated by
the drive to control their own destinies. Women tend to be more motivated by the need for
achievement arising from job frustration.

B. Business skills C.

Departure point D.

Goal orientation

Q #19: Which of the following areas are preferred by women entrepreneurs?

A. Administration

B. Utilities

C. Manufacturing

D. None of the above


Q #20: Which one of the following is NOT TRUE about male entrepreneurs?

A. Males often have investors, bank loans, or personal loans in addition to


personal Funds.

B. Males often have more experience in manufacturing, finance, or technical areas

C. Men are often more confident and less flexible and tolerant

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D. Men usually list outside advisors as the least important supporters

1-Government can help in forming new venture by providing:

Select correct option:

A. Finance

B. Technology

C. Infrastructure P:06

Individual will tend to be more successful in forming in fields in which they have worked.
The government also contributes by providing the infrastructure to help a new
venture.

D. Subsidiaries

2-The assessment of the needed resources by the entrepreneur starts with:

Select correct option:

A. An appraisal of the entrepreneur’s present resources

B. An assessment of economic conditions of the country

C. A scanning of friends and family for funds

D. A survey of banks and other finance


3-An actor and a person who managed large project were termed as the entrepreneur in the
.

Select correct option:

A. Earliest period

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B. Middle ages

Middle Ages

In this age the term entrepreneur was used to describe both an actor and a person
who managed large production projects. In such large production projects, this
person did not take any risks, managing the project with the resources provided. A
typical entrepreneur was the cleric who managed architectural projects.

C. 17th century

D. 19th and 20th century

4-An actor and a person who managed large project were termed as the entrepreneur in the
.

Select correct option:

A. Earliest period

B. Middle ages

Middle Ages

In this age the term entrepreneur was used to describe both an actor and a person
who managed large production projects. In such large production projects, this
person did not take any risks, managing the project with the resources provided. A
typical entrepreneur was the cleric who managed architectural projects.

C. 17th century
D. 19th and 20th century

5-The chief motivational factor for entrepreneurs to leave jobs


is the frustration of not being allowed to perform at the level of which they are capable.

Select correct option:

A. Male

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34
B. Female

C. Young

D. All of the given options

6-The former USSR received technology and syrup from Pepsi and provided it with
Soviet vodka and rights to distribute it in the US. This is an example of:

Select correct option:

A. Economic development

B. Barter system

C. Balance of payment

D. International trade

7-A typical inventor is usually

. Select correct option:


A. Highly creative &with the invention P: 28

9. An entrepreneur falls in love with the new venture, while the inventor falls in love
with the invention.

B. Does not encourage change

C. Willing to modify the invention in order to augment commercial benefit

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35
D. None of the given options

8-An individual’s need to be recognized is called:

Select correct option:

A. Need for independence

B. Need for affiliation

C. Need of fame

D. Need for achievement

Need for achievement

An individual’s need to be recognized


9-The activities which occur when the new venture is started are called:

Select correct option:

A. Motivation

B. Goal orientation

C. Departure point

Departure points

The activities occurring when the venture is started

http://www.vustudents.net
36
D. Business skills

10-The intersection of knowledge and a recognized social need to start a product


development process is called: http://www.vustudents.net

Select correct option:

A. Iterative synthesis P:07

Iterative synthesis

The intersection of knowledge and social need that starts the product development
process

B. Product-evolution process

C. Ordinary innovation

D. Situation analysis

1. One effective way to begin the marketing plan

a. To make a list of the information that will be needed to prepare the marketing
plan. Page # 62
b. Gathering Data from Secondary Sources

c. Gathering Information from Primary Sources.

d. None of the options given

2. A focus group

a. Is a sample of 10 or 12 potential investors who participate in a discussion?

b. Is a sample of 10 or 12 potential employees who participate in a discussion?

http://www.vustudents.net
37
c. Is a sample of 10 or 12 potential customers who participate in a
discussion? Page NO 63

Focus groups

A focus group is a sample of 10 or 12 potential customers who participate in a


discussion. Groups discuss issues in an Informal, open format.

d. None of the options given

3. The situation analysis is

a. Defining Target Market/Opportunities and Threats. b.

Considering Strengths and Weaknesses

c. A review of where the company has been and considers environmental


factors. Page NO : 65

The situation analysis is a review of where the company has been and considers many of
the environmental factors.

d. None of the options given

4. One of the difficult decisions

a. Is about the distribution of the product

b. Is determining the appropriate price for the product. Page NO: 66

Pricing.
One of the difficult decisions is determining the appropriate price for the product. Factors

such as costs, discounts, freight, and markups must be considered. Marketing research

can help determine a reasonable price that consumers are willing to pay.

c. Is about the promotion of the product

d. None of the options given

http://www.vustudents.net
38
5. Which of the following statement is true for marketing system?

a. It is all about the internal envoi mental factors

b. It identifies the major interacting components, both internal and external

The marketing system identifies the major interacting components, both internal and
external, that enable the firm to provide products to the marketplace. Environment
factors, although largely uncontrollable, should be studied.

c. It’s about the financial needs of the venture

d. None of the options given

6.In setting marketing goals and objectives the entrepreneur must a.

Set the price

b. Distribution place

c. Must satisfy customers

d. None of the above H.outs Page # 61


7. The financial plan provides a complete picture of

a. How much and when the funds are coming into the organization. b.

Where the funds are going.

c. How much cash is available?

d. All of the options given Handouts Page No:75

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39
8. Before developing the pro forma income statement, the entrepreneur should

a. Prepare operating budgets

b. Capital budgets.

c. None of the options given

d. Both of the options given (a, b) Handouts Page # 75

9. Which of the following statement is true?

a. Cash flow is same as profit.

b. Profit is the result of adding expenses from sales.

c. Cash flow results from the difference between all cash available and cash payments.

d. Cash flows only when actual payments are made or received. Handouts
Page#78

PRO FORM A CASH FLOW

A. Cash flow is not the same as profit.


1. Profit is the result of subtracting expenses from sales.

2. Cash flow results from the difference between actual cash receipts and cash
payments.

3. Cash flows only when actual payments are made or received.

10. Which of the statement is not true?


a. The S Corporation combines the tax advantages of the
partnership
and the corporation. Handouts page # 72

http://www.vustudents.net
40
The S Corporation combines the tax advantages of the partnership and the corporation.

1. It is designed so that the venture income is declared as personal income on a


pro rata basis.

2. Shareholders benefit from all of the income and the deductions of the business. b.
S Corporations represent almost half of all corporate fillings.
c. A popular new entity is the limited liability company (LLC)
d. Limited liability Company (LLC) offers similar disadvantages as the S
Corporation

1. One effective way to begin the marketing plan

a. To make a list of the information that will be needed to prepare the marketing
plan. Page # 62

b. Gathering Data from Secondary Sources

c. Gathering Information from Primary Sources. d.

None of the options given

2. A focus group

a. Is a sample of 10 or 12 potential investors who participate in a discussion?

b. Is a sample of 10 or 12 potential employees who participate in a discussion?


c. Is a sample of 10 or 12 potential customers who participate in a
discussion? Page NO 63

Focus groups

A focus group is a sample of 10 or 12 potential customers who participate in a


discussion. Groups discuss issues in an Informal, open format.

d. None of the options given

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41
3. The situation analysis is

a. Defining Target Market/Opportunities and Threats. b.

Considering Strengths and Weaknesses

c. A review of where the company has been and considers environmental


factors. Page NO : 65 http://www.vustudents.net

The situation analysis is a review of where the company has been and considers many of
the environmental factors.

d. None of the options given

4. One of the difficult decisions

a. Is about the distribution of the product

b. Is determining the appropriate price for the product. Page NO: 66

Pricing.

One of the difficult decisions is determining the appropriate price for the product. Factors

such as costs, discounts, freight, and markups must be considered. Marketing research

can help determine a reasonable price that consumers are willing to pay.

c. Is about the promotion of the product

d. None of the options given

5. Which of the following statement is true for marketing system?


a. It is all about the internal envoi mental factors

b. It identifies the major interacting components, both internal and external

http://www.vustudents.net
42
The marketing system identifies the major interacting components, both internal and
external, that enable the firm to provide products to the marketplace. Environment
factors, although largely uncontrollable, should be studied.

c. It’s about the financial needs of the venture

d. None of the options given

6.In setting marketing goals and objectives the entrepreneur must a.

Set the price

b. Distribution place

c. Must satisfy customers

d. None of the above H.outs Page # 61

7. The financial plan provides a complete picture of

a. How much and when the funds are coming into the organization. b.

Where the funds are going.

c. How much cash is available?

d. All of the options given Handouts Page No:75


8. Before developing the pro forma income statement, the entrepreneur should

a. Prepare operating budgets

b. Capital budgets.

c. None of the options given

http://www.vustudents.net
43
d. Both of the options given (a, b) Handouts Page # 75

9. Which of the following statement is true?

a. Cash flow is same as profit.

b. Profit is the result of adding expenses from sales.

c. Cash flow results from the difference between all cash available and cash payments.

d. Cash flows only when actual payments are made or received. Handouts
Page#78

PRO FORM A CASH FLOW

A. Cash flow is not the same as profit.

1. Profit is the result of subtracting expenses from sales.

2. Cash flow results from the difference between actual cash receipts and cash
payments.

3. Cash flows only when actual payments are made or received.


10. Which of the statement is not true?
a. The S Corporation combines the tax advantages of the
partnership
and the corporation. Handouts page # 72

The S Corporation combines the tax advantages of the partnership and the corporation.

1. It is designed so that the venture income is declared as personal income on a


pro rata basis.

2. Shareholders benefit from all of the income and the deductions of the business. b.
S Corporations represent almost half of all corporate fillings.
c. A popular new entity is the limited liability company (LLC)
d. Limited liability Company (LLC) offers similar disadvantages as the S
Corporation

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44
1. One effective way to begin the marketing plan is
a. To make a list of the information that will be needed to prepare
the marketing plan. Page # 62
b. Gathering Data from Secondary Sources
c. Gathering Information from Primary Sources.
d. None of the options given

2. A focus group
a. Is a sample of 10 or 12 potential investors who participate in a
discussion?
b. Is a sample of 10 or 12 potential employees who participate in a
discussion?

c. Is a sample of 10 or 12 potential customers who participate in


a
discussion? Page NO
63
Focus groups
A focus group is a sample of 10 or 12 potential customers who participate in a
discussion. Groups discuss issues in an Informal, open format.
d. None of the options given

3. The situation analysis is


a. Defining Target Market/Opportunities and Threats.
b. Considering Strengths and Weaknesses
c. A review of where the company has been and considers
environmental factors. Page NO : 65
The situation analysis is a review of where the company has been and
considers many of the
environmental factors. d. None of the options given

4. One of the difficult decisions


a. Is about the distribution of the product

b. Is determining the appropriate is determining the appropriate


price for the product. Page #
66
3. Pricing.
One of the difficult decisions is determining the appropriate price for the
product.
Factors such as costs, discounts, freight, and markups must be considered.
Marketing
research can help determine a reasonable price that consumers are willing to
pay.
c. Is about the promotion of the product
d. None of the options given

5. Which of the following statement is true for marketing system?


a. It is all about the internal envoi mental factors

http://www.vustudents.net
45
b. It identifies the major interacting components, both internal and
external Page # 64

The marketing system identifies the major interacting components, both internal
and external, that enable the firm to provide products to the marketplace.
Environment factors, although largely uncontrollable, should be studied.

c. It’s about the financial needs of the venture


d. None of the options given

6. In setting marketing goals and objectives the entrepreneur must a.


Set the price
b. Distribution place
c. Must satisfy customers
d. None of the above H.outs Page # 61

7. The financial plan provides a complete picture of


a. How much and when the funds are coming into the organization.
b. Where the funds are going.
c. How much cash is available?
d. All of the options given Handouts Page No:75

8. Before developing the pro forma income statement, the entrepreneur


should
a. Prepare operating budgets
b. Capital budgets.
c. None of the options given
d. Both of the options given (a, b) Handouts Page # 75

9. Which of the following statement is true?


a. Cash flow is same as profit.
b. Profit is the result of subtracting expenses from sales.
PRO FORM A CASH FLOW
A. Cash flow is not the same as profit.
1. Profit is the result of subtracting expenses from sales.
2. Cash flow results from the difference between actual cash receipts and
cash payments.
3. Cash flows only when actual payments are made or received.

c. Cash flow results from the difference between all cash available and cash
payments.
d. Cash flows only when actual payments are not made but only received.

http://www.vustudents.net
46
10. Which of the statement is not true?
a. The S Corporation combines the tax advantages of the
partnership and the corporation. Handouts page # 72
The S Corporation combines the tax advantages of the partnership and the
corporation.
1. It is designed so that the venture income is declared as personal
income on a pro rata basis.
2. Shareholders benefit from all of the income and the deductions of the
business.
b. S Corporations represent almost half of all corporate filings.
c. A popular new entity is the limited liability company (LLC)
d. Limited liability Company (LLC) offers similar disadvantages as the S
Corporation

6. In some countries, point of purchase displays is not allowed in retail


stores. Such
Differences are studied by international entrepreneurs under a.
Economic
b. Political
c. Cultural
d. Technological
7. Entrepreneurial success has been significant because of the culture and
the political
and economic systems in .
a. European countries
b. Asian countries H.outs Page No: 37
c. Transition economies
d. Middle east

8. Having more than 50% ownership position that provides the


entrepreneur with
managerial control is called
. a. Joint venture
b. Majority interest H.outs Page No: 33
c. Horizontal merger
d. Diversified activity merger

9. The under-developed or lesser developed countries need manufacturing


technology
and infrastructure and yet do not want to turn over substantial portion of
their
economy to foreign ownership. Which of the following is a solution to this
dilemma?
a. Management contract

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47
b. Indirect exporting
c. Licensing
d. Turn-key project H.outs Page No: 31
Turn-key projects
Lesser-developed countries are able to obtain manufacturing technology
without surrendering economic control through turn-key projects. A foreign
entrepreneur builds a facility, trains the workers, and trains the
management
to run the installation.

10. The development of a new venture based on an inventor’s work often


requires
.
a. Expertise of an entrepreneur Page # 28
b. Heavy investment from financers
c. Skilled human resources
d. Highly educated staff

Which one of the following should consider in economy while conducting environmental
analysis?
Select correct option:

GNP
Disposable income (Tariq)
Unemployment
Channel of distribution

Economic Trends: The macro economic environment analysis will identify


trends such as changes in personal disposable income, interest
rates, inflation and unemployment rates.
Which of the following source of capital is relatively faster and less costly than other
funding? Select correct option:
Outsourcing
Public offering
Private offering (shamir)
Bootstrap financing
page # 89: A private offering is faster and less costly than other funding.

future of the new venture depends on the . Select correct option:


Positive Cash flow (shafia)

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48
Employees loyalty
Business ideas
Economy

following has NO liability on the part of entrepreneur business? Select correct option:
Partners
Board of advisors
Shareholders
(shafia) Board of
directors

Which of the following ratio will be helpful for assessing the firm’s capital structure?
Select correct option:

Current ratio
Acid test ratio
Profitability ratio
Debt to equity ratio (MK)
page no 100 :Debt to equity ratio assesses the firm’s capital structure. It provides a
measure of risk by considering the funds invested by creditors and investors.

Following are the types of non equity arrangements EXCEPT:


Select correct option:

Licensing
Management contracts
Direct export (MK)
Turnkey projects
Pgae no 31 Lesson 11

Which of the following is essential if your business deals with the Paper production?.
Select correct option:

Operational Plan
Bank loan
Production plan (MK)
Organizational plan
Page 58
If a new venture is a manufacturing operation, a production plan is necessary. This plan
should describe the complete manufacturing process, including whether or not the
process is to be subcontracted.

The startups which rarely go public are called: Select correct option:
Life style
Foundation Company (MK)
Small company
High potential venture

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49
page no 8 : A type of company formed from research and development that usually
does not go public. This
firm can grow in five to ten years from 40 to 400 employees.

following firm achieves modest growth: Select correct option:


High potential growth firm
Foundation firm (MK)
Life style
Public company

following factor can create the managerial difficulties in the joint ventures between
foreign companies? Select correct option:Cultural differences (MK)
Economic policies
Public ignorance
Government taxes
Page no 103 : Cultural differences can create managerial difficulties. Government
policies sometimes can have a negative impact on the venture. The benefits usually
outweigh the drawbacks.

is commonly used to measure the short-term solvency of the venture? Select


correct option:
Debt to equity ratio
Current ratio
(MK) Profitability
ratio Activity ratio
Page no 99 : Current ratio is commonly used to measure the short-term solvency of the
venture or its ability to meet its short-term debts.

Which of the following is NOT a characteristic of a marketing plan? Select correct


option:
It should be flexible
It should be long and detailed (MK)
It should be based on facts and valid assumptions
it should provide a strategy

Which of the following is the best option for starting the business with equity financing?
Select correct option:
Sole Proprietor
Corporation (doubted) mk
Partnership firm

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50
None of the above
Page 81 : Equity financing offers the investor some form of ownership position in the
venture.
a. The investor shares in the profits of the venture.
b. Key factors in choosing the type of financing are availability of funds, assets of the
venture, and prevailing interest rates.
c. Usually a combination of debt and equity financing is used.

SIDB was established for the province of .


Select correct option:

NWFP (glory)
Sindh
Punjab
Balochistan
ref at pg 84 under training center heading lec 37

Which one of the following is a method for obtaining new ideas and solutions by
focusing on problems?
Select correct option:

Product inventory analysis


Gordon method
Checklist method
Scientific method
ref pg 35

Which of the following is NOT an advantage of the acquisition?


Select correct option:

Goodwill
Skilled employees
Favorable location
Political instability (umeed)

The private investors are primarily interested in recovering his/her investment plus a
good .
Select correct option:

Dividend
Shares prices
Rate of return (umeed)
Business repute

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51
The creative process for problem solving that involves making the strange familiar in first
step and then making the familiar strange through personal, direct or symbolic analogy
is called:
Select correct option:

Synectics (glory)

Gordon method
Checklist method
Scientific method
ref at pg 35 lec 16 under creative problem heading

SOLVED BY 4 MAD’s GROUP


TEAM: SALMAN ASIF, ASIM, AYESHA, AMNA
1. is required if a company wants to be more flexible
in
adopting changes.
Management commitment
Contact with customers
Technology
More productivity
2. Which two work environments should be good for spawning the
new enterprises?
Finance and marketing
Finance and R&D
Marketing and R&D
Marketing and IT
3. The entrepreneur must possess the abilities:
Creative
Conceptualization
Understanding environment
All of the given options
4. Which of the following statements about the intrepreneurial
climate is (are) true?
Trial and error are discouraged.
Resources of the firm need to be available and easily accessible
A multidisciplinary approach is discouraged.
Failures are not allowed
5. Which of the following is alternatively called corporate
venturing?
Entrepreneurship
Intrapreneurship
Act of stating a new venture

http://www.vustudents.net
52
Offering new products by an existing company
6. An entrepreneur is a person who is a:
Risk taker
Initiator
Actor
All of the given options
7. Following are the important aspects of international success
EXCEPT:
Planning
Diversification
Reporting
Control
8. A typical inventor is usually .
Highly creative & in love with the invention
Does not encourage change
Willing to modify the invention in order to augment commercial benefit
None of the given options
9. All of the following are the broad categories of External forces
EXCEPT:
Economic forces
Socioeconomic forces
Technological forces
Competitive forces
10. An entrepreneur doing business within the national border is
called:
International entrepreneurship
Intrapreneurship
Domestic entrepreneurship
Imports
11. Selling goods to another country by taking care of transactions
is called:
Indirect exporting
Direct exporting
Importing
Management contract
12. The difference between the value of a country’s imports and
exports over time is called:
Deficit exports
Deficit imports
Balance of payment
Balance of debt
13. Which one of the Following is the way by which an
entrepreneur
can enter into international business?
Export

http://www.vustudents.net
53
Non equity arrangements
Direct foreign investment
All of the given options
14. In some countries, point of purchase displays are not allowed
in retail stores. Such differences are studied by international
entrepreneurs under environment.
Economic
Political
Cultural
Technological
15. The chief motivational factor for
entrepreneurs to leave jobs is the frustration of not being allowed to
perform at the level of which they are capable.
Male
Female
Young
All of the given options
16. Gazelles are the firms with:
High growth rate
Moderate growth rate
Zero% growth rate
Zero% growth rate
17. When the multiplicity of environments become too complex to
handle, the international entrepreneurs often
Go for mergers
Diversify
Decentralize operations
Sale out the foreign business http://www.vustudents.net
18. The activity which occurs when the new venture is started are
called:
Motivation
Business skills
Departure point
Goal orientation
19. Which one of the following is the process of entrepreneurs
developing new products that over time make current products
obsolete?
Creative destruction
New business model
Anatomization
None of the given options
20. The entrepreneur utilizes the resources through:
Identifying and evaluating the opportunity
Developing a business plan

http://www.vustudents.net
54
Implementing the business plan
Manage the enterprise
21. Which of the following areas are preferred by women
entrepreneurs?
Administration
Utilities
Manufacturing
None of the above
22. An individual’s need to be recognized is called:
Need for independence
Need for affiliation
Need of fame
Need for achievement
23. Which one of the following is NOT an intrapreneurial leadership
characteristic?
Understands environment
Encourage the team work
Not flexible
Persistent
24. When the Directorate of Industries, Balochistan was formed?
1972
1973
1975
1976
25. Which one of the following is important for international
business to avoid trade barriers?
Protectionist attitude
Entrepreneurial partnering
Free trade areas
None of the given options
26. SBIR grant program is controlled by:
10 Agencies
11 Agencies
12 Agencies
13 Agencies
27. Which one of the following is the systematic assembly of all
the
facts about a job?
Job Specification
Job Description
Job Identification
Job Analysis

http://www.vustudents.net
55
SOLVED BY 4 MAD’s GROUP
TEAM: SALMAN ASIF, ASIM, AYESHA, AMNA
1. is required if a company wants to be more flexible
in
adopting changes.
Management commitment
Contact with customers
Technology
More productivity
2. Which two work environments should be good for spawning the
new enterprises?
Finance and marketing
Finance and R&D
Marketing and R&D
Marketing and IT
3. The entrepreneur must possess the abilities:
Creative
Conceptualization
Understanding environment
All of the given options
4. Which of the following statements about the intrepreneurial
climate is (are) true?
Trial and error are discouraged.
Resources of the firm need to be available and easily accessible
A multidisciplinary approach is discouraged.
Failures are not allowed
5. Which of the following is alternatively called corporate
venturing?
Entrepreneurship
Intrapreneurship
Act of stating a new venture
Offering new products by an existing company
6. An entrepreneur is a person who is a:
Risk taker
Initiator
Actor
All of the given options
7. Following are the important aspects of international success
EXCEPT:
Planning
Diversification
Reporting
Control

http://www.vustudents.net
56
8. A typical inventor is usually
. Highly creative & in love with the invention
Does not encourage change
Willing to modify the invention in order to augment commercial benefit
None of the given options
9. All of the following are the broad categories of External forces
EXCEPT:
Economic forces
Socioeconomic forces
Technological forces
Competitive forces
10. An entrepreneur doing business within the national border is
called:
International entrepreneurship
Intrapreneurship
Domestic entrepreneurship
Imports
11. Selling goods to another country by taking care of transactions
is called:
Indirect exporting
Direct exporting
Importing
Management contract
12. The difference between the value of a country’s imports and
exports over time is called:
Deficit exports
Deficit imports
Balance of payment
Balance of debt
13. Which one of the Following is the way by which an
entrepreneur
can enter into international business?
Export
Non equity arrangements
Direct foreign investment
All of the given options
14. In some countries, point of purchase displays are not allowed in
retail stores. Such differences are studied by international
entrepreneurs under environment.
Economic
Political
Cultural
Technological

http://www.vustudents.net
57
15. The chief motivational factor for
entrepreneurs to leave jobs is the frustration of not being allowed to
perform at the level of which they are capable.
Male
Female
Young
All of the given options
16. Gazelles are the firms with:
High growth rate
Moderate growth rate
Zero% growth rate
Zero% growth rate
17. When the multiplicity of environments become too complex to
handle, the international entrepreneurs often
Go for mergers
Diversify
Decentralize operations
Sale out the foreign business
18. The activity which occurs when the new venture is started are
called:
Motivation
Business skills
Departure point
Goal orientation
19. Which one of the following is the process of entrepreneurs
developing new products that over time make current products
obsolete?
Creative destruction
New business model
Anatomization
None of the given options
20. The entrepreneur utilizes the resources through:
Identifying and evaluating the opportunity
Developing a business plan
Implementing the business plan
Manage the enterprise
21. Which of the following areas are preferred by women
entrepreneurs?
Administration
Utilities
Manufacturing
None of the above
22. An individual’s need to be recognized is called:
Need for independence

http://www.vustudents.net
58
Need for affiliation
Need of fame
Need for achievement
23. Which one of the following is NOT an intrapreneurial leadership
characteristic?
Understands environment
Encourage the team work
Not flexible
Persistent
24. When the Directorate of Industries, Balochistan was formed?
1972
1973
1975
1976
25. Which one of the following is important for international
business to avoid trade barriers?
Protectionist attitude
Entrepreneurial partnering
Free trade areas
None of the given options
26. SBIR grant program is controlled by:
10 Agencies
11 Agencies
12 Agencies
13 Agencies
27. Which one of the following is the systematic assembly of all the
facts about a job?
Job Specification
Job Description
Job Identification
Job Analysis
1. The importance of intellectual property should be understood by
entrepreneur even before:

Hiring a manager
Engaging an attorney
Developing a product
Establishing new venture

http://www.vustudents.net
59
page 46 Intellectual property which includes patents, trademarks,
copyrights, and trade secrets represent important assets of entrepreneur
and should be understood even before engaging the services of an attorney.

2. The marketing perspective of business plan considers the


venture through the eyes of:
Investor Customer
Entrepreneur
Marketing manager

The marketing perspective considers the venture through the eyes of the
customer p#54

3. The difference in the entrepreneurial and managerial


domains has contributed towards an increase interest in:
Forming new firms
Partnership
Intrapreneurship
Private firms

4. Which of the following plans help to provide an organization


chart indicating the lines of authority?
Physical Business
Organizational
Marketing

The organizational plan section should describe the venture’s form of ownership.
If the venture is a corporation, this should include the number of shares
authorized, share options, and names and addresses of the directors and officers.
It is helpful to provide an organization chart P#58

5. Entrepreneur may start his business by considering


following number/s of option/s
1
2
3
4

6. Licensing is a significant marketing strategy to:


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60
Use intellectual property of others

Pirate others’ patents

Grow the business in new markets

Control the costs

7. Directors in corporation are elected by the

Middle Level Managers

Entrepreneur

Shareholders

Low level Managers

8. An actor and a person who managed large project were


termed as the entrepreneur in the .

Earliest period

Middle ages

17th century

19th and 20th century

Middle Ages: In this age the term entrepreneur was used to describe both
an actor and a person who managed large production projects

9. Front level managers have Skill


Conceptual

Communicational

Technical

All of the above

10. The plan describes how the product will


be distributed and priced.

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61
Financial

Production

Venture

Marketing

11. Why should an entrepreneur do a feasibility study?

To see if there are possible barriers to success

To identify possible sources of funds

To estimate the expected sales

To explore potential customers

Before preparing a business plan, the entrepreneur should do a quick


feasibility study to see if there are possible barriers to success

12. Which of the following geographical area is having


least interest to U.S. entrepreneurs?

Europe

The

Far East
Central Asia

Transition economies

13. Degree of influence and control on other people is called:

Locus of control

Locomotion of control

Locust of control

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Loss of control

14. External forces directly affect all of the following


EXCEPT:

Market segmentation strategies

Types of products/services offered

Management structure of organization

Choice of businesses to acquire or sell

15. THERE is evidence that an entrepreneur usually has

parents.

Self employed

Discouraged Non

supportive Strict

16. Moral support network includes following EXCEPT:

Spouses

Friends

Business associates

Relatives

17. Andrew Carnegie is an example of entrepreneur of


which century:
Earliest period

19th and 20th century

Middle ages

17th century

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18. Which one of the following is the fourth step in
the entrepreneurial process?

Developing successful business ideas

Deciding to become an entrepreneur

Growing the entrepreneurial firm

Moving from an idea to an entrepreneurial firm

19. According to McClelland’s need theory,


entrepreneurs possess which of the following needs?

Need for achievement

Need for power

Need for affiliation

Need for esteem

20. Which one of the following makes formation of new


ventures within a corporate structure difficult?

Lack of intrapreneurial talent

Lack of freedom to make autonomous decisions

Lack of market opportunity

Lack of knowledge

21. Selling goods to another country through a person in


the entrepreneur’s home country is known as:
http://www.vustudents.net
Trading

Direct export

Indirect export

Domestic sales

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22. Which one of the following is a barriers to new
product creation and development?

Trial and error

Opportunity parameter

Opportunity cost

Intrapreneurship culture

23. The decision to start a new business is taken when


one perceives that forming a new business is:

Possible

Desirable

Accurate

Both a and b

24. Which one of the following is the first step in


the entrepreneurial process?

Developing successful business ideas

Deciding to become an entrepreneur

Growing the entrepreneurial firm

Moving from an idea to an entrepreneurial firm

25. Being one’s own boss is a need of:

Independence
Achievement

Affiliation

Authority

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26. An entrepreneur into the hosiery business found out the
reason his hosiery was not selling was due to its color.
What could be the best source of this information?

Supplier

Retailer Competition

Government bureau

27. Which of the following factors has allowed small


companies to act like they are big ones?

Competition

Economic development

Technology

Customers

28. Which of the following receives highest investment?

High potential venture

Foundation firm

Life style

Public company

29. In stage of responsibility allocation process


the entrepreneur follows:

Highly centralized decision making process


Highly decentralized decision making process

Somewhat centralized decision making process

No particular standard

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30. The entrepreneur’s depends on his
perception of the opportunity.

Commitment to opportunity

Commitment of resources Control

of resources

Strategic orientation

31. Which of the following is NOT a characteristic of


an entrepreneur?

Need for independence

Need for affiliation

Need for achievement

Risk taking

32. Following are the types of non equity arrangements


EXCEPT:

Licensing

Management contracts

Direct export

Turnkey projects

33. Which one of the following is a firm that achieves


modest growth?

High potential growth firm


Foundation firm

Life style

Public company

34. Which one of the following best represents the


environment of an entrepreneurial oriented organization?

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Corporate culture

Entrepreneurial culture

Intrapreneurial culture

Traditional culture

SOLVED BY 4 MAD’s GROUP


TEAM: SALMAN ASIF, ASIM, AYESHA, AMNA

1. Which one of the following is NOT included in four


C’s evaluation by lender?
Character
Cost
Continuity
Contribution
2. Which one of the following options has NOT a total taxable
entity?
Minor partner
Limited partner p 87
General partner
All of the given options
3. It is proved that most businesses failed because of improper
planning of an/a:
Investor
Marketer
Entrepreneur
Consultant
4. The entrepreneur was distinguished from capital provider in:
18th century
17th century
19th and 20th century
Middle ages
5. In an international perspective, which of the following
decisions
are NOT covered under strategic planning of an entrepreneur?
What are unique characteristics of each market?
Who should be involved in marketing decisions?
What customer benefits are provided by the product?
What are the company’s major strengths and weaknesses?

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6. Which one the following is the uncontrollable factor
in international trade?
Economic
Cultural
Technological
All of the given options
7. The plan should contain control points to
ascertain
progress.
Business
Marketing
Financial
Operational
8. The business plan should be prepared by:
Entrepreneurs
Consultants
Engineers
Small business administration services
9. Which of the following is included in the description of the
business?
Location
Products offered
History
All of the given options
10. According to the governing bodies of common laws, the life of
trade secret is:
12 years
17 years
20 years
As long as it remains confidential
11. Stake holders are present in
Partnership
Corporation
Sole Proprietorship
None of the above
12. The most sensitive plan in the business plan is?
Operational Plan
Production Plan
Marketing Plan
Financial Plan
13. Which statement of the following relates with the ultimate goal
of Business
Profit Statement
Goal Statement
Mission Statement

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Vision Statement
14. Major contribution of export comes from:
Leather goods
Surgical instrument
Sports goods
All of the given options
15. Targeting the market consists of Procedures
1
2
3
4
16. Which one of the following is NOT a condition of a contract?
An offer is made
An acceptance of offer
Contract must be illegal
Consideration is given
17. Which of the following has not yet been empirically established
as a distinguishing characteristic of entrepreneurs?
Locus of control
Feeling about independence
Need for achievement
Risk taking
18. The most important characteristic of a successful business
website is::
Speed
Innovation
Graphics
Products
19. In Focus group discussion carries in
Formal Way
Informal Way
Both of the above
Problematic Way
20. Which of the following factors does not affect a person for
being
an entrepreneur?
Family background
Nationality midterm file
Education
Personal values
21. Which of the following has a contradictory relationship with an
individual for being an entrepreneur?
His birth order
Parents’ social status
Parents’ occupation

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Relationship with parents
22. The commitment of administrative domain to the resources is
for:
Periodic intervals
Total amount needed p 15
For certain tasks
For long time
23. Which of the following grants the owner protection from anyone
else making, using and selling the identified innovation?
Utility patent p 47
Design patent
Plant patent
International patent
24. The startups which rarely go public are called:
Life stylep 8
Foundation Company
Small company
High potential venture
25. In which of the following sources the large positive cash flow
may need to be invested?
Long term
Short termp 78
Average term
None of the above options
26. Which of the following is/are a source of idea generation?
Consumers
Federal government
Brain storming p40
All of the above
27. Which one of the factors should be considered while assessing
the space for business?
Parking
Access from roadways to facility
Delivery rates
All of the given options
28. Which one of the following is NOT the problem in developing
the
economies of different under developed countries?
Gap of knowledge
Variable rate of return
Same communication style p 29
Different accounting system
29. Capital rising entirely depends on the entrepreneur in which of
the following entity?
Corporation

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71
Sole Proprietorship
Partnership
All of the above p 70
30. The resistance of employees in an organization against
flexibility, growth, and diversification can be overcome by
developing:
Entrepreneurship
Intrapreneurship p 16
Managerial domain
Administrative domain
31. Sales revenue of the internet based business can be projected
from the:
Number of customers
Number of Hits p 78
Number of clicks
All of the above options
32. A short-term, internal source of funds can be obtained by
reducing all of following EXCEPT
Short-term assets
Cash
Fixed assets
Inventory
33. Professional support network includes following EXCEPT:
Personal affiliations

Mentor
Trade associations
Friends
34. Factors contribute to the creation of new venture EXCEPT:
Government
Finance
High interest rates
Role models
http://webcache.googleusercontent.com/search?q=cache:aUta3Stb4m4J:ww
w.imsciences.net/uploads/second-semester/1-Entreprenuership-chapter-1-
The-Nature-%26-Importance-Of-
Entreprenurs.ppt+Factors+contribute+to+the+creation+of+new+venture+G

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overnment+Role+models+finance+High+interest+rates&cd=7&hl=en&ct=cl
nk&gl=pk

35. An ice cream producing company merges with a cotton


spinning company this merger is an example of:
Diversified activity merger
Product extension merger
Market extension merger
Vertical merger
36. Which one of the following contracts should be in written?
Real estates
Lease
Rentals
All of the given options
37. SBA provides:
Finance without interest
Finance with interest
Guarantees for getting loans
Financing up to 90 % of principal amount
.
38. Stakeholders are present in
Partnership
Corporation
Sole Proprietorship
None of the above
39. Members of distribution channels are excellent sources for new
ideas because:
They are familiar with the needs of the market
They earn a handsome profit from new business
They do not bother if entrepreneur bears a loss
They have well-developed sales force
40. Which of the following is the previous name of SME?
SPCC
SMEDA
SBFC
FMBC

Question # 1 of 15 ( Start time: 12:49:39 AM ) Total Marks: 1

The importance of intellectual property should be understood by


entrepreneur even before:

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Hiring a manager
Engaging an attorney
Developing a product
Establishing new venture

page 46 Intellectual property which includes patents, trademarks,


copyrights, and trade secrets represent important assets of entrepreneur
and should be understood even before engaging the services of an attorney.

Question # 2 of 15 ( Start time: 12:51:03 AM ) Total Marks: 1

An entrepreneur into the hosiery business found out the reason his hosiery was
not selling was due to its color. What could be the best source of this
information? http://www.vustudents.net

Supplier Retailer
Competition
Government bureau

Question # 3 of 15 ( Start time: 12:52:24 AM ) Total Marks: 1

The transitional disturbance and lack of reform has led to boom black market in:

China
Hungary
Singapore
Poland

Page # 38 In Poland, the transitional upheaval and lack of reform has led to a
thriving black market.
Question # 4 of 15 ( Start time: 12:53:48 AM ) Total Marks: 1
Which of the following is NOT a requirement of Disclosure Document?

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74
Description of the invention
Claims for invention’s usefulness
Photos of invention
Cover letter

The entrepreneur should first file a disclosure document to establish a date of


conception. To file, the entrepreneur must prepare a clear description of the
invention along with photos and a cover letter

Question # 5 of 15 ( Start time: 12:55:21 AM ) Total Marks: 1

The person with capital was differentiated from the one who needed the
capital in the:

Middle ages
17th century
18th century
20th century

page 3 In the 18th century the person with capital was differentiated from
the one who needed capital

Question # 6 of 15 ( Start time: 12:56:54 AM ) Total Marks: 1

The marketing perspective of business plan considers the venture through the
eyes of:

Investor Customer
Entrepreneur
Marketing manager
The marketing perspective considers the venture through the eyes of the
customer p#54
www..net
Question # 7 of 15 ( Start time: 12:58:24 AM ) Total Marks: 1

Andrew Carnegie is an example of entrepreneur of which century:


Select correct option:

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75
Earliest period
19th and 20th century
Middle ages
17th century
Page # 3

Question # 8 of 15 ( Start time: 12:59:03 AM ) Total Marks: 1


Which one the following is the uncontrollable factor in international trade?

Economic
Cultural
Technological

All of the given options

Question # 9 of 15 ( Start time: 12:59:30 AM ) Total Marks: 1

Members of distribution channels are excellent sources for new ideas


because:

They are familiar with the needs of the market


They earn a handsome profit from new business They
do not bother if entrepreneur bears a loss

They have well-developed sales force

Members of distribution channels are also excellent sources for new ideas
because they are familiar with the needs of the market P#39
Question # 10 of 15 ( Start time: 01:00:27 AM ) Total Marks: 1

The difference in the entrepreneurial and managerial domains has


contributed towards an increase interest in:

Forming new firms

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76
Partnership
Intrapreneurship
Private firms

www..net
Question # 11 of 15 ( Start time: 01:01:29 AM ) Total Marks: 1
The most sensitive plan in the business plan is?

Operational Plan
Production Plan
Marketing Plan
Financial Plan

Question # 12 of 15 ( Start time: 01:02:56 AM ) Total Marks: 1


Banks are usually reluctant to give loan to the

Private Limited Companies


Partnership firm
Public Limited Companies
Sole Proprietor

Question # 13 of 15 ( Start time: 01:03:42 AM ) Total Marks: 1


The commitment of administrative domain to the resources is for:

Periodic intervals
Total amount needed
For certain tasks
For long time
In the administrative domain, the commitment of resources is for the total
amount needed

Question # 14 of 15 ( Start time: 01:04:51 AM ) Total Marks: 1

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77
Which of the following plans help to provide an organization chart indicating the
lines of authority?

Physical Business
Organizational
Marketing

The organizational plan section should describe the venture’s form of ownership.
If the venture is a corporation, this should include the number of shares
authorized, share options, and names and addresses of the directors and officers.
It is helpful to provide an organization chart P#58

Question # 15 of 15 ( Start time: 01:06:03 AM ) Total Marks: 1

Entrepreneur may start his business by considering following number/s of


option/s

1
2
3
4

Question # 1 of 15 ( Start time: 01:15:11 AM ) Total Marks: 1

Selling goods to another country by taking care of transactions is called:

Select correct option:

Indirect exporting

Direct exporting
Importing

Management contract

Direct exporting :Selling goods to another country by taking care of the transaction

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Question # 3 of 15 ( Start time: 01:17:19 AM ) Total Marks: 1

Licensing is a significant marketing strategy to:

Select correct option:

Use intellectual property of others

Pirate others’ patents

Grow the business in new markets

Control the costs

Question # 4 of 15 ( Start time: 01:18:14 AM ) Total Marks: 1

Directors in corporation are elected by the

Select correct option:

Middle Level Managers

Entrepreneur

Shareholders

Low level Managers


Question # 5 of 15 ( Start time: 01:18:37 AM ) Total Marks: 1

A is also essential if a new venture is a manufacturing concern.

Select correct option:

Market analysis

Operations plan

Bank loan

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Organizational plan

If a new venture is a manufacturing operation, a production plan/ operational plan is


necessary. P#58

www..net

Question # 6 of 15 ( Start time: 01:20:06 AM ) Total Marks: 1

process of creating incremental wealth is called Entrepreneurship.

Select correct option:

Dynamic

Static

Continuous

Systematic

Entrepreneurship is the dynamic process of creating incremental wealth P#4

Question # 7 of 15 ( Start time: 01:20:51 AM ) Total Marks: 1

The combining of two or more independent bodies into a single body is known as:

Select correct option:

Joint venture

Merger

Rivalry
Protectionist attitudes

Question # 8 of 15 ( Start time: 01:21:41 AM ) Total Marks: 1

An actor and a person who managed large project were termed as the entrepreneur in the
.

Select correct option:

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80
Earliest period

Middle ages

17th century

19th and 20th century

Middle Ages: In this age the term entrepreneur was used to describe both an actor and a
person who managed large production projects

Question # 9 of 15 ( Start time: 01:22:26 AM ) Total Marks: 1

External forces directly affect all of the following EXCEPT:

Select correct option:

Market segmentation strategies

Types of products/services offered

Management structure of organization

Choice of businesses to acquire or sell

Question # 10 of 15 ( Start time: 01:23:19 AM ) Total Marks: 1

Following are the types of non equity arrangements EXCEPT:

Select correct option:


Licensing

Management contracts

Direct export

Turnkey projects

Pg#31

Question # 11 of 15 ( Start time: 01:24:22 AM ) Total Marks: 1

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81
Front level managers have Skill

Select correct option:

Conceptual

Communicational

Technical

All of the above

Question # 12 of 15 ( Start time: 01:25:37 AM ) Total Marks: 1

A Focus Group mainly consists of a sample of

Select correct option:

8-10 People

10-12 People

12-14 People

14-16 People

A focus group is a sample of 10 or 12 potential customers who participate in a


discussion. P#63
Question # 13 of 15 ( Start time: 01:27:04 AM ) Total Marks: 1

In stage of responsibility allocation process the entrepreneur follows:

Select correct option:

Highly centralized decision making process

Highly decentralized decision making process

Somewhat centralized decision making process

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82
No particular standard

Question # 14 of 15 ( Start time: 01:28:05 AM ) Total Marks: 1

Which one of the following gives suggestions for new product but also helps to market
new product in the market?

Select correct option:

Existing products and services

Distribution channels

Federal government

Consumers

Distribution Channels Because they are familiar with the needs of the market, channel
members often have suggestions for new products. These channel members can also help
in marketing the new product.

Question # 15 of 15 ( Start time: 01:29:27 AM ) Total Marks: 1

It is proved that most businesses failed because of improper planning of an/a:

Select correct option:

Investor

Marketer
Entrepreneur

Consultant

Question # 1 of 15 ( Start time: 01:31:21 AM ) Total Marks: 1

Which one of the Following is the way by which an entrepreneur can enter into
international business?

Select correct option:

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83
Export

Non equity arrangements

Direct foreign investment

All of the given options

Question # 4 of 15 ( Start time: 01:33:09 AM ) Total Marks: 1

The evaluation criteria for the new product should include all of the following, EXCEPT:

Select correct option:

Determination of market demand

Determination of the suppliers

Pricing and marketing policies of other competing firms

Product should be profitable

Question # 6 of 15 ( Start time: 01:34:53 AM ) Total Marks: 1

Which of the following is NOT a characteristic of an entrepreneur?

Select correct option:

Need for independence

Need for affiliation

Need for achievement


Risk taking

Question # 8 of 15 ( Start time: 01:35:32 AM ) Total Marks: 1

Which one of the following is NOT an intrapreneurial leadership characteristic?

Select correct option:

Understands environment

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84
Encourage the team work

Not flexible

Persistent

www..net

Question # 10 of 15 ( Start time: 01:36:28 AM ) Total Marks: 1

An individual’s need to be recognized is called:

Select correct option:

Need for independence

Need for affiliation

Need of fame

Need for achievement

Need for achievement : An individual’s need to be recognized

Question # 11 of 15 ( Start time: 01:37:12 AM ) Total Marks: 1

The plan describes how the product will be distributed and priced.

Select correct option:

Financial
Production

Venture

Marketing

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Question # 13 of 15 ( Start time: 01:37:45 AM ) Total Marks: 1

Which of the following is the best option for starting the business with equity financing?

Select correct option:

Corporation

Partnership firm

Sole Proprietor

None of the above

Question # 14 of 15 ( Start time: 01:38:32 AM ) Total Marks: 1

Which of the following is included in the description of the business?

Select correct option: http://www.vustudents.net

Location

Products offered

History

All of the given options

Question # 2 of 15 ( Start time: 01:42:50 AM ) Total Marks: 1


The evaluation criteria for the new product should include all of the following, EXCEPT:
Select correct option:

Determination of market demand


Determination of the suppliers
Pricing and marketing policies of other competing firms

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86
Product should be profitable

Question # 3 of 15 ( Start time: 01:43:13 AM ) Total Marks: 1

Which of the following contains all backup material that is not included in the text of
business plan?
Select correct option:

History of entrepreneur
Financial plan
Appendix

Bibliography
The appendix contains any backup material not included in the text of the document

Question # 4 of 15 ( Start time: 01:43:59 AM ) Total Marks: 1


Which of the following is alternatively called corporate venturing?
Select correct option:

Entrepreneurship
Intrapreneurship
Act of stating a new venture
Offering new products by an existing company
Intrapreneurship, also called corporate venturing, is not without problems P#21

Question # 5 of 15 ( Start time: 01:44:37 AM ) Total Marks: 1


The difference between the value of a country’s imports and exports over time is called:
Select correct option:
Deficit exports Deficit
imports Balance of
payment

Balance of debt

Question # 7 of 15 ( Start time: 01:46:53 AM ) Total Marks: 1

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87
An entrepreneur doing business within the national border is called:
Select correct option:

International entrepreneurship
Intrapreneurship
Domestic entrepreneurship
Imports

Question # 8 of 15 ( Start time: 01:47:46 AM ) Total Marks: 1


Which one of the following contracts should be in written?
Select correct option:

Real estates
Lease
Rentals

All of the given options

Question # 9 of 15 ( Start time: 01:48:09 AM ) Total Marks: 1

Which one of the following is not a source of idea generation?


Select correct option:

Consumers
Brain storming
Focus group

None of the given options


Question # 10 of 15 ( Start time: 01:49:15 AM ) Total Marks: 1
Moral support network includes following EXCEPT:
Select correct option:

Spouses
Friends
Business associates
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Relatives

Moral-Support Network It is important for the entrepreneur to establish a moral


support network of family and friends.

Question # 11 of 15 ( Start time: 01:49:39 AM ) Total Marks: 1


The person with capital was differentiated from the one who needed the capital in the:
Select correct option:

Middle ages
17th century
18th century
20th century

In the 18th century the person with capital was differentiated from the one who needed
capital

Question # 12 of 15 ( Start time: 01:50:21 AM ) Total Marks: 1

Why should an entrepreneur do a feasibility study?


Select correct option:

To see if there are possible barriers to success


To identify possible sources of funds
To estimate the expected sales
To explore potential customers

Before preparing a business plan, the entrepreneur should do a quick feasibility study to see
if there are possible barriers to success

Question # 15 of 15 ( Start time: 01:51:37 AM ) Total Marks: 1


Which of the following geographical area is having least interest to U.S. entrepreneurs?
Select correct option:
Europe
The Far East Central
Asia Transition
economies

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89
Question No: 1 ( Marks: 1 ) - Please choose one
There is an evidence that an entrepreneur usually has
parents.
Self employed
Discouraged
Non supportive
Strict
Question No: 2 ( Marks: 1 ) - Please choose one
Following are the problems in developing the economies EXCEPT:
Gap of knowledge
Variable rate of return
Same communication style
Different accounting system
Question No: 3 ( Marks: 1 ) - Please choose one
Which of the following techniques is an excellent method for initial screening
of ideas and concepts?
Focus group
Problem inventory analysis (Doubtful) page 35
Brain storming
Reverse brainstorming
Question No: 4 ( Marks: 1 ) - Please choose one
Which one of the following is the next stage to the Concept Stage of Product
Planning and Development Process?
Idea Stage
Product Planning Stage
Product Development Stage
Test Marketing Stage
Question No: 5 ( Marks: 1 ) - Please choose one
Which of the following is a more structured method of problem solving,
including principles and rules for concept formation, making observations
and experiments, and finally validating the hypothesis?
Scientific method
Heuristics
Attribute listing
Value analysis
Question No: 6 ( Marks: 1 ) - Please choose one
Which of the following is used by entrepreneurs to acquire experience in an
international market before making a major commitment?
Merger
Joint venture
Minority interest
Majority interest
Question No: 7 ( Marks: 1 ) - Please choose one
Which of the following plan shows the economically feasibility of business?

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90
Business
Financial
Economic
Marketing
Question No: 8 ( Marks: 1 ) - Please choose one
What are the number of questions a marketing plan usually answers?
5
2
3
4
Question No: 9 ( Marks: 1 ) - Please choose one
Which of the following allows the entrepreneur to establish controls on the
process during the implementation of the marketing plan?
Sales data
Research data
Consumer data
Technical data (Doubtful)
Question No: 10 ( Marks: 1 ) - Please choose one
Which of the following shows the characteristic of the venture that has
experience in related business?
Strength
Weakness
Opportunity
Threat
Question No: 11 ( Marks: 1 ) - Please choose one
Advertising and promotion for the business-to-business market involve all of
the following EXCEPT:
Indirect sales page 59
Trade magazine advertising
Direct sales
Trade shows
Question No: 12 ( Marks: 1 ) - Please choose one
Which of the following shows the characteristic of the venture that has
experience in related business?
Strength
Weakness
Opportunity
Threat
Question No: 13 ( Marks: 1 ) - Please choose one
In which of the following, banks are usually reluctant to give loan?
Sole Proprietor
Public Limited Companies
Partnership firm
Private Limited Companies

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91
Question No: 14 ( Marks: 1 ) - Please choose one
In which of the following majority holds the management control?
Partnership page 63
Corporation
Limited liability company
All of the given options
Question No: 15 ( Marks: 1 ) - Please choose one
Which of the following represents the shares in borrowing of Large
Enterprises in Pakistan?
68%
65%
66%
67%
Question No: 16 ( Marks: 1 ) - Please choose one
Which of the following represents the environment in which entrepreneurship
can’t grow?
Boom
Vacuum
Maturity
Introductory Phase
Question No: 17 ( Marks: 1 ) - Please choose one
"What the entrepreneur hopes to accomplish" includes in which section of
business plan?
Vision statement
Mission Statement
Goal Statement
All of the above
Question No: 18 ( Marks: 1 ) - Please choose one
Which of the following shows the standard acceptable term of a Limited
Liability Company?
Three
Ten
Twenty
Thirty
Question No: 19 ( Marks: 1 ) - Please choose one
Which one of the following provides a guideline in determining hiring
procedures?
Job description
Job specification
Job analysis
Job evaluation
Question No: 20 ( Marks: 1 ) - Please choose one
The S corporation combines the tax advantages of which one of the
following?

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92
Proprietorship and limited liability company
Partnership and corporation
Corporation and limited liability company
Partnership and proprietorship
Question No: 21 ( Marks: 1 ) - Please choose one
Which of the following is the base of Job Advertisement?
Job Description
Job Specification
Job identification
All of the above options
Question No: 22 ( Marks: 1 ) - Please choose one
Which of the following shows the results from the difference between actual
cash receipts and cash payments?
Revenue
Profit
Cash flow
Income statement
Question No: 23 ( Marks: 1 ) - Please choose one
What is the primary concern of entrepreneurs, who trade equity for their
growing venture?
Control
Valuation
Investor capabilities
Capitalization page 85
Question No: 24 ( Marks: 1 ) - Please choose one
When the business does not have assets to support a loan, the entrepreneur
may go for which one of the following options?
Character loan
Straight commercial loan
Installment loan
Long term loan
Question No: 25 ( Marks: 1 ) - Please choose one
Which of the following number of years a mortgage loan may possibly cover?
10
20
30 Google search
40
Question No: 26 ( Marks: 1 ) - Please choose one
In which of the following techniques, money is given to a firm for developing
a technology and involves a tax shelter?
Small business administration loans
Cash flow financing
Small business innovation research grant
Research and development limited partnership

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93
Question No: 27 ( Marks: 1 ) - Please choose one
The overall coordinating party in an agreement is:
Limited partner
Major partner
Minor partner
General partner
Question No: 28 ( Marks: 1 ) - Please choose one
Which of the following includes grants from the U.S. government to small
technology based businesses?
Small business administration loans
Small business innovation research grant
Research and development limited partnership
Installment loans
Question No: 29 ( Marks: 1 ) - Please choose one
Which of the following is a formalized method for obtaining funds from
private investors?
Private placement
Private offering
Regulation D
Bootstrap financing
Question No: 30 ( Marks: 1 ) - Please choose one
When did the Sindh Small Industries Corporation launch its credit scheme?
1972-73
1978-79
1988-89
1992-93
Question No: 31 ( Marks: 1 ) - Please choose one
Which of the following is a type of leverage ratio?
Debt ratio
Net profit margin
Return on investment
Current ratio
Question No: 32 ( Marks: 1 ) - Please choose one
The mean age of entrepreneurial enterprises in Pakistan is:
12 years
15 years
20 years
22 years
Question No: 33 ( Marks: 1 ) - Please choose one
In most cases, the venture capitalist:
Seeks control of the company
Never expects a seat on the board of directors
Expects the management team to run the daily operations (doubtful)
Prefers not to interfere in planning and expertise areas

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94
Question No: 34 ( Marks: 1 ) - Please choose one
Conflicts in Management thoughts and Entrepreneur thoughts are resolved
by which of the following company?
Xerox page 15
Unilever
Walls
Volta
Question No: 35 ( Marks: 1 ) - Please choose one
The entrepreneur must possess the abilities:
Creative
Conceptualization
Understanding environment
All of the given options
Question No: 36 ( Marks: 1 ) - Please choose one
In which of the following era entrepreneur enters into a contract with
government to perform a service?
20th century
Earliest period
Middle ages
17th century
Question No: 37 ( Marks: 1 ) - Please choose one
Which one of the following is a firm that achieves modest growth?
High potential growth firm
Foundation firm
Life style
Public company
Question No: 38 ( Marks: 1 ) - Please choose one
In entrepreneurial domain the commitment to opportunity has short time
span but in managerial domain it is:
For 1 month
For 6 months
For long time span
For 1 year

Question No: 39 ( Marks: 1 ) - Please choose one


Moral support network includes all of the following EXCEPT:
Spouses
Friends
Business associates
Relatives
Question No: 40 ( Marks: 1 ) - Please choose one
Professional support network includes all of the following EXCEPT:
Personal affiliations
Mentor

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Trade associations
Friends

1. Any patents, trademarks , copyright or trade secrets held by the


entrepreneur is known as

1. Disclosure document
2. Patent
3. Intellectual property
4. None of the mentioned
5.
6. 2. The organization will never be able to make the necessary changes
without

1. Top management commitment


2. Employees
3. Workers
4. None of the mentioned

3. The ways entrepreneurs make decisions.

1. Entrepreneurial domain.
2. Reverse brain storming
3. Heuristics
4. d.Reverse brain storming
5.
5. A word, symbol, name or device that a business uses
to identify its goods.

1. A legal protection for information on foreign products.


2. Legal protection for intellectual works.
3. Legal protection for a U.S. product exported to another country
4.
5.
6. 6. locus of control is

1. A feeling

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2. Attitude
3. Attribute
4. None of the above
5.
6. 7 Licensing arrangements have

1. Low risk process involved


2. Easy way to generate incremental income
3. Several pitfalls
4. All of the above
5.
6.
7. 8. Personal characteristics to be a successful entrepreneur includes

1. Understanding environment
2. Creating management options
3. Encourage open discussion
4. All of the above
5.
6.
7. 9.International entrepreneurship is

1. Licensing
2. Exporting
3. Both of the mentioned options
4. None of the two mentioned

Which of the following is not a characteristic that is helpful for an


entrepreneur to have?
a. Self-
esteem b.
Caution
c.
Drive
d. Optimism

10.Hindrance for going in the international business is known as

1. Synergy
2. Turn key point
3. Trade barrier
4. Minority interest

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1. One effective way to begin the marketing plan is

a. To make a list of the information that will be needed


to prepare the marketing plan.
b.Gathering Data from Secondary Sources
c. Gathering Information from Primary Sources. d.
None of the options given

2. A focus group

a. Is a sample of 10 or 12 potential investors who participate in a


discussion?

b.Is a sample of 10 or 12 potential employees who participate in a


discussion?

c. Is a sample of 10 or 12 potential customers who


participate in a discussion?
d. None of the options given

3. The situation analysis is


a. Defining Target Market/Opportunities and Threats. b.
Considering Strengths and Weaknesses
c. A review of where the com pany has been and considers
envi ronmental factors.
d. None of the options given

4. One of the difficult decisions


a. Is about the distribution of the product
b.Is determining the appropriate price for the product.
c. Is about the promotion of the product
d. None of the options given
5. Which of the following statement is true for marketing system?

a. It is all about the internal envoi mental factors

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b. It identifies the major interacting components, both internal
and external
c. It’s about the financial needs of the venture
d. None of the options given

6. In setting marketing goals and objectives the entrepreneur must a.


Set the price
b. Distribution place
c. Must satisfy customers
d. None of the above

7. The financial plan provides a complete picture of

a. How much and when the funds are coming into the
organization.
b. Where the funds are going.
c. How much cash is available?
d. Al of the options given

8. Before developing the pro forma income statement, the


entrepreneur should
a. Prepare operating budgets
b. Capital budgets.

c. None of the options given


d. Both of the options given (a,b)

9. Which of the following statement is true?


a. Cash flow is same as profit.
b. Profit is the result of subtracting expenses from sales.

c. Cash flow results from the difference between all cash available and
cash pay ments.

d. Cash flows only when actual payments are not made but only
received.
10. Which of the statement is not true?

a. The S Corporation combines the tax advantages of the partnership


and the corporation.

b.S Corporations represent almost half of all corporate fil ings. c.


A popular new entity is the limited liability company (LLC)

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d. Limited liability Company (LLC) offers similar
disadvantages as the S Corpora tion
Question No: 1 ( Marks: 1 ) - Please choose one
There is an evidence that an entrepreneur usually has
parents.
Self employed
Discouraged
Non supportive
Strict
Question No: 2 ( Marks: 1 ) - Please choose one
Following are the problems in developing the economies EXCEPT:
Gap of knowledge
Variable rate of return
Same communication style
Different accounting system
Question No: 3 ( Marks: 1 ) - Please choose one
Which of the following techniques is an excellent method for initial screening
of ideas and concepts?
Focus group
Problem inventory analysis (Doubtful) page 35
Brain storming
Reverse brainstorming
Question No: 4 ( Marks: 1 ) - Please choose one
Which one of the following is the next stage to the Concept Stage of Product
Planning and Development Process?
Idea Stage
Product Planning Stage
Product Development Stage
Test Marketing Stage
Question No: 5 ( Marks: 1 ) - Please choose one
Which of the following is a more structured method of problem solving,
including principles and rules for concept formation, making observations
and experiments, and finally validating the hypothesis?
Scientific method
Heuristics
Attribute listing
Value analysis
Question No: 6 ( Marks: 1 ) - Please choose one
Which of the following is used by entrepreneurs to acquire experience in an
international market before making a major commitment?
Merger
Joint venture
Minority interest
Majority interest

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100
Question No: 7 ( Marks: 1 ) - Please choose one
Which of the following plan shows the economically feasibility of business?
Business
Financial
Economic
Marketing
Question No: 8 ( Marks: 1 ) - Please choose one
What are the number of questions a marketing plan usually answers?
5
2
3
4
Question No: 9 ( Marks: 1 ) - Please choose one
Which of the following allows the entrepreneur to establish controls on the
process during the implementation of the marketing plan?
Sales data
Research data
Consumer data
Technical data (Doubtful)
Question No: 10 ( Marks: 1 ) - Please choose one
Which of the following shows the characteristic of the venture that has
experience in related business?
Strength
Weakness
Opportunity
Threat
Question No: 11 ( Marks: 1 ) - Please choose one
Advertising and promotion for the business-to-business market involve all of
the following EXCEPT:
Indirect sales page 59
Trade magazine advertising
Direct sales
Trade shows
Question No: 12 ( Marks: 1 ) - Please choose one
Which of the following shows the characteristic of the venture that has
experience in related business?
Strength
Weakness
Opportunity
Threat
Question No: 13 ( Marks: 1 ) - Please choose one
In which of the following, banks are usually reluctant to give loan?
Sole Proprietor
Public Limited Companies

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101
Partnership firm
Private Limited Companies
Question No: 14 ( Marks: 1 ) - Please choose one
In which of the following majority holds the management control?
Partnership page 63
Corporation
Limited liability company
All of the given options
Question No: 15 ( Marks: 1 ) - Please choose one
Which of the following represents the shares in borrowing of Large
Enterprises in Pakistan?
68%
65%
66%
67%
Question No: 16 ( Marks: 1 ) - Please choose one
Which of the following represents the environment in which entrepreneurship
can’t grow?
Boom
Vacuum
Maturity
Introductory Phase
Question No: 17 ( Marks: 1 ) - Please choose one
"What the entrepreneur hopes to accomplish" includes in which section of
business plan?
Vision statement
Mission Statement
Goal Statement
All of the above
Question No: 18 ( Marks: 1 ) - Please choose one
Which of the following shows the standard acceptable term of a Limited
Liability Company?
Three
Ten
Twenty
Thirty
Question No: 19 ( Marks: 1 ) - Please choose one
Which one of the following provides a guideline in determining hiring
procedures?
Job description
Job specification
Job analysis
Job evaluation
Question No: 20 ( Marks: 1 ) - Please choose one

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102
The S corporation combines the tax advantages of which one of the
following?
Proprietorship and limited liability company
Partnership and corporation
Corporation and limited liability company
Partnership and proprietorship
Question No: 21 ( Marks: 1 ) - Please choose one
Which of the following is the base of Job Advertisement?
Job Description
Job Specification
Job identification
All of the above options
Question No: 22 ( Marks: 1 ) - Please choose one
Which of the following shows the results from the difference between actual
cash receipts and cash payments?
Revenue
Profit
Cash flow
Income statement
Question No: 23 ( Marks: 1 ) - Please choose one
What is the primary concern of entrepreneurs, who trade equity for their
growing venture?
Control
Valuation
Investor capabilities
Capitalization page 85
Question No: 24 ( Marks: 1 ) - Please choose one
When the business does not have assets to support a loan, the entrepreneur
may go for which one of the following options?
Character loan
Straight commercial loan
Installment loan
Long term loan
Question No: 25 ( Marks: 1 ) - Please choose one
Which of the following number of years a mortgage loan may possibly cover?
10
20
30 Google search
40
Question No: 26 ( Marks: 1 ) - Please choose one
In which of the following techniques, money is given to a firm for developing
a technology and involves a tax shelter?
Small business administration loans
Cash flow financing

http://www.vustudents.net
103
Small business innovation research grant
Research and development limited partnership
Question No: 27 ( Marks: 1 ) - Please choose one
The overall coordinating party in an agreement is:
Limited partner
Major partner
Minor partner
General partner
Question No: 28 ( Marks: 1 ) - Please choose one
Which of the following includes grants from the U.S. government to small
technology based businesses?
Small business administration loans
Small business innovation research grant
Research and development limited partnership
Installment loans
Question No: 29 ( Marks: 1 ) - Please choose one
Which of the following is a formalized method for obtaining funds from
private investors?
Private placement
Private offering
Regulation D
Bootstrap financing
Question No: 30 ( Marks: 1 ) - Please choose one
When did the Sindh Small Industries Corporation launch its credit scheme?
1972-73
1978-79
1988-89
1992-93
Question No: 31 ( Marks: 1 ) - Please choose one
Which of the following is a type of leverage ratio?
Debt ratio
Net profit margin
Return on investment
Current ratio
Question No: 32 ( Marks: 1 ) - Please choose one
The mean age of entrepreneurial enterprises in Pakistan is:
12 years
15 years
20 years
22 years
Question No: 33 ( Marks: 1 ) - Please choose one
In most cases, the venture capitalist:
Seeks control of the company
Never expects a seat on the board of directors

http://www.vustudents.net
104
Expects the management team to run the daily operations (doubtful)
Prefers not to interfere in planning and expertise areas
Question No: 34 ( Marks: 1 ) - Please choose one
Conflicts in Management thoughts and Entrepreneur thoughts are resolved
by which of the following company? http://www.vustudents.net
Xerox page 15
Unilever
Walls
Volta
Question No: 35 ( Marks: 1 ) - Please choose one
The entrepreneur must possess the abilities:
Creative
Conceptualization
Understanding environment
All of the given options
Question No: 36 ( Marks: 1 ) - Please choose one
In which of the following era entrepreneur enters into a contract with
government to perform a service?
20th century
Earliest period
Middle ages
17th century
Question No: 37 ( Marks: 1 ) - Please choose one
Which one of the following is a firm that achieves modest growth?
High potential growth firm
Foundation firm
Life style
Public company
Question No: 38 ( Marks: 1 ) - Please choose one
In entrepreneurial domain the commitment to opportunity has short time
span but in managerial domain it is:
For 1 month
For 6 months
For long time span
For 1 year
Question No: 39 ( Marks: 1 ) - Please choose one
Moral support network includes all of the following EXCEPT:
Spouses
Friends
Business associates
Relatives
Question No: 40 ( Marks: 1 ) - Please choose one
Professional support network includes all of the following EXCEPT:
Personal affiliations

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105
Mentor
Trade associations
Friends
Question No: 41 ( Marks: 5 )
Differentiate the operating budget from capital budget?
Question No: 42 ( Marks: 5 )
It is said that advertising agencies are meant for the promotional tools. Why
do you think that it is a correct statement?
Question No: 43 ( Marks: 10 )
An "S Corporation" is a corporation which has elected to have its profits pass
through to its shareholders, in the same manner as a partnership or sole
proprietorship. Write down the pros and cons of "S Corporation".
Question No: 44 ( Marks: 10 )
Suppose you want to calculate the net worth of your business. What kind of
statement will you use in order to calculate the net profit? Also discuss its
key feature.
Question No: 45 ( Marks: 10 )
Product or service is the basis of building the marketing plan. What are the
major factors which should be included while writing the marketing plan of a
product or service?

Need for achievement


Need for independence
Motivation
None of the mentioned options
2. Individuals who help the entrepreneur in business activities

Role models
Professional-support network
Parents
None of the mentioned options

3. The managers in an organization strongly


supporting intrapreneurship is called -----------------------

Top management commitment


Upper management commitment

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106
Lower management intrapreneur
Upper management intrapreneur

4. ------------- involves a manufacturer giving a


foreign manufacturer the right to use a patent, trademark
or technology in return for a royalty

Licensing
Turn-key projects
Management contracts
None of the mentioned options

5. Female entrepreneurs differ in terms of --------------


-----
-, -----------------------, and --------------------------
-

Motivation Business skills


Occupational background

6. In terms of ------------------------------, most


entrepreneurs initiate their entrepreneurial careers between
the ages of 22 and 45.

Chronological age

7. Creativity tends to decrease with age and education

True
False

8. Arriving activity occurring when the venture is started

True
False

9. The creator is an individual who creates something new

True
False

10. An attribute indicating the sense of control that


a person has over life is called locus of control

True

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107
False

5) In chronological age , most entrepreneurs start


their careers between ages
a) 22 and
55 b) 30 and
55 c) 40 and
65
d) None of the given options

6) is the combination of at
least two firms doing similar businesses at the same market
level.
a) Diversified activity Merger
b) Horizontal Merger
c) Joint Venture
d) Vertical Merger

7) Which of the following is NOT recognized as


a misconception about entrepreneurship?

a) Entrepreneurship is found only is small businesses. b)


Entrepreneurship is easy.
c) Successful entrepreneurship needs only a great idea.
d) Entrepreneurial ventures and small businesses are different

9) All of the following are recognized as potential sources


of entrepreneurial ideas EXCEPT:
a) Work experiences, skills, and abilities
b) Familiar and unfamiliar products and services
c) Personal interests or hobbies
d) All of the selections are recognized as potential sources of
entrepreneurial ideas.

10) An is an individual who


creates something for the first time, is a highly driven individual
motivated by his or her own work and personal ideas.
a) Entrepreneur
b) Inventor
c) Both a and b
d) None of the given options

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108
A patent is granted for a specified amount of time because of the
assumption:

Select correct option:

That during this time firm will cover its development costs
That firm will earn a sufficient profit during this period
To limit the monopoly of the firm
That it will stimulate idea and development of a better product

The importance of intellectual property should be understood by


entrepreneur even before:
Select correct option:

Hiring a manager
Engaging an attorney
Developing a product
Establishing new venture

Which one of the following is NOT an external factor?


Select correct option:

New regulations
Competition
Social changes
Manufacturing

Which one of the Following is the way by which an entrepreneur can enter
into international business?
Select correct option:

Export
Non equity arrangements
Direct foreign investment
All of the given options

Which one of the following is NOT a condition of a contract?


Select correct option:

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109
An offer is made
An acceptance of offer
Contract must be illegal
Consideration is given

Which one of the following is a sound strategic option for an entrepreneur


when synergy is present?
Select correct option:

Merger
Joint venture
Minority interest
Majority interest

An entrepreneur doing business within the national border is called:


Select correct option:

International entrepreneurship
Intrapreneurship
Domestic entrepreneurship
Imports

Which of the following grants the owner protection from anyone else
making, using and selling the identified innovation?
Select correct option:

Utility patent
Design patent
Plant patent
International patent

Health insurance premium is less expensive if there is:


Select correct option:
One insured participants
Ten participants
Large group of participants
Very small group of participants
Which one of the following is not a source of idea generation?
Select correct option:

Consumers
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110
Brain storming
Focus group
None of the given options
Quite confusing question Answer Required

The product life cycle starts with which stage of product planning and
development process?
Select correct option:

Test marketing stage Product


development stage
Commercialization stage
Product planning and development process is a part of product life
cycle

The creative process for problem solving that involves making the strange
familiar in first step and then making the familiar strange through personal,
direct or symbolic analogy is called:
Select correct option:
Select correct option:

Synectics
Gordon method
Checklist method
Scientific method

Which of the following geographical area is having least interest to


U.S. entrepreneurs?

Europe
The Far East
Central Asia
Transition economies
In an international perspective, which of the following decisions are NOT
covered under strategic planning of an entrepreneur?
Select correct option:

What are unique characteristics of each market?


Who should be involved in marketing decisions?
What customer benefits are provided by the product?

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111
What are the company’s major strengths and weaknesses?

Which one of the following insurance is required by law?


Select correct option:

Life insurance
Property insurance
Disability and vehicle coverage
Health care coverage

When the multiplicity of environments become too complex to handle, the


international entrepreneurs often .
Select correct option:

Go for mergers
Diversify
Decentralize operations
Sale out the foreign business

Which of the following is NOT essential part of the contract?


Select correct option:

All the parties involved should be named


Transaction should be described in detail
Obtain signatures of the persons involved
Place where contract takes place (Page 53)

Entrepreneurship(MGT602)
Recent Online Quiz No 2

Question # 1 of 20 ( Start time: 05:04:17 PM ) Total Marks: 1

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112
The creative process for problem solvin that involves makin the stranefamiliar in first step
and then makin the familiar strane throuh personal, direct or symbolic analoy is called:
Select correct option:

Synectics ordon
method Checklist
method
Scientific method Bottom of Form

Question # 2 of 20 ( Start time: 05:05:43 PM ) Total Marks: 1


Which of the followin is included in the description of the business?
Select correct option:

Location Products
offered History
All of the iven options

Question # 3 of 20 ( Start time: 05:06:59 PM ) Total Marks: 1


Which of the followin can not be covered under the copyriht protection?
Select correct option:

Computer software
Computer hardware
Poems and sons
Models and sculpture

Question # 8 of 20 ( Start time: 05:10:58 PM ) Total Marks: 1


Why should an entrepreneur do a feasibility study?
Select correct option:

To see if there are possible barriers to success


To identify possible sources of funds
To estimate the expected sales
To explore potential customers
Question # 9 of 20 ( Start time: 05:11:23 PM ) Total Marks: 1
In an international perspective, which of the followin decisions are NOT covered
under strateic plannin of an entrepreneur?
Select correct option:

What are unique characteristics of each market?


Who should be involved in marketin decisions?
What customer benefits are provided by the product?

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113
What are the company’s major strenths and weaknesses?

Question # 10 of 20 ( Start time: 05:12:48 PM ) Total Marks: 1


All of the followin are essential to maintain secrecy EXCEPT:
Select correct option:

Train employees to refer sensitive questions to one person


Discuss business in public places
Provide escorts for all office visitors
Use simple security such as locked file cabinets

Question # 11 of 20 ( Start time: 05:14:09 PM ) Total Marks: 1


Which one of the followin contracts should be in written?
Select correct option:

Real estates
Lease
Rentals
All of the iven options

Question # 12 of 20 ( Start time: 05:14:25 PM ) Total Marks: 1


Which one of the factors should be considered while assessin the space for business?
Select correct option:

Parkin
Access from roadways to facility
Delivery rates
All of the iven options

Question # 13 of 20 ( Start time: 05:15:03 PM ) Total Marks: 1


Which of the followin is a more structured method of problem solvin, includin principles
and rules for concept formation, makinobservations and experiments, and
finally validatin the hypothesis?
Select correct option:

Scientific method
Heuristics
Attribute listin
Value analysis

Question # 14 of 20 ( Start time: 05:15:58 PM ) Total Marks: 1


The importance of intellectual property should be understood by entrepreneur even
before:
Select correct option:

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114
Hirin a manaer Enain an
attorney Developin a
product Establishin new
venture

Question # 15 of 20 ( Start time: 05:17:10 PM ) Total Marks: 1


Which of the followin is/are a source of idea eneration?
Select correct option:

Consumers
Federal overnment
Brain stormin
All of the above

Question # 16 of 20 ( Start time: 05:17:51 PM ) Total Marks: 1


Idea of new product is tested in potential consumers to determine consumer acceptance
at stae.
Select correct option:

Concept
Product development
Test marketin
Commercialization

Question # 17 of 20 ( Start time: 05:18:48 PM ) Total Marks: 1


Followin are the types of non equity arranements EXCEPT:
Select correct option:

Licensin
Manaement contracts
Direct export
Turnkey projects

Question # 18 of 20 ( Start time: 05:20:09 PM ) Total Marks: 1


Followin are the important aspects of international success EXCEPT:
Select correct option:

Plannin
Diversification
Reportin not sure
Control

Question # 19 of 20 ( Start time: 05:21:40 PM ) Total Marks: 1


Health insurance premium is less expensive if there is:
Select correct option:

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115
One insured participants
Ten participants
Lare roup of participants
Very small roup of participants

Question # 20 of 20 ( Start time: 05:22:18 PM ) Total Marks: 1


The evaluation criteria for the new product should include all of the followin, EXCEPT:
Select correct option:

Determination of market demand


Determination of the suppliers
Pricin and marketin policies of other competin firms
Product should be profitable

21) Which one of the following is the next stage to the Concept Stage of Product
Planning and Development Process?
Idea Stage
Product Planning Stage
Product Development Stage
Test Marketing Stage

22) Which of the following contains large number of new ideas?


Files of Patent office
Official Gazette
Government patent Board
All of the given option

23) According to the governing bodies of common laws, the life of trade secret is:
Select correct option:
12 years
17 years
20 years
As long as it remains confidential

MGT602 MCQs From Quiz

The entrepreneur was distinguished from capital provider in:

Select correct option:

18th century

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116
17th century

19th and 20th century

Middle ages

Individuals influencing an entrepreneur’s career choice and style are known as:
Select correct option:

Role model

Moral-support network

Professional support network

Support system

Ref:
Role models
Individuals influencing an entrepreneur’s career choice and style
The person with capital was differentiated from the one who needed the capital in the:
Select correct option:

Middle ages
17th century

18th century

20th century
Ref:
In the 18th century the person with capital was differentiated from the one who needed
capital. In other words, entrepreneur was distinguished from the capital provider.
Many of the inventions developed during this time as was the case with the inventions
of Eli Whitney and Thomas Edison were unable to finance invention themselves. Both
were capital users (entrepreneurs), not capital providers (venture capitalists.) Whitney
used expropriated crown property. Edison raised capital from private sources.

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117
Which one of the following is the next stage to the Concept Stage of Product Planning
and Development Process?
Select correct option:

Idea Stage

Product Planning Stage

Product Development Stage

Test Marketing Stage

Ref:
Concept Stage
In the concept stage the refined idea is tested to determine consumer acceptance
without manufacturing it. One method of testing is the conversational interview in which
respondents are exposed to statements that reflect attributes of the product. Features,
price, and promotion should be evaluated in comparison to major competitors to
indicate deficiencies or benefits. The relative advantages of the new product versus
competitors should be determined.
Product Development Stage
In this stage, consumer reaction is determined, often through a consumer panel. The
panel can be given samples of the product and competitors’ products to determine
consumer preference. Participants keep the record of their use of product and comment
on its virtues and deficiencies.

It is proved that most businesses failed because of improper planning of an/a:


Select correct option:

Investor

Marketer
Entrepreneur

Consultant

Ref:
Bankers say that most businesses fail because of the
entrepreneur’s inability to plan effectively. The entrepreneur can enhance efficient

Why should an entrepreneur do a feasibility study?

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118
Select correct option:

To see if there are possible barriers to success

To identify possible sources of funds

To estimate the expected sales

To explore potential customers

Ref:
Before preparing a business plan, the entrepreneur should do a quick feasibility study to
see if there are possible barriers to success

Which of the following is NOT part of entrepreneurial strategy?


Select correct option:

A feedback loop

Generation of a new entry opportunity

Expansion of an existing opportunity

Exploitation of a new entry opportunity

Ref: http://highered.mcgraw-
hill.com/sites/0073210560/student_view0/chapters13/mixed_quiz.html

The long-term future of the new venture depends on the .


Select correct option:
Positive Cash

flow Employees

loyalty Business

ideas Economy

An ice cream producing company merges with a cotton spinning company this merger is

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an example of:
Select correct option:

Diversified activity merger

Product extension merger

Market extension merger

Vertical merger
Ref:
A diversified activity merger is a conglomerate merger involving the consolidation of two
unrelated firms.
Banks are usually reluctant to give loan to the
Select correct option:

Private Limited Companies

Partnership firm

Public Limited Companies

Sole Proprietor

Following are the types of foreign direct investment EXCEPT:


Select correct option:

Joint venture

Management contracts

Minority interest

Merger
Ref:
Management contracts
Entrepreneurs can contract their management techniques and skills, often following a
turn-key project. The management contract allows the purchasing country to gain
foreign expertise without turning ownership over to a foreigner

Licensing is a significant marketing strategy to:


Select correct option:

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Use intellectual property of others

Pirate others’ patents

Grow the business in new markets

Control the costs

Ref:
LICENSING Licensing is an arrangement between two parties, where one party has
proprietary rights protected by a patent, trademark, or copyright. This requires the
licensee to pay a royalty to the holder of the proprietary rights in return for permission to
copy the

The entrepreneur utilizes the resources through:


Select correct option:
Identifying and evaluating the opportunity
Developing a business plan
Implementing the business plan
Manage the enterprise

Which one of the following culture that has a climate and reward system that favor
conservative decision making?
Select correct option:
Entrepreneurial

Intrapreneurial

Corporate

None of the given options

Ref:
The typical corporate culture has a climate and reward system that favors conservative
decision making. Emphasis is on gathering large amounts of data as the basis for a
rational decision. Risky decisions are often postponed until hard facts are gathered or a
consultant is hired. Often there are so many approvals required that no individual feels
personally responsible for the

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Which one of the following is the first step in the entrepreneurial process?
Select correct option:

Developing successful business ideas

Deciding to become an entrepreneur

Growing the entrepreneurial firm

Moving from an idea to an entrepreneurial firm

According to the
Select correct governing bodies of common laws, the life of trade secret is:
option:

12 years
17 years

20 years

As long as it remains confidential

The most important characteristic of a successful business website is::


Select correct option:

Speed
Innovation
Graphics
Products

Which of the following cannot be used as basis of loan?


Select correct option: http://www.vustudents.net

Worth of the business


Inventory
Fixed asset
All of the above

Developing a new
Select correct idea through inquiry and testing is called:
option:

Heuristics
Forced relationship

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Scientific method
Value analysis

Professional support network includes following EXCEPT


Select correct option:

Personal affiliations
Mentor
Trade associations
Friends

Which one of the following is not a source of idea generation?


Select correct option:

Consumers
Brain storming
Focus group
None of the given options

Which of the following is NOT a requirement of Disclosure Document?


Select correct option:

Description of the invention


Claims for invention’s usefulness
Photos of invention
Cover letter

Which one of the following is a sound strategic option for an entrepreneur when synergy is
present?
Select correct option:

Merger
Joint venture
Minority interest
Majority interest
Ref:
Two firms get together and form a third company in which they share the equity. Joint
ventures have been used by entrepreneurs in two situations:
1. When the entrepreneur wants to purchase local knowledge and an established
facility.
2. When rapid entry into a market it needed. The keys to success of joint ventures have
not been well understood. Reasons for forming a joint venture today are different than
those in the past. Originally, joint ventures were used for trading purposes and were one
of the oldest ways of transacting business. Joint ventures in the U.S. took the form of
vertical joint ventures used by mining concerns and railroads. Motives for the significant

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increase in the use of joint ventures:
a. To share the costs and risks of an uncertain project.
b. ToTo gain synergy between the two firms.

Which of the following conversion system is most complex and requires careful
evaluation of inventory?
Select correct option:

FIFO to LIFO

LIFO to FIFO

Single entry to double entry

Double entry to single entry

In stage of responsibility allocation process the entrepreneur follows:


Select correct option:

Highly centralized decision making process

Highly decentralized decision making process

Somewhat centralized decision making process

No particular standard

Government can help in forming new venture by providing:


Select correct option:
Finance
Technology
Infrastructure
Subsidiaries
Ref:
The government also contributes by providing the infrastructure to help a new venture.

In which of the following business, the records are needed to be maintained on the
basis of monthly charges paid by the customers?
Select correct option:

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Pharmaceutical

Service venture

Online venture

Auto industry

Which of the following budget is required for the purchase of new equipment?
Select correct option:

Sales Budget

Operational Budget

Capital Budget

Manufacturing Budget

Ref:
A capital budget may project expenditures for new equipment, vehicles, or new facilities

There is an evidence that an entrepreneur usually has


parents. Select correct option:

Self employed

Discouraged

Non supportive

Strict

Which of the following is NOT followed in brainstorming?


Select correct option:

Criticism is done by the group members


The wilder idea is better
Quantity of ideas is required

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The session should be fun, with no on dominating the discussion

Select
The correct option:
plan describes how the product will be distributed and priced.

Financial
Production

Venture

Marketing

Which one the following is the uncontrollable factor in international trade?


Select correct option:

Economic
Cultural

Technological

All of the given options

Degree of influence and control on other people is called:


Select correct option:

Locus of control
Locomotion of control

Locust of control

Loss of control

Lenders are primarily interested in the:


Select correct option:

Personal relationship
Ability to pay back loan

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Progress of the venture

No concern

Foundation companies are formed from:


Select correct option:

Fashion

Most popular business A

winding up company

Research and development

Which one of the following ratios is a more careful test of the short-term liquidity of the
venture?
Select correct option:

Debt ratio

Activity ratio

Acid test ratio

Profitability ratio

Ref:
Acid test ratio is a more rigorous test of the short-term liquidity of the venture

Which of the following gives the owners a negative right, preventing anyone from
making, using, or selling the invention?
Select correct option: http://www.vustudents.net
Patent
Copyright
Trade mark
Trade secret

Which of the following contains all backup material that is not included in the text of
business plan?
Select correct option:

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History of entrepreneur

Financial plan

Appendix

Bibliography

The commitment of administrative domain to the resources is for:


Select correct option:

Periodic intervals

Total amount needed

For certain tasks

For long time

When the Directorate of Industries, Balochistan was formed?


Select correct option:

1972

1973

1975

1976

Which of the following is the best option for starting the business with equity financing?
Select correct option:
Sole Proprietor
Corporation
Partnership firm
None of the above

Which of the following contains large number of new ideas?


Select correct option:

Files of Patent office

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Official Gazette

Government patent Board

All of the given option

What can be the effect on cash flows due to delays in payments by the clients?

Select correct option:

Positive cash flows

Negative cash flows

No effect on cash flows

None of the given options

Ref:
Using internal credit makes the firm responsible for collecting delinquent payments, and
payment delays can create negative cash flows.
All of the following are essential to maintain secrecy EXCEPT:
Select correct option:

Train employees to refer sensitive questions to one person

Discuss business in public places

Provide escorts for all office visitors

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Use simple security such as locked file cabinets

Select
Andrewcorrect option:
Carnegie is an example of entrepreneur of which century:

Earliest period
19th and 20th century

Middle ages

17th century

The assessment of the needed resources by the entrepreneur starts with:


Select correct option:

An appraisal of the entrepreneur’s present resources


An assessment of economic conditions of the country

A scanning of friends and family for funds

A survey of banks and other financial institutions in the area

A typical inventor is usually


. Select correct option:

Highly creative & in love with the invention


Does not encourage change

Willing to modify the invention in order to augment commercial benefit

None of the given options

The activity which occurs when the new venture is started are called:
Select correct option:

Motivation
Business skills

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Departure point

Goal orientation

Which statement of the following relates with the ultimate goal of Business
Select correct option:

Profit Statement

Goal Statement

Mission Statement

Vision Statemen

Which one of the following is the systematic assembly of all the facts about a job?
Select correct option:

Job Specification

Job Description

Job Identification

Job Analysis

is required if a company wants to be more flexible in adopting changes.


Select correct option:

Management commitment

Contact with customers

Technology

More productivity
In which rule under ‘Regulation-D’, a company can sell up to $500,000 of securities to
any number of investors in any 12-month period?
Select correct option:

Rule 502
Rule 503

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Rule 504
Rule 505

Ref:
Under Rule 504 a company can sell up to $500,000 of securities to any number of
investors in any 12-month period.

is commonly used to measure the short-term solvency of the venture?


Select correct option:

Debt to equity ratio


Current ratio
Profitability ratio
Activity ratio

Ref:
Liquidity Ratios Current ratio is commonly used to measure the short-term solvency of
the venture or its ability to meet its short-term debts. The current liabilities must be
covered from cash or its equivalent

On the part of entrepreneur which of the following has/ have a great concern to the
Investors
Select correct option:

Experience
Commitment
Knowledge
All of the above

Being one’s own boss is a need of:


Select correct option:

Independence
Achievement
Affiliation
Authority
Ref:
Need for independence. Being one’s own boss-one of the strongest needs of an
entrepreneur

An actor and a person who managed large project were termed as the entrepreneur in the
.
Select correct option:

Earliest period

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Middle ages
17th century
19th and 20th century

Ref:
Middle Ages
In this age the term entrepreneur was used to describe both an actor and a person who
managed large production projects. In such large production projects, this person did
not take any risks, managing the project with the resources provided. A typical
entrepreneur was the cleric who managed architectural projects.

The evaluation criteria for the new product should include all of the
following, EXCEPT:

Select correct option:

Determination of market demand


Determination of the suppliers
Pricing and marketing policies of other competing firms
Product should be profitable

The business plan should be prepared by:


Select correct option:

Entrepreneurs
Consultants
Engineers
Small business administration services

Ref:
A business plan is a written document prepared by the entrepreneur

distribute profits to owners through dividends


Select correct option:

Sole Proprietor
General Partnership
Limited Partnership
Corporation

Ref:
Corporations distribute profits through dividends to stockholders.

Which of the following shows the example of collateral?

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Select correct option:

Real State
Shares
Tangible property
All of the given options

Ref:
The collateral or tangible assets being secured

Which one of the following culture that has a climate and reward system that favor
conservative decision making?
Select correct option:

Entrepreneurial
Intrapreneurial
Corporate
None of the given options

Ref:
The typical corporate culture has a climate and reward system that favors conservative
decision making.

is required if a company wants to be more flexible in adopting changes.


Select correct option
Management commitment
Contact with customers
Technology
More productivity

Ref:
Without top management commitment, the organization will never be able to make the
necessary changes.

When the multiplicity of environments become too complex to handle, the international
entrepreneurs often .
Select correct option:

Go for mergers
Diversify
Decentralize operations
Sale out the foreign business

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134
Question No: 41 ( Marks: 5 )
Differentiate the operating budget from capital budget?
Question No: 42 ( Marks: 5 )
It is said that advertising agencies are meant for the promotional tools. Why
do you think that it is a correct statement?
Question No: 43 ( Marks: 10 )
An "S Corporation" is a corporation which has elected to have its profits pass
through to its shareholders, in the same manner as a partnership or sole
proprietorship. Write down the pros and cons of "S Corporation".
Question No: 44 ( Marks: 10 )
Suppose you want to calculate the net worth of your business. What kind of
statement will you use in order to calculate the net profit? Also discuss its
key feature.
Question No: 45 ( Marks: 10 )
Product or service is the basis of building the marketing plan. What are the
major factors which should be included while writing the marketing plan of a
product or service?
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