MGT602 - MIDTERM Solved

MIDTERM EXAMINATION
Fall 2009
MGT602- Entrepreneurship
Question No: 1 ( Marks: 1 ) - Please choose one
Being one’s own boss is a need of:
► Independence
► Achievement
► Affiliation
► Authority

With a commercial history of only 300 years, which country was a new comer to the international
arena?
► Japan
► U.S
► China
► U.K

Which of the following is a obstacle to going in international business?
► Mergers
► Trade barriers
► Rivalry
► Protectionist attitudes

Which one of the following is an important source of idea generation due to their familiarity with the
needs of market?
► Existing products and services
► Distribution channels
► Federal government
► Consumers

A/an ______ is an online connection between the company and its customers.
► Internet advertising
► Website
► E-Commerce
► World Wide Web

Which one of the following is the next stage to the Concept Stage of Product Planning and
Development Process?
► Idea Stage
► Product Planning Stage
► Product Development Stage
► Test Marketing Stage
All of the following are essentials to maintain secrecy, EXCEPT:
► Train employees to refer sensitive questions to one person
► Discuss business in public places
► Provide escorts for all office visitors
► Use simple security such as locked file cabinets

Which one of the following is the main problem for the entrepreneur in the beginning stages of
creating a new venture?
► Lack of experience
► Limited resources
► Lack of education
► None of the given options

How many perspectives should be considered while preparing business plan?
► One
► Three
► Four
► Not specific

SBA stands for:
► Small business accountants
► Small business administration
► Small business adequacy
► Small business advisors

Which one of the following is NOT an environmental factor?
► Economy
► Culture
► Technology
► Competition

Which one of the following guide the firm through the long term decision making?
► Mission statement
► Product forecast
► Industry analysis

Which one of the following is NOT included in four C’s evaluation by lender?
► Character
► Cost
► Continuity
► Contribution

A utility patent has a term of:
► 10 years
► 40 years
► 20 years
► 80 years

Which of the following body issues patents?
► GATT
► NAFTA
► FTA
► PTO

Which of the following is a idea generation method that focuses on parameters?
► Brainstorming
► Reverse brainstorming
► Creative problem solving
► Synectics

Developing a new idea through inquiry and testing is called:
► Heuristics
► Forced relationship
► Scientific method
► Value analysis

Trade barriers cause:
► Increase in cost
► Decrease in cost
► Increase in profit

Having less than 50 percent of equity share in an international venture is called:
► Minority interest
► Joint venture
► Majority interest
► Exporting

Having more than 50% ownership position that provides the entrepreneur with managerial control is
called:
► Joint venture
► Horizontal merger
► Diversified activity merger

Which of the following is a method of selling goods to another country by taking care of transactions?
► Indirect exporting
► Direct exporting
► Importing
► Management contract

Gazelles are the firms with:
► High growth rate
► Moderate growth rate
► Zero growth rate
► Low growth rate

Which of the following are the Fast-growth young companies?
► Gazelles
► Life style
► Foundation Company

Which of the following is alternatively called corporate venturing?
► Entrepreneurship
► Intrapreneurship
► Act of stating a new venture
► Offering new products by an existing company

Which one of the following is not the intrapreneurial leadership characteristic?
► Understands environment
► Encourage the team work
► Not flexible
► Persistent

Which of the following typical culture has a climate and reward system that favors conservative
decision making?
► Entrepreneurial
► Intrapreneurial
► Corporate page # 18

Which of the following are known as barriers to new product creation and development?
► Trial and error
► Opportunity parameters page # 14
► Opportunity cost
► Intrapreneurship culture

Degree of influence and control on other people is called:
► Locus of control
► Locomotion of control
► Locust of control
► Loss of control

Which of the following plan describes market conditions and strategy related to products?
► Production plan
► Operational plan
► Financial plan
► Marketing plan
Individuals who give psychological support to an entrepreneur are called:
► Role models
► Moral support networks page 23
► Professional support networks
► Informal networks
MIDTERM EXAMINATION
Spring 2009
MGT602- Entrepreneurship (Session - 3)
The level at which an individual is viewed by society is called:
► Financial status
► Qualification
► Social status page 25
► Achievement

Individuals who help the entrepreneur in business activities are called:
► Role models
► Moral support networks
► Professional support networks page 25
► Business support networks

Following are the problems in developing the economies EXCEPT:
► Gap of knowledge
► Variable rate of return
► Same communication style page 29
► Different accounting system

Which one of the following is a business arrangement in which someone else is allowed to use
something of the company?
► Patent
► Trade mark
► Copy right
► Licensing page 34

Which of the following method entrepreneur can use to do international business with least risk?
► Turnkey projects
► Joint venture
► Merger
► Synergy

Combination of at least two firms at different market levels is called:
► Joint venture
► Synergy
► Vertical me rger page 36
Which of the followings give the owners a negative right, preventing anyone from making, using, or
selling the invention?
► Patent page 46
► Copyright
► Trade mark
► Trade secret

Which one of the following is a longest lasting trade agreement with the objective of liberalizing trade
by eliminating or reducing tariffs, subsidies and quotas?
► Free trade area – FTA
► European community – EC
► General agreement on tariffs and trade – GATT
► The North American free trade agreement – NAFTA

Which one of the followings statements is NOT true about trademarks?
► The entrepreneur can not file after the mark already been in use
► A trademark could be a slogan or a particular sound
► Some trademarks have no relationship with the product
► The filing date for the trademark becomes the first date use of the mark

According to the governing bodies of common laws, the life of trade secret is:
► 12 years
► 17 years
► 20 years
► As long as it remains confidential

Which one of the following protects continuity of the business(specially in partnership)?
► Property insurance
► Casualty insurance
► Life insurance
► Bonding

A legally binding agreement between two parties is called:
► A contract
► Licensing
► Insurance
► A copyright

Information regarding all of the following is related to operations, EXCEPT:
► Location
► Promotion page 56
► Raw materials
► Labor skills

Which of the following is a characteristic of a good partner?
► Help to achieve goals
► Share entrepreneur’s vision
► Do not exploit the partnership
► All of the given options

Which one of the following is a sound strategic option for an entrepreneur when synergy is present?
► Merger page 34
► Joint venture

Following are the types of non-equity arrangements EXCEPT:
► Licensing
► Management contracts
► Direct export page 31
► Turnkey projects

Andrew Carnegie is an example of entrepreneur of which century:
► Earliest period
► 19th and 20th century page # 3
► Middle ages
► 17th century

A person who managed large project was termed as the entrepreneur in the _________.
► Earliest period
► Middle ages page 3
► 17th century
► 19th and 20th century
Question No:49 ( Marks: 1 ) - Please choose one

In some countries, point of purchase displays are not allowed in retail stores. Such differences are
studied by international entrepreneurs under __________.
► Economic Environment
► Political Environment
► Cultural Environment
► Technological Environment
Most of the finance for the new firm comes from following resources EXCEPT:
► Friends
► Foreign aid page 6
► Relatives
► Personal savings

Which one of the following is the process of entrepreneurs developing new products that over time
make current products obsolete?
► New business model
► Anatomization
► Creative destruction

The intersection of knowledge and a recognized social need to start a product development process is
called which of the following?
► Iterative synthesis page 7
► Product-evolution process
► Ordinary innovation
► Situation analysis

A foundation company is formed through which of the following?
► Fashion
► Most popular business
► A winding up company
► Research and development page 7

Which of the following factors is the most important in forcing U.S companies to focus on new
product development and increased productivity?
► Hyper competition page 16
► Governmental laws
► Organizational culture

Which of the following is required for a company that wants to be more flexible in adopting changes?
► Management commitment
► Contact with customers
► Technology
► More productivity
Individuals influencing an entrepreneur’s career choice and style are known as which of the following?
► Role model page 25
► Moral-support network
► Professional support network
► Support system

An entrepreneur is also successful in international business as well if he understands:
► Difference of domestic and international business page 29
► Domestic business
► International business
MIDTERM EXAMINATION
Spring 2009
MGT602- Entrepreneurship (Session - 4)
Which of the following has not yet been empirically established as a distinguishing characteristic of
entrepreneurs?
► Locus of control
► Feeling about independence
► Need for achievement
► Risk taking page 22

The level at which an individual is viewed by society is called:
► Financial status
► Qualification
► Social status page 25
► Achievement

A company dealing in beer has a merger with cigarettes manufacturing firm. This merger is called:
► Product extension merger page 33
► Market extension merger
► Vertical merger

Members of distribution channels are excellent sources for new ideas because:
► They are familiar with the needs of the market page 38
► They earn a handsome profit from new business
► They do not bother if entrepreneur bears a loss
► They have well-developed sales force

Which one of the following is the most important characteristic of a successful business websit?
► Speed page 44
► Innovation
► Graphics
► Products

Why should an entrepreneur do a feasibility study for starting a new venture?
► To see if there are possible barriers to success page 56
► To identify possible sources of funds
► To estimate the expected sales
► To explore potential customers
Which of the following is TRUE for Disclosure Document?
► It gives recognition that he was the inventor of the idea in past
► It gives recognition that he is the first the inventor of the idea page 47
► It gives recognition that he will be the invent an idea in future
► It gives recognition that he wants to copy the idea

The transitional disturbance and lack of reform has led to a booming black market in:
► China
► Hungary
► Singapore
► Poland page 38
In Poland, the transitional upheaval and lack of reform has led to a thriving black market.

Which of the following geographical area is of least interest to U.S entrepreneurs?
► Europe
► The Far East
► Central Asia page 37
► Transition economies

Which one of the following gives suggestions for new product and also help to market new products?
► Existing products and services
► Distribution channels page 38
► Federal government
► Consumers

Which of the following is used by entrepreneurs to acquire experience in an international market
before making a major commitment?
► Merger
► Joint venture page 103

GATT is established in 1947, under:
► German leadership
► French leadership
► U.S. leadership
► U.K. leadership

The entrepreneur was distinguished from capital provider in:
► Middle ages
► 18th century page 3
► 17th century
► 19th and 20th century

Which of the following shows the process of creating something new?
► Business model
► Modeling
► Innovation
► Creative flexibility

In the administrative domain, the commitment of resources is for which of the following?
► Periodic intervals
► Total amount needed page 15
► For certain tasks
► For long time

The activity which occurs when the new venture is started is called:
► Motivation
► Business skills
► Departure point page 23
► Goal orientation

Which of the followings is NOT followed in brainstorming?
► Criticism is done by the group members
► The wilder idea is better
► Quantity of ideas is required
► The session should be fun, with no on dominate the discussion

Licensing is a significant marketing strategy to:
► Use intellectual property of others
► Pirate others’ patents page 50
► Grow the business in new markets
► Control the costs

For which of the following copy right acquisition is desirable?
► Songs
► Poems
► Models
Which of the following two work environments should be good for produce the new enterprises?
► Finance and marketing 9
► Finance and R&D
► Marketing and R&D
► Marketing and IT

Which one of the following is used to identify opportunity?
► Input from customers
► Input from channel members
► Input from business associates

Which of the following factor has allowed small companies to act like they are big ones?
► Technology 21
► Customers
► Economic development
► Competition
Question No:80 ( Marks: 1 ) - Please choose one

Which of the following system is necessary for expansion or elimination of intrapreneurial units?
► Management page 19
► Evaluation
► Reward
► Training

Which of the following makes the formation of new venture difficult within a corporate culture?
► Lack of intrapreneurial talent
► Lack of freedom to make autonomous decisions
► Lack of market opportunity

Which of the following factor does not affect a person for being an entrepreneur?
► Family background
► Education
► Personal values
► Gender

A patent is granted for a specified amount of time because of the assumption:
► That during this time firm will cover its development costs
► That firm will earn a sufficient profit during this period
► To limit the monopoly of the firm
► That it will stimulate idea and development of a better product

Which of the following grants protection to owner from anyone else making, using and selling the
identified innovation?
► Utility patent 47
► Design patent
► Plant patent
► International patent

Which one of the following is the main problem for the entrepreneur in the beginning stages of
creating a new venture?
► Lack of experience
► Limited resources
► Lack of education

Which of the following is NOT studied in industry analysis?
► Economic conditions
► Technology advancements
► Organizational culture 57
► Legal concerns

Which one of the factors should be considered while assessing the location for business?
► Parking
► Access from roadways to facility
► Delivery rates

Which of the following factor is most important in forming a new business?
► Finance
► Marketing
► Government support
► Family support

Which of the following areas are preferred by women entrepreneurs?
► Administration
► Utilities
► Manufacturing
► None of the above
Which of the following is included in the description of the business?
► Location
► Products offered
► History

What is the process by which individuals pursue opportunities without regard to resources they
currently control?
► Startup management
► Financial analysis
► Feasibility planning

Which is the most common cause of business failure?
► Insufficient capital
► Unstable market
► Insufficient experience
► Poor entrepreneurship

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