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One study found that the typical minority business owner was the
 Oldest child in a blue-collar family and married.
 Oldest child in a white-collar family and married.
 Youngest child in a blue-collar family and married.
 Youngest child in a white-collar family and married.
Traditional managers are:
 Deals with mistakes and failures
 Tries to avoid mistakes and surprises
 Attempts to hide risky projects from view until ready
 None of the given Options
Entrepreneurs are:
 Moderate risk taker
 High risk taker
 Avoidance
 Both b and c
Risk decisions are often postponed until
 Hard facts can be gathered or a consultant hired to illuminate the
unknown.
 Hard facts can be gathered or an auditor hired to illuminate the
unknown.
 There is no need to gather facts and hired a consultant/auditor
 None of the given options

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_________________ is one method of stimulating, and then capitalizing on,

individuals in an organization who think that something can be done differently
and better.
 Strategic Orientation
 Capitalization
 Intrapreneurship
 Management
NAFTA stands for:
 North American Free Trade Agreements
 North Asian Free Trade Agreements
 National Asian Free Trade Agreements
 National American Free Trade Agreements
The factor______________ is probably the most prevalent reason for mergers.
 Taxation
 Economies of scale
 Inflation
 Mergers
A _____________ merger is a combination of two firms producing the same
products but selling them in different geographic markets.
 Diversified Activity Merger
 Product Extension Merger
 Vertical Merger

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 Market Extension Merger

One of the most frequent reasons an entrepreneur forms a joint venture is to
share the ________________.
 Resources
 Cost
 Cost and risk of a project
 Profit
_______________ involves having a foreign purchaser in the local market or
using an export management firm.
 Direct Exporting
 Indirect Exporting
 Management Contracts
 Turn-Key Projects
The ______________measures the payments that flow between any individual
country and all other countries.
 International Business
 Economies of Scales
 Balance of Payment
 None of the given options
________________ is an entrepreneurial type who quickly identifies new
promising business opportunities but rarely, if ever, follows through on the
opportunity to create a successful new venture.

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 Simplicity Sue
 Shotgun Sam
 Hidden Agenda Harry
 Inventor Irving
The typical _________________ has a climate and reward system that favor
conservative decision making.
 Entrepreneurship culture
 Corporate culture
 Intrapreneurial culture
 None of the given options
Female entrepreneurs normally start their venture at the age of _____________
years.
 35-45
 25-30
 20-25
 40-45
Male entrepreneurs normally start their venture at the age of____________
years.
 20-25
 25-35
 40-50
 After the age of retirement.

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The ________________ is the process through which innovation develops and

commercializes through entrepreneurial activity, which in turn stimulates
economic growth.
 Product-evolution process
 Technological innovations
 Breakthrough innovations
 None of the given options
Which of the following is NOT recognized as an important purpose of a business
plan?
 Development tool for organizational founders
 Vision and mission clarification
 Planning and evaluation guidelines
 All of the selections are recognized as important purposes of a
business plan.
All of the following are recognized as criticisms of planning EXCEPT:
 Planning may create rigidity
 Planning focuses entrepreneurs' attention on tomorrow's survival but
not today's competition
 Plans can't be developed for a dynamic environment
 Formal planning reinforces success, which may lead to failure
Which of the following is NOT recognized as a major area that should be
included in a business plan?

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 Executive summary
 Corporate culture differences
 Analysis of the opportunity
 Analysis of the context
Which of the following does NOT relate to the analysis of opportunity section of
a business plan?
 Sizing up the market by describing the demographics of the target
market
 Analyzing current and proposed and governmental rules and
regulations that might potentially have an impact on the
entrepreneurial venture.
 Describing and evaluating industry trends
 Identifying and evaluating competitors
All of the following are important elements of the financial data and projections
section of a business plan EXCEPT:
 SWOT analysis
 Projected income statements
 Break-even analysis
 Cost controls
Which of the following is NOT an important characteristic when writing a
business plan?
 Clear, realistic financial projections

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 Detailed market research

 Brief summary since the investor is more interested in the details in
the business plan.
 Proof of vision
A____________________ is a type of company formed from research and
development that usually does not go public.
 Foundation
 Life-Style Firm
 High-Potential Venture
 Both b and c
_________________ involve such things as writing, listening, oral presentations,
coaching and technical know-how.
 Business Management skills
 Personal entrepreneurial skills
 Technical skills
 None of the given options
The ___________________ means to do things in his or her own way and time.
 Need per independence
 Need for achievement
 Personal values
 Ethics

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________________ is a reason or set of reasons for engaging in a particular

behavior, especially human behavior.
 Moral value
 Act
 Motivation
 None of the options
Which of the following is NOT recognized an important component to
organizational vision?
 The vision should be built on a foundation of the organization's core
values and beliefs.
 The vision should elaborate a purpose for the organization.
 The vision should include a brief summary of what the organization
does.
 The vision should specify detailed and short-term goals.
Which of the following components of organizational vision and mission
statements tells how the organizational unit is responsive to societal,
community, and environmental issues?
 Customer
 Market
 Self-Concept
 Concern for public image

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Which of the following dimensions of organizational culture describes the

degree to which employees are expected to do their jobs with precision,
thorough analysis, and attention to detail?
 Innovation and risk-taking
 Team orientation
 Aggressiveness
 Attention to detail
Which of the following does NOT represent a method through which
organizational culture is learned?
 Stories
 Conflict
 Rituals
 Material symbols
A(n) ___________ is a form of organization in which the owner maintains
complete control over the business and is personally liable for business debts.
 Sole proprietorship
 General partnership
 corporation
 Limited liability company
A(n) _____________ is a form of business organization in which two or more
business owners share the management and risk of the business
 Limited liability company

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 General partnership
 Corporation
 Sole proprietorship
A(n) ____________ is a form of business organization in which there are general
partners and limited liability partners.
 Sole proprietorship
 General partnership
 Limited liability partnership
 Corporation
A(n) ___________ is a legal business entity that is separate from its owners and
managers.
 Sole proprietorship
 General partnership
 Corporation
 Limited liability company
A(n) ____________ is a form of legal protection for a distinctive word, name,
phrase, logo, symbol, design, slogan, or any combination of these elements.
 Trademark
 Patent
 Contract
 Procedure
Which of the following is NOT one of the three different types of patents?

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 Utility patent
 Design patent
 Plant patent
 All of the selections if a valid type of patent.
Which of the following is recognized as the most common type of patent?
 Utility patent
 Design patent
 Plant patent
 Cultural patent
All of the following are signals of potential decline in organizational
performance EXCEPT:
 Poor communication within the organization
 Intolerance of work incompetence
 Fear of conflict and taking risks
 Negative cash flow
All of the following are recognized as important people practices of successful
organizations EXCEPT:
 Employment security
 Selective hiring
 Increased status differences
 Training
Which of the following is NOT a characteristic of an effective team?

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 External support
 Clear goals
 Irrelevant skills
 Mutual trust
Following are the types of foreign direct investment EXCEPT:
 Joint venture
 Management contracts
 Management contracts
 Merger
An ice cream producing company merges with a cotton spinning company this
merger is an example of:
 Product extension merger
 Diversified activity merger
 Market extension merger
 Vertical merger
Which one of the following gives suggestions for new product but also helps to
market new product in the market?
 Existing products and services
 Distribution channels
 Federal government
 Consumers

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Which one of the following is important for international business to avoid

trade barriers?
 Protectionist attitude
 Entrepreneurial partnering
 Free trade areas
 None of the given options
Which one of the following is NOT a source of idea generation?
 Consumers
 Brain storming
 Focus group
 None of the given options
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 is NOT followed in brainstorming?
 The wilder idea is better
 Criticism is done by the group members
 Quantity of ideas is required
 The session should be fun, with no on dominating the discussion
Developing a new idea through inquiry and testing is called:

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 Heuristics
 Scientific method
 Forced relationship
 Value analysis
The product life cycle starts with which stage of product planning and
development process?
 Test marketing stage
 Product development stage
 Commercialization stage
 Product planning and development process is a part of product life
cycle
The evaluation criteria for the new product should include all of the following,
EXCEPT:
 Determination of market demand
 Pricing and marketing policies of other competing firms
 Determination of the suppliers
 Product should be profitable
Which of the following is NOT a requirement of Disclosure Document?
 Description of the invention
 Photos of invention
 Claims for invention’s usefulness
 Cover letter

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Which of the following grants the owner protection from anyone else making,
using and selling the identified innovation?
 Utility patent
 Design patent
 Plant patent
 International patent
Which of the following can NOT be covered under the copyright protection?
 Computer software
 Computer hardware
 Poems and songs
 Models and sculpture
Licensing is a significant marketing strategy to:
 Use intellectual property of others
 Pirate others’ patents
 Grow the business in new markets
 Control the costs
Which one of the following is the main problem for the entrepreneur in the
beginning?
 Lack of experience
 Lack of education
 None of the given options
 Limited resources

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Which of the following is NOT essential part of the contract?

 All the parties involved should be named
 Transaction should be described in detail
 Obtain signatures of the persons involved
 Place where contract takes place
A set of reasons for engaging in a particular behavior, especially human
behavior is known as _____________.
 Values
 Vision
 Entrepreneurship
 Motivation
Which of the following techniques is an excellent method for initially screening
ideas and concepts in addition to generating new ideas?
 Focus group
 Brain storming
 Problem inventory analysis
 Reverse brainstorming
The creative process for problem solving that involves making the strange
familiar in first step and then making the familiar strange through personal,
direct or symbolic analogy is called _________.
 Synectics
 Gordon method

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 Checklist method
 Scientific method
When the multiplicity of environments become too complex to handle, the
international entrepreneurs often __________.
 Go for mergers
 Diversify
 Decentralize operations
 Sale out the foreign business
An entrepreneur into the hosiery business found out the reason his hosiery was
not selling was due to its color. What could be the best source of this
information?
 Supplier
 Retailer
 Competition
 Government bureau
In some countries, point of purchase displays are not allowed in retail stores.
Such differences are studied by international entrepreneurs under __________
environment.
 Economic
 Political
 Cultural
 Technological

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Entrepreneurial success has been significant because of the culture and the
political and economic systems in _________.
 European countries
 Asian countries
 Transition economies
 Middle east
Having more than 50% ownership position that provides the entrepreneur with
managerial control is called ___________.
 Joint venture
 Majority interest
 Horizontal merger
 Diversified activity merger
The under-developed or lesser developed countries need manufacturing
technology and infrastructure and yet do not want to turn over substantial
portion of their economy to foreign ownership. Which of the following is a
solution to this dilemma?
 Management contract
 Indirect exporting
 Licensing
 Turn-key project
The development of a new venture based on an inventor’s work often requires
________.

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 Expertise of an entrepreneur
 Heavy investment from financers
 Skilled human resources
 Highly educated staff
The importance of intellectual property should be understood by entrepreneur
even before _________.
 Hiring a manager
 Engaging an attorney
 Developing a product
 Establishing new venture
In ________, the death of entrepreneur results in the termination of venture.
 Proprietorship
 Limited company
 Limited partnership
 Corporation
In partnership, the ability to raise capital depends on the __________ of the
business.
 Expansion
 Success
 Size
 Nature
What causes people to do something?

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 Need for achievement

 Need for independence
 Motivation
 None of the mentioned options
Individuals who help the entrepreneur in business activities
 Role models
 Professional-support network
 Parents
 None of the mentioned options
The managers in an organization strongly supporting intrapreneurship is called:
 Top management commitment
 Upper management commitment
 Lower management intrapreneur
 Upper management intrapreneur
Creativity tends to decrease with age and education
 True
 False
Arriving activity occurring when the venture is started
 True
 False
The creator is an individual who creates something new
 True

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 False
An attribute indicating the sense of control that a person has over life is called
locus of control
 True
 False
Perceived benefits /risks involve the following factors:
 Utility to customer
 Consumption habits
 Buying motives
 All of the above

Which of the following is the advantage of S CORPORATION?

 Capital gains or losses are treated as corporation’s income

 Shareholders do not retain limited liability protection

 This form may use the capital method of accounting

 Stock may be transferred to low-income-bracket family members

Which of the following is not a types of Bank Loans

 Inventory loans
 Accounts payable loans
 Equipment loans
 Real estate loans
Conventional bank loans include

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 Lines of credit
 Long-term loans

 Character loans

 All of the mentioned options

Questions:
1. Loan application is called mini business plan, comment on this statement?
2. How can entrepreneur motivate and lead the team?
3. In which circumstances entrepreneur go to SBA for loan?
4. In which ways the law is flexible for S type corporation?
5. How can entrepreneur mange the coast and profit, under consideration of
Interim income statement?
6. How should the entrepreneur take the interview from employees.
7. Which type of loans the bank will issue if entrepreneur has creditworthy
customers.
8. It is said that advertising agencies are meant for the promotional tools.
Why do you think that it is a correct statement?
9. Give a list of financial institutes that provides finance for developing of
business and industry in Pakistan.
10.How much managerial control entrepreneur has in various major forms of
business ventures.

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11.How the costs and profits may be managed by entrepreneur? Keeping in

view the importance of interm income statement.
12.What is the educational and skill level of entrepreneurs in Pakistan?
13.What are the flexibilities that the law provides to S corporations?
14.Why it is recommended that entrepreneurs should write cheques weekly?
Why should the canceled cheques be kept and maintained by the
entrepreneurs?
15.Briefly explain the procedure to avail Small Business Innovation Research
(SBIR) grant.
16.What does inventory turnover mean? How is it measured?
17.Discuss the functions of Small Industries Development Board (SIDB)
NWFP.
18.How can an entrepreneur enhance the motivation in the employees, list
down any five motivational factors?
19.What are the different reasons that lead to the failure of some business
plans?
20.What is Small Business Administration Loans? In what circumstances they
are used by entrepreneurs?
21.Suppose you are working in ABC Company as Marketing Manager. Your
company wants to launch a new venture in the Service based business.
What steps your marketing plan will include?

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