Mid Term Entrepreneurship Vu-new

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EENTREPRENEURSHIPNTREPRENEURSHIP

QQUIZUIZ 1 1FFALLALL S SEMESTEREMESTER (2006) (2006)

DDUEUE D DATEATE 31 31STST OCTOBER 2006 OCTOBER 2006TTOTALOTAL M MARKSARKS 10 10MMARKSARKS O OBTAINEDBTAINED

1. Entrepreneurship can be very challenging. Which is not a typical challenge of being an entrepreneur?

a. Long hours b. Financial rewardc. Financial insecurity d. Loneliness

2. If a business is not making a profit, the entrepreneur knows that a. He/she is not making good use of scarce resourcesb. People are willing to buy the product/service at high pricec. No one wants to buy the product/serviced. All of the mentioned options

3. A ________ is a group of people who would be interested in buying a given product or service.a. Consumer b. Target c. Customer d. Market

4. Which business function do experts agree you should focus on first when preparing to start a business?

a. Financing b. Marketing vision c. Operationsd. None of the mentioned options

5. The mission statement a. Is a business' reason for existingb. Does not need to be longer than three sentencesc. Tells your customers and employees what your business is aboutd. All of the above.

6. Which of the following is not something that can be invested? a. Energy b. Expertisec. Money d. Time



7. Which of the following should be included in a business's mission statement? a. Unique selling propositionb. Marketingc. Tactics d. Prices

8. Make sure your business is run in an ethical manner by a. Never take company profits just to pay yourself.b. Create an advisory board.c. Keep accurate records and use financial controls.d. All of the above.

9. When a business grows too big for the entrepreneur to run it alone, he or she should consider a. Taking management classes to become a better manager.b. Slowing down marketing efforts to bring the business's growth back under control.c. Raising capital and using it to hire managers.d. None of the above

10. Why are entrepreneurs not always the best managers for their businesses? a. Entrepreneurs are lazy.b. Managers are better at coming up with fresh ideas for new businesses than

entrepreneurs are.c. Entrepreneurs tend to be creative types who get bored with the day-to-day details of

running a business.d. All of the above


QQUIZUIZ # 2 # 2DDUEUE D DATEATE 19 19THTH D DECEMBERECEMBER 2006 2006

TTOTALOTAL MARKSMARKS 10 10MMARKSARKS OBTAINEDOBTAINED /10 /10

1. We need to update the business plan because a. Environmental factors and internal factors can change the direction of the planb. Goals set by the entrepreneurs may be unreasonable.c. Goals may not be measurable.d. Goals may not be specific

2.The marketing plan should answer the basic question

a. Where have we been? b. Where do we want to go (short term)? c. How do we get there? d. All of the mentioned options



3. Marketing research involves the gathering of data in order to determine information as

a. Who will buy the product?

b. What price should be charged?

c. What is the most effective promotion strategy?

d. All of the mentioned options

4. Which of the following is the characteristic of a marketing plan?

a. Provide a strategy to accomplish the individual’s mission.

b. Be based on facts and valid assumptions

c. Provide for discontinuity

d. Describe a manager to implement the plan

5. The appendix contains a. Any backup material not included in the text of the documentb. A summary of business plan

c. Just financial information

d. Strategies to implement

6. The entrepreneur should first conduct an environmental analysis to identify trends

True

False

7. The organizational plan section should describe the venture’s form of ownership

True

False

8. The marketing plan should be a superficial document

True

False

9. Marketing planning should be an annual activityTrue

False

10. One effective way to begin the marketing plan is to make a list of the information that will be needed

True

False




QQUIZUIZ # 3 # 3DDUEUE D DATEATE 24 24THTH J JANUARYANUARY 2007 2007

TTOTALOTAL MARKSMARKS 10 10MMARKSARKS OBTAINEDOBTAINED /10 /10

1. Which of the following is the advantage of S CORPORATION?

a. Capital gains or losses are treated as corporation’s income

b. Shareholders do not retain limited liability protection

c. This form may use the capital method of accounting

d. Stock may be transferred to low-income-bracket family members

2. Which of the following is not a types of Bank Loansa. Inventory loansb. Accounts payable loansc. Equipment loansd. Real estate loans

3. Conventional bank loans include a. Lines of creditb. Long-term loans

c. Character loans


4. Installment loans can be obtained by a going venture with a track record of

a. Sales and profitsb. Customers c. Supplier’s chain


5. When the business does not have assets to support a loan, the entre-preneur may need a a. Inventory loansb. Accounts payable loansc. Character loand. Equipment loans

6. Inventory is often a basis for a loan, particularly when inventory is not liquid



True

False

7. The loan application format is generally a "mini" business planTrue

False

8. Public offerings involve much time and expenseTrue

False

9. A private offering is faster and less costly than other fundingTrue

False

10. Rapid growth may result in management problems

True

False

Entrepreneurship

Semester Fall (2007)

Quiz # 1

Solution:

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) Cost

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


http://en.wikipedia.org/wiki/Country

http://en.wikipedia.org/wiki/Payment


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

10. Entrepreneurs are:

a) Moderate risk taker

b) High risk taker

c) Avoidance

d) Both b and c

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


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


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


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


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

d) None of the options

1. Which of the following is NOT recognized an importantcomponent to organizational vision?a. The vision should be built on a foundation of the organization'score values and beliefs.b. The vision should elaborate a purpose for the organization.c. The vision should include a brief summary of what theorganization does.d. The vision should specify detailed and short-term goals.2. Which of the following components of organizational visionand mission statements tells how the organizational unit isresponsive to societal, community, and environmental issues?a. Customerb. Marketc. Self-Conceptd. Concern for public image3. Which of the following dimensions of organizational culturedescribes the degree to which employees are expected to dotheir jobs with precision, thorough analysis, and attention todetail?



a. Innovation and risk-takingb. Team orientationc. Aggressivenessd. Attention to detail

4. Which of the following does NOT represent a method throughwhich organizational culture is learned?a. Storiesb. Conflictc. Ritualsd. Material symbols5. Which of the following is NOT recognized as an important purposeof a business plan?a. Development tool for organizational foundersb. Vision and mission clarificationc. Planning and evaluation guidelinesd. All of the selections are recognized as important purposes of abusiness plan.6. All of the following are recognized as criticisms of planningEXCEPT:a. Planning may create rigidityb. Planning focuses entrepreneurs' attention on tomorrow'ssurvival but not today's competitionc. Plans can't be developed for a dynamic environmentd. Formal planning reinforces success, which may lead to failure7. Which of the following is NOT recognized as a major area thatshould be included in a business plan?a. Executive summaryb. Corporate culture differencesc. Analysis of the opportunityd. Analysis of the context

8. Which of the following does NOT relate to the analysis ofopportunity section of a business plan?a. Sizing up the market by describing the demographics of thetarget marketb. Analyzing current and proposed and governmental rules andregulations that might potentially have an impact on theentrepreneurial venture.c. Describing and evaluating industry trendsd. Identifying and evaluating competitors9. All of the following are important elements of the financial dataand projections section of a business plan EXCEPT:a. SWOT analysisb. Projected income statementsc. Break-even analysisd. Cost controls



10. Which of the following is NOT an important characteristic whenwriting a business plan?a. Clear, realistic financial projectionsb. Detailed market researchc. Brief summary since the investor is more interested in thedetails in the business plan.d. Proof of vision11. A(n) ___________ is a form of organization in which the ownermaintains complete control over the business and is personallyliable for business debts.a. Sole proprietorshipb. General partnershipc. corporation

d. Limited liability company12. A(n) _____________ is a form of business organization in which twoor more business owners share the management and risk of thebusinessa. Limited liability companyb. General partnershipc. Corporationd. Sole proprietorship13. A(n) ____________ is a form of business organization in whichthere are general partners and limited liability partners.a. Sole proprietorshipb. General partnershipc. Limited liability partnershipd. Corporation14. A(n) ___________ is a legal business entity that is separate fromits owners and managers.a. Sole proprietorshipb. General partnershipc. Corporationd. Limited liability company15. A(n) ____________ is a form of legal protection for a distinctiveword, name, phrase, logo, symbol, design, slogan, or anycombination of these elements.a. Trademarkb. Patentc. Contractd. Procedure

16. Which of the following is NOT one of the three different types ofpatents?a. Utility patentb. Design patentc. Plant patent



d. All of the selections if a valid type of patent.17. Which of the following is recognized as the most common typeof patent?a. Utility patentb. Design patentc. Plant patentd. Cultural patent18. All of the following are signals of potential decline inorganizational performance EXCEPT:a. Poor communication within the organizationb. Intolerance of work incompetencec. Fear of conflict and taking risksd. Negative cash flow19. All of the following are recognized as important people practicesof successful organizations EXCEPT:a. Employment securityb. Selective hiringc. Increased status differencesd. Training

20. Which of the following is NOT a characteristic of an effectiveteam?a. External supportb. Clear goalsc. Irrelevant skillsd. Mutual trust


QQUIZUIZ 1 1SSPECIALPECIAL S SEMESTEREMESTER (S (SPRINGPRING 2006) 2006)

TTOTALOTAL M MARKSARKS 10 10MMARKSARKS O OBTAINEDBTAINED

1. Any patents, trademarks , copyright or trade secrets held by the entrepreneur is known as a. Disclosure documentb. Patent c. Intellectual propertyd. None of the mentioned

2. The organization will never be able to make the necessary changes without_________a. Top management commitment b. Employeesc. Workers d. None of the mentioned



3. The ways entrepreneurs make decisions.a. Entrepreneurial domain. b. Reverse brain stormingc. Heuristicsd. Reverse brain storming

4. A trademark is5. 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 isa. A feelingb. Attitudec. Attributed. None of the above

7. Licensing arrangements havea. Low risk process involvedb. Easy way to generate incremental incomec. Several pitfallsd. All of the above

8. Personal characteristics to be a successful entrepreneur includes a. Understanding environmentb. Creating management options c. Encourage open discussion d. All of the above

9. International entrepreneurship isa. Licensing b. Exportingc. 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. Drived. Optimism

10. Hindrance for going in the international business is known as a. Synergy b. Turn key pointc. Trade barrier d. Minority interest



SSPECIALPECIAL S SEMESTEREMESTER 2006 2006

QQUIZUIZ # 2 # 2

TTOTALOTAL MARKSMARKS 10 10

MMARKSARKS O OBTAINEDBTAINED

Fill the blanks with appropriate word

1. In the corporation, ownership is reflected by ownership of shares of stock.

2. The partnership’s tax advantages and disadvantages are similar to the proprietorship

3. The job analysis serves as a guide in determining hiring procedures

4. The financial plan provides the short-term basis for budgeting

5. Profit is the result of subtracting expenses from sale

6. Assets represent everything of value that is owned by the business.

7. Break-even analysis is a technique for determining how many units must be sold in order to

break even.

8. The most often used type of funds is internally generated funds.

9. The proprietor and general partners are liable for all aspects of the business.

10. The situation analysis is a review of where the company has been and considers many of the

environmental factors

Solution:

1) The _Traditional Culture_ is hierarchical in nature, with established procedures, lines of

authority, and control mechanisms

2) _Leadership_ is the ability to dream great things and communicate to the people that they say

yes to be a part of the dream.

3) _Locus of Control_ is a term that refers to a person's perception about the level of influence

they have over their abilities, circumstances or future.



4) _Role Models_ can be parents, relatives, successful entrepreneurs in the community.

5) _Licensing_ involves a manufacturer giving a foreign manufacturer the right to use a patent,

trademark, or technology in return for a royalty.

6) In chronological age , most entrepreneurs start their careers between ages

a) 22 and 55

b) 30 and 55

c) 40 and 65


7) ___________________ 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

8) 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


1. __________________ is the process in marketing of dividing a market intodistinct subsets (segments) that behave in the same way or have similarneeds.a. Target Marketb. Market Analysisc. Market Segmentationd. All of the Above2. A business where an individual is both the owner and conductor of thebusiness affairs is called__________________.a. Sole Proprietorshipb. Partnershipc. Corporationd. None of the above3. In __________________, the entrepreneur has the right to sell any assets.a. Proprietorshipb. Partnershipc. Limited Liability Companyd. None of the given options4. ____________________are lists of the general tasks, or functions, andresponsibilities of a position.a. Job Specificationsb. Job descriptionsc. Job Requirements

d. Jobholder

5. A________________ can be a budget, a plan for spending and saving futureincome.a. Marketing Planb. Financial Plan



c. Production Pland. Organizational Plan6. ________________ involves an interest-bearing instrument, usually a loan, thepayment of which is only indirectly related to sales and profits.a. Equity Financingb. Internal or External Fundsc. Banking Fundsd. Debt Financing7. The idea and actions that explain how a firm will make its profits refers toa. Missionb. Goalc. Strategyd. Objective8. SBIR stands for:a. Small Business Information Researchb. Small Business Innovation Researchc. Small Business Intelligent Researchd. Small Business Inventory Research9. _______________is what the "W" in the SWOT analysis stands for.a. Wedgeb. Work/lifec. Worth of Businessd. Weakness

10. Benefits can focus on which of these?a. Value and Costb. Imitation and Innovationc. Internal and External aspectsd. None of the given options

QUIZ

Solution No. 1 Marks 10

Choose the correct option (simply highlight the correct option)1. An entrepreneur’s primary motivation for starting a business is

e. To make money f. To be independentg. To be famous h. To be powerful

2. To be successful in an entrepreneurial venture, you needa. Money b. Luck



c. Hard work d. A good idea

3. Entrepreneurs are best as

e. Managersf. Venture capitalists g. Planners h. Doers

4. A successful entrepreneur relies on which of the following for critical management advice a. Internal management team b. External management professionalsc. Financial sourcesd. No one

5. Entrepreneurs are:a. High risk takers b. Moderate risk takersc. Small risk takers d. Doesn’t matter

6. Entrepreneurs typically form e. Service businessesf. Manufacturing companiesg. Constructive companiesh. 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

SOUTION QUIZ

Marks 10

Choose the correct option (simply highlight the correct option)1. Personal characteristics to be a successful entrepreneur includes

i. Understanding environmentj. Creating management options k. Encourage open discussion l. All of the above

2. Without top management commitment, the organizationwill

e. Be able to make changesf. Not be able to make any changesg. Not be able to make effective changesh. None of the above

3. locus of control is

i. A feelingj. Attitudek. Attributel. None of the above

4. Entrepreneurial experience becomes increasingly important ase. Work load increasesf. Complexity of venture increasesg. Complexity of wok increasesh. None of the above

5. Entrepreneurs are concerned about basic issues of:e. Sales, costs and benefits f. Customers, sales and costs



g. Risk, costs and benefitsh. None of the above

6. Licensing arrangements havei. Low risk process involvedj. Easy way to generate incremental incomek. Several pitfallsl. All of the above

7. Joint ventures have been used by entrepreneur:e. When the entrepreneur wants to purchase local knowledgef. When rapid entry in to the market is neededg. Both of the options givenh. None of the above

8. A horizontal merger ise. Is the combination of firms in successive stages of productionf. Is the combination of firms that produce closely related projects in same areag. Is the combination of firms that produce same products and sell in different areas h. None of the above

9. Main reason(s) for merger is (are) e. When synergy is presentf. When complementary resources can be combinedg. Economies of scale can be achievedh. All of the above

10. First stage of production planning and development processes ise. Idea stage f. Concept stageg. Establishing and evaluating criteria stageh. None of the above

1. The safest way to conduct business deals is with a written contract.

2. Licensing is Contractual agreement giving rights to others to use intellectual property in return for a royalty or fee.

3. Misrepresentation occurs when advertising or other information misrepresents material facts concerning the quality of the product



4. 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.

5. The investor looks for sound financial projections

6. The Entrepreneur understands the new venture better than anyone.

7. Before preparing the plan, the entrepreneur must evaluate the profitability of the venture.

8. The Internet can serve as an important source of information in preparing the business plan.

9. Executive Summary is prepared after the total plan is written.

10. If a new venture is a manufacturing operation, a production plan is necessary.

Quiz 5

Entrepreneurship

Total marks 10

Highlight the most appropriate choice

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 Sourcesc. 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?




3. The situation analysis is

a. Defining Target Market/Opportunities and Threats.b. Considering Strengths and Weaknessesc. A review of where the com pany has been and considers envi ronmental factors.


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


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 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 musta. Set the priceb. Distribution placec. Must satisfy customersd. None of the above

7. The financial plan provides a complete picture of:

a. How much and when the funds are coming into the organization.

b. Where the funds are going.

c. How much cash is available?

d. Al of the options given

8. Before developing the pro forma income statement, the entrepreneur should

a. Prepare operating budgets

b. Capital budgets.

c. None of the options given

d.Both of the options given (a,b)

9. Which of the following statement is true?

a. Cash flow is same as profit.b.Profit is the result of subtracting expenses from sales.

c. Cash flow results from the difference between all cash available and cash payments.



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 filings.

c.A popular new entity is the limited liability company (LLC)

d. Limited liability Company (LLC) offers similar disadvantages as the S Corpora tion

QUIZMarks 10

Fill the blanks

1. Debt financing involves an interest-bearing instrument, usually a loan, the payment

of which is only indirectly related to sales and profits.


3. To avoid potential future problems, the entrepreneur must present the positive and

negative aspects and the nature of the risks of the investment.

4. Real estate loans are easily obtained to finance land, plant, or building, usually up to

75% of value.

5. Bank lending decisions can be summarized by the five C’s

6. The loan application format is generally a "mini" business plan.

7. Research and development limited partnerships are particularly good when the

project involves a high degree of risk or significant expense.

8. A private offering is faster and less costly than other funding.

9. The contract specifies the agreement between the sponsoring company and the

limited partnership.



10. In the funding stage, a contract is established and the money invested for the

proposed R&D effort.

Entrepreneurship

Quiz 7

Total marks 101. A private offering is faster and less costly than other funding.


3. Commercial banks are the most frequently used source of short-term funds.

4. Equity funding provides the basis for debt financing

5. Cash flow financing – or conventional bank loans - include lines of credit, in-

stallment loans, straight commercial loans, long-term loans, and character loans.

6. Installment Loans can be obtained by a going venture with a track record of sales

and profits.

7. Bank lending decisions can be summarized by the five C’s

8. Research and development limited partnerships are particularly good when

the project involves a high degree of risk or significant expense.

9. In the development stage, the company performs the actual research, using the

funds of the limited partners.

10. Bootstrap financing is particularly important at start-up and early years of the

venture when capital is more expensive.



Entrepreneurship

Quiz 8

Total marks 10

Marks obtained /10

Fill the blanks

1. Usually a combination of debt and equity financing is used.

2. One short-term internal source of funds is reducing short-term assets.

3. A bank may finance up to 80%of the value of the accounts receivable.

4. Trust receipts are a type of inventory loan used to finance floor plans of retailers

such as auto dealers.

5. Installment loans are used to cover working capital needs, usually for 30 to 40 days

6. Long term loans are usually only available to more mature companies

7. SIDB stands for (Small Industries Development Board)

8. The cash flow statement may show the actual amounts next to the budgeted

amounts.

9. Current ratio is commonly used to measure the short-term solvency of the

venture

10. Publicity Is free advertising provided by a media outlet?

MGT 602



Solution of Quiz 01

THE OPTIONS IN BOLD ARE THE CORRECT ANSWERS

1. What causes people to do something?

Need for achievementNeed for independenceMotivationNone of the mentioned options

2. Individuals who help the entrepreneur in business activities

Role modelsProfessional-support networkParents None of the mentioned options

3. The managers in an organization strongly supporting intrapreneurship is called -----------------------

Top management commitmentUpper management commitmentLower management intrapreneurUpper 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 projectsManagement contractsNone of the mentioned options

5. Female entrepreneurs differ in terms of --------------------, -----------------------, and ---------------------------

MotivationBusiness skillsOccupational 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

TrueFalse

8. Arriving activity occurring when the venture is started

TrueFalse

9. The creator is an individual who creates something new

TrueFalse

10. An attribute indicating the sense of control that a person has over life is called locus of control

TrueFalse

Good Luck

MGT 602Solution of Quiz 02

1. In brainstorming

No criticism is allowedQuantity of ideas is desiredNone of the mentioned optionsBoth of the mentioned options

2. A technique that asks questions about objects or ideas in an effort to develop a new idea is

HeuristicsMatrix chartingForced relationshipsAttribute listing



3. The solution development is

Big-Dream approachParameter AnalysisCreative synthesisNone of the above

4. Perceived benefits /risks involve the following factors:

Utility to customerConsumption habitsBuying motivesAll of the above

5. A patent is

A document between government and an inventorGrants holder protection from others making, using, or selling similar ideaA public domainNone of the above

6. -------------------------------------------- uses individuals in a manner that is analogous to focus groups to generate new product ideas.

Problem inventory analysis

7. A ----------------------------- leads a group of people through an open, in-depth discussion.

Moderator

8. -----------------------------, --------------------------- and ----------------------------- should be evaluated fro both the concept being studied and any major competing products.

Features, price, and promotion 9. In evaluation process, the -----------------------------------------------, provides actual sales

results, which indicate the acceptance level of consumers.

Test marketing stage

10. The ------------------------------------- technique develops methods for maximizing value to the entrepreneur and the new venture.

Value analysis



Good Luck

MGT 602Quiz 03

Marks 10

1. Marketing mix includes:

Product or serviceFinancingConsumerRetailer

2. Which of the following statement is true for tax advantage of proprietorship?

There is double tax on profitsThere is no capital stock tax or penalty for retained earningsBoth of the options givenNone of the options given

3. Industry analysis should include information on:

Market size of competitor’s productGrowth rate of suppliersNew products entryEconomic conditions

4. We need to update the business plan because…………

Environmental factors and internal factors can change the direction of the planGoals set by the entrepreneurs may be unreasonable.Goals may not be measurable.Goals may not be specific

5. Marketing research involves the gathering of data in order to determine information as:



Who will buy the product?What price should be charged?What is the most effective promotion strategy?All of the mentioned options

6. The marketing plan describes how the products will be distributed, priced, and promoted?

True False

7. The marketing plan should be a superficial document.

True

False

8. The LLC is similar to an S corporation, but is more flexible

True

False

9. The entrepreneur should have a good idea of who the customer or target market will be:

True

False

10. The organizational plan section should not describe the venture’s form of ownership

True

False

Good Luck



MGT 602Quiz 04

Marks 10

1. The most often used type of funds is

Internally generated fundsExternally generated fundsCommercial bank fundsNone of the mentioned options

2. Which of the following is not type of Bank Loans?

Inventory loansAccounts payable loansEquipment loansReal estate loans

3. Conventional bank loans include:

Lines of creditInstallment loansStraight commercial loansAll of the mentioned options

4. When an entrepreneur is unable to secure a regular commercial bank loan, an alternative is a:

Small and medium enterprise loanCharacter loanSmall Business Administration (SBA) Guaranty LoanEquipment loan

5. Installment loans can be obtained by a going venture with a track record of:

Sales and profitsCustomers



Supplier’s chainAll of the mentioned options

6. The financial plan provides the long term basis for budgeting and helps prevent a common problem-lack of cash.

TrueFalse

7. Cash flow is not the same as profit

TrueFalse

8. The most often used type of funds is internally generated funds

TrueFalse

9. Inventory is often a basis for a loan, particularly when inventory is not liquid

TrueFalse

10. The loan application format is generally a "mini" business plan

TrueFalse

Good Luck

Questions:1. A set of reasons for engaging in a particular behavior, especially human behavior isknown as _____________.a. Values



b. Visionc. Entrepreneurshipd. Motivation2. Which of the following techniques is an excellent method for initially screening ideasand concepts in addition to generating new ideas?a. Focus groupb. Brain stormingc. Problem inventory analysisd. Reverse brainstorming3. The creative process for problem solving that involves making the strange familiar infirst step and then making the familiar strange through personal, direct or symbolicanalogy is called _________.a. Synecticsb. Gordon methodc. Checklist methodd. Scientific method4. When the multiplicity of environments become too complex to handle, theinternational entrepreneurs often __________.a. Go for mergersb. Diversifyc. Decentralize operations

d. Sale out the foreign business

5. An entrepreneur into the hosiery business found out the reason his hosiery was notselling was due to its color. What could be the best source of this information?a. Supplierb. Retailerc. Competitiond. Government bureau6. In some countries, point of purchase displays are not allowed in retail stores. Suchdifferences are studied by international entrepreneurs under __________environment.a. Economicb. Politicalc. Culturald. Technological7. Entrepreneurial success has been significant because of the culture and the politicaland economic systems in _________.a. European countriesb. Asian countriesc. Transition economiesd. Middle east8. Having more than 50% ownership position that provides the entrepreneur withmanagerial control is called ___________.a. Joint ventureb. Majority interestc. Horizontal mergerd. Diversified activity merger9. The under-developed or lesser developed countries need manufacturing technology



and infrastructure and yet do not want to turn over substantial portion of theireconomy to foreign ownership. Which of the following is a solution to this dilemma?a. Management contractb. Indirect exportingc. Licensingd. Turn-key project10. The development of a new venture based on an inventor’s work often requires________.a. Expertise of an entrepreneurb. Heavy investment from financersc. Skilled human resources

d. Highly educated staff

The importance of intellectual property should be understood by entrepreneur evenbefore _________.a. Hiring a managerb. Engaging an attorneyc. Developing a productd. Establishing new venture2. Which of the following is not followed in brainstorming?a. Criticism is done by the group membersb. The wilder idea is batterc. Quantity of ideas is requiredd. The session should be fun, with no on dominating the discussion3. The former USSR received technology and syrup from Pepsi and provided it withSoviet vodka and rights to distribute it in the US. This is an example of:a. Economic developmentb. Barter systemc. Balance of paymentd. International trade4. A patent is granted for a specified amount of time because of the assumption:a. During this time firm will cover its development costsb. Firm will earn a sufficient profit during this periodc. To limit the monopoly of the firmd. It will stimulate idea and development of a batter product

5. Developing a new idea through inquiry and testing is called _________.a. Heuristicsb. Scientific methodc. Forced relationshipd. Value analysis6. In an international perspective, which of the following decisions are not coveredunder strategic planning of an entrepreneur?a. What are unique characteristics of each market?b. Who should be involved in marketing decisions?c. What customer benefits are provided by the productd. What are the company’s major strengths and weaknesses?7. Which of the following grants the owner protection from anyone else making, using



and selling the identified innovation?a. Utility patentb. Design patentc. Plant patentd. International patent8. The problem inventory analysis should b used primarily to:a. Reflect a new business opportunityb. Identify product idea for further evaluationc. Solve unknown problemsd. Develop a list of problems9. Selling goods to another country through a person in the entrepreneur’s homecountry is known as _________.a. Exportb. Direct exportc. Indirect exportd. Domestic sales10. Which of the following statements is not true about trademarks?a. A trademark could be a slogan or a particular soundb. Some trademarks have no relationship with the productc. The filing date for the trademark becomes the first date use of the markd. The entrepreneur can not file after the mark already been in use11. The product life cycle is included in which stage of product planning anddevelopment process?a. Test marketing stageb. Product development stagec. Commercialization staged. Product planning and development process is a part of product life cycle

12. Which of the following can not be covered under the copyright protection?a. Computer softwareb. Computer hardwarec. Poems and songsd. Models and sculpture13. Idea of new product is tested in potential consumers to determine consumeracceptance at _________ stage.a. Conceptb. Product developmentc. Test marketingd. Commercialization14. According to the governing bodies of common laws, the life of trade secret is:a. 12 yearsb. 17 yearsc. 20 yearsd. As long as it remains confidential15. Which of the following is used by entrepreneurs to acquire experience in aninternational market before making a major commitment?a. Merger



b. Joint venturec. Minority interestd. Majority interest16. The evaluation criteria for the new product should include all of the followingexcept:a. Determination of market demandb. Determination of the suppliersc. Pricing and marketing policies of other competing firmsd. Product should be profitable17. Licensing is a significant marketing strategy to:a. Use intellectual property of othersb. Pirate others’ patentsc. Grow the business in new marketsd. Control the costs18. Automated stock replenishment, electronic selling and processing of customersorders and payments are examples of:a. E-businessb. E-commercec. E-tradingd. E-transaction

19. The longest lasting trade agreement with the objective of liberalizing trade byeliminating or reducing tariffs, subsidies and quotas is _________.a. Free trade area – FTAb. European community – ECc. General agreement on tariffs and trade – GATTd. The north American free trade agreement – NAFTA20. The most important characteristic of a successful business website isa. Speedb. Innovationc. Graphicsd. Products

1. The _______ plan shows whether the business is economically feasible or not.a. Financialb. Businessc. Economicd. Marketing2. In which of the following, the ownership of venture is reflected by ownership ofshares of stock?a. Partnershipb. Limited partnershipc. Corporationd. Proprietorship3. Bankers say that most businesses fail because of the _____ inability to planproperly.a. Investor’s



b. Marketer’sc. Entrepreneur’sd. Consultant’s4. The _________ of a venture could be that the company has experience in relatedbusiness.a. Strengthb. Weaknessc. Opportunityd. Threat5. The marketing plan should focus on strategies and for the first year, goals andstrategies should be projected __________.a. Dailyb. Weeklyc. Monthlyd. Quarterly6. Which of the following is not a characteristic of marketing plan?a. It should provide a strategy to accomplish the company missionb. It should provide for the use of existing resourcesc. It should be simple and shortd. It should be rigid7. Secondary data can be obtained from all of the following sources, except:a. Internetb. Magazinec. Bureau of statisticsd. Focus group8. Which of the following is one of the simplest form and lowest in entry costs.a. Direct mail marketingb. Online marketingc. Sales promotiond. Export marketing9. In ________, the death of entrepreneur results in the termination of venture.a. Proprietorshipb. Limited companyc. Limited partnershipd. Corporation10. In partnership, the ability to raise capital depends on the __________ of thebusiness.a. Expansionb. Successc. Sized. Nature

Which of the following are NOT the Accredited Investors?a. Institutional investorsb. Investors who purchase less than $150,000 of the issuer’s securitiesc. Investors whose net worth is $1 milliond. Directors, officers, and general partners of the issuing company2. Advertising and publicity are used to:



a. Create awareness of the new ventureb. Communicate with customersc. Promote the productsd. All of the given options3. What is the practical maximum limit to the amount of loan money guaranteed bySmall Business Administration?a. $ ten thousandb. $ hundred thousandc. $ one milliond. There is no limit4. All of the following should be followed by entrepreneur for being effectiveLeader, EXCEPT:a. Show respect for employeesb. Show concern for employees’ welfarec. Try to do everything himselfd. Encourage and praise others5. An entrepreneur may finance fixed assets by:a. Inventory loansb. Installment loansc. Short-term debtd. Long-term debt6. The entrepreneur will find it easier to maintain control over cash, disbursementsand inventory through:a. Record keepingb. Hiring new employeesc. Having more partnersd. Financial controls7. Recruiting and hiring of new employees may occur at which level?a. Entry levelb. Middle management levelc. Senior management leveld. At all three levels8. Which of the following is the oldest development financing institution?a. Small Business Finance Corporationb. Khushhali Bankc. Regional Development Finance Corporationd. Industrial Development Bank of Pakistan9. Under Rule 504 of Regulation D, a company can sell up to ______ of securities inany 12-month period.a. $50,000b. $100,000c. $500,000d. $1,000,00010. A party in an agreement that usually supplies money and has a fewresponsibilities is known as:a. Major partner



b. Minor partnerc. Limited partnerd. General partner


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