Mekane Yesus Management and Leadership College

Department of Management

Home Take Exam (HTE) of Entrepreneurship and

Small Business Management
Name: _________________________Dep’t: _____________Section: ______
General Directives:

First be honest for yourself

Don’t forget to write your name and your ID Number
The time allowed for this exam is 3 hours, only until Sunday (10/05/2020)
You MUST submit this exam to your instructor’s personal Telegram soon
You will be punished if you cannot submit on time given to you
This exam will stay with you only for 3 hours, then you must submit your
instructor’s personal Telegram //Sunday (10/05/2020) or Email:
lemigod784@gmail.com
You can answer by your handwriting and scan or use your computer
This exam must be submitted on Sunday (10/05/2020)
If you can’t submit on time you will be punished unless there is special case,
please Be serious!

Part One: Choose the best answer among the following alternatives

1. Which of the following statement is true about new venture risk taking?
a) When entrepreneur seeks a high profit, the risk is usually higher
b) When entrepreneur seeks to limit risk, the reward tends to increase
c) An entrepreneur’s financial risk is not closely related to rewards
d) The entrepreneur who does not care about profit is high risk taker.
2. Which of the following statement is true about business startup requirements?
a) New business owners usually need to register for patent protection
b) The financial needs to start a new business depend on the nature of the venture
 c) Purchasing a franchise is usually easy and inexpensive for startup business
owners
d) Equipment is the least expensive requirement of a startup business
3. Which of the following are public relations activities?
a) Writing press releases, distributing company newsletters, and sponsoring events
b) Holding press conferences, identifying trends, and hiring new staff members
c) Sponsoring events, developing new products, and distributing company
Newsletters
d) Identifying trends, writing press releases, and hiring new staff members
4. Identify the benefit of owning small business.

a) Influence full potential d) Insecurity

b) Reap impressive profits e) A and B

c) Dependence

f) C and D

5. Principle of brainstorming in generating new ideas includes.

a) Ideas should be criticized c) Combination

and selected
d) Hiring consultants
b) Quantity of idea generated
matters

6. When to prepare business plan?

a) During Operation c) 3 years before starting

business
b) Business selling
d) Shareholders increase

7. _____________ is a product that meets the customers’ desires beyond their

expectations.

a) Augmented Product c) Semi-finished Product

b) Finished Product d) Imported Product

8. Challenges and opportunities of marketing in today’s economy
a) Power Shift to Customers
b) Massive Increase in Product Selection
c) Audience and Media Fragmentation
d) Shifting Demand Patterns
e) All
f) None
9. Which promotion mix is mouth presentation with one / more consumers for the
purpose of making sales?

a) Advertising c) Sales promotion

b) Personal selling d) Publicity

10. Market Segmentation can be done based on:

a) Geographic Segmentation

b) Demographic Segmentation

c) Psycho graphic
Segmentation

d) Behavioral Segmentation

e) All
11. Which of the following employees would most likely be described as “innovative” by
his/her supervisor?
a) Mr. Ebisa, because he is always willing to adapt to changes during a project
b) Mr. Samuel, because he prefers to stick to traditional ideas and processes
c) Mr. Gai, Because he gets frustrated when he needs to learn new skills
d) Mr. James, because he is usually quit during brainstorming sessions
12. A product idea is feasible if it ….

a) Meets sales Quotas c) Costs a lot to produce

b) Creates Competitive d) Is a durable good

Advantage

13. What do many businesses identify and strive to improve in order to attract customers
and be competitive.

a) Commission Plans c) Personal Characteristics

b) Service standards d) Operating Quotas

14. Samples, premiums, and advertising specialties are examples of _____ used in sales
promotion.

a) Communications Channels c) Marketing Strategies

b) Publicity Strategies d) Selling Techniques

15. Why do some businesses sponsor local events?

a) To obtain Publicity c) To generate revenue

b) To create news d) To sell products

16. What should a successful brand promise be able to do?

a) Customize the product for c) Communicate an appealing

each customer benefit

b) Clarify the company’s d) Convey high quality image

processes

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 17. Which of the following is a characteristic of a business-format franchise?
a) The name of the business is chosen by the franchisee
b) Products are bought directly from the supplier
c) It is the least popular franchise agreement
d) Continuous assistance is provided by the franchisor
18. ______ is a document that convincingly demonstrates that your business can sell
enough of its product or service to make a satisfactory profit and be attractive to
potential stakeholders.

a) Financial plan c) Marketing plan

b) Business plan d) Operational Plan

19. _________is a professional money manager who makes risky investments from a
pool of equity capital to obtain a high rate of return on the investments.

a) Entrepreneur c) Venture Capitalist

b) Investor d) Manager

20. One of the following doesn’t determine the size criteria for small business

a) Blue Collars c) Plant location

b) Savings d) None

Part Two: Matching

A
1. Entrepreneur
2. Entrepreneurship
3. Failed Business
4. New Ideas
5. Industrial Products
6. Convenience goods
7. Trademark
8. Product development
9. Diversification strategy
10. Horizontal integration

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B
A. Oppo cell phone brand is to be opened in Ethiopia
B. Samsung company is always competing with Apple over market dominance
C. Mr. Mark Zuberg is a Chief executive officer of Facebook
D. Government is trying to obliterate controlled industries
E. Dibabe business is new venture highly investing in fixed asset
F. Some people believe that their success emanates from their hobbies and interests
G. Semi- processed goods used for further production to satisfy customers
H. Mr. John mostly use impulse products at home, mainly on every Monday
I. Registered picture or design of a company engraved on products
J. ABC food complex PLC was shifted to soft drink due to profitability case
K. Is a person who has contractual agreement with an organization under specified gain
L. Is the process of getting hired in a new venture with high profit?
M. SWOT analysis should be conducted
N. Deals with integration of suppliers
O. Usage of advanced technology with low cost
Part Three: Essay Questions
1. Since January 2020 the world is facing Pandemic called COVID-19 with more than
thousands of people death and millions are infected by this pandemic virus. Thus, address
the following questions critically.
a) List and discuss the impact of COVID-19 Pandemic on your local businesses.
b) List and discuss the impact of COVID-19 Pandemic on economic growth of our country,
Ethiopia
c) Give your own comments how the small business companies can be restored from
COVID-19 Pandemic crisis within a short period of time.
2. Discuss factors hindering the development of small business enterprises in Ethiopia
3. Discuss how to finance small business venture and give your recommendation in
Ethiopian context

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 Answer Sheet of Entrepreneurship and Small Business Management
Name: ________________________________ Dep’t: ________________ Section: ______
Part One: Choice

1. ________ 12. _______

2. _______ 13. _______

3. _______ 14. _______

4. _______ 15. _______

5. _______ 16. _______

6. _______ 17. _______

7. _______ 18. _______

8. _______ 19. _______

9. _______ 20. _______

10. _______

11. _______

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Part Two: Matching

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1. ________

2. _______

3. _______

4. _______

5. ______

6. ______

7. ______

8. ______

9. _______

10. ______

Part Three: ESSAY (Write below)