Mgt602 Mcqs Bank Final

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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 http://www.vuzs.info/ 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 http://www.vuzs.info/ 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.

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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: 1 2 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 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 1 2 3 4

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 1 2 3 4

Targeting the market consists of ______ Procedures 1 2 3 4

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 3 4

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: 1 2 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 3 4

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 1 2 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 ► Competitors' pressure

► Human mind ► 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 ► Increased social relationship

► Limited social contact

► 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 ► Publishing financial statements

► Formulating strategies ► 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 ► Reverse discrimination

► Legal consideration ► 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 ► Personality test

► Cognitive aptitude test ► Psychomotor abilities test

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

► Organizational history ► Organizational issues

► Employee benefits ► 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 ► Multiple perspectives

► Decreased problem-solving skill ► 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 ► Organization, Individual

► Head office, Branch

► 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 ► Role playing

► Vocational interest test ► 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 realworld 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 ► Formal interview

► Unstructured 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 ► Organizational issues

► Employee benefits ► 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 ► Production department

► Marketing 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 ► Behavioral component

► Cognitive 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 ► Litigation process

► Legal compliance ► 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 ► Glass ceiling effect

► Equal employment opportunity ► 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 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

► Job summary

►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 behavior

► Organizational norms ► 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 options ► Private organizations

► All of the given

"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

Explain the following terms: Personality Perception Attitude Values Ethics ANSWER:

► People at work

► Union

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 system

► Database system

► Operating

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 options

► All of the given

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? ► How task has done?

► What 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 ► Face-valid test NT SURE

► Content-valid test ► 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

SWOT Analysis is a tool for: ► Determining the mission ► Scanning the environment

► Job description

► Job evaluation

► Dividing missions into goals ► 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 rules

► Organizational norms ► Organizational behavior

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

Explain the following terms: Personality Perception

► People at work Attitude

► Union

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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Permalink Reply by MS (1st) on February 25, 2015 at 4:12am 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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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=Uvdw6E21aIC&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=3tAy_kn4K&sig=Nt4k8-ZGwnTlYndb9RkicLgYlF8&hl=en&ei=9JvFSncIsnbsAbfuPzAAQ&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 gobetween 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=JLzFS4bNJYTsQadsJHBAQ&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 View Comments

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

Virtual University MCQs BANK - MCQs Collection from Online Quizzes MGT602_Online_Quiz No 03c View Comments

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 http://groups.google.com/group/vuZs 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 http://groups.google.com/group/vuZs 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 http://groups.google.com/group/vuZs 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 http://groups.google.com/group/vuZs 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 1

Visit this group

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 ([email protected])

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 http://groups.google.com/group/vuZs

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 12month 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.

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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:

http://www.vustudents.net 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.

http://www.vustudents.net 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

http://www.vustudents.net 4

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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► 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 )

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0 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 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 A/an

( Marks: 1 )

is an online connection between the company and its customers.

► Internet advertising ► Website P:44 Website

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0 Please choose one

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 )

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- Please choose one

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 )

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- Please choose one

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 )

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- Please choose one

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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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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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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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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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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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 the opportunity.

depends on his perception of

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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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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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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30

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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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. B.

Earliest period 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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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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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

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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?

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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

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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. a.

The financial plan provides a complete picture of How much and when the funds are coming into the organization. b.

Where the funds are going. c. d.

How much cash is available? All of the options given Handouts Page No:75

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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

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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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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

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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. a.

The financial plan provides a complete picture of How much and when the funds are coming into the organization. b.

Where the funds are going. c. d.

How much cash is available? 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

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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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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. 4.

d. None of the options given

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

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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. a. b. c. d.

The financial plan provides a complete picture of How much and when the funds are coming into the organization. Where the funds are going. How much cash is available? 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. 1.

Cash flow is not the same as profit. 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.

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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 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

a.

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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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 Positive Cash flow (shafia)

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. Select correct option:

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 Organizational plan Page 58

(MK)

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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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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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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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. in

is required if a company wants to be more flexible

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

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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

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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

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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

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SOLVED BY 4 MAD’s GROUP TEAM: SALMAN ASIF, ASIM, AYESHA, AMNA 1. in

is required if a company wants to be more flexible

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

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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 Economic Political Cultural Technological

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environment.

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

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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

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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

6.

Licensing is a significant marketing strategy to:

1 2 3 4

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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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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 perception of the opportunity.

depends on his

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 ascertain

plan should contain control points to

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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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-1The-Nature-%26-Importance-OfEntreprenurs.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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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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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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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 )

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Total Marks: 1

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 ) Directors in corporation are elected by the Select correct option: Middle Level Managers Entrepreneur Shareholders Low level Managers

Total Marks: 1

Question # 5 of 15 ( Start time: 01:18:37 AM ) 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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Total Marks: 1

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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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 )

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Total Marks: 1

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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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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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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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 ) The

plan describes how the product will be distributed and priced.

Select correct option: Financial

Total Marks: 1

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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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 )

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Total Marks: 1

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 http://www.vustudents.net

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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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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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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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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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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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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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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. Selfesteem 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. c. d.

Where the funds are going. How much cash is available? 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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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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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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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

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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

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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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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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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. True

Arriving activity occurring when the venture is started

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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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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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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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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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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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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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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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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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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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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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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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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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.mcgrawhill.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 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: http://www.vustudents.net 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

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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 option: Andrewcorrect 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 Select correct option: Sole Proprietor General Partnership Limited Partnership Corporation Ref:

distribute profits to owners through dividends

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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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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