MIDTERM EXAMINATION Spring 2010 MGT602- Entrepreneurship (Session - 3

Ti!e" 60 !in M#r$s" %uestion No" 1 (M#r$s" 1 - &'e#se (hoose one A typical inventor is usually ________________________. )igh'* (re#ti+e , in 'o+e -ith the in+ention Does not encourage change Willing to modify the invention in order to augment commercial benefit None of the given options In+entor An individual who creates something new %uestion No" 2 ( M#r$s" 1 - &'e#se (hoose one

Being ones own boss is # nee. o/" In.epen.en(e Achievement Affiliation Authority

Nee. /or in.epen.en(e. Being ones own boss-one of the strongest needs of an entrepreneur %uestion No" 3 ( M#r$s" 1 - &'e#se (hoose one

he difference between the value of a countrys imports and e!ports over time is called" Deficit e!ports Deficit imports 0#'#n(e o/ p#*!ent Balance of debt #ef" http"$$en.mimi.hu$business$e!ports.html he difference between the value of a country%s imports and e1ports during a specific period of times called the balance of trade. %uestion No" 2 ( M#r$s" 1 - &'e#se (hoose one

A$an ______ is an online connection between the company and its customers. &nternet advertising 3e4site '-(ommerce World Wide Web 3e4site A website is an online connection between the company and its customers and can be developed in-house or outsourced. here are several important features of every website. %uestion No" 5 ( M#r$s" 1 - &'e#se (hoose onWhich of the following grants protection to owner from anyone else ma)ing* using and selling the identified innovation+ 6ti'it* p#tent Design patent

 ,lant patent &nternational patent 17 6ti'it* &#tents A utility patent has a term of -. years* beginning on the date the ,atent and rademar) /ffice 0, /1 issues it. NA2 A 0North American 2ree rade Agreement1 establishes a minimum period of 34 years. he patent grants the owner protection from anyone ma)ing* using* and$or selling the invention.

%uestion No" 6

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All of the following are essentials to maintain secrecy* '5(', " rain employees to refer sensitive 6uestions to one person Dis(uss 4usiness in pu4'i( p'#(es ,rovide escorts for all office visitors 7se simple security such as loc)ed file cabinets o maintain secrecy -. rain employees to refer sensitive 6uestions to one person. 3. ,rovide escorts for all office visitors. 8. Avoid discussing business in public places. 9. 7se simple security such as loc)ed file cabinets and shredders.

%uestion No" 8

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Who should prepare the business plan+ 'ntrepreneurs (onsultants 'ngineers :mall business administration services A 4usiness p'#n is a written document prepared by the entrepreneur that describes all the relevant e!ternal and internal elements involved in starting a new venture. %uestion No" 9 ( M#r$s" 1 - &'e#se (hoose one

Which of the following body issues patents+ ;A NA2 A 2 A &TO ,atents are issued by the ,atent and rademar) /ffice 0, /.1 %uestion No" : ( M#r$s" 1 - &'e#se (hoose one

he product life cycle starts with which stage of product planning and development process+ est mar)eting stage &ro.u(t .e+e'op!ent st#ge (ommerciali<ation stage &ro.u(t p'#nning #n. .e+e'op!ent pro(ess is # p#rt o/ pro.u(t 'i/e (*('e correct

&ro.u(t p'#nning #n. .e+e'op!ent pro(ess ;enerally divided into five ma=or stages" idea stage* concept stage* pro.u(t .e+e'op!ent st#ge; test !#r$eting st#ge; test !#r$eting st#ge; #n. (o!!er(i#'i<#tion st#ge

%uestion No" 10

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Developing a new idea through in6uiry and testing is called" )euristi(s 2orced relationship :cientific method >alue analysis )euristi(s &t is method of developing a new idea through a thought process progression. %uestion No" 11 ( M#r$s" 1 - &'e#se (hoose one

Which one of the following gives suggestions for new product and also help to mar)et new products+ '!isting products and services Distri4ution (h#nne's 2ederal government (onsumers

Distri4ution =h#nne's Because they are familiar with the needs of the mar)et* channel members often have suggestions for new products. hese channel members can also help in mar)eting the new product. %uestion No" 12 ( M#r$s" 1 - &'e#se (hoose one

rade barriers cause" In(re#se in (ost Decrease in cost &ncrease in profit None of the given options Tr#.e 4#rriers pose problems for entrepreneurs who want to become involved in international business. rade barriers increase the costs of e!porting pro=ects to a country. %uestion No" 13 ( M#r$s" 1 - &'e#se (hoose one

A person who managed large pro=ect was termed as the entrepreneur in the _________. 'arliest period Mi..'e #ges -.th century -?th and 34th century Mi..'e Ages &n this age the term entrepreneur was used to describe both an actor and a person who managed large production pro=ects.

%uestion No" 12

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Which of the following is NOT a potential cost of becoming an entrepreneur+ >in#n(i#' re-#r. correct @ong hours >in#n(i#' inse(urit* @oneliness http://webcache.googleusercontent.com/search? q=cache:6mZx0lwXhisJ:www.edutopia.org/ iles/existing/ppt/edutopia!in"estor!pro#ect! entrepreneurship.ppt$ iles/edutopia!in"estor!pro#ect! entrepreneurship.ppt.ppt%is%&'(%a%potential%cost%o %becoming%an%entrepreneur )*+%),-).6)/0%+inancial%reward%),-).6)/0%1ong%hours% ),-).6)/0%+inancial%insecurit2% ),-).6)/0%1oneliness3cd=63hl=en3ct=cln43gl=p4

%uestion No" 15

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2actors contribute to the creation of new venture EX=E&T" ;overnment 2inance )igh interest r#tes (orre(t Ro'e !o.e's

%uestion No" 16

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Aost of the finance for the new firm comes from following resources EX=E&T" 2riends

 >oreign #i. #elatives ,ersonal savings

%uestion No" 18

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What is the process by which individuals pursue opportunities without regard to resources they currently control+ :tartup management Entrepreneurship 2inancial analysis 2easibility planning (onceptuali<ed entrepreneurship as a process by which individuals either on their own or inside organi<ations - pursue opportunities without regard to the resources which they currently control.

%uestion No" 19

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Which of the following is NOT included in the opportunity evaluation process+ @ength of the opportunity #eal and perceived value of opportunity Go#'s #n. o4?e(ti+es o/ (usto!ers #is)s and rewards of opportunity a7 The e+#'u#tion pro(ess in+o'+es 'oo$ing #t b. he creation and length of the opportunity c. &ts real and perceived value

d. &ts ris)s and return. e. &ts fit with the s)ills and goals of the entrepreneur f. &ts differential advantage in its competitive environment

%uestion No" 1:

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he difference of the entrepreneurial and managerial domains has contributed towards an increase interest in which of the following+ 5 +orming new irms 5 6artnership Intrapreneurship 5 6ri"ate irms (he di erences in the entrepreneurial and managerial domains ha"e contributed towards an increased interest in corporate entrepreneurship.

%uestion No" 20

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Which is the most common cause of business failure+ &nsufficient capital 7nstable mar)et &nsufficient e!perience &oor entrepreneurship %uestion No" 21 ( M#r$s" 1 - &'e#se (hoose one

&n which one of the following countries the entrepreneurial success has been significant because of the culture* the political and economic systems+ 'uropean countries

 Asi#n (ountries 2ar 'ast countries Aiddle 'ast countries ,age 8. 'ntrepreneurial success in some Asian countries has been significant because of the culture and the political and economic systems. %uestion No" 22 ( M#r$s" 1 - &'e#se (hoose one

Aoral support networ) includes all of the following EX=E&T" :pouses 2riends 0usiness #sso(i#tes #elatives Mor#' support net-or$ of family and friends. Aost entrepreneurs indicate that their spouses are their biggest supporters. 2riends can provide advice that is more honest than that received from others* plus encouragement* understanding* and assistance. #elatives can also be sources of moral support* particularly if they are also entrepreneurs. %uestion No" 23 ( M#r$s" 1 - &'e#se (hoose one

,rofessional support networ) includes all of the following EX=E&T" ,ersonal affiliations Aentor rade associations >rien.s ,age 3B re#. &ro/ession#'-Support Net-or$

%uestion No" 22

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he former 7::# received technology and syrup from ,epsi and provided it with :oviet vod)a and rights to distribute it in the 7:. his is an e!ample of" 'conomic development Barter system Balance of payment &nternational trade

T*pe o/ S*ste! 0#rter or thir.-p#rt* #rr#nge!ents have been used to increase business activity with the (ommonwealth of &ndependent :tates* the former 7.:.:.#. %uestion No" 25 ( M#r$s" 1 - &'e#se (hoose one

__________ is prepared on the bases of levels of the internal structure of the business. Org#ni<#tion#' &'#n ,roduction ,lan Aar)eting ,lan 2inancial ,lan he organi<ational plan section should describe the ventures form of ownership. &f the venture is a corporation* this should include the number of shares authori<ed* share options* and names and addresses of the directors and officers. &t is helpful to provide an organi<ation chart indicating the line of authority. his chart shows the investor who controls the organi<ation and how members interact.

%uestion No" 26

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Which of the following abilities must be possessed by an entrepreneur+ (reative (onceptuali<ation 7nderstanding environment A'' o/ the gi+en options

%uestion No" 28

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Which of the following is N/ a guiding principle in a traditional corporate culture+ 2ollow given instructions T#$e responsi4i'it* #n. o-nership Do not ta)e initiative Do not ma)e mista)es The gui.ing prin(ip'es in # tr#.ition#' (orpor#te (u'ture #re" -. 2ollow instructions given 3. Do not ma)e mista)es 8. Do not fail 9. Do not ta)e initiative C. :tay within your turf and protect your bac)side B. his restrictive environment is not conducive to creativity* fle!ibility* and ris) ta)ing

%uestion No" 29

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&n order to minimi<e the negative effect of any disruption in an organi<ation* which of the following characteristics an intrapreneur must possess+ )e shou'. 4e .ip'o!#ti(

 De should be conservative De should be autocratic De should be authoritative ,A;' 34 he intrapreneur must be a good diplomat to minimi<e disruption. %uestion No" 2: ( M#r$s" 1 - &'e#se (hoose one

According to research* when do the female entrepreneurs tend to start their first significant venture+ In their !i. 20s &n their mid 84s &n their mid 94s &n their mid C4s %uestion No" 30 ( M#r$s" 1 - &'e#se (hoose one

Which of the following best defines Ehori<ontal mergerF+ It re/ers to (o!4ining #t 'e#st t-o /ir!s .oing si!i'#r 4usinesses #t the s#!e !#r$et 'e+e' &t refers to forming a third company by combining two companies &t refers to having more than C4 percent ownership position &t refers to combining at least two firms at different mar)et levels )ori<ont#' !erger (ombination of at least two firms doing similar businesses at the same mar)et level %uestion No" 31 ( M#r$s" 1 - &'e#se (hoose one

Which of the following is an e!ample of rising number of women entrepreneurs in (hina+

 Gu#u Gu#r*!ei 100@ (orre(t Wataru /hashi Ga<uhi)o Nishi Ai B#-Shing SOLID REFERENCE HTTP://BOOKS !OO!LE CO" PK/BOOKS# ID$P%&E''''('')*+$IS,'N,E&'"PLE,OF,RISIN!,N-"BER,OF,. O"EN,ENTREPRENE-RS,IN,CHIN'# *D+$IS,'N,E&'"PLE,OF,RISIN!,N-"BER,OF,.O"EN,ENTREPREN E-RS,IN,CHIN'#*HL$EN*EI$/ !&.TIRTD""&CF&!+'SK*S'$&*OI$BOOK0RES-LT*CT$RES-LT*R ESN-"$1*2ED$3CCC+4'E.'+

%uestion No" 32

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dentify the statement which best defines Echec)list methodF It re/ers to .e+e'oping # ne- i.e# through # 'ist o/ re'#te. issues &t refers to a group method for obtaining new ideas focusing on the negative &t refers to a method for individuals to solve problems through one of four mechanisms &t refers to a method for developing new ideas when the individuals are unaware of the problem =he($'ist !etho. (p#ge 21 Developing a new idea through a list of related issues is chec)list method of problem solving. %uestion No" 33 ( M#r$s" 1 - &'e#se (hoose one

Which of the following best describes EcontractF+

 It re/ers to # 'eg#''* 4in.ing #gree!ent 4et-een t-o p#rties &t grants holder protection from others ma)ing* using or selling similar idea &t may be a word* symbol* design or some combination that identifies the source of certain goods &t refers to a legal document giving official permission to do something =ontr#(t is an agreement between two or more parties* that if it contains the elements of a valid legal agreement is enforceable by lawH-I or by binding arbitration. hat is to say* a contract is an e!change of promises with a specific remedy for breach. %uestion No" 32 ( M#r$s" 1 - &'e#se (hoose one

Which of the following is the title or cover page that provides a brief summary of the business plans content+ Intro.u(tor* p#ge '!ecutive summary 'nvironmental and industry analysis Description of venture ,A;' C. he title page provides a brief summary of the business plans contents* %uestion No" 35 ( M#r$s" 3

Dow the business plan is presented to potential investors+ he description of the venture should be comprehensive. his should begin with the mission statement or company mission; which describes the nature of the business and what the entrepreneur hopes to accomplish. he new venture should be described in detail* including the product* location* personnel* bac)ground of entrepreneur* and history of the venture. he emphasis placed on location is a function of the type of business. Aaps that locate customers* competitors* and

alternative locations can be helpful. hen the mar)eting plan describes how the products will be distributed* priced* and promoted. ,otential investors regard the mar)eting plan as critical to the ventures success. %uestion No" 36 ( M#r$s" 5

Which factors should be studied by entrepreneur to conduct environmental analysis while preparing a business plan+ '!plain the factors. he entrepreneur should first conduct an en+iron!ent#' #n#'*sis to identify trends and changes occurring on a national and international level that may impact the new venture. '!amples of environmental factors are" J 'conomy J (ulture J echnology J @egal concerns E(ono!*" he entrepreneur first wants to )now the economic situation of country where he wants to start the business because this has great impact on its success. &f economical situation is not stabili<es then investors will not willing to invest with us* which is the first step for every beginning of business. =u'ture" &t has too much influence on our products which we made. &f we produce such thing which is not familiar to people where the business operate there should be loss for. 2or e!ampleK if Bonan<a will start to produce :halwar L Gamee< suits in Arab countries who will buy* because in Arab countries there culture is different from us. :o* entrepreneur must first loo) about the culture trends. Te(hno'og*" Now a days technology changes day to day. 'very day or wee) new inventions is there in mar)et* which help us to ma)e business easy for us. We should )eep update ourselves in technology perspective to save more money and produce more. Aeg#' =on(erns" hese are important issue for every entrepreneur. As every country have its own and different laws there. herefore*

he$she must be having )nowledge about the limitations and permissions from government of that country where he$she want to do business. %uestion No" 38 ( M#r$s" 5

While entering into the international mar)et the companies usually have strategic planning process. What should be considered in the strategic planning+ :trategic ,lanning offers ideas on how to match the organi<ations design to its products and capabilities* goals and resources. his process is much easier to e!ecute once you have obtained a basic )nowledge of e!porting value-added food products* understand the mar)eting research process* and analy<ed the elements of the mar)eting mi!. ,roper organi<ation* both internally and e!ternally* allow the firm to become more efficient in its operations and e!pansion. After the information the first step in building a successful e!port strategy is determining the firms readiness to e!port. he following are guidelines on preparing an e!port business plan* developing e!port mar)eting s)ills* designing a template for an e!port mar)eting plan and considering mar)eting tools prior to engaging directly in promotional activities.