1. In a partnership venture, the partner 6.

An entrepreneur wishing to adopt open

share the management, profits, and debts innovation must
of their business based on the terms of
(A) Maximize the returns of
their
shareholders
(B) Focus on the firm’s core
(A) Friendship or relationship competencies
(B) Capital contribution (C) Build an internal collaboration
(C) Deed of partnership network
(D) By laws (D) Be willing to collaborate with
customers and competitors
2. In which of the following ventures does
the entrepreneur face the LEAST risk? 7. In business, the ability to find and apply
creative solutions to problem and create
(A) Sole trading opportunities is termed
(B) Partnership
(C) State enterprise (A) Innovation
(D) Limited liability company (B) Brainstorming
(C) Creative thinking
3. One advantage of the franchise approach (D) Entrepreneurship
to business is that the entrepreneur gets
more 8. Kyle owns a beverage company which
produces only juices. He has decided to
(A) Profit expand his product offering and
(B) Guidance introduce soft drinks but does not have
(C) Capital the knowledge necessary for executive.
(D) Partners
Which of the following actions would
4. Reduced profit due to payment of MOST likely assist him in quick,
royalty fees can be a major successful implementation?
DISADVANTAGE of this type of
venture. (A) Registering his intellectual
property
(A) Franchise (B) Utilizing open innovation
(B) Sole trader techniques
(C) Private company (C) Being a good environmental
(D) State-owned enterprise steward
(D) Implementing the occupational
5. Which of the following is NOT a health and safety laws
consideration when choosing the legal
format of a new 9. The process of setting up a corporation,
entrepreneurial venture. in accordance with the laws of the
country in which the business is located,
(A) Tax consideration is referred to as
(B) Liability questions
(C) Hiring and firing policies (A) Incorporation
(D) Growth and continuity issues (B) Limited liability
(C) Going concern
(D) Obligation
10. Jewels is about to launch her own
scented candles business, Precious
Scents. Her legal advisor has told her
that she must first conduct a name
search
The requirements is in keeping with
(A) Tax laws
(B) Labour laws
(C) Registration of a venture
(D) Intellectual property rights
11. In the contact of venture operations, a
whistle-blower is a person who
(A) Reports illegal and unethical
behavior
(B) Speaks loudly during the decision-
making process
(C) Contributes capital but is inactive
in managing the business
(D) Seeks new innovative ways of
doing things within a business
12. A private hotel chain has decided to
allow the local community access to part
of the beach in front of its property at no
cost
The hotel is fulfilling
(A) A political obligation
(B) An environmental obligation
(C) An economic responsibility
(D) A social responsibility
13. A business had just received permission
from the environment agency to begin
construction of a new plant. However,
residents claim that their farms will be
lost the management has decided to go
ahead with construction despite the
residents’ concerns.
Management’s action may be described
as
(A) legal and ethical
(B) illegal and ethical
(C) legal and unethical
(D) illegal and unethical
14. Which of the following is
distinguishing feature of the social
entrepreneur?
(A) In business to create a profit
(B) Takes environmental objectives
into considerations
(C) Highly inclined towards
socializing and networking
(D) Repeatedly starts and manages
several companies at the same time
15. ACME Inc. has offered the purchasing
agent at a company a sizable monetary
incentive if the company awards it a
very lucrative contract for which it is
tendering. What would be the MOST
ethical option for the purchasing agent
to choose?
(A) Discuss the situation with his
immediate boss.
(B) Accept the offer as long as
confidentiality can be guaranteed.
(C) Decline the offer and follow the
established procedures for tendering
(D) Negotiate with ACME for all
expenses paid vacation instead
16. Which of the following involves 21. Which section of a business plan
collecting first-hand data analyzing? provides information about staffing?

(A) Second inquiry (A) Finance

(B) Product analysis (B) Marketing
(C) Primary research (C) Operations
(D) Feasibility analysis (D) Management

17. A target can be defined as 22. The MAIN purpose of the executive
summary of a business plan is to
(A) A place where buyers and sellers
meet (A) Describe the financial viability of
(B) The set of actual and potential the venture
buyers for any good or service (B) Highlight the skills and
(C) The set of companies producing competencies of the entrepreneur
the same product (C) Provide and over view of the main
(D) The total number of persons aspects of the plan and its purpose
buying the product (D) Highlight the marketing
challenging associated with the plan
18. Which of the following feasibility
analysis assess whether or not a new 23. E-Games LTD, a recent establish firm,
business venture will provide a return on is seeking finance to develop and market
investment? indigenous Caribbean card games
online. The MOST appropriate source of
(A) Technical financing of E-FAMES LTD would be
(B) Marketing
(C) Industry (A) Tax incentives
(D) Financial (B) Venture Capital
(C) Bank overdraft
19. The final step in a comprehensive (D) Short-term bank loan
feasibility analysis is
24. Which of the following is a form of
(A) Industry feasibility equity financing
(B) Financial feasibility
(C) Marketing feasibility (A) A debenture
(D) Operational feasibility (B) Issuing of bonds
(C) A mortgage
20. Entrepreneurs are involved in various (D) Personal funds
types of business but in each case, the
MAIN concern is to make money by 25. Surplus plus cash reinvested in the
providing customers with business may be classified as

(A) Goods (A) Equity financing

(B) Service (B) Long-term debt finance
(C) Value (C) Short-term debt finance
(D) Discounts (D) Owner contributed finance
26. What is the significant of break even 28. Which section of the business plan gives
analysis to a promoter who plans to host information about competitors?
a Rihanna concert in Saint Lucia?
(A) Marketing
(A) It provides a basis for determining (B) Operations
the promotional strategy for the (C) Financial
concert. (D) Management
(B) It allows the promoter to set a
ticket selling price to make a given 29. Which of the following is the best
profit. definition of a firm’s valve proposition?
(C) It allows the promoter to prepare a
projection of the concert cash flow. (A) The product offered
(D) The promoter can identify all (B) The product and service provided
possible sources of disagreement (C) The satisfaction of customer needs
with patron. and the expected profit managing
(D) The product and service required
27. Which of the following statements to satisfy customer needs
answers the questions “Where will the
money come from?” and “Where will it 30. Short-term debt obligation backed by
go?” the government with a maturity of less
than one year is known as
(A) Business Sheet
(B) Income Statement (A) Bond
(C) Cash Flow Statement (B) Stock
(D) Expenses Statement (C) Treasury bill
(D) Fixed Deposit

31. Generally, the stage of the venture life cycle in correct order is

(A) Start-up activities new venture development venture growth business

stabilization innovation/decline

(B) New venture development start-up activities venture growth business

stabilization innovation/decline

(C) Start-up activities venture growth new venture development business

stabilization innovation/decline

(D) New venture development venture growth start-up activities business stabilization
innovation/decline
32. In which of the following life-cycle 37. An entrepreneur can value his/her
stages of a business would a company business based on the current value of
attempt to complement is current future cash flows. This valuation
offerings by developing new method is known as
products/services?
(A) Net book value
(A) Growth (B) Initial public offering
(B) Start-up (C) Multiple earnings value
(C) Business stabilization (D) Discounted cash flow
(D) Innovation
38. The net assets per share is one method
33. Mr Ali is considered purchasing an of valuing a start-up. What is the BEST
existing restaurant. He should have the value to use when calculating net assets?
business valued in order to determined
the (A) Fair value
(B) Book value
(A) Size of the work force (C) Original cost
(B) Investment capital needed (D) Carrying value
(C) Size of the needs provided
(D) Level of corporation tax to be paid 39. One MAJOR benefit of establishing a
website is
34. A critical part of preparing for an initial
public offering is establishing a good (A) Access to other social media
(B) An awareness of competitors’
(A) Stock count offerings
(B) Valuation (C) Protection of the company’s brand
(C) Profit name
(D) Asset (D) Increased capacity to enhance
customer service
35. Which of the following situations will
require the valuation of a start-up? 40. Which of the following statements is
considered a myth about e-commerce?
(A) The exit venture capitalist
(B) The desire to assess profitability (A) Accessibility to wider audience
(C) The evaluation of capital (B) Setting up site is very difficult
expenditure (C) Privacy is not an important issue
(D) Application of overdraft funding (D) Customer service is of key
from the bank importance

36. When considering an investment, which 41. Facebook and eBay offer businesses a
method compares the stock market price presence to sell goods and service for a
of the shares with the profits being small subscription fee. Which approach
generated? to e-commerce is described here?

(A) Price-earning analysis (A) Store front

(B) Discounted cash flow (B) Shopping mall
(C) Asset book value (C) Private initiate
(D) Balanced sheet analysis (D) Internet service provider
42. Shop For Less Supermarket is 43. The decision to go into e-commerce
considering using customer loyalty should be pursued ONLY after
cards to improve sales. Additionally, the
owner would like to track customer (A) Suitably trained personnel can be
spending based on what customers buy hired
with their cards. This technique is (B) Web-based sales begin to erode
known as traditional sales
(C) Indentifying a suitable firm to host
(A) Data mining the website
(B) Overharvesting (D) A strategy to integrate the web into
(C) Illegal data gathering overall strategy is developed
(D) Community networking

44. As in the brick-and-mortar model, a 45. Many attempts at e-commerce fail

frequent-buyer programme can help an because of the belief that
e-commerce initiative establish
(A) Technology is all that is needed
(A) Privacy (B) The most important factor is
(B) Loyalty strategy
(C) Security (C) Too much security is better than
(D) Flexibility too little
(D) Online sales can lead o new growth
opportunities

END OF TEST