BPME1013 - INTRODUCTION TO ENTREPRENEURSHIP

MATRIC NO: _______________

1) In terms of management thoughts, entrepreneurship refers to________and

decision making process.
A. management science
B. human resource management
C. risk taking
D. resource management
2) Choose TWO (2) main economists who discussed about knowledge of entrepreneurship.
A. Max Weber and Everett Hagen
B. Richard Cantillon and J.B. Say
C. Gibb and Ritchie
D. Peter Drucker and J.B. Say
3) Which of the followings is NOT a main guideline of entrepreneurship in Islam?
A. Doing what he was told
B. Avoiding whatever prohibited
C. Strengthen personnel financial position
D. Understand the tenets of business
4）Choose the CORRECT match of entrepreneurs below: -
A. Jerry Yang Apple
B. Sam Walton — Firefly
C. Bill Gates- Macintosh
D. Mark Elliot Zuckerberg – Facebook
5) is the guidelines describe a set of actions that can and
cannot be done in a certain profession.
A. Principles code
B. Ethical code
C. Moral ethics
D. Ethics principles
 BPME1013 - INTRODUCTION TO ENTREPRENEURSHIP
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6) Muda Sdn.Bhd. Company has recorded huge profits in the business. Which of the following
action shows company is carrying out its social responsibility?
A. give more dividend to its shareholders
B. gives additional bonuses to employees
C. buy a land to build mosques as charity
D. expand business with new plant construction
7) Which of the following refers to a method of generating creative ideas for products and
certain markets in a form of group?
A. brainstorming
B. focus group
C. electronic mail
D. problem inventory analysis
8) Followings are barrier of creativity EXCEPT: -
A. late reaction
B. lazy
C. stereotype thinking
D. alertness
9) Innovation is the process of entrepreneurs convert business_______ into form of
marketable idea.
A. opportunities
B. material
C. input
D, output

10) Which of the following are TWO (2) important items in the creativity?
A. process; output
B. process; human
C. customer; improvement
D. systems; feedback
 BPME1013 - INTRODUCTION TO ENTREPRENEURSHIP
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11) ____________defined as a form of practice, behaviour and actions that are aimed to
create a certain feeling and sentiment in the organization.
A. Corporate culture
B. Structure
C. Code of ethic
D. Sociocultural
12) "It started as soon as the prospective franchisee signing a franchise agreement. Then
followed by the training program until the official opening of franchisee outlets. "
The above statement refers to
A. maturity level
B. decline level
C. introduction level
D. growth level
13) Which statement is NOT ACCURATE based on definition of franchise according to Section
4 Franchise Act 1998?
A. Franchisor is responsible to provide financial assistance and equipments to
franchisee.
B. Franchisor grants intellectual property rights to the franchisee.
C. Franchisee operates the business separately from the franchisor.
D. Franchisors has the right to implement continuous control over the period of
franchise.
14) Which of the following is a disadvantage of franchise business to a franchisee?
A. high cost of franchise business
B. commitment dissimilarity
C. mistake in selecting franchisee
D. expansion cost
 BPME1013 - INTRODUCTION TO ENTREPRENEURSHIP
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15) Which of the following method is NOT ACCURATE to decide the product pricing strategy in
a marketing plan?
A. Mark-up cost-based pricing method
B. Demand based pricing method
C. Competitor based pricing method
D. Production based pricing method
16) What are the benefits of business plan to the financial institutions?
i. to evaluate the liability of the business
ii. to evaluate the viability of the business
iii. to ensure the business ability to service debt
A. i and ii
B. i and iii
C. ii and iii
D. All of the above
17) Which of the following is NOT a part of the marketing plan?
A. plans to advertise in TV
B. plans to promote sales
C. plans for direct selling
D. plans to analyse competitors
18) Which of the following is NOT critical factor to be considered in the production or operation
element of a business plan?
A. Suppliers of raw materials
B. Product design
C. Organization structure of the human resource department
D. Skills of the production labour force
 BPME1013 - INTRODUCTION TO ENTREPRENEURSHIP
MATRIC NO: _______________

19) Which of the following is the best step to be taken by an entrepreneur as far as preparation
of a Business Plan is concerned?
A Get a team of entrepreneurs to prepare Business Plan
B. Prepare a simple Business Plan
C. Get an expert to develop Business Plan
D. Prepare the Business Plan himself
20) What is the most important factor described in the "Location" segment of a Business Plan?
A. The choice of the strategically located business premise
B. Estimation of manufacturing cost at the location
C. The strength of competitors at the location
D. Total labour force in the location
21) Which of the following is NOT a strategic input?
A. internal environment
B. international strategy
C. external strategy
D. strategic mission
22) Choose the reasons entrepreneur need to shift from informal to formal planning.
i. entrepreneur's experience
ii. competition
iii. uncertainty stage
iv. limited resources
A. i,ii and iii
B. i, ii and iv
C. i-and iv
D. All of the above
 BPME1013 - INTRODUCTION TO ENTREPRENEURSHIP
MATRIC NO: _______________

23) Boston Consulting Group (BCG) matrix was developed by Son field and Lussier (1997) is an
entrepreneurial strategy matrix using __________and ______________
A. innovation; creative
B. risk; creative
C. risk; innovation
D. creative; mission
24) Following strategies are strategic options in high innovation and low risk situation EXCEPT:
-
A. move quickly
B. protect innovation
C. control investment and operating costs via control system
D. joint venture
25) Competitive approach that practiced by McDonalds and KFC known as
A. parallel competition
B. two ways competition
C. dissimilar competition
D. risk competition
26) Which of the followings is NOT an uncertainty in the emerging stage?
A. structure uncertainty
B. strategy uncertainty
C. customer uncertainty
D. technology uncertainty
27) Which of the following statement is TRUE about the executive summary in a business plan?
i. It is a short overview of the main elements of a business plan
ii. Usually it is written in ten or eleven pages only
iii. It is written in an attractive style to create interest to continue reading
A. i and II
B. land iii
C. ii and iii
D. All of the above
 BPME1013 - INTRODUCTION TO ENTREPRENEURSHIP
MATRIC NO: _______________

28) Choose the RIGHT match on industry involved by family business

A. Marriott International — conglomerate
B. Samsung — telecommunication
C. LG Group — conglomerate
D. Mars - cosmetic
29) Choose the INCORRECT statement regarding the scenario of family business in Malaysia.
A. Most family businesses are running by founder's children.
B. Most family businesses are initiated by those having more than six years of working
experience
C. Founder does not force the children to join the family business
D. Most family business firms engage in manufacturing, retailing and construction field
30) Which of the following is based on Islamic ,syariah financing similar to Al Murabahah?
A. Bai' Bithaman Ajil
B. Bai' Al Dayn
C. Alljarah
D Ar Rahn
31) _____________ is a partnership agreement between two or more parties to
undertake a business project.
A. Al Musyarakah
B. Al Mudharabah
C. Alljarah
D Ar Rahn
32) Which of the following is NOT a strategic input?
A. internal environment
B. international strategy
C. external strategy
D. strategic mission
 BPME1013 - INTRODUCTION TO ENTREPRENEURSHIP
MATRIC NO: _______________

33) Choose the reasons entrepreneur need to shift from informal to formal planning.
i. entrepreneur's experience
ii. competition
iii. uncertainty stage
iv. limited resources
A. i,ii and iii
B. i, ii and iv
C. i-and iv
D. All of the above
34) Boston Consulting Group (BCG) matrix was developed by Sonfield and Lussier (1997) is an
entrepreneurial strategy matrix using _______and________
A. innovation;creative
B. risk; creative
C. risk;innovation
D. creative; mission
35) Following strategies are strategic options in high innovation and low risk situation EXCEPT:
-
A. move quickly
B. protect innovation
C. control investment and operating costs via control system
D. joint venture
36) Competitive approach that practiced by McDonalds and KFC known as
A. parallel competition
B. two ways competition
C. dissimilar competition
D. risk competition
 BPME1013 - INTRODUCTION TO ENTREPRENEURSHIP
MATRIC NO: _______________

37) Which of the followings is NOT an uncertainty in the emerging stage?

A. structure uncertainty
B. strategy uncertainty
C. customer uncertainty
D. technology uncertainty
38) Among the main factor that led an industry at a decline stage is
A. entrepreneur getting old and weak.
B. plenty of resources at a cheaper price.
C. technology changes and changes in customers' preference.
D. weak financial capability.
39) Which of the followings are strategies during declining stage?
i. focus on niche
ii. build customer loyalty
iii. flexible operation
iv. specialization
A. i, ii and iii
B. i, ii and iv
C. i and iv
D. All of the above
40) In general, _________steps must be followed in strategic planning.
A. six
B. three
C. four
D. five
 BPME1013 - INTRODUCTION TO ENTREPRENEURSHIP
MATRIC NO: _______________

41) Strategic planning is about developing a ________ plan to manage

opportunities and threats effectively by taking into consideration the internal of a business.
A. short term; strengths and preparation
B. medium term; strengths and weaknesses
C. long term; strengths and weaknesses
D. long term; resources and culture
42) Which of the following is NOT an advantage that can be enjoyed by entrepreneurs who
ventured in the field of international trade?
A. Increase the sales and profits
B. Reduce production cost
C. Increase the level of product quality
D. Increase product cost per-unit
43) How does entrepreneur leverage sales declination in the domestic market when penetrate
international market?
A. Entrepreneurs can extend life-cycle of a product.
B. Entrepreneurs can improve the quality of product
C. Entrepreneurs can increase sales and profits.
D. Entrepreneurs can cover loss of business with the sales in overseas markets.
44) Choose methods that can be employed by an entrepreneur to penetrate global market?
i. Joint Venture
ii. Foreign Distributor Import
iv. Foreign Agent
A. i and ii
B. i and iii
C. ii and iii
D. All of the above
 BPME1013 - INTRODUCTION TO ENTREPRENEURSHIP
MATRIC NO: _______________

45)

i. All parties involved will contribute capital, while the control and ownership of a
business entity shared.

ii. A partnership of international business which two or more parties establish a

business entity
The above statement refers to
A. Joint Venture
B. Partnership
C. Foreign Agent
D. Contract Manufacturing
46) _________refers to grant the right to produce or market a brand or using copyright,
patent, and the production process for a product.
A. Licensing
B. Franchising
C. Joint Venture
D. Foreign Agent
47) Which of the following is a Malaysian company operates at international level?
A. Old Town White Coffee
B. KFC
C. Baskin Robbins
D. MyFC
48) Which of the following is NOT a step to be taken before entering international market?
A. Conduct initial research
B. Implementing feasibility study
C. Setting up subsidiary
D. Secure adequate financing
 BPME1013 - INTRODUCTION TO ENTREPRENEURSHIP
MATRIC NO: _______________

49) What are the items that need to be addressed when conducting feasibility study of the
market to be explored?
i. Tax rate
ii. Language
iii. Population size
iv. Manpower
A. i and ii
B. i and iii
C. ii and iii
D. All of the above
50) Trade restriction on Israel by Malaysia known as
A. Subsidy
B. Tariff
C. Quota
D. Embargo
51) ______________ refers to payments made by the government to exporters to reduce
their production costs and their export product price.
A. Export Subsidy
B. Tariff
C. Import Quota
D. Quality Standard
52) Which of the following are constraints to explore the international market?
i. socioculture
ii. politic
iii. patriotism
iv. limited capital
A. i, ii and iii
B. i and iii
C. ii,iii and iv
D. All of the above
 BPME1013 - INTRODUCTION TO ENTREPRENEURSHIP
MATRIC NO: _______________

53) The business plan clearly focused on the following issues EXCEPT:-
A. Identify business opportunities
B. Analysing the business environment
C. Help maintain a focus on objectives
D. Design succession plan
54) _________business plan is also known as the Executive Summary is intended to
document the business idea on paper for the first time.
A. Venture Capital
B. Internet
C. Retailing
D. Concept Based
55) Who is the key party will evaluate business plan from financial perspective?
A. financial institution
B. customer
C. supplier
D. distributor
56) Which of the following parties need business plan?
i. supplier
ii. investor
iii. supplier
iv. commercial bank
A. i, ii and iv
B. i and iv
C. i and iii
D. All of the above
57) Which one of the following agency/institution provides financial assistance to those who
need financial assistance for their business plan?
A. Agro Bank
B. Malaysian Franchise Association
C. Companies Commission of Malaysia
D. Environmental Department
 BPME1013 - INTRODUCTION TO ENTREPRENEURSHIP
MATRIC NO: _______________

58) A business plan refers to

A. a written document that explains the proposed venture.
B. an illustration about business status and expected needs.
C. introduction activity of new service.
D. new product production.
59) ____________ in the business plan is to inform the reader what they will read and
provide business information.
A. Main page
B. Executive summary
C. Marketing component
D. Operation component
60) Choose the RIGHT question to be answered in identifying the market.
A. How many potential customers and how often will they buy?
B. Who are the suppliers and main competitors?
C. How the processing equipment can be obtained from the market?
D. How much is the competitor's production capacity?
61) The financial information in the business plan include following items EXCEPT: -
A. profit and loss statement
B. cash flow statement
C. balance sheet
D. business value statement

i. What is the product's benefit?

ii. What is the usage and how to use it?
iii. Is this different type of product and how is it different?
iv. How many type marketed, why and why not?
62) Above question refers to
A. product description
B. product application
C. product marketing
D. product development
 BPME1013 - INTRODUCTION TO ENTREPRENEURSHIP
MATRIC NO: _______________

63) Following critical factors should be addressed by an entrepreneur when starts a business
EXCEPT:-
A. Business uniqueness
B. Competition
C. Investment size
D. Product readiness
64) Following factors should be a main consideration by an entrepreneur before starts a
business EXCEPT:-
i. Capital dan financial position
ii. Personal interest dan ability
iii. Regulation and legislation
iv. Appropriate location
A. i, ii dan iii
B. i, ii dan iv
C. ii, iii dan iv
D. All of the above
65) One of the speciality of product Samsung Galaxy Tab is Android Honeycomb v3.1 operating
system. Critical factor for this product is
A. business uniquesness
B. product uniquesness
C. customer readiness
D. product readiness
66) What is the main factor of concern by an entrepreneur before starts a business?
A. Capital required
B. Failure risk
C. Business idea
D. Legal aspect
67) Any business in Malaysia should be registered legally under Companies Commission of
Malaysia. This statement refers to_______________ factor.
A. capital and financial position
B. regulation and legislation
C. business location
D. government and law
 BPME1013 - INTRODUCTION TO ENTREPRENEURSHIP
MATRIC NO: _______________

68) Which of following factors are the failure causes of new business?
i. Timing factor enter the market
ii. Product design problem
iii. Wrong distribution strategy
iv. Too depend on one investor
A. i, H and iii
B. i, ii and iv
C. ii, ill and iv
D. All of the above
69) Which of the following is the advantage of sole proprietorship business?
A. Easy to get a loan from the bank
B. Sharing of business profit
C. Owner's will pay corporate tax only
D. Confidential business information
70) Which of the following is an advantage of Private Limited Company?
A. Liability is limited to the share he/she holds only
B. Need to pay corporate tax
C. Registration procedure is easy
D. Confidential business information
71) Mr. Husainy will initiate a partnership business with his friend, Mr. Naufal. Their business is
under the jurisdiction of the
A. Company Registration Act
B. Business Registration Act
C. Partnership Business Registration Act
D. Companies Act
 BPME1013 - INTRODUCTION TO ENTREPRENEURSHIP
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72) The following are the advantages of Public Limited Company. -

i. Buying and selling of company's share can be done through the share market
ii. Member's liability is limited to the shares he/his holds only
iii. Company may invite the public to buy shares
iv. Difficult to manage
A. i, ii and iii
B. i, ii and iv
C. ii, iii and iv
D. All of the above
73) Among the advantages when an entrepreneur buys or takes over an existing business are: -
i. Available market
ii. The business will have a readily skilled worker
iii, Having advance equipment and facilities
iv. Chances to own a good and strong business
A. i, ii and iii
B. i, ii and iv
C. ii, iii and iv
D. All of the above
74) Among the steps should be taken by an entrepreneur before invest in franchise business
are: -
i. Self-evaluation
ii. Market analysis
iii. Asking to existing franchisor
iv. Review franchise agreement
A. i, ii and iii
B. i, ii and iv
C. ii, iii and iv
D. All of the above
 BPME1013 - INTRODUCTION TO ENTREPRENEURSHIP
MATRIC NO: _______________

75) State a formula on assets-based business valuation method.

A. • Selling price = (tangible asset+ intangible asset)- liability
B. • Selling price = (tangible asset- intangible asset) + liability
C. Selling price= (fixed asset + current asset) - liability
D. Selling price = (fixed asset — current asset) + liability
76) According to _________, family business refers to business that involves
two or more family members who have financial control over the company.
A. Meredith (1988)
B. Ward dan Aronoff (1996)
C. Dyer (1986)
D. London Business School
77) Which of the following is WRONG about the family business according to the London
Business School?
A. Over 50 percent of share owned by one family.
B. A group of family controls the business.
C. Shareholdings are equal.
D. A key part is hold and owned by senior management of the business from the
same family.
78) Choose the WRONG match: -
A. Hyundai-Automobile
B. Estee Lauder-Cosmetic
C. Ikea-Furniture
D. Jabil Circuit-Computer
 BPME1013 - INTRODUCTION TO ENTREPRENEURSHIP
MATRIC NO: _______________

79) Choose the reasons why family firms fail in transferring the business to the next generation:
-
i. Lack or fall to plan
ii. Lack of business potential
iii. Reluctance of children to join the family firm
iv. Academic achievement among children is too low
A. i, ii and iii
B. i, ii and iv
C. ii, iii and iv
D. All of the above
80) Which of the following is NOT a characteristic of the family business in Malaysia?
A. The main activity of this family business is from the construction sector.
B. Fifty-nine percent (59%) still managed by the founder.
C. Twenty-one percent (21%) business owners want their child to be involved in
business.
D. Small-scale family business is still run by the founder.
81) __________is one of the weaknesses in the family business system.
A. Nepotism
B. Man priority rules
C. Shareholding held by family members
D. Formal in organization
82) The critical issue in family business is: -
A. globalization
B. technological changes
C. conflict management
D. financial aid
 BPME1013 - INTRODUCTION TO ENTREPRENEURSHIP
MATRIC NO: _______________

83) _____________ is a partnership agreement between two or more parties to

which of the following is considered as a concept of welfare loan?
A. Al Qardhul Hasan
B. Al Kafalah
C. Al ljarah
D Ar Rahn
84) 'The Government of Malaysia imposed trade barrier on Israel where Malaysian
entrepreneurs shall not be permitted to establish or conduct any business between the two
countries."
The above barriers can be classified as
A. embargo
B. quota
C. tariffs
D. subsidy
85) _____________is duty that is charged on imported product.
A. subsidy
B. tariff
C. import quota
D. quality standard
86) AFTA refers to
A. American Free Trade Agreement
B. Asia Free Trade Agreement
C. African Free Trade Agreement
D. Asean Free Trade Agreement
87) Quota is
A. barrier that limits the number of products allowed in a country.
B. Financial support to reduce the price of local product compared to imported
product.
C. duty that is charged on exported products.
D. a country which voluntarily reduces her exported products.
 BPME1013 - INTRODUCTION TO ENTREPRENEURSHIP
MATRIC NO: _______________

88) Agent or representative of a franchisor in selling a franchise to potential franchisees is

known as
A. Master franchisor
B. Franchise broker
C. Main franchisor
D. Main franchisee
89) According to Section 6 Franchise Act 1998, a franchisor should register his/her business
with
A. Malaysian Franchise Association
B. Franchise Commission of Malaysia
C. Registrar of Franchise Malaysia
D. National Registration Office
90) The following are advantages of franchise business to franchisor
f. The expansion cost of business is lower
ii. To gain benefit from economy of scale
iii. Require numerous number of manpower
iv. To acquire capital through franchise fee
A. iii and iv only
B. ii, iii and iv only
C. i, ii, and iv only
D. i, iii and iv only
91) The following are the responsibilities of franchisee EXCEPT
A. Obey the franchise business system
B. Conduct promotion activities
C. Recruit and manage own employees
D. Protect the reputation of the business
92) Which type of franchise business widely operated in Malaysia?
A. Fast-food
B. Ice cream
C. Accessories and apparel
D. Health care
 BPME1013 - INTRODUCTION TO ENTREPRENEURSHIP
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93) ___________refers to grant the right to produce or market a brand or using copyright,
patent, and the production process for a product.
A. Licensing
B. Franchising
C. Joint Venture
D. Foreign Agent
94) Which of the following is a Malaysian company operates at international level?
A. Old Town White Coffee
B. KFC
C. Baskin Robbins
D. MyFC
95) Which of the following is NOT a step to be taken before entering international market?
A. Conduct initial research
B. Implementing feasibility study
C. Setting up subsidiary
D. Secure adequate financing
96) What are the items that need to be addressed when conducting feasibility study of the
market to be explored?
i. Tax rate
ii. Language
iii. Population size
iv. Manpower
A. i and ii
B. i and iii
C. ii and iii
D. All of the above
 BPME1013 - INTRODUCTION TO ENTREPRENEURSHIP
MATRIC NO: _______________

97) Trade restriction on Israel by Malaysia known as

A. Subsidy
B. Tariff
C. Quota
D. Embargo
98) _________ refers to payments made by the government to exporters to reduce
their production costs and their export product price.
A. Export Subsidy
B. Tariff
C. Import Quota
D. Quality Standard
99) Which of the following are constraints to explore the international market?
i. sociocultural
ii. politic
iii. patriotism
iv. limited capital
A. i, ii and iii
B. i and iii
C i, ii and iii
D. All of the above
100) The business plan clearly focused on the following issues EXCEPT:-
A. Identify business opportunities
B. Analysing the business environment
C. Help maintain a focus on objectives
D. Design succession plan

`END of QUESTIONS'