mgt602 Entreprenurship Mcqs Quiz File Final Term

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MGT602 Entrepreneurship
1
The venture's form of ownership should be included and described in the production plan section of
the business plan.
A)True
B)False
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2
Investors consider the section on description of the venture as important because they can determine
the amount of investment needed without having to read through the entire plan.
A)True
B)False
3
Most entrepreneurs have difficulty with gathering operations information and do not often know where
to begin.
A)True
B)False
4
Potential investors are not very insistent on specifications that need to be included in the business
plan.
A)True
B)False
5
The business plan is an integration of functional plans such as marketing, finance, manufacturing, and
human resources.
A)True
B)False
6
Typically business plan projections are made on a ____________.
A)bi-monthly schedule
B)quarterly schedule
C)six-month schedule
D)12-month schedule
7
The names, addresses, and resumes of the directors and officers of the corporation forms part of the
_______________ plan.
A)operations
B)organizational
C)production
D)marketing
8
A production plan usually includes:
A)pricing.
B)evaluation of the weaknesses of the business.
C)names of suppliers of raw materials.
D)flow of orders for goods and/or services.
9
Raw materials, labor skills, space and location form a part of __________ information needs.
A)marketing
B)financial
C)operations
D)planning
10
Which of the following is not among the three perspectives that should be considered in preparing a
business plan?
A)marketing perspective
B)perspective of the entrepreneur
C)investor perspective
D)technical perspective
1
If the entrepreneur closely monitors the progress of the existing plan, he or she need not be
concerned about contingencies.
A)True
B)False
2
If the market for a new venture is highly concentrated, it is advisable to consider direct sales.
A)True
B)False
3
During situation analysis, the entrepreneur should provide a review of past performance of the product
and the company.
A)True
B)False
4
While a marketing plan may enable the entrepreneur to understand and recognize the critical issues, it
may not help in the event of any change in the environment.
A)True
B)False
5
Gathering information from primary sources is the first step in market research.
A)True
B)False
6
Monitoring ___________ during the implementation of the marketing plan allows the entrepreneur to
establish controls on the process.
A)sales data
B)research data
C)consumer data
D)technical data
7
Advertising and promotion for the business-to-business market involve all of the following EXCEPT:
A)indirect sales
B)trade magazine advertising.
C)direct sales.
D)trade shows.
8http://www.vuzs.info/
What is a target market?

A)A group of customers a venture reaches by accident.
B)All consumers who purchase the venture's product.
C)A specific group of potential customers toward which a venture aims its marketing plan.
D)A chain of discount stores.
9
Which of the following is NOT a characteristic of a marketing plan?
A)It should provide a strategy.
B)It should be based on facts and valid assumptions.
C)It should be flexible.
D)It should be long and detailed.
10
Which of the following is NOT an example of collecting primary data?
A)Observation
B)Using the Internet
C)Interviewing
D)Focus groups
1
The leaders of the organization need not always consider themselves role models for their employees.
A)True
B)False
2
In an S corporation capital gains or losses from the corporation are treated as personal income or
losses.
A)True
B)False
3
The most attractive type of business formation for raising capital is partnership.vuzs
A)True
B)False
4
A sole proprietorship is dissolved in the event of the owner's death.
A)True
B)False
5
The proprietor is not personally liable for any aspects of the business.
A)True
B)False
6
The board of advisors:
A)is subject to regulations stipulated in the Sarbanes-Oxley Act.
B)has no legal status.
C)is not advisable in a family-owned business.
D)is likely to meet more frequently.
7
In a(n) ______________________, only one class of stock is permitted.
A)sole proprietorship
B)C corporation
C)S corporation
D)partnership
8
________________ distribute profits to owners through dividends.
A)Sole proprietorship
B)General partnerships
C)Limited partnerships
D)Corporations
9
In a ______________, bonds can be used to raise capital.
A)corporation
B)limited partnership
C)general partnership
D)sole proprietorship
10
The least expensive form of ownership to start is a:
A)corporation.
B)limited liability company.
C)partnership.
D)sole proprietorship.
MGT602 SOLVED MCQs (A)

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1-Writing business plan can ensure that

a) You achieve your expense projections.
b) You figure out how to make your business work.
c) You meet your target revenue goals.
d) You make a profit.
2-Your ________ is a concise communication of your strategy including your business

definition and your competitive advantage
a) Target market analysis
b) Mission statement
c) Values statement
d) Business plan
3-High-potential ventures are

a) Ventures that have high growth potential and therefore receive great investor's
interest
b) Very low growth venture
c) Small ventures that support the owners and usually do not grow
d) None of the mentioned options
4-Inner control (discipline), risk taking, innovativeness, change oriented personality are
a) Business management skills
b) Technical skills
c) Personal entrepreneurial skills
5-Proactiveness includes
a) Initiative taking
b) Risk taking
c) Competitive aggressiveness
d) All of the mentioned options
6-Some of the world's greatest entrepreneurs have overcome challenges from their
childhood and youth, including:
a) Learning disabilities
b) Extreme poverty
c) Abuse
d) All of the mentioned options
7-Entrepreneurs view change as

a) An opportunity
b) An inevitable situation
c) A problem
d) None of the above options
8-Profit is a sign that an entrepreneur has added value to the “scarce” ________ that he or
she is using.
a) Resources
b) Employees
c) Goods
d) Ideas
9-Breakthrough innovations are

a) A new product with just physical change
b) A new product with some technological change
c) Same product with some technological change
1-Combination of at least two firms doing similar businesses at the same level is:
Horizontal Merger
Vertical Merger
Product Extension Merger
Diversified Activity Merger
2-A ______________ is an entity formed between two or more parties to undertake

economic activity together.
Indirect Exporting
Joint Venture
Licensing
Entrepreneurship
3-Combination of at least two firms at different market levels is:

Horizontal Merger
Vertical Merger
Product Extension Merger
Diversified Activity Merger
-____________ is a method of developing new ideas when the individuals are unaware of
the problem.
Checklist Method
Free Association Method
Gordon Method
Scientific Method
5-A spirit of entrepreneurs must be:

Ethically influenced
Managerial
Voluntary
None of the given option
6-Most of the innovations are:

Iterative Synthesis
Ordinary Innovation
Technological innovations
Breakthrough innovations
7-The _________________ refers to the ways managers make decisions.

Administrative domain
Entrepreneurial domain
Intrapreneurial domain
All of the given options
8-Without _______________ , the organization will never be able to make the

necessary Changes.
Lower Management
Top Management
Middle Management
None of the given options
9-The companies use the technology to make itself:

Faster and Flexible
Faster and Stiff
Inflexible and rigid
10-The___________________ is the term used to describe the complete process

of bringing a new product or service to market.
Idea Stage
Concept Stage
Product Development
Test Marketing Stage
Ref: http://en.wikipedia.org/wiki/New_product_development
In business and engineering, new product development (NPD) is the term used to describe
the complete process of bringing a new product or service to market. ...
Which of the following areas are preferred by women entrepreneurs?

► Administration
► Utilities
► Manufacturing
► None of the above
Degree of influence and control on other people is called:

► Locus of control
► Locomotion of control
► Locust of control
► Loss of control
Individuals influencing an entrepreneur’s career choice and style are known as which of the
following?
► Role model
► Moral-support network
► Professional support network
► Support system
The activity which occurs when the new venture is started is called:
► Motivation
► Business skills
► Departure point
► Goal orientation
What is the process by which individuals pursue opportunities without regard to resources
they currently control?
► Startup management
► Entrepreneurship
► Financial analysis
► Feasibility planning
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
► None of the given options
Which of the following shows the process of creating something new?

► Business model
► Modeling
► Innovation
► Creative flexibility
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
► Governmental laws
► Organizational culture
There is an evidence that an entrepreneur usually has _______________ parents.

Self employed
Discouraged
Non supportive
Strict
Following are the problems in developing the economies EXCEPT:

Gap of knowledge
Variable rate of return
Same communication style
Different accounting system
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
Product planning and development process
Generally divided into five major stages: idea stage, concept stage, product development
stage, test marketing stage, test marketing stage, and commercialization stage
Which of the following is a more structured method of problem solving, including principles
and rules for concept formation, making observations and experiments, and finally
validating the hypothesis?
Scientific method
Heuristics
Attribute listing
Value analysis
Scientific method
This is a more structured method of problem solving, including principles and rules for
concept formation, making observations and experiments, and finally validating the
hypothesis.
Which of the following is used by entrepreneurs to acquire experience in an international

market before making a major commitment?
Merger
Joint venture
Minority interest
Majority interest
Which of the following plan shows the economically feasibility of business?

Business
Financial
Economic
Marketing
What are the number of questions a marketing plan usually answers?

5
2
3
4
1=What business are you in? 2=What are the priorities for the growth of your
business? 3=What are the barriers to growth? 4=What business marketing strategy,
structure and actions will accelerate the growth of your company? 5=What steps can you
take immediately to improve the effectiveness of your business marketing?
Which of the following allows the entrepreneur to establish controls on the process during
the implementation of the marketing plan?
Sales data
Research data
Consumer data
Technical data
Which of the following shows the characteristic of the venture that has experience in related
business?
Strength
Weakness
Opportunity
Threat
Advertising and promotion for the business-to-business market involve all of the following
EXCEPT:
Indirect sales
Trade magazine advertising
Direct sales
Trade shows
Which of the following shows the characteristic of the venture that has experience in related
business?
Strength
Weakness
Opportunity
Threat
In which of the following, banks are usually reluctant to give loan?

Sole Proprietor
Public Limited Companies
Partnership firm
Private Limited Companies
In which of the following majority holds the management control?

Partnership
Corporation
Limited liability company
Which of the following represents the environment in which entrepreneurship can’t grow?
Boom
Vacuum
Maturity
Introductory Phase
Its correct answer is "vacuum" because rest three are not environment rather these are
different stages of business. As the main feature of entrepreneurship is "independence”. So
in vacuum environment an entrepreneur cannot grow.
"What the entrepreneur hopes to accomplish" includes in which section of business plan?
Vision statement
Mission Statement
Goal Statement
All of the above
The description of the venture should be detailed in this section. This should begin with the
mission statement or company mission, which describes the nature of the business and
what the entrepreneur hopes to accomplish.
Which of the following shows the standard acceptable term of a Limited Liability Company?
Three
Ten
Twenty
Thirty
Page no 73
6. The standard acceptable term of an LLC is 30 years.
Which one of the following provides a guideline in determining hiring procedures?

Job description
Job specification
Job analysis
Job evaluation
Before writing the organization plan, it is helpful to prepare a job analysis. The job analysis
serves as a guide in determining hiring procedures and job descriptions and specifications.
The S corporation combines the tax advantages of which one of the following?
Proprietorship and limited liability company
Partnership and corporation
Corporation and limited liability company
Partnership and proprietorship
Page no 73
1. A popular new entity is the limited liability company (LLC), which offers similar
Advantages as the S Corporation but with more liberal tax rules under subchapter K. This form is a
partnership-corporation hybrid with the following characteristics:
Which of the following is the base of Job Advertisement?

Job Description
Job Specification
Job identification
All of the above options
Which of the following shows the results from the difference between actual cash receipts
and cash payments?
Revenue
Profit
Cash flow
Income statement
What is the primary concern of entrepreneurs, who trade equity for their growing venture?
Control
Valuation
Investor capabilities
Capitalization
When the business does not have assets to support a loan, the entrepreneur may go for
which one of the following options?
Character loan
Straight commercial loan
Installment loan
Long term loan
.Character loans.
a. When the business does not have assets to support a loan, the entrepreneur may need
a character loan.
b. These loans must have assets of an individual pledged as collateral, or have the
loan cosigned by another
Which of the following number of years a mortgage loan may possibly cover?
10
20
30
40
In which of the following techniques, money is given to a firm for developing a technology
and involves a tax shelter?
Small business administration loans
Cash flow financing
Small business innovation research grant
Research and development limited partnership
This method of financing provides funds from inventors looking for tax shelters. A
typical R&Dpartnership arrangement is established with a sponsoring company developing the
technology with funds being provided by a limited partnership of individual investors. Research and
development limited partnerships are particularly good when the project involves a high degree of risk
or significant expense.
The overall coordinating party in an agreement is:

Limited partner
Major partner not sure
Minor partner
General partner
Which of the following includes grants from the U.S. government to small technology based
businesses?
Installment loans
Page no 87
Which of the following is a formalized method for obtaining funds from private investors?
Private placement
Private offering
Regulation D
Bootstrap financing
http://books.google.com.pk/books?id=s01P0agnLPUC&pg=PA336&lpg=PA336&dq=Which+of+the+foll
owing+is+a+formalized+method+for+obtaining+funds+from+private+investors%3F&source=bl&ots=
rCMCDs_3s4&sig=lluTX1HCWjFtSAv_r4tiNO6P5l4&hl=en&ei=Fr2OS4TsFYa3rAeRotiICw&sa=X&oi=boo
k_result&ct=result&resnum=1&ved=0CAYQ6AEwAA#v=onepage&q=&f=false
When did the Sindh Small Industries Corporation launch its credit scheme?
1972-73
1978-79
1988-89
1992-93
The SSIC also launched a credit scheme in 88,/89.
Which of the following is a type of leverage ratio?
Debt ratio
Net profit margin
Return on investment
Current ratio
The mean age of entrepreneurial enterprises in Pakistan is:

12 years
15 years
20 years
22 years
Age Pattern in Pakistan:
“The mean age of entrepreneur was found to be 42 years and of their enterprises 12 years.
It is comparable to the Korean age pattern (46)”.
In most cases, the venture capitalist:

Seeks control of the company
Never expects a seat on the board of directors
Expects the management team to run the daily operations
Prefers not to interfere in planning and expertise areas
Conflicts in Management thoughts and Entrepreneur thoughts are resolved by which of the
following company?
Xerox page 16
Unilever
Walls
Volta
The entrepreneur must possess the abilities:

Creative
Conceptualization
Understanding environment
In which of the following era entrepreneur enters into a contract with government to
perform a service?
20th century
Earliest period
Middle ages
17th century
In the 17th century the entrepreneur was a person who entered into a contract with the
government toper form a service Richard Cantillon, a noted economist of the 1700s, developed
theories of the entrepreneur and is regarded as the founder of the term.
Which one of the following is a firm that achieves modest growth?

High potential growth firm
Foundation firm
Life style
Public company
In entrepreneurial domain the commitment to opportunity has short time span but in
managerial domain it is:
For 1 month
For 6 months
For long time span
For 1 year
Moral support network includes all of the following EXCEPT:

Spouses
Friends
Business associates sure
Relatives
page no 26
There is evidence that an entrepreneur usually has _______________ parents.

Self employed
Discouraged
Non supportive
Strict

Gap of knowledge
Which of the following has not yet been empirically established as a distinguishing
characteristic of entrepreneurs?
► Feeling about independence
► Need for achievement
► Risk taking
Risk Taking
Risk taking seems a part of the entrepreneurial process. However, it has not yet been
empirically
A typical inventor is usually ________________________.
► Highly creative & in love with the invention

► Does not encourage change
► Willing to modify the invention in order to augment commercial benefit
The level at which an individual is viewed by society is called:
► Financial status
► Qualification
► Social status
► Achievement
An individual’s need to be recognized is called:
► Need for independence

► Need for affiliation
► Need of fame
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
The concept of World Wide Web pages was developed in:
► 1960s
► 1970s
► 1980s
► 1990s
How many perspectives should be considered while preparing business plan?
► One
► Three
► Four
► Not specific
Which one of the following can be registered under design patent?
► New product
► Original product
► Ornamental
► All of the given options
Which of the following is a characteristic of a good partner?
► Help to achieve goals

► Share entrepreneur’s vision
► Do not exploit the partnership
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
Most of the finance for the new firm comes from following resources EXCEPT:
► Friends
► Foreign aid
► Relatives
► Personal savings
Which one of the following receives highest investment?
► Public company
► Life style
► High potential venture
► Foundation firm
Which of the following is a second step in the entrepreneurial process?

► Developing successful business ideas
► Deciding to become an entrepreneur
► Growing the entrepreneurial firm
► Moving from an idea to an entrepreneurial firm
Which of the following is NOT included in the opportunity evaluation process?
► Length of the opportunity

► Real and perceived value of opportunity
► Goals and objectives of customers
► Risks and rewards of opportunity
Which one of the following is true regarding female entrepreneurs?
► Currently the number of companies owned by female entrepreneurs exceeds those

owned by their male counterparts
► Women-owned businesses grow thrice that national rate for all private companies
► 53 percent of all private companies are women-owned businesses
► One-third of women-owned businesses are connected with health care and
social services
In terms of chronological age, most entrepreneurs initiate their entrepreneurial carrier

between ages of:
► 15 and 22
► 22 and 45
► 45 and 57
► 57 and 63
It has been observed that usually the entire country is organized under single:
► Economic system
► Culture
► Living standard
► Legal environment
Following are the types of non-equity arrangements EXCEPT:

► Licensing
► Management contracts
► Direct export
► Turnkey projects
Which of the following abilities must be possessed by an entrepreneur?
► Creative
► Conceptualization
► Understanding environment
An individual’s desirability to form a new venture depends upon all of the following Except:
► Culture
► Family
► Teachers
The perception that starting a new company is desirable results from an individual’s
culture, subculture, family, teachers and peers.
Identify the type of innovation which refers to new products with significant technological
advancement.
► Ordinary innovation
► Technological innovation
► Breakthrough innovation
► Technical innovation
• Most innovations introduced in the market are ordinary innovations, with little
uniqueness. • Technological innovations refer to new products with significant
technological advancements. • Breakthrough innovations mean the development of new
products with some technological change
“Management of enterprise” is an important aspect of entrepreneurial process. Which

involves all of the following EXCEPT:
► Implementation of a management style
► Determination of key variables for success
► Implementation of control system
► Creation of opportunity
Which of the following is NOT a goal of an Intrapreneurial culture?

► To take responsibility and ownership
► To be rewarded for actions taken
► To develop visions, goals, and action plans
► To follow given instructions
The guiding principles of intrapreneur
1. Develop visions, goals, and action plans
2. Be rewarded for actions taken
3. Suggest, try, and experiment
4. Create and develop
5. Take responsibility and ownership
Which of the following best defines “minority interest”?

► It refers to having less than 50 percent ownership position
► It refers to forming a third company by combining two companies
► It refers to having more than 50 percent ownership position
► It refers to selling goods made in one country to another country
Which of the following is an idea generation method that focuses on parameters?

► Brainstorming
► Reverse brainstorming
► Creative problem solving
► Synectics
Question No: 31 ( M - 1 ) .
Which of the following best describes “contract”?
► It refers to a legally binding agreement between two parties
► It grants holder protection from others making, using or selling similar idea
► It may be a word, symbol, design or some combination that identifies the source of
certain goods
► It refers to a legal document giving official permission to do something
There are three perspectives that should be considered when preparing the plan. Which of
the following does NOT refer to the plan?
► Entrepreneurial perspective
► Marketing perspective
► Investor’s perspective
► Religious perspective
The entrepreneur understands the new venture better than anyone. The marketing
perspective considers the venture through the eyes of the customer. The investor looks for
sound financial projections. The depth of the business plan depends on the size and scope of
the proposed venture. The business plan is valuable to the entrepreneur and investors
because:
Business plan should be prepared by an entrepreneur. All of the following should be

consulted while preparing this plan EXCEPT:
► Lawyers
► Accountants
► Marketing consultants
► General public
WHO SHOULD WRITE THE PLAN
The business plan should be prepared by the entrepreneur; however, he or she may consult
many sources. Lawyers, accountants, marketing consultants, and engineers are useful
supplemental sources. Other resources are the Small Business Administration, Service Core
of Retired Executives, Small Business Development Centers, universities, friends, and
relatives. To help determine whether to hire a consultant, the entrepreneur needs to make
an objective assessment of his or her own skills.
Data that support the opportunity for the venture should be briefly stated in the executive
summary. If this venture is an internet business, all of the following facts should be stated
by an entrepreneur EXCEPT:
► Growth in the number of internet users
► Growth in the average amount of time spent on the internet
► Growth in sales dollars generated on the internet
► Growth rate of population
Which one of the following can serve entrepreneur as a consultant of the business plan?
► Lawyers
► Accountants
► Marketers
► Highly creative & in love with the invention

► Does not encourage change
► Willing to modify the invention in order to augment commercial benefit
Inventor
An individual who creates something new
Being one’s own boss is a need of:
► Independence
► Achievement
► Affiliation
► Authority
Need for independence. Being one’s own boss-one of the strongest needs of an
entrepreneur
The difference between the value of a country’s imports and exports over time is called:
► Deficit exports
► Deficit imports
► Balance of payment
► Balance of debt
Ref: http://en.mimi.hu/business/exports.html
The difference between the value of a country's imports and exports during a specific period of times
called the balance of trade.
A/an ______ is an online connection between the company and its customers.
► Internet advertising
► Website
► E-Commerce
► World Wide Web
Website A website is an online connection between the company and its customers and can
be developed in-house or outsourced. There are several important features of every
website.
Which of the following grants protection to owner from anyone else making, using and
selling the identified innovation?
► Utility patent
► Design patent
► Plant patent
► International patent
1. Utility Patents
A utility patent has a term of 17 years, beginning on the date the Patent and Trademark Office (PTO)
issues it. NAFTA (North American Free Trade Agreement) establishes a minimum period of 20 years.
The patent grants the owner protection from anyone making, using, and/or selling the invention.
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
To maintain secrecy
1. Train employees to refer sensitive questions to one person.
2. Provide escorts for all office visitors.
3. Avoid discussing business in public places.
4. Use simple security such as locked file cabinets and shredders.
Who should prepare the business plan?
► Entrepreneurs
► Consultants
► Engineers
► Small business administration services
A business plan is a written document prepared by the entrepreneur that describes all the
relevant external and internal elements involved in starting a new venture.
Which of the following body issues patents?

► GATT
► NAFTA
► FTA
► PTO
Patents are issued by the Patent and Trademark Office (PTO.)
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
Generally divided into five major stages: idea stage, concept stage, product development
stage, test marketing stage, test marketing stage, and commercialization stage
Which one of the following gives suggestions for new product and also help to market new
products?

► Consumers
Distribution Channels Because they are familiar with the needs of the market, channel
members often have suggestions for new products. These channel members can also help in
marketing the new product.
Trade barriers cause:
► Increase in cost
► Decrease in cost
► Increase in profit
Trade barriers pose problems for entrepreneurs who want to become involved in
international business. Trade barriers increase the costs of exporting projects to a country.
A person who managed large project was termed as the entrepreneur in the _________.
► Earliest period
► Middle ages
► 17th century
► 19th and 20th century
Middle Ages
In this age the term entrepreneur was used to describe both an actor and a person who
managed large production projects.
Which of the following is NOT a potential cost of becoming an entrepreneur?
► Financial reward
► Long hours
► Financial insecurity
► Loneliness
Factors contribute to the creation of new venture EXCEPT:
► Government
► Finance
► High interest rates
► Role models
Most of the finance for the new firm comes from following resources EXCEPT:
► Friends
► Foreign aid
► Relatives
Conceptualized entrepreneurship as a process by which individuals - either on their own or
inside organizations - pursue opportunities without regard to the resources which they
currently control.
Which of the following is NOT included in the opportunity evaluation process?
► Length of the opportunity

► Real and perceived value of opportunity
► Goals and objectives of customers
► Risks and rewards of opportunity
a. The evaluation process involves looking at

b. The creation and length of the opportunity
c. Its real and perceived value
d. Its risks and return.
e. It’s fit with the skills and goals of the entrepreneur
f. Its differential advantage in its competitive environment
Which is the most common cause of business failure?
► Insufficient capital
► Unstable market
► Insufficient experience
► Poor entrepreneurship
In which one of the following countries the entrepreneurial success has been significant
because of the culture, the political and economic systems?
► European countries
► Asian countries
► Far East countries
► Middle East countries
Page 37 Entrepreneurial success in some Asian countries has been significant because of the
culture and the political and economic systems.
► Spouses
► Friends
► Business associates
► Relatives
Moral support network of family and friends. Most entrepreneurs indicate that their spouses are
their biggest supporters. Friends can provide advice that is more honest than that received from
others, plus encouragement, understanding, and assistance. Relatives can also be sources of moral
support, particularly if they are also entrepreneurs.
Professional support network includes all of the following EXCEPT:
► Personal affiliations
► Mentor
► Trade associations
► Friends
Page 26 read Professional-Support Network
The former USSR received technology and syrup from Pepsi and provided it with Soviet
vodka and rights to distribute it in the US. This is an example of:
► Economic development
► Barter system
► International trade
Type of System Barter or third-party arrangements have been used to increase
business activity with the Commonwealth of Independent States, the former U.S.S.R.
__________ is prepared on the bases of levels of the internal structure of the business.
► Organizational Plan
► Production Plan
► Marketing Plan
► Financial Plan
The organizational plan section should describe the venture’s form of ownership. If the
venture is a corporation, this should include the number of shares authorized, share
options, and names and addresses of the directors and officers. It is helpful to provide an
organization chart indicating the line of authority. This chart shows the investor who
controls the organization and how members interact.
Which of the following abilities must be possessed by an entrepreneur?
► Creative
► Conceptualization
► Understanding environment
Whi
ch of the following is NOT a guiding principle in a traditional corporate culture?
► Follow given instructions
► Take responsibility and ownership
► Do not take initiative
► Do not make mistakes
The guiding principles in a traditional corporate culture are:
1. Follow instructions given 2. Do not make mistakes 3. Do not fail 4. Do not take initiative 5. Stay
within your turf and protect your backside 6. This restrictive environment is not conducive to
creativity, flexibility, and risk taking
In order to minimize the negative effect of any disruption in an organization, which of the
following characteristics an intrapreneur must possess?
► He should be diplomatic
► He should be conservative
► He should be autocratic
► He should be authoritative
PAGE 20
The intrapreneur must be a good diplomat to minimize disruption.
According to research, when do the female entrepreneurs tend to start their first significant
venture?
► In their mid 20s
Which of the following best defines “horizontal merger”?

► It refers to combining at least two firms doing similar businesses at the
same market level
► It refers to forming a third company by combining two companies
► It refers to having more than 50 percent ownership position
► It refers to combining at least two firms at different market levels
Horizontal merger
Combination of at least two firms doing similar businesses at the same market level
Which of the following is an example of rising number of women entrepreneurs in China?

► Guau Guarymei
► Wataru Ohashi
► Kazuhiko Nishi
► Li Ka-Shing
Identify the statement which best defines “checklist method”

► It refers to developing a new idea through a list of related issues
► It refers to a group method for obtaining new ideas focusing on the negative
► It refers to a method for individuals to solve problems through one of four
mechanisms
► It refers to a method for developing new ideas when the individuals are unaware of
the problem
Checklist method
Developing a new idea through a list of related issues is checklist method of problem solving.
Which of the following best describes “contract”?

► It refers to a legally binding agreement between two parties
► It grants holder protection from others making, using or selling similar idea
► It may be a word, symbol, design or some combination that identifies the source of
certain goods
► It refers to a legal document giving official permission to do something
Contract is an agreement between two or more parties, that if it contains the elements of a valid
legal agreement is enforceable by law[1] or by binding arbitration. That is to say, a contract is an
exchange of promises with a specific remedy for breach.
Which of the following is the title or cover page that provides a brief summary of the
business plan’s content?
► Introductory page
► Executive summary
► Environmental and industry analysis
► Description of venture
PAGE 57
The title page provides a brief summary of the business plan’s contents,
MGT602 Solved MCQs by Asim,SalmanAsif A
View Comments
ALL NEW QUIZES DATA

SOLVED BY 4 MAD’s GROUP
TEAM: SALMAN ASIF, ASIM, AYESHA, AMNA
1. Good entrepreneurs are usually from families which are:

Landlords
Capitalists
Can be from any family with supportive parents
Conservative parents
2. GATT is established in 1947, under:
Japan leadership
China leadership
U.S. leadership
U.K. leadership
3. The person with capital was differentiated from the one who needed the
capital in the:
Middle ages
17th century
18th century
20th century
4. Which of the following number of years a mortgage loan may possibly
cover?
20
30
10
40
5. __________ aim to facilitate direct contact between the manufacturers
and distribution channels members
Personal selling
Direct selling
Trade shows
Publicity
6. The combining of two or more independent bodies into a single body is
known as:
Joint venture
Merger
Rivalry
Protectionist attitudes
7. Banks are usually reluctant to give loan to the
Partnership firm
Sole Proprietor
8. Normally sponsor links are used in which of the following type of
promotion?
Publicity
Trade shows
Personal selling
Internet advertising
9. Which of the following are the key factors for choosing the type of
financing?
Availability of funds
Assets of the venture
Prevailing interest rates
10. Investors usually prefers the income statement which projects the sales
volume of _____ years
1
2
3
4
11. In which of the following year implementation of SBA Financial plan took
place?
1971
1972
1973
1974
12. In which of the following business, the records are needed to be
maintained on the basis of monthly charges paid by the customers?
Pharmaceutical
Service venture
Online venture
Auto industry
13. 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
14. SIDB was established for the province of __________.
NWFP
Sindh
Punjab
Balochistan
15. Which one of the following culture that has a climate and reward system
that favor conservative decision making?
Entrepreneurial
Intrapreneurial
Corporate
16. LMM stands for:
Locally Manufactured Machinery
Locally Manufactured Marble
Local Marble Market
Local Meat Market
17. Which one of the following is NOT an external factor?
New regulations
Competition
Social changes
Manufacturing
18. What can be the effect on cash flows due to delays in payments by the
clients?
Positive cash flows
Negative cash flows
No effect on cash flows
19. Which of the following is independently owned and operated and not
dominant in its field of operation?
Diversified Organization
International Business
Small Business
Entrepreneurship
20. __________ is commonly used to measure the short-term solvency of the
venture?
Debt to equity ratio
Current ratio
Profitability ratio
Activity ratio
21. A ______ is also essential if a new venture is a manufacturing concern.
Market analysis
Operations plan
Bank loan
Organizational plan
22. In which rule under ‘Regulation-D’, a company can sell up to $500,000 of
securities to any number of investors in any 12-month period?
Rule 502
Rule 503
Rule 504
Rule 505
23. A marketing Plan answers the _______ types of questions
1
2
3
4
24. All of the following are essential 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
25. Which one of the following method shows the term which is related to
starting from scratch to a bigger picture?
Upward movement method
Incremental method
Downward movement method
None of the above options
26. Which type of Job analysis enlists the qualification of individual?
Job Description
Job Specification
Job identification
27. Which of the following factor can create the managerial difficulties in the
joint ventures between foreign companies?
Cultural differences
Economic policies
Public ignorance
Government taxes
28. In which of the following situation the company is considered to be on
breakeven point?
No Profit no lose
Profits are higher then expenses
Expenses are higher then profits
29. Which one of the following is a method for obtaining new ideas and
solutions by focusing on problems?
Product inventory analysis
Gordon method
Checklist method
Scientific method Final Term File
30. Which of the following is NOT an advantage of the acquisition?
Goodwill
Skilled employees
Favorable location
Political instability
A marketing Plan answers the _______ types of questions

Select correct option:
Which one of the following plans should contain control points to ascertain progress and to initiate
contingency plans if necessary?
Financial plan
Marketing plan
Business plan
Operational plan
Which of the following section of business plan provides complete overview of the product, service and
operations of a new venture?
Production plan
Marketing plan
Description of venture
Industry analysis
Which of the following business size has lot of adjustment capacity against the changes?
Small
Middle
Large
High growth
Which one of the following contracts should be in written?
Real estates
Lease
Rentals
The members of the board should be carefully selected by considering which of the following criteria?
Select individuals who can work with a diverse group and will commit to the venture’s mission
Select candidates who understand the market environment
Select candidates who will show good judgment in business decision making
“Decide what general market or industry you wish to pursue” is the first step of:
Segmentation
Saturation
Marketing plan
Marketing system
Which of the following term describes the situation of two or more firms that offer essentially the same
good or service in the market?
Direct channel
Indirect competition
Direct competition
Indirect exports
Job description should include all of the following EXCEPT:
The major duties relevant to a particular job

Expected performance standards
The equipment needed by the worker
An evaluation of the worker’s personal needs
Which of the following business form has advantage of no capital stock tax or penalty for retained
earnings in the business?
Proprietorship
Corporation
S corporation
A short-term, internal source of funds can be obtained by reducing all of following EXCEPT
Short-term assets
Cash
Fixed assets
Inventory
Which form of the business has the most freedom in terms of selling one’s interest in the business?
Sole proprietorship
Partnership
Corporation
S Corporation
SBA provides:
Finance without interest
Finance with interest
Guarantees for getting loans
Financing up to 90 % of principal amount

In USA Public Limited Companies may have ______ Director/s
On the part of entrepreneur which of the following has/ have a great concern to the Investors
Experience
Commitment
Knowledge
All of the above
On which of the following factors the death or withdrawal of a limited partner has no effect?
Continuity of the business
Cost of the business
Ownership of the business
Growth of the business
Before leaving his job as a brand manager for a leading toy manufacturer in France, John smith was
asked to update his __________,including the job’s objectives, type of work he did and other
responsibilities.
Job analysis
Job description
Job specification
Job evaluation
SBIR grant program is controlled by:
10 Agencies
11 Agencies
12 Agencies
13 Agencies
Equipment can be used to secure long term financing, usually on a ______ basis.
1 to 2 years
3 to 6 years
3 to 10 years
4 to 5 years
Targeting the market consists of ______ Procedures
4
Corporations generally possess not more than two of the following four characteristics: (1) limited liability,
(2) centralized management, (3) one time taxation, and (4) least expensive to start. The two
characteristics most likely to be absent in corporations are __________.
Limited liability and centralized management
Centralized management and one time taxation
Centralized management and least expensive to start
One time taxation and least expensive to start
Before setting the product price, which of the following elements the entrepreneur needs to consider?
Costs
Markups
Competition
All of the above
From which of the following R & D limited partnerships provide funds to entrepreneurs in high technology
fields?
Equity contribution from investors
Debt from lenders
Cash from company operations
Investors looking for tax shelters
Which of the following is the most important for the entrepreneur, while starting a new venture, to make
an assessment of?
Risk
Profit
Market
Competitors
Which of the following is used to finance floor plans of retailers such as automobile and appliance
dealers?
Line of credit
Trust receipt
Accounts receivable
Real estate
Which of the following is NOT an example of gathering data from secondary sources?
Trade magazines
Newspaper
Government agencies
Focus group
Which of the following financing does not require any collateral and offers the investor some form of
ownership position in the venture?
Commercial bank loan
Line of credit
Equity
Character loan
Corporation has______ Taxation system
No
Triple
Single
Double
Which of the following section of business plan provides complete overview of the product, service and
operations of a new venture?
Production plan
Marketing plan
Description of venture
Industry analysis
Which of the following statement is calculated from projected revenues minus projected costs?
Pro forma income
Pro forma expense
Pro forma revenue
Pro forma sales
Which of the following is a major disadvantage of the corporate form of business?
Double taxation of dividends
Limited liability of shareholders
Transferability of interest
Inability of the firm to raise large sums of additional capital
In which of the following royalty partnership and joint venture are used to reap the benefits of the effort?
Funding stage
Development stage
Growth stage
Exit stage
Which one of the following best describes the flow of goods and services from production to the
customer?
Organizational plan
Marketing plan
Operations plan
Financial plan
Which of the following is included in the description of the business?
Location
Products offered
History
Which statement of the following relates with the ultimate goal of Business
Profit Statement
Goal Statement
Mission Statement
Vision Statement
Which of the following factors can be directly influenced or controlled?
Economy
Material price
Inflation
Fuel price
Banks are usually reluctant to give loan to the

Partnership firm
Sole Proprietor
Investors usually prefer the income statement which projects the sales volume of _____ years
Which one of the following responds to the question of: “Where do we want to go?” and specify things
such as market share, profits, sales, market penetration etc.?
Marketing goals and objectives
Mission statement
Vision statement
Market strategy and action programs
Which variable of the following has the critical decisions of media alternatives, message, role of personal
selling, media budget and coupons, etc?
Product
Price
Channel of Distribution
Promotion
What is the primary concern of founders who trade equity for capital for their growing
venture?
Capitalization
Valuation
Control
All of the following are the major components of any research and development partnership EXCEP
Contract
Sponsoring company
Tax shelter
Limited partnership
Profit Statement
Goal Statement
Mission Statement
Vision Statement
LLC is more flexible than
S Corporation
Limited Partnership
Sole Proprietor
All of the above

On the part of entrepreneur which of the following has/ have a great concern to the
Investors
Experience
Commitment
Knowledge
All of the above

MGT602 – Entrepreneurship
Quiz No.4 FEB 02, 2013
Idea of new product is tested in potential consumers to determine consumer

acceptance at _________ stage.

Concept (Right Answer)
Product development
Test marketing
Commercialization
Which of the following is NOT followed in brainstorming?

Criticism is done by the group members (Right Answer)
The wilder idea is better
Quantity of ideas is required
The session should be fun, with no on dominating the discussion
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 (Right Answer)
Which one of the following depends on the type of production system but is
designed to make sure that the product performs satisfactorily?
Inventory control
Quality control
Sales control
Production control (Right Answer)
The most important characteristic of a successful business website is::

Speed (Right Answer)
Innovation
Graphics
Products
Which of the following is used as most common approach to gather market

information?
Interviewing
Focus group (Right Answer)
Questionnaire
Observation
Which one of the following has the critical decisions of materials, style,
features, options, brand name, packaging, sizes and warranties?
Product
Price
Channel of distribution (Right Answer)
Promotion
Real estates
Lease
Rentals
All of the given options (Right Answer)
Which one of the following best describes the flow of goods and services from
production to the customer?
Organizational plan
Marketing plan
Operations plan (Right Answer)
Financial plan
Customers may sometimes prefer to do business with a corporation because

of its:
Long time Continuity (Right Answer)
Double taxation
Centralized Management
Distribution of profits and losses
Which of the following should consider in economy while conducting

environmental analysis?
GNP (Right Answer)
Disposable income
Unemployment
The marketing perspective of business plan considers the venture through the
eyes of:
Investor
Customer(Right Answer)
Entrepreneur
Marketing manager
Which one of the following is the method of developing new idea through a
thought process progression?
Synetics (Right Answer)
Heuristics
Forced relationships
Value analysis
Which one of the following plans should contain control points to ascertain
progress and to initiate contingency plans if necessary?
Financial plan(Right Answer)
Marketing plan
Business plan
Operational plan
Which of the following includes duties, purpose, responsibilities, scope and

working conditions of a job along with the job’s title and the designation of the
person to whom the employee reports?
Job design
Job specification
Job description(Right Answer)
Job analysis
The importance of intellectual property should be understood by entrepreneur

even before:
Hiring a manager
Engaging an attorney (Right Answer)
Developing a product
Establishing new venture
Which of the following form of business has no double taxation system?

Proprietorship
Partnership
S corporation
All the given options (Right Answer)
Which of the following is not considered a mode of conducting interviews?
By telephone
Face to face
Online
Newspaper (Right Answer)
Which one of the following is the systematic assembly of all the facts about a
job?
Job Specification
Job Description
Job Identification
Job Analysis
Which of the following is/are used by successful ventures to focus on
information about competitors, the customers and the industry
Networking
Trade associations
Recent publication
All of the above
1
2
Which one of the following is NOT an external factor?
New regulations
Competition
Social changes
Manufacturing
Which of the following should be considered in economy while conducting

environmental analysis?
GNP\
Disposable income
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
Which one of the following plans should contain control points to ascertain
progress and to initiate contingency plans if necessary?
Financial plan
Marketing plan
Business plan
Operational plan
Real estates
Lease
Rentals
The members of the board should be carefully selected by considering which

of the following criteria?
Select individuals who can work with a diverse group and will commit to the
venture's mission
Select candidates who understand the market environment
Select candidates who will show good judgment in business decision making
A short-term, internal source of funds can be obtained by reducing all of

following EXCEPT
Short-term assets
Cash
Fixed assets
Inventory
SBA provides:
Finance without interest
Finance with interest

Guarantees for getting loans
Financing up to 90 % of principal amount

1
2
On the part of entrepreneur which of the following has/ have a great concern
to the Investors
Experience
Commitment
Knowledge
All of the above
Before leaving his job as a brand manager for a leading toy manufacturer in
France, John smith was
SBIR grant program is controlled by:

10 Agencies
11 Agencies
12 Agencies
13 Agencies
2
3
4
Before setting the product price, which of the following elements the
entrepreneur needs to consider?
Costs
Markups
Competition
All of the above
Which of the following is the most important for the entrepreneur, while
starting a new venture, to make an assessment of?
Risk
Profit
Market
Competitors
Why should an entrepreneur do a feasibility study?

To see if there are possible barriers to success
To identify possible sources of funds
To estimate the expected sales
To explore potential customers
Which of the following is used for calculating the financial projections to

assess the impact of different scenarios?
Inventory management program.
The Internet.
Spreadsheet program.
Graphics program.
Which of the following information is included in industry analysis?
Market size
Suppliers
Economic conditions
All the given options
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
Checklist method
Scientific method
The business plan should be prepared by:

Entrepreneurs
Consultants
Engineers
Small business administration services

Which of the following is the most frequently used source of short term funds
when collateral is available?
SBA loans
Commercial bank loans
R & D limited partnership
SBA microloans
Which type of business form has least perpetual life?
Partnership
Sole proprietorship
Limited liability Company

Corporation
Which type of Job analysis enlists the qualification of individual?
Job Description
Job Specification
Job identification

It should be flexible
It should be long and detailed
It should be based on facts and valid assumptions
It should provide a strategy
Which of the following plans help to provide an organization chart indicating

the lines of
authority?
Physical
Business
Organizational
Marketing
On the part of entrepreneur which of the following has/ have a great concern
to the
Investors
Experience
Commitment
Knowledge
All of the above
Which of the following techniques is an excellent method for initially screening
ideas and
concepts in addition to generating new ideas?

Focus group
Problem inventory analysis
Brain storming
Reverse brainstorming
Which of the following is the previous name of SME?
SPCC
SMEDA
SBFC
FMBC
Developing a new idea through inquiry and testing is called:
Heuristics
Forced relationship
Scientific method
Value analysis
Which of the following term is used to identify, "what the

job holder does"? "How it is done"? & "why it is done"?
A. Job specification
B. Job evaluation
C. Job description
D. Job title
MGT501- Human Resource Management (Session - 5)
Organizational Behavior is a study of investigating the impact of:

► Employees' behavior in an organization
► Societal behavior on an organization
► Country's culture on an organization
► Country's economy on an organization
Which of the following term is used to identify, "what the job holder does"? "how it is
done"? & "why it is done"?
► Job specification ► Job evaluation ► Job description ► Job title
Which of the following term is used to identify the physical & mental skills, required
to perform by an individual within a particular position in an organization?
► Job title ► Job specification ► Job description ► Job evaluation
Jobs are compensated on the basis of:
► Job analysis ► Job specification ► Job worth ► Job description
_______________ is the main source of innovations.
► Upgraded technology ► Human mind

► Competitors' pressure ► Research & Development
Which of the following HR function is the basic element of recruitment?

► Attract the job applicants for the particular post
► Select the best one among all applicants
► Train the people as per organizational requirements
► Fire the non-performing employees
“A person is known by the company he/she keeps”; is well described by which of the
term?
► Prejudice ► Stereotype ► Introversion ► Extroversion
Terms "Interpersonal skills" and "Human skills" are used for:

► Two different skills ► Different managerial skills
► Operational skills ► Same managerial skills
Which of the following abilities are categorized as the Technical skill of an individual?
► Judgment & creativity ► Analysis & communication
► Knowledge & proficiency ► Innovation & advancement
The intellectual & mechanical process used by an organization to transform inputs

into outputs is termed as:
► Task ► People ► Structure ► Technology
Under which of the following authority, an HR manager took the decision to provide
training to its employees regarding the operations of newly installed machine?
► Staff ► Functional ► Line ► Implied
Which one of the following is NOT the benefit of making teams?
► Every member is mutually accountable within a team

► Teams enable organizations to better utilize employees' talents
► Teams create trust and a collaborative culture
► Teams always perform better than individuals in all situations
Which one of the following is NOT the characteristic of a Virtual Team?
► Lack of nonverbal signals ► Limited social contact

► Increased social relationship
► Ability to overcome time and space constraints
Which of the following functions of HRM deals with 'Collective Bargaining'?

► Staffing ► Forcasting
► Employee-assistance management
► Employee-relations management
'There is no need to make any new appointment'; therefore, the organization has
transfered Mr. Azam to another branch. This step of the organization is taken to:
► Increase the labor supply than demand
► Maintain the balance of labor supply and demand
► Decrease the labor supply than demand
► Devastate the balance of labor supply and demand
A test conducted to ensure the biological fitness of an individual by identifying the

presence of any inherited diseases like diabetese, heart diseases, neurological
disorders etc, is termed as:
► Hereditary testing ► Gene testing ► Instinct testing ► Genetic testing
Which of the given employment testing approach requires individuals to perform

activities similar to those they might encounter in an actual job?
► In-basket technique ► Role playing ► Interview simulations► Case study
According to which of the following interview type, several applicants are being
interviewed by one or more company representatives?
► One-to-one interview► Panel interview ► Group interview►Stress interview
Question No: 19 ( Marks: 1 ) - Please choose one

'Material wastage has increased to greater extent due to using outdated machinery'.
This issue can be resolved by:
► Train machine operators regarding its operations
► Replacing the existing machinery with the new one
► Using new raw material in production
► No action is required as it is not a noticeable issue
Previous company records & customer satisfaction surveys may serve as a source
for:
► Cultivating learning culture within the organization
► Determining deficiencies that require training
► Developing career development plans for employees
► Identifying training outcomes through evaluation
Evaluation of training program is conducted:

► At the initial stage while design a training ►Prior to need assessment phase
► Parallel to design a training content ► At the last stage of training
HR managers play vital role in:

► Setting production targets ► Formulating strategies
► Publishing financial statements ► Preparing reports for shareholders
Which of the following are the groups of social nature that are formed around
friendship and common interests?
► Formal ► Structured ► Informal ► Unstructured
Initially the personnel department was only involved in:

► Recruitment & selection ► Compensation & benefits
► Training & development ► Scheduling vacations
'Career counseling' is part of which of the following functions of HRM?

► Compensation & benefits ► Planning & selection
► Training & development ► Maintainence of HRIS
'Fair employment legislation' is applicable to which of the following?

► Collective bargaining ► Planning & selection
► Training & development ► Grapevine network
Which one of the following is NOT included in 'Training and Development'?

► Orientation ► Career development ► Employee education ► Recruitment
Jamal Enterprises' top management refused to consider its female marketing

manager for the post of Vice President. This action of the company is representing
which of the following?
► Gender discrimination ► Legal consideration
► Reverse discrimination ► Glass ceiling effect
The process of discovering potential candidates for actual or anticipated

organizational vacancies is known as:
► HR planning ► Job analysis ► Recruitment ► Selection
The hiring process comprises which of the following steps?

► Selection, Recruitment & performance appraisals
► Recruitment, Selection & Socialization
► Selection, Orientation & Development
► Job analysis, Selection & Training
Which of the following defines the process of 'Recruitment'?
► Forecasting the demand of human resources
► Forecasting the supply of human resources
► Discovering potential job candidates for a particular position
► Making a “hire” or “no hire” decisions
The number of people hired for a particular job compared to the number of
individuals in the applicant pool is often expressed as:
► Application ratio ► Recruitment ratio ► Selection ratio ► Employment ratio
The extent to which an employment selection test provides consistent results is

known as:
► Reliability ► Dependability ► Consistency► Trustworthiness
Which of the following test indicates the person’s inclination towards a particular
occupation that provides satisfaction to that individual?
► Vocational interest test ► Cognitive aptitude test

► Personality test ► Psychomotor abilities test
All of the following areas are covered in an employee orientation program, EXCEPT:
► Organizational history ► Employee benefits

► Organizational issues ► Organizational politics
Which of the following term reflects the process of preparing organizational people
according to the future needs?
► Learning ► Training ► Development ► Need analysis
Which of the following term best represents the individuals who have interests in an
organization and are influenced by it?
► Workforce ► Stakeholders ► Customers ► Stockholders
Mr. Ahmed was working as a computer operator, but he was unable to work in Ms
Excel with the required speed. Due to this reason management has forcefully retired
him & appointed a new person to replace him, the company is said to be indulged in:
► Rightsizing ► Affirmative action ► Downsizing ► Discrimination
“Self-motivated & result oriented individuals with sound knowledge of combined
cycle gas turbine power plant operations and practical experience of mechanical,
electrical and I&C maintenance of plant.”
This section of job advertisement represents which of the given term?
► Job analysis ► Job description ► Job specification ► Job evaluation
Which of the following statement represents "effectiveness"?
► Achieve most output in less time ► Achieve mass production

► Achieve most output with least input ► Achieve organizational goals
How hesitation among newly hired employees can be eliminated through socialization
within an organization?
Socialization: In order to reduce the anxiety that new employees may experience,
attempts should be made
to integrate the person into the informal organization.
HRM department can conduct the orientation in order to socialize

the newly hired employees with the working environment of the organization. HRM
plays
a major role in new employee orientation-the role of coordination, which ensures
that the
appropriate components are in place. In addition HRM also serves as a participant in
program. As job offers are made and accepted, HRM should instruct the new
employee
when to report to work. However, before the employee formally arrives, HRM must
be
prepared to handle some of the more routine needs of these individuals.

Permalink Reply by + M.Tariq Malik on May 10,
2012 at 5:52pm
J Solved by umair sid J
MGT501- Human Resource Management
Which of the following defines the levels of authority to perform the assigned tasks?
►Labor union►Competitor's threat► Organizational structure Pressure group
The actions of people at work place are studied under which of the following
discipline?
► Psychology ► Organizational behavior ► Sociology ► Anthropology
Job specification is a statement that represents:
► Required skills ► Specific qualification

► Personality traits ► All of the given options
'Job specification' is said to be an outcome of which of the given term?
► Job analysis ► Job title ► Job evaluation ► Job worth
► Job analysis ► Job specification ► Job worth ► Job description
Which of the following is served as criteria for declaring a particular job as worth-
full?
► Physical motion ►Significance of task ►Mental stress►Long working hours

The thorough & detailed study regarding jobs within an organization is termed as:
The three most important job-related attitudes are:

► Job involvement, organizational commitment and job enrichment
► Job satisfaction, job orientation and organizational commitment
► Job satisfaction, job involvement and organizational commitment
► Job satisfaction, job enlargement and organizational behavior
Which of the following term describes the unique combination of psychological traits
that describes a person’s behaviors?
► Perception ► Personality ► Attitude ► Ability
Successful managers are:
► Efficient & effective ► Goal achievers►Strict to employees ►Policy makers
Which of the following is an online recruitment method engaged in by a single

employer or group of employers to attract a large number of applicants?
► Job fairs ► Recent grads ► Internship programs ► Recruiting sites
Which of the given statement reflects the Relationship between HRM & Management?
► Both are same ► Management is one aspect of HRM

► HRM is one aspect of Management ► No relationship exists

Entrepreneurs are said to perform the:
► Interpersonal role► Informational role► Supportive role ►Decisional role

The intellectual & mechanical process used by an organization to transform inputs
into outputs is termed as:
► Task ► People ► Structure ► Technology
Which of the following approach emphasizes the effect of psychological & social
factors on employees’ performance?
► Scientific approach ► Rational approach

► Human relations approach ► Systematic approach
Under which of the following authority, an HR manager took the decision to provide
training to its employees regarding the operations of newly installed machine?
► Staff ► Functional ► Line ► Implied
Which one of the following is NOT the advantage of Workforce Diversity?
► Increased creativity and flexibility ► Decreased problem-solving skill

► Multiple perspectives ► Greater openness to new ideas
The best hiring occurs when the goals of which of the following should consistent to
each other?
► HR managers, Finance managers ► Head office, Branch

► Organization, Individual ► Lower managers, Top managers
Which of the following method includes the exchange of information between

organizational member & the applicant through a goal-oriented conversation?
► Counseling simulations ► Vocational interest test

► Role playing ► Employment interview
The process by which people acquire skills & abilities required to perform jobs at
hand, is known as:
► Learning ► Training ► Development ► Need analysis
Which of the following department is responsible for handling safety & health issues
of employees?
► HR department ► Procurement department
► Finance department ► Marketing department
Organizations started giving more focus on the quality of work life (QWL) during:
► 1960-70 ► 1970-80 ► 1980-90 ► 1990-2000
Which of the following is a forecasting technique that involves experimenting a real-

world situation through a mathematical model?
► Simulation ► Modeling ► Mock-up ► Replication
Which of the following information is NOT collected through observation method

while conducting job analysis?
► Who is monitoring the task? ► What task has done?

► How task has done? ► How long a task has taken to complete?
Which of the following is a process of attracting individuals on timely basis, in

sufficient numbers and with appropriate qualifications, to apply for jobs with an
organization?
► Selection ► Recruitment ► Staffing ► Enrollment
Which of the following method is used to inform employees about the company's job
openings?
► Job publishing ► Job declaration ► Job posting ► Job listing
Which of the following is a test validation method that determines whether a test
measures certain traits that are important in performing a job or not?
► Concept validity ► Criterion validity ► Construct validity ► Content validity
During which of the following interview, an interviewer asks probing and open-ended
questions?
► Structured interview ► Unstructured interview

► Formal interview ► Planned interview
Which of the following source can be used to ensure the authentication of the
information provided by the job applicant?
► Reference check ► Criminal record ► Application form ► Credit history
All of the following areas are covered in an employee orientation program, EXCEPT:
► Organizational history ► Employee benefits

► Organizational issues ► Organizational politics
Which of the following department of an organization performs the managerial

function of matching organizational needs with the skills & abilities of the employees?
► Finance department ► Marketing department

► Production department ► Human Resource department
Which of the following term best represents the individuals who have interests in an
organization and are influenced by it?
Which of the following component of attitude represents a person’s opinions,

knowledge, and information?
► Affective component ► Cognitive component

► Behavioral component ► Objective component
The mental process to interpret environment as per one's own understanding is

known as:
► Perception ► Personality ► Attitude ► Ability
Which of the following act represents a situation in which employment decisions are
NOT affected by illegal discrimination?
► Fair employment ► Legal compliance

► Litigation process ► Affirmative action
If in a country women advocates are not encouraged to be appointed as high court

judges; which of the following constraint applies in this situation?
► Grievance practices ► Equal employment opportunity
► Glass ceiling effect ► Reverse discrimination
Read carefully the following section of job advertisement.

ü “Management, both technical & administrative affairs.
ü Promotion of marine R&D activities for the purpose of protection/preservation
of marine environment.
ü Exploration & management of marine research & development within the
marine zone of Pakistan."
This section of job advertisement represents which of the following term?
► Job analysis ► Job description ► Job specification ► Job summary
'Job description' provides which of the following information?


►Defined job activities & responsibilities
►Set of KSA required to perform a job
►Level of experience mandatory for a particular job
►Individual’s general attitude that affects the job performance
►Achieve most output in less time ►Achieve mass production

►Achieve most output with least input ►Achieve organizational goals
There are several sources that can identify the training needs. List & explain any five
of such sources.

2012 at 5:53pm
MIDTERM EXAMINATION
Fall 2008
The re-arrangement of organizational structure & change in organizational

culture is accomplished during:
►Task analysis ►Organizational analysis ► Person analysis ► Management

analysis
Decision regarding the delivery medium for training is made prior to which
of the following step?
► Evaluating the training program ►Designing the contents of training to be

delivered► Identifying whether the training is required or not
► Conducting need assessment to identify issues
Organization, where employees are provided with the opportunity to learn

on continuous basis is known as:
► Formal ► Informal ► Bureaucratic ► Learning
Which of the following statement defines 'Socialization'?

► The formation of an attachment bond between an infant and its
career
► The tendency of social theorists to explain everything in terms of social
causes
► The process of becoming part of a society by learning its norms and values
► The historical process by which societies change from traditional to modern
ones
The screening used to reduce absenteeism on the basis of medical problems

and to establish a baseline for future health insurance claims, is:
► Physical examination ► Personality test ► Polygraph test► Substance abuse
In order to appoint a lecturer for management, the senior faculty asked Mr.
Ali to deliver a sample lecture to one of the MBA batch. The evaluation form
is provided to students to grade Mr. Ali as a competent teacher in terms of
his communication & convincing abilities. What type of test is said to be
conducted for the evaluation of Mr. Ali?
► Reliable test ► Content-valid test ► Face-valid test ► Construct-valid test
What measure should be needed to ensure effective recruitment?

► Keep pool of large size to get best out of it► Address personnel needs of
applicants
► Meet economies of scale for an organization► Clearly understand organizational
goals
Which of the following identifies the minimum acceptable qualification that

the incumbent must possess to perform a particular job successfully?
► Job analysis ► Job specification ► Job description ► Job evaluation
SWOT Analysis is a tool for:
► Determining the mission ► Dividing missions into goals

► Scanning the environment ► Monitoring frequent performances
People within a group who initiate the work, give new ideas and also collect
information about the task, are actually performing:
► Information collector roles ► Task oriented roles
► Relationship oriented roles ► Individual roles
Individual's behavior comprises of:
► Heritage ► Perception ► Emotions ► All of the given options
Which of the following term is used to study the collective behavior of

individuals within an organization?
► Organizational culture ► Organizational norms

► Organizational behavior ► Organizational rules
Which of the following skills are required most by the Top-level managers?
► Technical skills ► Interpersonal skills ► Conceptual skills► All of the given
Which of the following department of an organization perform the

managerial function of matching organizational needs with the skills &
abilities of the employees?
► Finance department ► Marketing department ► Production department
► Human Resource department
A practice used by different companies to reduce costs by transferring

portions of work to outside provider rather than completing it internally is
termed as:
► Planning ► Decentralization ► Restructuring ► Outsourcing
Which of the following aspect should be considered during task analysis,

before conducting the training in an organization?
► Individuals who require training ► Shortcomings in existing technology
► Ineffective feedback system of organization ► Areas where training is
required
As an HR manager you have collected and reviewed the information\data

related to a particular job, while conducting the job analysis. What will be
your next step in this situation?
► Maintaining and updating the jobs ► Identify objectives of job analysis
► Identify the job to be analyzed ► Draft job description & job specification
Which of the following step is MOST important in creating job-fit?
► An effective selection process ► Promotion and transfer of existing

employees
► Training of employees ► Competitive compensation packages
Members of an effective team should be more:
► Extrovert ► Homogeneous ► Inflexible ► Introvert
________ team allows groups to meet without concern for space or time
and enables organizations to link workers together.
► Process ► Self-managed ► Virtual ► Cross-functional

► Increased social relationship ► Ability to overcome time and space
constraints
_____________ is an attribute of work teams which results in a level of

performance that is greater than the sum of the individual inputs.
► Synergy ► Enthusiasm ► Energy ► Initiative
Which is NOT a weakness of group decision-making?
► Group decisions are time-consuming

► Groups enhance creativity through diverse views
► Group members suffer from ambiguous responsibilities
► Groups can be dominated by one or a few members
Managers who are indulged in establishing policies & procedures are fall
under which category?
► Staff ► Line ► Functional ► Operational
Which of the following term best represents the individuals who have
interests in an organization and influenced by it?

Who collects information from institutions & organizations outside their
own, and facilitate the organizational personnels with that gathered
information?
► Monitor ► Liaison ► Disseminator ► Figurehead
Being a Figurehead, manager has to perform which of the following role?
► Informational roles ► Decisional roles ► Interpersonal roles ► Sequential

roles
How many levels of management are in a traditional organization?
►5 ►3 ►8 ►4
The ability to think about abstract & complex situations is refered to as:
► Mechanical skill ► Technical skill ► Interpersonal skill ► Conceptual skill
Controlling is mandatory to:
► Large organizations ► Small & medium enterprises ► All of the given

options ► Private organizations
"Management" is concerned with the administration of:
► Human resource ► Financial resource ► Physical resource►All of the given

A special form of recruitment that involves placing a student in a temporary
job with no obligation either by the company to hire the student
permanently or by the student to accept a permanent position with the firm
following graduation, is known as:
► Cooperative work ► Student placement ► Internship program ► Student
leasing
Which of the following terminology describes the legal legislation in which

job applicant should not be rejected on the basis of discriminatory
practices?
► Affirmative action ► Legal compliance ► Equal employment opportunity

► Stereotype
If the workforce of an organization represents true proportion of the

community sectors in all its job classifications, it represents the
_____________________ of its affirmative action.
► Performance ► Gaps ► Effectiveness ► Discrepancies
Which of the following emerged when individuals realized the strength they
could gain by joining together to negotiate with employers?
► Trade unions ► Human relation movement► Employment legislations ►None of
HR department became the main force behind all changes during:
► Mechanistic period ► Catalytic period► Organistic period ► Strategic period
As a result of which of the following activity, HRIS is gaining popularity day

by day?
► Generating organizational reports ► Managing resources effectively
► Retrieving timely information ► Handling bundles of data
Achievable & quality performance standards can be set with the help of
accurate:
► Employees' behavior in an organization ► Societal behavior on an

organization
► Country's culture on an organization ► Country's economy on an organization
Which of the following is the main focus of Organizational Behavior?

► Society ► Stockholders ► People at work ► Union
Explain the following terms:

Personality
Perception
Attitude
Values
Ethics
ANSWER:
PERSONALITY: Personality is a combination of psychological traits that describes a

person.
PERCEPTION: Perception is the mental process to pay attention selectively to some

stimuli in the environment.
ATTITUDE: Attitude comprises of feelings, beliefs and behaviors.
VALUES: Values are the basic conviction about what is right and wrong.
ETHICS: Ethics are the rules and principles that tell what is right and wrong.

2012 at 5:53pm
J umair sid J

► Employees' behavior in an organization
► Societal behavior on an organization
► Country's culture on an organization
► Country's economy on an organization

Which of the following term is used to identify, "what the job holder does"?
"how it is done"? & "why it is done"?
► Job specification
► Job evaluation
► Job description
► Job title

Which of the following term is used to identify the physical & mental skills,
required to perform by an individual within a particular position in an
organization?
► Job title
► Job description
► Job evaluation

► Job analysis
► Job worth
► Job description

_______________ is the main source of innovations.
► Upgraded technology
► Human mind
► Competitors' pressure
► Research & Development


“A person is known by the company he/she keeps”; is well described by
which of the term?
► Prejudice
► Stereotype
► Introversion
► Extroversion

Terms "Interpersonal skills" and "Human skills" are used for:
► Two different skills
► Different managerial skills
► Operational skills
► Same managerial skills

Which of the following abilities are categorized as the Technical skill of an
individual?
► Judgment & creativity
► Analysis & communication
► Knowledge & proficiency
► Innovation & advancement

The intellectual & mechanical process used by an organization to transform
inputs into outputs is termed as:
► Task
► People
► Structure
► Technology

Under which of the following authority, an HR manager took the decision to
provide training to its employees regarding the operations of newly
installed machine?
► Staff
► Functional
► Line
► Implied


► Lack of nonverbal signals
► Limited social contact
► Increased social relationship
► Ability to overcome time and space constraints

Which of the following functions of HRM deals with 'Collective Bargaining'?
► Staffing
► Forcasting
► Employee-assistance management
► Employee-relations management

'There is no need to make any new appointment'; therefore, the
organization has transfered Mr. Azam to another branch. This step of the
organization is taken to:
► Increase the labor supply than demand
► Maintain the balance of labor supply and demand
► Decrease the labor supply than demand
► Devastate the balance of labor supply and demand

A test conducted to ensure the biological fitness of an individual by
identifying the presence of any inherited diseases like diabetese, heart
diseases, neurological disorders etc, is termed as:
► Hereditary testing
► Gene testing
► Instinct testing
► Genetic testing

Which of the given employment testing approach requires individuals to
perform activities similar to those they might encounter in an actual job?
► In-basket technique
► Role playing
► Interview simulations
► Case study

According to which of the following interview type, several applicants are
being interviewed by one or more company representatives?
► One-to-one interview
► Panel interview
► Group interview
► Stress interview

'Material wastage has increased to greater extent due to using outdated
machinery'. This issue can be resolved by:
► Train machine operators regarding its operations
► Replacing the existing machinery with the new one
► Using new raw material in production
► No action is required as it is not a noticeable issue

Previous company records & customer satisfaction surveys may serve as a
source for:
► Cultivating learning culture within the organization
► Determining deficiencies that require training
► Developing career development plans for employees
► Identifying training outcomes through evaluation

Evaluation of training program is conducted:
► At the initial stage while design a training
► Prior to need assessment phase
► Parallel to design a training content
► At the last stage of training

HR managers play vital role in:
► Setting production targets

► Formulating strategies
► Publishing financial statements
► Preparing reports for shareholders

Which of the following are the groups of social nature that are formed
around friendship and common interests?
► Formal
► Structured
► Informal
► Unstructured

Initially the personnel department was only involved in:
► Recruitment & selection
► Compensation & benefits
► Training & development
► Scheduling vacations

'Career counseling' is part of which of the following functions of HRM?
► Compensation & benefits
► Planning & selection
► Maintainence of HRIS

'Fair employment legislation' is applicable to which of the following?
► Collective bargaining
► Planning & selection
► Grapevine network

Which one of the following is NOT included in 'Training and Development'?
► Orientation
► Career development
► Employee education
► Recruitment

Jamal Enterprises' top management refused to consider its female
marketing manager for the post of Vice President. This action of the
company is representing which of the following?
► Gender discrimination
► Legal consideration
► Reverse discrimination
► Glass ceiling effect

The process of discovering potential candidates for actual or anticipated
organizational vacancies is known as:
► HR planning
► Job analysis
► Recruitment
► Selection

The hiring process comprises which of the following steps?
► Selection, Recruitment & performance appraisals
► Recruitment, Selection & Socialization
► Selection, Orientation & Development
► Job analysis, Selection & Training

Which of the following defines the process of 'Recruitment'?
► Forecasting the demand of human resources
► Forecasting the supply of human resources
► Discovering potential job candidates for a particular position
► Making a “hire” or “no hire” decisions

The number of people hired for a particular job compared to the number of
individuals in the applicant pool is often expressed as:
► Application ratio
► Recruitment ratio
► Selection ratio
► Employment ratio

The extent to which an employment selection test provides consistent
results is known as:
► Reliability
► Dependability
► Consistency
► Trustworthiness
Which of the following test indicates the person’s inclination towards a
particular occupation that provides satisfaction to that individual?
► Vocational interest test

► Cognitive aptitude test
► Personality test
► Psychomotor abilities test

All of the following areas are covered in an employee orientation program,
EXCEPT:
► Organizational history
► Employee benefits
► Organizational issues
► Organizational politics

Which of the following term reflects the process of preparing organizational
people according to the future needs?
► Learning
► Training
► Development
► Need analysis

interests in an organization and are influenced by it?
► Workforce
► Stakeholders
► Customers
► Stockholders

Mr. Ahmed was working as a computer operator, but he was unable to work
in Ms Excel with the required speed. Due to this reason management has
forcefully retired him & appointed a new person to replace him, the
company is said to be indulged in:
► Rightsizing
► Affirmative action
► Downsizing
► Discrimination
“Self-motivated & result oriented individuals with sound knowledge of
combined cycle gas turbine power plant operations and practical experience
of mechanical, electrical and I&C maintenance of plant.”
This section of job advertisement represents which of the given term?
► Job analysis
► Job description
► Job evaluation

► Achieve most output in less time

► Achieve mass production
► Achieve most output with least input
► Achieve organizational goals
Question No: 41 ( Marks: 10 )

How hesitation among newly hired employees can be eliminated through
socialization within an organization?
Socialization: In order to reduce the anxiety that new employees may experience,
attempts should be made
to integrate the person into the informal organization.
HRM department can conduct the orientation in order to socialize

the newly hired employees with the working environment of the organization. HRM
plays
a major role in new employee orientation-the role of coordination, which ensures
that the
appropriate components are in place. In addition HRM also serves as a participant in
program. As job offers are made and accepted, HRM should instruct the new
employee
when to report to work. However, before the employee formally arrives, HRM must
be
prepared to handle some of the more routine needs of these individuals.

2012 at 5:54pm
UMAIR SID ……………………… SOLVED BY SID
MIDTERM EXAMINATION
Spring 2010
HRIS helps managers to perform which of the following functions more

effectively &systematically?
► controlling functions ► planning functions ► Human resource functions

► Management functions
Technically HRIS is a/an:

► System software ► System hardware ► Database system ► Operating
system
HRIS is used to facilitate the decisions related to:
► Overall organization ► Employment planning

► Sales forecasting ► Resource allocation
The major concern of the organizations during 1990s was:
► Productivity ► Efficiency ► Quality ► All of the given options
Which of the following is NOT a method of an external recruitment?
► Job advertisements ► Job postings ► Internship programs ► Job fairs
Controlling involves all EXCEPT:

► Goal attainment ► Corrective measures ► Standards achievement ►
Employees motivation

► Small & medium enterprises ► Private organizations► All of the given options
► Large organizations
Effectiveness is the degree to which organizations’ products/services
respond to:
► All of the given options ► Customer satisfaction ► Environmental needs
► Quality standard
Unofficial part of an organization formed on the basis of common interests
is known as:
► Formal organization Informal organization ► Bureaucratic organization ►
Virtual organization
According to Hawthorne Studies, which of the following work group

influenced
productivity & employees' behavior?
► Formal ► Informal ► Reserved ► Ceremonial
Which of the following is categorized as the authority to give orders to

subordinates?
► Functional ► Staff ► Operational ► Line

The process of pursuing an inclusive culture where newcomers feel

welcomed by existing employees and everyone sees the value of his or her
job, is termed as:
► Management of uniformity ► Variety management
► Managing stereotypes ► Diversity management
How often HR planning process is implemented within an organization?
► Continuously ► Annually ► Bi-annually ► Quarterly

As an HR manager you are going to conduct job analysis, which one of the
following factor you should consider for its effectiveness?
► Ensure top management support ► Use a single source of information

► Conduct analysis for multiple jobs at once ► Review existing job documents
► Technical skills ► Interpersonal skills ► Conceptual skills ► All of the given

options

Organizations started giving more focus on the quality of work life (QWL)
during:
► 1960-70 ► 1970-80 ► 1980-90 ► 1990-2000
Which of the following force makes an individual eligible to make decisions,

give orders & directing work activities of others?
► Power ► Influence ► Authority ► Command
Which of the following information is NOT collected through observation

method while conducting job analysis?
► Who is monitoring the task? ► What task has done?

► How task has done? ► How long a task has taken to complete?
Which of the following is a goal-directed summary of a person's experience,

education and training developed for use in the selection process?
► Curriculum vitae ► Educational record ► Career goal ► Interview

questioning
Which of the following test can best evaluate the routine production
activities of job that require coordination & physical strength?
► Cognitive aptitude test ► Job knowledge test

► Vocational interest test ► Psychomotor abilities test
► Reliable test ► Content-valid test

► Face-valid test NT SURE ► Construct-valid test
During which stage of socialization, employees successfully internalize the

organizational norms & beliefs?
► Pre-arrival stage ► Encounter stage►Metamorphosis stage►Post-retirement

stage
Which of the following is considered as the last stage in the HRM/personnel
development?
► Bureaucratic management ► Records and administration
► Regulative accountability ► Competitive advantage
Decentralization offers several benefits to the organizations. Which one of

the following is/are considered benefit(s) of decentralization?
► Increased work schedule flexibility ► Increased pool of skilled workers
► Increased employees participation ► All of the given options
A human resource manager in a medium-sized manufacturing firm is

responsible to
comply with the implementation of working conditions and health and
safety of the
workers at the workplace according to the Factories Act 1934. Which of the
following external factors prompted this action?
► Labor union► Management thought ► Work force diversity ► Government
legislation
Ahmed, HR manager of Tri-Star Technologies is involved in human resource

planning process. What sort of information can be obtained through supply
and demand forecasts?
► overstaffing in sales department

► Shortage of machine operators in production department
► Estimates of changes in the external supply
The corporate strategy of National Investment Bank was acquisition. What

would be the associated human resource strategies in order to achieve this
corporate strategy?
► Aggressive recruiting and hiring, rapidly rising wages, job creation, expanding
training
and development
► Layoffs, wage reduction, productivity increases, job redesign, renegotiating labor
arrangement
► Specialized job creation, hiring of specialists, specialized training and development
► Selective layoffs, transfers/placement, job combinations, orientation and training,
managing cultural transition
The human resource manager of a large textile organization based

inFaisalabad is unable to hire best people for her company because of a new
restriction that no longer pays traveling cost to participate in job fairs of
other cities. Therefore he is limited to college job fairs within the city. What
one of the following recruiting constraints is most affecting her
organization?
► Organizational image ► Internal organizational politics

► Government’s influence ► Costs
All of the following are advantages of internal recruiting except

► It is less costly than going outside to recruit
► Those chosen internally already know the organization
► It improves the probability of good selection
► It generate infighting among the rival candidates for promotion
For the post of CCR in a call center, candidate has passed the usual selection
criteria- the employment test, interview and background checks. What
should be the next step?
► To verify educational documents ► To pass screening interview
► To complete application blank ► To give him appointment letter
How does mentoring differ from the orientation?

► Mentoring is done when an employee is being prepared for jobs of greater
responsibility.
Orientation is done when an employee first joins an organization
► Mentoring is done by the supervisor. Orientation is conducted by the
peers
► Mentoring is done to familiarize employees with procedures. Orientation is guiding
employee in task completion
► There is no difference in mentoring and orientation
Why are training programs evaluated in the industry?
► Evaluation is required for junior training programs
► Employees have the right to comment on the training they receive
► Evaluation is a necessary component of establishing training effectiveness
► Organizations are legally bound to evaluate training programs
What measures should be taken at the pre-arrival stage of socialization?

Pre-arrival stage of socialization: In this socialization stage, employee
aware or known the values and norms of this particular organization. Mean
before entering in a company or organization he has to know about
attitudes, values, norms which is called socialization.
Who are contingent workers? Discuss the significance of such workers for
an organization.
SOLVED
Contingent workers:
Defiant ion:” workers or employee who are hired in a organization for temporary or
for a short time called contingent workers”
Significance of such workers for an organization:
Easy to complete tasks:
Technically skilled:
Not required to give them High bounces:
May be Consultant:
Over all we can say this methodology may lead not poor or Garbage.
Being a human resource manager of a medium sized manufacturing
organization how you will make sure that the recruitment program of your
organization is non discriminatory? Discrimination: “Give equal opportunity
to male and female and also no discriminate to other employee for color,
race, etc.”
SOLVED
Discrimination: "make a difference between employee as base of Gender, race,
colour,etc "
EEO: Giving equal opportunity to both man and women not discourage them at all.
So EEO is base on a act which is made near 1964 and near ADA American disabilities
act 1932. So the suppose I am manager of an organization and I have or require to
identify that whether in my organization all Requirement are conducting Equally and
non
discrimination basis at all. So we check and observers himself or hire a consultant
He may be look different aspects to it
Affirmative action:
EEO basis:
ADA Acts: Encourage ability and discourage non Qualified :

2012 at 5:55pm
Jumair sid J
MIDTERM EXAMINATION

There-arrangement of organizational structure & change in organizational
culture is accomplished during:
► Task analysis ► Organizational analysis ► Person analysis ►Management

analysis
Decision regarding the delivery medium for training is made prior to which
of the
following step?
► Evaluating the training program
► Designing the contents of training to be delivered
► Identifying whether the training is required or not
► Conducting need assessment to identify issues
Organization, where employees are provided with the opportunity to learn

on continuous basis is known as:
► Formal ► Informal ► Bureaucratic ► Learning
Which of the following statement defines 'Socialization'?
► The formation of an attachment bond between an infant and its career

► The tendency of social theorists to explain everything in terms of social causes
► The process of becoming part of a society by learning its norms and values
► The historical process by which societies change from traditional to modern ones
The screening used to reduce absenteeism on the basis of medical problems
and to establish a baseline for future health insurance claims, is:
► Physical examination ► Personality test ► Polygraph test ► Substance

abuse
► Reliable test ► Content-valid test ► Face-valid test ► Construct-valid test
What measure should be needed to ensure effective recruitment?
► Keep pool of large size to get best out of it

► Address personnel needs of applicants
► Meet economies of scale for an organization
► Clearly understand organizational goals
Which of the following identifies the minimum acceptable qualification that

the incumbent must possess to perform a particular job successfully?
► Job analysis ► Job specification ► Job description ► Job evaluation
SWOT Analysis is a tool for:

► Determining the mission ► Dividing missions into goals
► Scanning the environment ► Monitoring frequent performances
People within a group who initiate the work, give new ideas and also collect
information about the task, are actually performing:
► Information collector roles ► Task oriented roles ► Relationship oriented

roles ► Individual roles
Which of the following term is used to study the collective behavior of

individuals within an organization?
► Organizational culture ► Organizational norms ► Organizational behavior

► Organizational rules
► Technical skills ► Interpersonal skills ► Conceptual skills

Which of the following department of an organization perform the

managerial function of matching organizational needs with the skills &
abilities of the employees?
► Finance department ► Marketing department ► Production department

► Human Resource department
A practice used by different companies to reduce costs by transferring
portions of work to outside provider rather than completing it internally is
termed as:
► Planning ► Decentralization ► Restructuring ► Outsourcing
Which of the following aspect should be considered during task analysis,

before conducting the training in an organization?
► Individuals who require training ► Shortcomings in existing technology
► Ineffective feedback system of organization ► Areas where training is
required
As an HR manager you have collected and reviewed the information\data
related to a particular job, while conducting the job analysis. What will be
your next step in this situation?
► Maintaining and updating the jobs ► Identify objectives of job analysis
► Identify the job to be analyzed ► Draft job description & job
specification
Which of the following step is MOST important in creating job-fit?

► An effective selection process ► Promotion and transfer of existing
employees
► Training of employees ► Competitive compensation packages
Members of an effective team should be more:
► Extrovert ► Homogeneous ► Inflexible ► Introvert

________ team allows groups to meet without concern for space or time
and enables
organizations to link workers together.
► Process ► Self-managed ► Virtual ► Cross-functional

► Increased social relationship ► Ability to overcome time and space
constraints
_____________ is an attribute of work teams which results in a level of

performance that is greater than the sum of the individual inputs.
► Synergy ► Enthusiasm ► Energy ► Initiative
Which is NOT a weakness of group decision-making?
► Group decisions are time-consuming

► Groups enhance creativity through diverse views
► Group members suffer from ambiguous responsibilities
► Groups can be dominated by one or a few members
Managers who are indulged in establishing policies & procedures are fall
under which category?
► Staff ► Line ► Functional ► Operational
interests in an
organization and influenced by it?
Who collects information from institutions & organizations outside their

own, and facilitate the organizational personnels with that gathered
information?
► Monitor ► Liaison ► Disseminator ► Figurehead
Being a Figurehead, manager has to perform which of the following role?
► Informational roles ► Decisional roles ► Interpersonal roles ► Sequential

roles
How many levels of management are in a traditional organization?
►5 ►3 ►8 ►4
The ability to think about abstract & complex situations is refered to as:
► Mechanical skill ► Technical skill ► Interpersonal skill ► Conceptual skill

► Large organizations ► Small & medium enterprises
► All of the given options ► Private organizations
"Management" is concerned with the administration of:
► Human resource ► Financial resource ► Physical resource► All of the given
Aspecial form of recruitment that involves placing a student in a temporary

job with no obligation either by the company to hire the student
permanently or by the student to accept a permanent position with the firm
following graduation, is known as:
► Cooperative work ► Student placement ► Internship program ► Student
leasing
Which of the following terminology describes the legal legislation in which

job applicant should not be rejected on the basis of discriminatory
practices?
► Affirmative action ► Legal compliance ► Equal employment

opportunity ► Stereotype
Ifthe workforce of an organization represents true proportion of the
community sectors in all its job classifications, it represents the
_____________________ of its affirmative action.
► Performance ► Gaps ► Effectiveness ► Discrepancies
Which of the following emerged when individuals realized the strength they
could gain by joining together to negotiate with employers?
► Trade unions ► Human relation movement
► Employment legislations ► None of the given options
HR department became the main force behind all changes during:

► Mechanistic period ► Catalytic period ► Organistic period ► Strategic
period
As a result of which of the following activity, HRIS is gaining popularity day

by day?
► Generating organizational reports ► Managing resources effectively
► Retrieving timely information ► Handling bundles of data
Achievable & quality performance standards can be set with the help of
accurate:
► Employees' behavior in an organization ► Societal behavior on an

organization
► Country's culture on an organization ► Country's economy on an
organization
Which of the following is the main focus of Organizational Behavior?
► Society ► Stockholders ► People at work ► Union
Explain the following terms:

Personality Perception Attitude Values Ethics
ANSWER:
PERSONALITY: Personality is a combination of psychological traits that describes a

person.
PERCEPTION: Perception is the mental process to pay attention selectively to some

stimuli in
the environment.
ATTITUDE: Attitude comprises of feelings, beliefs and behaviors.
VALUES: Values are the basic conviction about what is right and wrong.
ETHICS: Ethics are the rules and principles that tell what is right and wrong.
Reply by + Aqib on February 24, 2015 at 9:10am
Permalink Reply by + Aqib on February 24, 2015 at 9:11am

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Permalink Reply by MS (1st) on February 25, 2015 at 4:12am

Which is one of the most important leadership qualities among managers and
employees in the organization? Communication
Which one of the following is not a way of recruiting new employees? Bank page
96
All of the following are the advantages of establishing a partnership over a sole
proprietorship EXCEPT: not sure
Double taxation can be avoided in the corporate form of business if the income is
distributed to the entrepreneur(s) in the form of? Salary
Which one of the following options is NOT a total taxable entity? Limited partner
page 87
Which one of the following has NO liability on the part of entrepreneur
business? Board of advisor
Which of the following statements is not true for the sole proprietorship? Not sure
Which of the following business form has no legal distinction between the assets and
liabilities of a business and those of its owner?
One of the following is the process of defining and subdividing a large homogeneous
market into clearly identifiable groups having similar needs, wants and demand
characteristics? Market segmentation
In which of the following business, the records are needed to be maintained on the
basis of monthly charges paid by the customers? Service venture
Which of the following is another exit to the equity partnership arrangement? Royal
partnership
Which of the following is the backbone of financial plan? Budgeting
Job description should include all of the following EXCEPT:
The major duties relevant to a particular job
Expected performance standards
The equipment needed by the worker
An evaluation of the worker's personal needs
Alternative sources of external financing need to be evaluated on all of the following
bases except: lesson 32
Which form of the business has the most freedom in terms of selling one’s interest in
the business? Sole proprietorship
Which of the following approach is important in early stage of the venture when
capital from debt financing or equity financing is more expensive?
Which statement of the following relates with the ultimate goal of
Business? Mission statement
Which of the following is the characteristic of Limited Liability Company?
Which of the following number of years a mortgage loan may possibly cover? 30
in which rule under ‘regulation-d’, a company can sell up to $500,000 of securities to
any number of investors in any 12-month period? 504
MGT602 solved MCQs from new quizzes 4/8/2010
solved by vuZs solution team

(Marina , shamir, glory, umeed, shafia, Tariq)
Which one of the following should consider in economy while conducting environmental analysis?
GNP
Disposable income (Tariq)
Unemployment
Channel of distribution
Economic Trends: The macro economic environment analysis will identify

trends such as changes in personal disposable income, interest
rates, inflation and unemployment rates.
Which of the following source of capital is relatively faster and less costly than other funding? Select
correct option:
Outsourcing
Public offering
Private offering (shamir)
Bootstrap financing
page # 89: A private offering is faster and less costly than other funding.
future of the new venture depends on the ________. Select correct option:
Positive Cash flow (shafia)
Employees loyalty
Business ideas
Economy
following has NO liability on the part of entrepreneur business? Select correct option:
Partners
Board of advisors
Shareholders (shafia)
Board of directors
Which of the following ratio will be helpful for assessing the firm’s capital structure?
Current ratio
Acid test ratio
Profitability ratio
Debt to equity ratio (MK)
page no 100 :Debt to equity ratio assesses the firm’s capital structure. It provides a measure of risk by
considering the funds invested by creditors and investors.
Following are the types of non equity arrangements EXCEPT:

Licensing
Management contracts
Direct export (MK)
Turnkey projects
Pgae no 31 Lesson 11
Which of the following is essential if your business deals with the Paper production?.
Operational Plan
Bank loan
Production plan (MK)
Organizational plan
Page 58
If a new venture is a manufacturing operation, a production plan is necessary. This plan should describe
the complete manufacturing process, including whether or not the process is to be subcontracted.
The startups which rarely go public are called: Select correct option:
Life style
Foundation Company (MK)
Small company
High potential venture
page no 8 : A type of company formed from research and development that usually does not go public.
This
firm can grow in five to ten years from 40 to 400 employees.
following firm achieves modest growth: Select correct option:

Foundation firm (MK)
Life style
Public company
following factor can create the managerial difficulties in the joint ventures between foreign companies?
Select correct option:Cultural differences (MK)
Economic policies
Public ignorance
Government taxes
Page no 103 : Cultural differences can create managerial difficulties. Government policies sometimes can
have a negative impact on the venture. The benefits usually outweigh the drawbacks.
________ is commonly used to measure the short-term solvency of the venture? Select correct option:
Current ratio (MK)
Profitability ratio
Activity ratio
Page no 99 : Current ratio is commonly used to measure the short-term solvency of the venture or its
ability to meet its short-term debts.
Which of the following is NOT a characteristic of a marketing plan? Select correct option:
It should be long and detailed (MK)
it should provide a strategy
Which of the following is the best option for starting the business with equity financing? Select correct
option:
Sole Proprietor
Corporation (doubted) mk
Partnership firm
None of the above
Page 81 : Equity financing offers the investor some form of ownership position in the venture.
a. The investor shares in the profits of the venture.
b. Key factors in choosing the type of financing are availability of funds, assets of the venture, and
prevailing interest rates.
c. Usually a combination of debt and equity financing is used.
SIDB was established for the province of ________.

NWFP (glory)
Sindh
Punjab
Balochistan
ref at pg 84 under training center heading lec 37
Which one of the following is a method for obtaining new ideas and solutions by focusing on problems?

Gordon method
Checklist method
Scientific method
ref pg 35
Which of the following is NOT an advantage of the acquisition?

Goodwill
Skilled employees
Favorable location
Political instability (umeed)
The private investors are primarily interested in recovering his/her investment plus a good________.
Dividend
Shares prices
Rate of return (umeed)
Business repute
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 (glory)
Gordon method
Checklist method
Scientific method
ref at pg 35 lec 16 under creative problem heading
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MGT602 Entrepreneurship Final

Term MCQ & Papers 100% Solved
MGT602 Entrepreneurship Final term Papers & MCQs
The resistance of employees in an organization against flexibility, growth, and diversification can be
overcome by developing:
 Entrepreneurship
 Intrapreneurship
 Managerial domain
 Administrative domain
For the success of business plan the goals should be
 Limitless
 Generalized
 Specific
 Imaginary
LMM stands for:
 Locally Manufactured Machinery
 Locally Manufactured Marble
 Local Marble Market
 Local Meat Market
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
Normally sponsor links are used in which of the following type of promotion?
 Publicity
 Trade shows
 Personal selling
 Internet advertising
The Grameen Bank model is affectively used by which of the following institute?
 Education sector
 Finance Sector
 Rural Sector
 NGOs
Which one of the factors should be considered while assessing the space for business?
 Parking
 Access from roadways to facility
 Delivery rates
 All of the given options
An actor and a person who managed large project were termed as the entrepreneur in the
_________.
 Earliest period
 Middle ages
 17th century
 19th and 20th century
Which of the following usually is NOT deducted to the salaries?
 Provident fund
 Income Tex
 Insurance
 Zakat
LLC is more flexible than
 S Corporation
 Limited Partnership
 Sole Proprietor
 All of the above
Which of the following is NOT an example of collecting primary data?
 Internet
 Focus Group
 Interview
 Observation
Which two work environments should be good for spawning the new enterprises?
 Finance and marketing
 Finance and R&D
 Marketing and R&D
 Marketing and IT
 GNP
 Disposable income
 Unemployment
 Channel of distribution
__________ is commonly used to measure the short-term solvency of the venture?
 Debt to equity ratio
 Current ratio
 Profitability ratio
 Activity ratio
Which one of the following is a barrier to new product creation and development?
 Trial and error
 Opportunity parameter
 Opportunity cost
 Intrapreneurship culture
What is a target market?
 A group of customers a venture reaches by accident
 All consumers who purchase the venture’s product

 A specific group of potential customers toward which a venture aims its marketing plan
 A chain of discount stores
In stage of responsibility allocation process the entrepreneur follows:
 Highly centralized decision making process
 Highly decentralized decision making process
 Somewhat centralized decision making process
 No particular standard
Which one of the following is the process of entrepreneurs developing new products that over time
make current products obsolete?
 Creative destruction
 New business model
 Anatomization
 None of the given options
 Government
 Finance
 High interest rates
 Role models
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
The chief motivational factor for _________________ entrepreneurs to leave jobs is the frustration
of not being allowed to perform at the level of which they are capable.
 Male
 Female
 Young
Which of the following is the most important for the entrepreneur, while starting a new
venture, to make an assessment of?
 Risk
 Profit
 Market
 Competitors
An entrepreneur doing business within the national border is called:
 International entrepreneurship
 Domestic entrepreneurship
 Imports
 Highly creative & in love with the invention
 Does not encourage change
 Willing to modify the invention in order to augment commercial benefit
 12 years
 17 years
 20 years
 As long as it remains confidential
A contract must be signed by:
 At least one party
 Both the parties
 Not necessary to sign
 By third party
Selling goods to another country by taking care of transactions is called:
 Indirect exporting
 Direct exporting
 Importing
 Management contract
Which of the following is alternatively called corporate venturing?
 Act of stating a new venture
 Offering new products by an existing company
1
2
3
4
Which one of the following is an important source of idea generation due to their

 Existing products and services
 Distribution channels
 Federal government
In which of the following situation the company is considered to be on breakeven point?
 No Profit no lose
 Profits are higher then expenses
 Expenses are higher then profits
Which of the following shows the example of collateral?
 Real State
 Shares
 Tangible property
The difference in the entrepreneurial and managerial domains has contributed towards an increase
interest in:
 Forming new firms
 Partnership
 Private firms
Which of the following is NOT a requirement of Disclosure Document?
 Description of the invention
 Claims for invention’s usefulness
 Photos of invention
 Cover letter
Professional support network includes following EXCEPT:
 Personal affiliations
 Mentor
 Trade associations
 Friends
 It should be flexible
 It should be long and detailed
 It should be based on facts and valid assumptions
 It should provide a strategy
 Locus of control
 Locomotion of control
 Locust of control
 Loss of control
Normally sponsor links are used in which of the following type of promotion?
 Publicity
 Trade shows
 Personal selling
 Internet advertising
 Operational Plan
 Bank loan
 Production plan
 Organizational plan
Which one of the following is NOT an internal factor?
 New technology
 Manufacturing
 Marketing
 Personnel
The longest lasting trade agreement with the objective of liberalizing trade by eliminating
or reducing tariffs, subsidies and quotas is:
 Free trade area – FTA
 European community – EC
 General agreement on tariffs and trade – GATT
 The North American free trade agreement – NAFTA
In which of the following business, the records are needed to be maintained on the basis
of monthly charges paid by the customers?
 Pharmaceutical
 Service venture
 Online venture
 Auto industry
Which of the following is the previous name of SME?
 SPCC
 SMEDA
 SBFC
 FMBC
The entrepreneur’s_______________ depends on his perception of the opportunity.
 Commitment to opportunity
 Commitment of resources
 Control of resources
 Strategic orientation
Which of the following are the key factors for choosing the type of financing?
 Availability of funds
 Assets of the venture
 Prevailing interest rates
 All of the above options
The difference between the value of a country’s imports and exports over time is called:
 Deficit exports
 Deficit imports
 Balance of payment
 Balance of debt
Licensing is a significant marketing strategy to:
 Use intellectual property of others
 Pirate others’ patents

 Grow the business in new markets
 Control the costs
The _________ plan should contain control points to ascertain progress.
 Business
 Marketing
 Financial
 Operational
Which one of the following method shows the term which is related to starting from
scratch to a bigger picture?
 Upward movement method
 Incremental method
 Downward movement method
 None of the above options
Which is one of the most important leadership qualities among managers and employees
in the organization?
 Communication
 Motivation
 Staffing
Which of the following contains large number of new ideas?
 Files of Patent office
 Official Gazette
 Government patent Board
 All of the given option
Which of the following firm achieves modest growth:
 High potential growth firm
 Foundation firm
 Life style
 Public company
Which of the following is representing a single expense account?
 Depreciation
 Cash account
 Wages & Salaries
 Utilities account
Which one of the following is a barriers to new product creation and development?
 Trial and error
 Opportunity parameter
 Opportunity cost
 Intrapreneurship culture
1
2
3
4
Which one of the following is important for international business to avoid trade barriers?
 Protectionist attitude
 Entrepreneurial partnering
 Free trade areas
 Current ratio
 Acid test ratio
 Profitability ratio
 Debt to equity ratio
 Highly creative & in love with the invention
 Does not encourage change
 Willing to modify the invention in order to augment commercial benefit
 Licensing
 Management contracts
 Direct export
 Turnkey projects
In terms of chronological age, most entrepreneurs initiate their entrepreneurial carrier
between ages of:
 15 and 22
 22 and 45
 45 and 57
 57 and 63
 Location
 Products offered
 History
Companies identify their assets with the date of purchase, because it can be helpful in
determining depreciation for:
 Goodwill
 Trade rebate
 Tax purposes
 Capital structuring
What is the primary concern of founders who trade equity for capital for their growing
venture?
 Capitalization
 Investor capabilities
 Valuation
 Control
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
 Checklist method
 Scientific method
Capital rising entirely depends on the entrepreneur in which of the following entity?
 Corporation
 Sole Proprietorship
 Partnership
 All of the above
Which of the following is another exit to the equity partnership arrangement?
Impartial partnership
 General partnership
 Royalty partnership
 Minor partnership
Selling goods to another country through a person in the entrepreneur’s home country is known as:
 Trading
 Direct export
 Indirect export
 Domestic sales
 Heuristics
 Forced relationship
 Scientific method
 Value analysis
What can be the effect on cash flows due to delays in payments by the clients?
 Positive cash flows
 Negative cash flows
 No effect on cash flows
The Marketing Plan section should focus for the strategies of
 First Year
 First two years
 First Three Years
 First four years

 Entrepreneurs
 Consultants
 Engineers
 All of above options
All of the following are essential 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
Assessment of the needed resources by the entrepreneur starts with:
 An appraisal of the entrepreneur’s present resources
 An assessment of economic conditions of the country
 A scanning of friends and family for funds
 A survey of banks and other financial institutions in the area
The former USSR received technology and syrup from Pepsi and provided it with Soviet
vodka and rights to distribute it in the US. This is an example of:
 Economic development
 Barter system
 Balance of payment
 International trade
Health insurance premium is less expensive if there is:
 One insured participants
 Ten participants
 Large group of participants
 Very small group of participants
In which of the following year implementation of SBA Financial plan took place?
 1971
 1972
 1973
 1974
The resources acquired from others(creditors, banks etc) are usually:
 Easily available
 Difficult to obtain
 Very useful
 Very cheap
Lenders are primarily interested in the:
 Personal relationship
 Ability to pay back loan

 Progress of the venture
The entrepreneur utilizes the resources through:
 Identifying and evaluating the opportunity
 Developing a business plan
 Implementing the business plan
 Manage the enterprise
Focus group discussion carries in
 Formal Way
 Informal Way
 Both of the above
 Problemat way
Which one of the following best represents the environment of an entrepreneurial
oriented organization?
 Corporate culture
 Entrepreneurial culture
 Intrapreneurial culture
 Traditional culture
Question No: 1 ( Marks: 1 ) – Please choose one The level at which an individual is viewed by
society is called:
► Qualification
► Social status
► Achievement
Question No: 2 ( Marks: 1 ) – Please choose one Individuals who help the entrepreneur in
business activities are called:
► Role models
► Moral support networks
► Professional support networks
► Business support networks
Question No: 3 ( Marks: 1 ) – Please choose one Following are the problems in developing the
economies EXCEPT:
► Gap of knowledge
► Variable rate of return
► Same communication style
► Different accounting system
Question No: 4 ( Marks: 1 ) – Please choose one 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
Question No: 5 ( Marks: 1 ) – Please choose one Which of the following method entrepreneur can
use to do international business with
least risk?
► Joint venture
► Merger
► Synergy
Question No: 6 ( Marks: 1 ) – Please choose one Combination of at least two firms at different
market levels is called:
► Joint venture
► Synergy
► Horizontal merger
► Vertical merger
Question No: 7 ( Marks: 1 ) – Please choose one 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
Question No: 8 ( Marks: 1 ) – Please choose one A/an ______ is an online connection between
the company and its customers.
► Internet advertising
► Website
► E-Commerce
► World Wide Web
Question No: 9 ( Marks: 1 ) – Please choose one
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
Question No: 10 ( Marks: 1 ) – Please choose one Which of the followings give the owners a
negative right, preventing anyone from
making, using, or selling the invention?
► Patent
► Copyright
► Trade mark
► Trade secret
Question No: 11 ( Marks: 1 ) – Please choose one 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
Question No: 12 ( Marks: 1 ) – Please choose one Which of the following grants protection to
owner from anyone else making, using and selling the identified innovation?
► Utility patent
► Design patent
► Plant patent
► International patent
Question No: 13 ( Marks: 1 ) – Please choose one 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
Question No: 14 ( Marks: 1 ) – Please choose one 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
Question No: 15 ( Marks: 1 ) – Please choose one 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
Question No: 16 ( Marks: 1 ) – Please choose one Which one of the following protects continuity
of the business(specially in
partnership)?
► Property insurance
► Casualty insurance
► Life insurance
► Bonding
Question No: 17 ( Marks: 1 ) – Please choose one A legally binding agreement between two
parties is called:
► A contract
► Licensing
► Insurance
► A copyright
Question No: 18 ( Marks: 1 ) – Please choose one Information regarding all of the following is
related to operations, EXCEPT:
► Location
► Promotion
► Raw materials
► Labor skills
Question No: 19 ( Marks: 1 ) – Please choose one Which of the following is NOT studied in
industry analysis?
► Economic conditions
► Technology advancements
► Legal concerns
Question No: 20 ( Marks: 1 ) – Please choose one Which one of the factors should be considered
while assessing the location for
business?
► Parking
► Access from roadways to facility
► Delivery rates
Question No: 21 ( Marks: 1 ) – Please choose one Which one of the following is NOT included in
four C’s evaluation by lender?
► Character
► Cost
► Continuity
► Contribution
Question No: 22 ( Marks: 1 ) – Please choose one Which of the following is a characteristic of a
good partner?
► Help to achieve goals
► Share entrepreneur’s vision
► Do not exploit the partnership
Question No: 23 ( Marks: 1 ) – Please choose one Having more than 50% ownership position that
provides the entrepreneur with
managerial control is called:
► Joint venture
► Majority interest
► Diversified activity merger
Question No: 24 ( Marks: 1 ) – Please choose one Which one of the following is a sound strategic
option for an entrepreneur when
synergy is present?
► Merger
► Joint venture
► Minority interest
Question No: 25 ( Marks: 1 ) – Please choose one Which of the following is a method of selling
goods to another country by taking care
of transactions?
► Importing
Question No: 26 ( Marks: 1 ) – Please choose one Following are the types of non-equity
arrangements EXCEPT:
► Licensing
► Management contracts
► Direct export
Question No: 27 ( Marks: 1 ) – Please choose one Andrew Carnegie is an example of

entrepreneur of which century:
► Earliest period
► Middle ages
► 17th century
Question No: 28 ( Marks: 1 ) – Please choose one A person who managed large project was
termed as the entrepreneur in the _________.
► Earliest period
► Middle ages
► 17th century
Question No: 29 ( 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
Which of the following factor is most important in forming a new business?

► Finance
► Marketing
► Government support
► Family support
Question No: 31 ( Marks: 1 ) – Please choose one Most of the finance for the new firm comes
from following resources EXCEPT:
► Friends
► Foreign aid
► Relatives
Question No: 33 ( Marks: 1 ) – Please choose one The intersection of knowledge and a
recognized social need to start a product
development process is called which of the following?
► Iterative synthesis
► Product-evolution process
► Ordinary innovation
► Situation analysis
Question No: 34 ( Marks: 1 ) – Please choose one A foundation company is formed through which
of the following?
► Fashion
► Most popular business
► A winding up company
► Research and development
Question No: 35 ( Marks: 1 ) – Please choose one Which of the following factors is the most
important in forcing U.S companies to focus
on new product development and increased productivity?
Question No: 38 ( Marks: 1 ) – Please choose one Individuals influencing an entrepreneur’s

career choice and style are known as which of
the following?
► Role model
► Support system
Question No: 39 ( Marks: 1 ) – Please choose one An entrepreneur is also successful in

international business as well if he understands:
► Difference of domestic and international business

► Domestic business
► International business
Question No: 40 ( Marks: 1 ) – Please choose one Which of the following is NOT an important
aspect of international success?
► Planning
► Diversification
► Reporting
► Control
Question No: 41 ( Marks: 5 ) What is meant by role models? What role do they perform?
Briefly discuss the product planning and development process.
MIDTERM EXAMINATION
Spring 2009
MGT602- Entrepreneurship (Session – 4)
Time: 60 min
Marks: 50
Which of the following has not yet been empirically established as a
distinguishing characteristic of entrepreneurs?
► Feeling about independence
► Risk taking
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
Which of the following method entrepreneur can use to do international business with
least risk?
► Joint venture
► Merger
► Synergy
A company dealing in beer has a merger with cigarettes manufacturing firm. This merger
is called:
► Product extension merger
► Market extension merger

► Vertical merger
► Consumers
Members of distribution channels are excellent sources for new ideas because:
► They are familiar with the needs of the market
► 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
► Innovation
► Graphics
► Products
► 12 years
► 17 years
► 20 years
► As long as it remains confidential
SBA stands for:
► Small business accountants
► Small business administration
► Small business adequacy
► Small business advisors
Why should an entrepreneur do a feasibility study for starting a new venture?
► To see if there are possible barriers to success
► To identify possible sources of funds
► To estimate the expected sales
► To explore potential customers
Information regarding all of the following is related to operations, EXCEPT:
► Location
► Promotion
► Raw materials
► Labor skills
Which one of the following guide the firm through the long term decision making?
► Mission statement
► Product forecast
► Industry analysis
► Location
► Products offered
► History
For which of the following copy right acquisition is desirable?
► Songs
► Poems
► Models
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

► It gives recognition that he will be the invent an idea in future
► It gives recognition that he wants to copy the idea
Which of the following is idea generation method that focuses on parameters?
► Brainstorming
► Creative problem solving
► Synoptic
The transitional disturbance and lack of reform has led to a booming black market in:
► China
► Hungary
► Singapore
► Poland
Which of the following geographical area is of least interest to U.S entrepreneurs?
► Europe
► The Far East
► Central Asia
► Transition economies
Which one of the following gives suggestions for new product and also help to market
new products?
► Consumers
► Merger
► Joint venture
► Minority interest (Doubted)
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
► 17th century
► Earliest period
► Middle ages
► 17th century
Which of the following factor is most important in forming a new business?
► Finance
► Marketing
► Government support
► Family support
What is the process by which individuals pursue opportunities without regard to
resources they currently control?

► Business model
► Modeling
► Innovation
In the administrative domain, the commitment of resources is for which of the
following?
► Periodic intervals
► Total amount needed
► For certain tasks
► For long time
► Act of stating a new venture
► Offering new products by an existing company
Which is the most common cause of business failure?
► Insufficient capital
► Unstable market
► Insufficient experience
► Poor entrepreneurship
Which of the following areas are preferred by women entrepreneurs?
► Administration
► Utilities
► Manufacturing
► None of the above
► Locomotion of control
► Locust of control
► Loss of control
Individuals influencing an entrepreneur’s career choice and style are known as which of
the following?
► Role model
► Support system

► Motivation
► Business skills
► Departure point
1. An entrepreneur’s primary motivation for starting a business is
a. To make money
b. To be independent
c. To be famous
d. To be powerful
2. To be successful in an entrepreneurial venture, you need
a. Money
b. Luck
c. Hard work
d. A good idea
3. Entrepreneurs are best as
a. Managers
b. Venture capitalists
c. Planners
d. Doers
4. A successful entrepreneur relies on which of the following for critical management advice
a. Internal management team
b. External management professionals
c. Financial sources
d. No one
5. Entrepreneurs are:
a. High risk takers
b. Moderate risk takers
c. Small risk takers
d. Doesn’t matter
6. Entrepreneurs typically form
a. Service businesses
b. Manufacturing companies
c. Constructive companies
d. A variety of ventures
7. Entrepreneurs:
a. Are the life of the party
b. Are bores at a cocktail party
c. Will never go to parties
d. Just fit into the crowd at a party
8. Entrepreneurs and ventures capitalists:
a. Get along well
b. Are the best friends
c. Are cordial friends
d. Are in conflict
9. An entrepreneur’s primary motivation for high ego and need for
achievement is based upon a relationship with:
a. Spouse
b. Mother
c. Father
d. Children
10. An individual usually begins his or her first significant entrepreneurial
business enterprise at what age

a. Teens
b. Twenties
c. Forties
d. Fifties
1. Personal characteristics to be a successful entrepreneur includes
e. Understanding environment
f. Creating management options
g. Encourage open discussion
h. All of the above
2. Without top management commitment, the organization will
e. Be able to make changes
f. Not be able to make any changes
g. Not be able to make effective changes
h. None of the above
3. Entrepreneurial experience becomes increasingly important as
e. Work load increases
f. Complexity of venture increases
g. Complexity of wok increases
4. Entrepreneurs are concerned about basic issues of:
e. Sales, costs and benefits

f. Customers, sales and costs
g. Risk, costs and benefits
5. Licensing arrangements have
e. Low risk process involved
f. Easy way to generate incremental income
g. Several pitfalls
h. All of the above
6. Joint ventures have been used by entrepreneur:
e. When the entrepreneur wants to purchase local knowledge
f. When rapid entry in to the market is needed
g. Both of the options given
7. A horizontal merger is
e. Is the combination of firms in successive stages of production
f. Is the combination of firms that produce closely related projects
in same area
g. Is the combination of firms that produce same products and sell in
different areas
8. Main reason(s) for merger is (are)
e. When synergy is present

f. When complementary resources can be combined
g. Economies of scale can be achieved
h. All of the above
9. First stage of production planning and development processes is
e. Idea stage
f. Concept stage
g. Establishing and evaluating criteria stage
1. NAFTA stands for:
a) North American Free Trade Agreements
b) North Asian Free Trade Agreements
c) National Asian Free Trade Agreements
d) National American Free Trade Agreements
2. The factor______________ is probably the most prevalent reason for mergers.
a) Taxation
b) Economies of scale
c) Inflation
d) Mergers
3. A _____________ merger is a combination of two firms producing the same products but
selling them in different geographic markets.
a) Diversified Activity Merger
b) Product Extension Merger

c) Vertical Merger
d) Market Extension Merger
4. One of the most frequent reasons an entrepreneur forms a joint venture is to share the
________________.
a) Resources b) Cos t c) Cost and risk of
a project d) Profit
5. _______________ involves having a foreign purchaser in the local market or using an

export management firm.
a) Direct Exporting
b) Indirect Exporting
c) Management Contracts
d) Turn-Key Projects
6. The ______________measures the payments that flow between any individual country and
all other countries.
a) International Business
b) Economies of Scales
c) Balance of Payment
d) None of the given options
7. ________________ 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.
a) Simplicity Sue
b) Shotgun Sam
c) Hidden Agenda Harry
d) Inventor Irving
8. One study found that the typical minority business owner was the
a) Oldest child in a blue-collar family and married.
b) Oldest child in a white-collar family and married.
c) Youngest child in a blue-collar family and married.
d) Youngest child in a white-collar family and married.
9. Traditional managers are:
a) Deals with mistakes and failures
b) Tries to avoid mistakes and surprises
c) Attempts to hide risky projects from view until ready
d) None of the given Options
11. Risk decisions are often postponed until
a) Hard facts can be gathered or a consultant hired to illuminate the
unknown.
b) Hard facts can be gathered or an auditor hired to illuminate the
unknown.
c) There is no need to gather facts and hired a consultant/auditor
12. _________________ is one method of stimulating, and then
capitalizing on, individuals in an organization who think that
something can be done differently and better.
a) Strategic Orientation b) Capitalization
c) Intrapreneurship d) Management
13. The typical _________________ has a climate and reward system
that favor conservative decision making.
a) Entrepreneurship culture
b) Corporate culture
c) Intrapreneurial culture
14. Female entrepreneurs normally start their venture at the age of
_____________ years.
a) 35-45 b) 25-30 c) 20-25 d) 40-45
15. Male entrepreneurs normally start their venture at the age
of____________ years.
a) 20-25 b) 25-35 c) 40-50 d) After the age of retirement.
16. The ________________ is the process through which innovation develops and
commercializes through entrepreneurial activity, which in turn stimulates economic growth.
a) Product-evolution process
b) Technological innovations
c) Breakthrough innovations
17. A____________________ is a type of company formed from research and development

that usually does not go public.
a) Foundation
b) Life-Style Firm c) High-Potential Venture d) Both

b and c
18. _________________ involve such things as writing, listening, oral presentations, coaching
and technical know-how.
a) Business Management skills
b) Personal entrepreneurial skills
c) Technical skills
19. The ___________________ means to do things in his or her own
way and time.
a) Need per independence
b) Need for achievement
c) Personal values
d) Ethics
20. ________________ is a reason or set of reasons for engaging in a
particular behavior, especially human behavior.
a) Moral value
b) Act
c) Motivation
1. Any patents, trademarks , copyright or trade secrets held by the
entrepreneur is known as
a. Disclosure document
b. Patent
c. Intellectual property
d. None of the mentioned
2. The organization will never be able to make the necessary changes
without_________
a. Top management commitment
b. Employees
c. Workers
d. None of the mentioned
3. The ways entrepreneurs make decisions.
a. Entrepreneurial domain.
b. Reverse brain storming
c. Heuristics
d. Reverse brain storming
4. A trademark is
5. A word, symbol, name or device that a business uses to identify its
goods.
a. A legal protection for information on foreign products.
b. Legal protection for intellectual works.
c. Legal protection for a U.S. product exported to another country.
6. locus of control is
e. A feeling
f. Attitude
g. Attribute
i. Low risk process involved
j. Easy way to generate incremental income
k. Several pitfalls
l. All of the above
i. Understanding environment
j. Creating management options
k. Encourage open discussion
l. All of the above
9. International entrepreneurship is
a. Licensing
b. Exporting
c. Both of the mentioned options
d. None of the two mentioned
Which of the following is not a characteristic that is helpful for an

entrepreneur to have?
a. Self-esteem
b. Caution
c. Drive
10. Hindrance for going in the international business is known as
a. Synergy
b. Turn key point
c. Trade barrier
d. Minority interest
1. An entrepreneur’s primary motivation for starting a business is
m. To make money
n. To be independent
o. To be famous
p. To be powerful
2. To be successful in an entrepreneurial venture, you need
i. Money
j. Luck
k. Hard work
l. A good idea
4. A successful entrepreneur relies on which of the following for critical
management advice
i. Internal management team
j. External management professionals
k. Financial sources
l. No one
6. Entrepreneurs typically form

m. Service businesses
n. Manufacturing companies
o. Constructive companies
p. A variety of ventures
7. Entrepreneurs:
i. Are the life of the party
j. Are bores at a cocktail party
k. Will never go to parties
l. Just fit into the crowd at a party
8. Entrepreneurs and ventures capitalists:
i. Get along well
j. Are the best friends
k. Are cordial friends
l. Are in conflict
9. An entrepreneur’s primary motivation for high ego and need for achievement is based upon a
relationship with:
i. Spouse
j. Mother
k. Father
l. Children
10. An individual usually begins his or her first significant entrepreneurial business enterprise at what
age
i. Teens
j. Twenties
k. Forties
l. Fifties
q. Understanding environment
r. Creating management options
s. Encourage open discussion
t. All of the above
11. Entrepreneurial experience becomes increasingly important as
m. Work load increases
n. Complexity of venture increases
o. Complexity of wok increases
p. None of the above
12. Entrepreneurs are concerned about basic issues of:
i. Sales, costs and benefits
j. Customers, sales and costs
k. Risk, costs and benefits
l. None of the above
q. Low risk process involved
r. Easy way to generate incremental income
s. Several pitfalls
t. All of the above
14. Joint ventures have been used by entrepreneur:
m. When the entrepreneur wants to purchase local knowledge
n. When rapid entry in to the market is needed
o. Both of the options given
15. A horizontal merger is
m. Is the combination of firms in successive stages of production
n. Is the combination of firms that produce closely related projects
in same area
o. Is the combination of firms that produce same products and sell in
different areas
16. Main reason(s) for merger is (are)
m. When synergy is present
n. When complementary resources can be combined
o. Economies of scale can be achieved
p. All of the above
17. First stage of production planning and development processes is
m. Idea stage
n. Concept stage
o. Establishing and evaluating criteria stage

1. What causes people to do something?
Need for achievement
Need for independence
Motivation
None of the mentioned options
2. Individuals who help the entrepreneur in business activities
Role models
Professional-support network
Parents
3. The managers in an organization strongly supporting
intrapreneurship is called ———
Top management commitment
Upper management commitment
Lower management intrapreneur
Upper management intrapreneur
4. ————- involves a manufacturer giving a foreign manufacturer
the right to use a patent, trademark or technology in return for a
royalty
Licensing
Turn-key projects
1. A set of reasons for engaging in a particular behavior, especially human
behavior is
known as _____________.
a. Values
b. Vision
c. Entrepreneurship
d. Motivation
2. Which of the following techniques is an excellent method for
initially screening ideas and concepts in addition to generating new
ideas?
a. Focus group
b. Brain storming
c. Problem inventory analysis
d. Reverse brainstorming
3. 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 _________.
a. Synoptic
b. Gordon method
c. Checklist method
d. Scientific method
4. When the multiplicity of environments become too complex to
handle, the international entrepreneurs often __________.
a. Go for mergers
b. Diversify
c. Decentralize operations
d. Sale out the foreign business
5. 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?
a. Supplier
b. Retailer
c. Competition
d. Government bureau
7. Entrepreneurial success has been significant because of the culture
and the political and economic systems in _________.
a. European countries
b. Asian countries
c. Transition economies
d. Middle east
9. 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?
a. Management contract
b. Indirect exporting
c. Licensing
d. Turn-key project
10. The development of a new venture based on an inventor’s work
often requires
________.
a. Expertise of an entrepreneur
b. Heavy investment from financers
c. Skilled human resources
d. Highly educated staff
Solution No. 1
Gazelles are the firms with:
High growth rate
Moderate growth rate
Zero% growth rate
Low growth rate
The resources acquired from others(creditors, banks etc) are usually:
Easily available
Difficult to obtain
Very useful
Very cheap
Which of the following firm achieves modest growth:
Foundation firm
Life style
Public company
Which of the following statements about the intrepreneurial climate is (are) true?
Trial and error are discouraged.
Resources of the firm need to be available and easily accessible
A multidisciplinary approach is discouraged.
Failures are not allowed
The difference in the entrepreneurial and managerial domains has contributed
towards an increase interest in:
Forming new firms
Partnership
Intrapreneurship
Private firms
The commitment of administrative domain to the resources is for:
Periodic intervals
Total amount needed

For certain tasks
For long time
Which one of the following is NOT an intrapreneurial leadership characteristic?
Understands environment
Encourage the team work
Not flexible
Persistent
Government
Finance
High interest rates
Role models
The activities which occur when the new venture is started are called:
Motivation
Goal orientation
Departure point
Business skills
Creative
Conceptualization

In terms of chronological age, most entrepreneurs initiate their entrepreneurial
carrier between ages of:
15 and 22
22 and 45 22 55
45 and 57
57 and 63
Which of the following factors does not affect a person for being an
entrepreneur?
Family background
Education
Personal values
Gender
The chief motivational factor for _________________ entrepreneurs to leave
jobs is the frustration of not being allowed to perform at the level of which they
are capable.
Male
Female
Young
The activities which occur when the new venture is started are called:
Motivation
Goal orientation
Departure point
Business skills
Which one of the following is NOT an intrapreneurial leadership characteristic?
Understands environment
Encourage the team work
Not flexible
Persistent
The startups which rarely go public are called:
Life style
Foundation Company
Small company
It is proved that most businesses failed because of improper planning of an/a:
Investor
Marketer
Entrepreneur
Consultant
Which one of the following culture that has a climate and reward system that
favor conservative decision making?
Entrepreneurial
Intrapreneurial
Corporate
Which one of the following is the fourth step in the entrepreneurial process?
Developing successful business ideas
Deciding to become an entrepreneur
Growing the entrepreneurial firm
Moving from an idea to an entrepreneurial firm
All of the following are the broad categories of External forces EXCEPT:
Economic forces
Socioeconomic forces
Technological forces
Competitive forces
External forces directly affect all of the following EXCEPT:
Market segmentation strategies
Types of products/services offered
Management structure of organization
Choice of businesses to acquire or sell
There is evidence that an entrepreneur usually has _______________ parents.
Self employed
Discouraged
Non supportive
Strict
Government can help in forming new venture by providing:

Finance
Technology
Infrastructure
Subsidiaries
The decision to start a new business is taken when one perceives that forming a
new business is:
Possible
Desirable
Accurate
Both a and b
entrepreneurs differ from male entrepreneurs in terms of following EXCEPT:
Motivation
Business skills
Departure point ???
Goal orientation
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
of the following factors has allowed small companies to act like they are big
ones?
Competition
Economic development
Technology
Customers
Which two work environments should be good for spawning the new enterprises?
Finance and marketing
Finance and R&D
Marketing and R&D
Marketing and IT
Which of the following receives highest investment?
Foundation firm
Life style
Public company
of the following has a contradictory relationship with an individual for being an
entrepreneur?
His birth order
Parents’ social status
Parents’ occupation
Relationship with parents

Which one of the following is required to develop a good team for creating
something new?
Relationship with team members
Open discussion
Non flexible behavior
Discouragement of team member’s ideas
Good entrepreneurs are usually from families which are:
Landlords
Capitalists
Can be from any family with supportive parents ???????
Conservative parents
___________ is required if a company wants to be more flexible in adopting
changes.
Management commitment
Contact with customers
Technology
More productivity
Investor
Marketer
Entrepreneur
Consultant
Female entrepreneurs differ from male entrepreneurs in terms of following
EXCEPT:
Motivation
Business skills
Departure point
Goal orientation
Q #2: ___________ Process of creating incremental wealth is called
Entrepreneurship.
A. Dynamic
B. Static
C. Continues
D. Systematic
Q #3: Most important factor in forming a new business is:
A. Finance
B. Marketing
C. Govt Support
D. Family Support
Q #4: Which one of the following is the process of entrepreneurs developing new
products that over time make current products obsolete?
A. Creative destruction
B. New business model
C. Anatomization
D. None of the given options
Q #6: Which one of the following is the primary cause of failure in small
businesses?
A. Poor financial control
B. Poor location
C. Management mistakes
D. Improper inventory control
Q #7: Which one of the following is the first step in the entrepreneurial process?
A. Developing successful business ideas
B. Deciding to become an entrepreneur
C. Growing the entrepreneurial firm
D. Moving from an idea to an entrepreneurial firm
Q #8: Which of the following is NOT included in the opportunity evaluation
process?
A. Length of the opportunity
B. Real and perceived value of opportunity
C. Goals and objectives of customers
D. Risks and rewards of opportunity
Q #9: The resistance of employees in an organization against flexibility, growth, and diversification
can be overcome by developing:
A. Entrepreneurship
B. Intrapreneurship
C. Managerial domain
D. Administrative domain
Q #10: The entrepreneur’s_______________ depends on his perception of the opportunity.
A. Commitment to opportunity
B. Commitment of resources
C. Control of resources
D. Strategic orientation
Q #11: Which of the following statements about the entrepreneurial climate is (are) true?
A. Trial and error are discouraged
B. Resources of the firm need to be available and easily accessible
C. A multidisciplinary approach is discouraged
D. Failures are not allowed
Q #12: Which of the following makes the formation of new venture difficult within corporate culture?
Lack of entrepreneurial talent
Lack of freedom to make autonomous decisions
Lack of market opportunity
D. All of the given options
Q #13: Which of the following factors has allowed small companies to act like they are big ones?
A. Competition
B. Economic development
C. Technology
D. Customers
Q #15: Being one’s own boss is a need of:
A. Independence
B. Achievement
C. Affiliation
D. Authority
Q #16: An individual’s need to be recognized is called:
A. Need for independence
B. Need for affiliation
C. Need of fame
D. Need for achievement
Q #17: Which one of the following factors does not affect a person for being an entrepreneur?
A. Family background
B. Education
C. Personal Values
D. Gender
Q #20: Which one of the following is NOT TRUE about male entrepreneurs?
A. Males often have investors, bank loans, or personal loans in addition to personal funds
B. Males often have more experience in manufacturing, finance, or technical areas
C. Men are often more confident and less flexible and tolerant
D. Men usually list outside advisors as the least important supporters
Plan Outline:
1.0 Executive Summary

a. Mission
b. Objectives
c. Keys to Success
2.0 Company Summary
d. Company Ownership
e. Company History
f. Company Locations and Facilities
3.0 Services
g. Service Description
h. Competitive Comparison
i. Sales Literature
j. Fulfillment
k. Technology
l. Future Services
4.0 Market Analysis Summary
m. Market Segmentation
n. Service Business Analysis
i. Main Competitors
ii. Competition and Buying Patterns
iii. Business Participants
iv. Distributing a Service
5.0 Strategy and Implementation Summary

o. Marketing Strategy
i. Promotion Strategy
ii. Distribution Strategy
iii. Positioning Statement
iv. Pricing Strategy
p. Sales Strategy
i. Sales Programs
ii. Sales Forecast
6.0 Management Summary
2. Organizational Structure
3. Appendix
Self employed
Discouraged
Non supportive
Strict
Which one of the following makes formation of new ventures within a corporate structure
difficult?
Lack of intrapreneurial talent ??
Lack of freedom to make autonomous decisions
Lack of market opportunity
Lack of knowledge
Question # 8 of 10 Total Marks: 1
Professional support network includes following EXCEPT:
Personal affiliations
Mentor
Trade associations
Friends
Which of the following is NOT a characteristic of an entrepreneur?
Need for affiliation
Risk taking
With a commercial history of only 300 years, which country was a new comer to
the international arena?
► Japan
► U.S
► China
► U.K
International entrepreneur’s decisions are more complex because of:
► Business expansion
► Analysis of Huge information is difficult
► Complex transactions
► Uncontrollable factors
Which of the following techniques is an excellent method for initial screening
of ideas and concepts?
► Focus group
► Problem inventory analysis
► Brain storming
Which one of the following is a method for obtaining new ideas and solutions by
focusing on problems?
► Product inventory analysis
► Gordon method
► Checklist method
► Scientific method
The marketing perspective of business plan considers the venture through the
eyes of:
► Investor
► Customer
► Entrepreneur
► Marketing manager
Which one of the following is NOT a condition of a contract?
► An offer is made
► An acceptance of offer
► Counter offer
► Consideration is given
Trade barriers cause:
► Increase in cost
► Decrease in cost
► Increase in profit
Which of the following is a method of selling goods to another country through
a person in the entrepreneur’s home country?
► Trading
► Direct export
► Indirect export
► Domestic sales
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
Which of the following typical culture has a climate and reward system that
favors conservative decision making?
► Entrepreneurial
► Intrapreneurial
► Corporate
Which of the following statement about the intrapreneurial climate is true?
► Trial and error are discouraged
► Resources of the firm need to be available and easily accessible
► A multidisciplinary approach is discouraged
► Failures are not allowed
Which of the following are known as barriers to new product creation and
development?
► Trial and error
► Opportunity parameters
► Opportunity cost
► Intrapreneurship culture
All of the following are true regarding male entrepreneurs EXCEPT:
► Typically most male entrepreneurs are first-borns ??
► Dissatisfaction with present job is a departure point for a male entrepreneur
► Male entrepreneurs mostly have a occupational background of middle-management
or administrative-experience in the field
► Male entrepreneurs tend to be opinionated and persuasive in their approach
Entrepreneurial endeavors consist of all of the following key elements Except:
► New business venturing

► Increasing productivity
► Innovativeness
► Proactiveness
Which of the following factor does not affect a person for being an
entrepreneur?
► Family background
► Education
► Personal values
► Gender ??
The former USSR received technology and syrup from Pepsi and provided it with
Soviet vodka and rights to distribute it in the US. This is an example of:
► Barter system
► International trade
► International entrepreneurship
► Intrapreneurship
► Domestic entrepreneurship
Which one of the following may need the business plan?
► Employees
► Investors
► Advisors
Following are the types of foreign direct investment EXCEPT:
► Joint venture
► Management contracts ??
► Merger
Solved MCQs of Entrepreneurship (with proper reference and explanation)
Question No: 1
► Business model
► Modeling
► Innovation
Reference:
(page # 4)
Innovation, the act of introducing something new,
Question No: 2
Which one of the following gives suggestions for new product and also help to market new
products?
► Consumers
Reference & Explanation:
(Page # 39 of handouts)
Consumers Potential entrepreneurs should pay close attention to the final focal point of a new
product-the customer. This can be an informal or formal survey of consumers expressing their
opinions. Care should be taken to ensure that the idea represents a large enough market.
Existing Companies Entrepreneurs should establish a formal method for monitoring and
evaluating the products and services in the market. This may uncover ways to improve on
present products, resulting in new product ideas.
Distribution Channels
Members of distribution channels are also excellent sources for new ideas because they are
familiar with the needs of the market. Not only do channel members frequently have
suggestions for new product, but they can also help in marketing the entrepreneur’s newly
developed products.
Federal Government
The federal government can be source of new product ideas in two ways. First the files of the
Patent Office contain numerous new product possibilities. Although the patents may not be
feasible new product introduction, they can suggest other marketable product ideas. Several
government agencies and publications are helpful in monitoring patent applications. Second new
product ideas can come in response to government regulations. For example the Occupational
Safety and Health Act (OSHA), aimed at eliminating unsafe working condition in industry,
mandated that first aid kits be made available in business establishments employing more than
three people. The kit had to contain specific item that varied according to the company and the
industry. In response to OSHA, both established and newly formed ventures marketed a wide
variety of first aid kits.
Question No: 3

► Merger
► Joint venture
(http://books.google.com.pk/books?id=s01P0agnLPUC&pg=PA94&lpg=PA94&dq=Which+of+t
he+following+is+used+by+entrepreneurs+to+acquire+experience+in+an+international+market+
before+making+a+major+commitment&source=bl&ots=rCNwzr1ZA_&sig=jOefpOz349LldzTx
KVQZ_kLb1fg&hl=en&ei=L47FS6i5OaXCmgP_r_XLDg&sa=X&oi=book_result&ct=result&r
esnum=4&ved=0CBMQ6AEwAw#v=onepage&q&f=false )
(http://books.google.com.pk/books?id=Uvdw6E2-
1aIC&pg=PA203&lpg=PA203&dq=minority+interest+is+used+by+entrepreneurs+to+acquire+e
xperience+in+an+international+market+before+making+a+major+commitment&source=bl&ots
=3tA-y_kn4K&sig=Nt4k8-ZGwnTlYndb9RkicLgYlF8&hl=en&ei=9JvFS-
ncIsnbsAbfuPzAAQ&sa=X&oi=book_result&ct=result&resnum=6&ved=0CBoQ6AEwBQ#v=o
nepage&q=minority%20interest%20is%20used%20by%20entrepreneurs%20to%20acquire%20e
xperience%20in%20an%20international%20market%20before%20making%20a%20major%20c
ommitment&f=false )
Note: Sorry we are unable to copy the reference text,
Question No:4
GATT is established in 1947, under:

► German leadership
► French leadership
► U.S. leadership
► U.K. leadership
Reference and Explanation:
GATT 1947 in the US
The GATT, as an international agreement, is a treaty. Under United States law it is classified as a
congressional-executive agreement. Based on the Reciprocal Trade Agreements Act it allowed
the executive branch negotiating power over trade agreements with temporary authority from
Congress. At the time it functioned as a provisional, but promising trade system.
(http://en.wikipedia.org/wiki/General_Agreement_on_Tariffs_and_Trade)
Question No: 5

► Middle ages
► 18th century
► 17th century
Referece and Explanation:
Middle Ages
In this age the term entrepreneur was used to describe both an actor and a person who managed
large production projects. In such large production projects, this person did not take any risks,
managing the project with the resources provided. A typical entrepreneur was the cleric who
managed architectural projects.
18th Century
In the 18th century the person with capital was differentiated from the one who needed capital. In
other words, entrepreneur was distinguished from the capital provider.
17th Century
In the 17th century the entrepreneur was a person who entered into a contract with the government
to perform a service Richard Cantillon, a noted economist of the 1700s, developed theories of the
entrepreneur and is regarded as the founder of the term. He viewed the entrepreneur as a risk taker
who "buy[s] at certain price and sell[s] at an uncertain price, therefore operating at a risk."
19th and 20th Centuries
In the late 19th and early 20th centuries, entrepreneurs were viewed mostly from an economic
perspective. The entrepreneur "contributes his own initiative, skill and ingenuity in planning,
organizing and administering the enterprise, assuming the chance of loss and gain."
Question No: 6
► Earliest period
► Middle ages
► 17th century
Referece and Explanation:
Earliest Period
In this period the money person (forerunner of the capitalist) entered into a contract with the go-
between to sell his goods. While the capitalist was a passive risk bearer, the merchant bore all the
physical and emotional risks.
Middle Ages
17th Century
In the 17th century the entrepreneur was a person who entered into a contract with the government
to perform a service Richard Cantillon, a noted economist of the 1700s, developed theories of the
entrepreneur and is regarded as the founder of the term. He viewed the entrepreneur as a risk taker
who "buy[s] at certain price and sell[s] at an uncertain price, therefore operating at a risk."
19th and 20th Centuries
In the late 19th and early 20th centuries, entrepreneurs were viewed mostly from an economic
perspective. The entrepreneur "contributes his own initiative, skill and ingenuity in planning,
organizing and administering the enterprise, assuming the chance of loss and gain."
Question No: 7
Entrepreneurship is a process by which individuals - either on their own or inside organizations -
pursue opportunities without regard to the resources they currently control. (Stevenson & Jarillo,
1990, p. 23)
(http://findarticles.com/p/articles/mi_hb6648/is_n3_v19/ai_n28666393/)
Stevenson's definition would be as follows: The continuous process by which individuals pursue
opportunities without regard to resources they currently control, with the intent of increasing
value and/or advantage. I have made the underlined additions because entrepreneurship should
never be considered a single event. It is a continuing, non–ending process in search of increasing
value and ever increasing advantage.
(http://www.babson.edu/entrep/fer/papers97/mitton/mit6.htm)
Question No: 8
Having less than 50 percent of equity share in an international venture is called:
► Joint venture
► Exporting
Reference:
(page # 36)
Minority interest
Having less than 50 percent ownership position
Question No: 9
Having more than 50% ownership position that provides the entrepreneur with managerial
control is called:
► Joint venture
► Diversified activity merger
Reference:
(Page # 34)
Majority interest
Having more than 50 percent ownership position
Question No: 10 - (
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
Reference :
Creative destruction occurs when something new kills something older. A great example of this is
personal computers. The industry, led by Microsoft and Intel, destroyed many mainframe computer
companies, but in doing so, entrepreneurs created one of the most important inventions of this century
(http://www.investopedia.com/terms/c/creativedestruction.asp)
(http://wps.prenhall.com/bp_barringer_entrep_1/29/7476/1913875.cw/content/index.html)
Question No: 11
Which of the following factors is the most important in forcing U.S companies to focus on
new product development and increased productivity?
Reference:
(page # 16)
Hyper competition has forced U.S. companies to focus on new product development and increased
productivity.
Question No: 12

► Intrapreneurship
► Act of stating a new venture
► Offering new products by an existing company
Reference:
(Page # 21)
Intrapreneurship, also called corporate venturing,
Question No: 13
Individuals influencing an entrepreneur’s career choice and style are known as which of
the following?
► Role model
► Support system
Reference:
(Page # 25)
Role models
Individuals influencing an entrepreneur’s career choice and style
Moral-support network
Individuals who give psychological support to an entrepreneur
Individuals who help the entrepreneur in business activities
Question No: 14
► Motivation
► Business skills
► Departure point
Reference:
(Page # 23)
Departure points
The activities occurring when the venture is started
Question No: 15
The level at which an individual is viewed by society is called:
► Qualification
► Social status
► Achievement
Reference:
(Page # 25)
Social status
The level at which an individual in viewed by society
Question No: 16
► Consumers
developed products.
Federal Government
Question No: 17
Members of distribution channels are excellent sources for new ideas because:
► They are familiar with the needs of the market
► They earn a handsome profit from new business
► They do not bother if entrepreneur bears a loss
► They have well-developed sales force
developed products.
Federal Government
Question No: 18
Which one of the following is the most important characteristic of a successful business
website?
► Speed
► Innovation
► Graphics
► Products
Reference:
(Page # 44)
A successful website has three characteristics: speed, speed, and speed. Short download time should be
the primary concern of website developers.
Question No: 19
► Idea Stage
► Product Planning Stage
► Product Development Stage
► Test Marketing Stage
Reference:
(Page # 45)
Generally divided into five major stages: idea stage, concept stage, product development stage, test
marketing stage, and commercialization stage
Question No: 20 (
SBA stands for:

► Small business accountants
► Small business administration
► Small business adequacy
► Small business advisors
Reference:
(Page # 81, Lecture 32)
Small Business Administrative (SBA)
Question No: 21
Why should an entrepreneur do a feasibility study for starting a new venture?

► To see if there are possible barriers to success
► To identify possible sources of funds
► To estimate the expected sales
► To explore potential customers
Reference:
(Page # 56, Lecture # 22)
Before preparing a business plan, the entrepreneur should do a quick feasibility study to see if there are
possible barriers to success. The entrepreneur should clearly define the venture’s goals, which provide a
framework for the business plan. The business plan must reflect reasonable goals.
Question No: 22
Information regarding all of the following is related to operations, EXCEPT:

► Location
► Promotion
► Raw materials
► Labor skills
Reference:
(Page # 56, Lecture # 22)
Operations Information Needs
The entrepreneur may need information on:
1. Location
2. Manufacturing operations
3. Raw materials
4. Equipment
5. Labor skills
6. Space
7. Overhead
Question No: 23
For which of the following copy right acquisition is desirable?
► Songs
► Poems
► Models
Reference:
all above thing even downloading books form internet is protected by copy rights except vu
past papers .heheehe
Question No: 24
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
► It gives recognition that he will be the invent an idea in future
► It gives recognition that he wants to copy the idea
Reference:
(Page # 47)
Disclosure of the invention, giving recognition that he or she was the first to develop the idea.
Question No: 25 (
In the administrative domain, the commitment of resources is for which of the following?
► Periodic intervals
► Total amount needed
► For certain tasks
► For long time
Reference:
Commitment of Resources
An entrepreneur is used to having resources at periodic intervals that are often based on certain tasks or
objects being reached. These resources, often acquired from others, are usually difficult to obtain, forcing
the entrepreneur to maximize any resources used. This multistage commitment allows the resource
providers (such as venture capitalist or private investors) to have as small an exposure as possible at each
stage of business development and to constantly monitor and track record being established. Even though
the funding may also be implemented in stages in the administrative domain, the commitment of the
recourses is for the total amount needed. Administratively oriented individuals respond to the resources
of the rewards offered and receive personal rewards by effectively administering the resources under this
control.
(http://books.google.com/books?id=s01P0agnLPUC&pg=PA42&lpg=PA42&dq=In+the+administrative+d
omain,+the+commitment+of+resources+is+for+which+of+the+following&source=bl&ots=rCNwzs25w3&
sig=08Tdnkl46ViZSrIM4ti5s0QNRPk&hl=en&ei=JLzFS4bNJY-
TsQadsJHBAQ&sa=X&oi=book_result&ct=result&resnum=1&ved=0CAYQ6AEwAA#v=onepage&q&f=false
)
Which of the following is a method of selling goods to another country by taking care of
transactions?
► Importing
Reference:
(Page # 30)
Direct exporting through independent distributors or through one’s own overseas sales office is
another entry method. An independent foreign distributor directly contacts foreign customers
and takes care of all technicalities.
Gazelles are the firms with:
► High growth rate
► Moderate growth rate

► Zero growth rate
► Low growth rate
Reference:
(page # 7)
Gazelles
Very high growth ventures.
Which of the following are the Fast-growth young companies?
► Gazelles
► Life style
► Foundation Company
Reference:
(page # 8)
A venture has high growth potential and therefore receives great investor interest. The company
may start out like a foundation company, but its growth is far more rapid. After five to ten
years the company could employ around 500 employees. These firms are also called
gazelles and are most important for the economic development of an area
Which of the following factor has allowed small companies to act like they are big ones?
► Technology
► Customers
► Competition
Reference:
(Page #21)
A company needs to use technology to make itself faster and more flexible. Technology has
allowed small companies to act like they are big ones. Large companies can use technology
to make them responsive and flexible
Solved Exam papers
MGT602 Entrepreneurship Final Term 2009 Solved by
Mehreen Humayun 2
View Comments
FINALTERM EXAMINATION
Spring 2009
MGT602- Entrepreneurship
Shared By Shahaan Zulfiqar
Solved by vuZs Team
Mehreen Humayun
www.vuzs.info
Time: 120 min
M - 80
Self employed
Discouraged
Non supportive
Strict
Entrepreneurs tend to have self-employed fathers, and many also have entrepreneurial mothers.
Gap of knowledge
There are still many difficulties in doing business in developing and transition economies due to:
a. Gaps in the knowledge of the Western system regarding business plans, marketing, and profits
b. Widely variable rates of return.
c. Non-convertibility of the ruble.
d. Differences in the accounting system.
e. Nightmarish communications.
www.vuzs.info
Which of the following techniques is an excellent method for initial screening of ideas and concepts?
Focus group
Problem inventory analysis
Brain storming
Reverse brainstorming
Focus groups:
· number of group members from 6-12
· Moderator focuses discussion of the group in a directive or nondirective manner.
· An excellent method for initially screening ideas and concepts.
Which one of the following is the next stage to the Concept Stage of Product Planning and Development
Process?
Idea Stage
Product planning and development process: Generally divided into five major stages: idea stage, concept
stage, product development stage, test marketing stage, test marketing stage, and commercialization
stage.
www.vuzs.info
Which of the following is a more structured method of problem solving, including principles and rules for
concept formation, making observations and experiments, and finally validating the hypothesis?
Scientific method
Heuristics
Attribute listing
Value analysis
Scientific method: This is a more structured method of problem solving, including principles and rules for
concept formation, making observations and experiments, and finally validating the hypothesis.
Which of the following is used by entrepreneurs to acquire experience in an international market before
making a major commitment?
Merger
Joint venture
Minority interest
Majority interest
The joint venture provides ready access to new international markets.
Which of the following plan shows the economically feasibility of business?
Business
Financial
Economic
Marketing
Financial Plan: The financial plan determines the investment needed for the new venture and indicates
whether the business plan is economically feasible.
www.vuzs.info
What are the number of questions a marketing plan usually answers?
5
2
3
4
Understanding the marketing plan: The marketing plan should answer three basic questions:
Where have we been? -The history of the marketplace, marketing strengths and weaknesses, and
market opportunities.
Where do we want to go (short term)? - Marketing objectives and goals in the next twelve months.
How do we get there? -Specific marketing strategy that will be implemented.
Which of the following allows the entrepreneur to establish controls on the process during the
implementation of the marketing plan?
Sales data
Research data
Consumer data
Technical data
www.vuzs.info
Which of the following shows the characteristic of the venture that has experience in related business?
Strength
Weakness
Opportunity
Threat
Advertising and promotion for the business-to-business market involve all of the following EXCEPT:
Indirect sales
Trade magazine advertising
Direct sales
Trade shows
Which of the following shows the characteristic of the venture that has experience in related business?
Strength
Weakness
Opportunity
Threat
www.vuzs.info
In which of the following, banks are usually reluctant to give loan?
Sole Proprietor
Partnership firm
In which of the following majority holds the management control?
Partnership
Corporation
In a partnership the majority usually rules unless the partnership agreement states otherwise.
www.vuzs.info
Which of the following represents the shares in borrowing of Large Enterprises in Pakistan?
68%
65%
66%
67%
Ref: Video Lecture#45, Time 10:45
Which of the following represents the environment in which entrepreneurship can’t grow?
Boom
Vacuum
Maturity
Introductory Phase
Ref: A business does not function in a vacuum. It has to act and react to what happens outside the
factory and office walls.
www.vuzs.info
"What the entrepreneur hopes to accomplish" includes in which section of business plan?
Vision statement
Mission Statement
Goal Statement
All of the above
The description of the venture should be detailed in this section. This should begin with the mission
statement or company mission, which describes the nature of the business and what the entrepreneur
hopes to accomplish.
Which of the following shows the standard acceptable term of a Limited Liability Company?
Three
Ten
Twenty
Thirty
Lesson 29
The standard acceptable term of an LLC is 30 years.
Which one of the following provides a guideline in determining hiring procedures?
Job description
Job specification
Job analysis
Job evaluation
The job analysis serves as a guide in determining hiring procedures.
www.vuzs.info
The S corporation combines the tax advantages of which one of the following?
Proprietorship and limited liability company

Partnership and corporation
Corporation and limited liability company
Partnership and proprietorship
S CORPORATIONS: The S Corporation combines the tax advantages of the partnership and the
corporation.
Which of the following is the base of Job Advertisement?
Job Description
Job Specification
Job identification
Ref: Job Advertisement: Before you write your job ad, complete a job profile and/or job description.
A job advertisement is placed when a vacancy arises within a company or organization.
Which of the following shows the results from the difference between actual cash receipts and cash
payments?
Revenue
Profit
Cash flow
Income statement
Cash flow results from the difference between actual cash receipts and cash payments.
What is the primary concern of entrepreneurs, who trade equity for their growing venture?
Control
Valuation
Capitalization
Reference by Zubair Hussain
Capitalization: Its primary concern is capitalization, because Entrepreneurs offer share in his/her company
in return of money, when he lacks money to fulfill the need of capital.
www.vuzs.info
When the business does not have assets to support a loan, the entrepreneur may go for which one of the
following options?
Character loan
Straight commercial loan
Installment loan
Long term loan
Character loans: When the business does not have assets to support a loan, the entrepreneur may need
a character loan.
Which of the following number of years a mortgage loan may possibly cover?
10
20
30
40
Ref: As with other types of loans, mortgages have an interest rate and are scheduled
to amortize over a set period of time, typically 30 years.
www.vuzs.info
In which of the following techniques, money is given to a firm for developing a technology and involves a
tax shelter?

Cash flow financing
This method of financing provides funds from inventors looking for tax shelters. A typical R&D partnership
arrangement is established with a sponsoring company developing the technology with funds being
provided by a limited partnership of individual investors.
The overall coordinating party in an agreement is:
Limited partner
Major partner
Minor partner
General partner
Liability of Owners: The proprietor and general partners are liable for all aspects of the business.
www.vuzs.info
Which of the following includes grants from the U.S. government to small technology based businesses?

Installment loans
The Small Business Innovation Research (SBIR) grant program helps entrepreneurs obtain federal grant
money to develop an innovative idea. The act requires all federal agencies to share a portion of the R&D
funds with small businesses.
Which of the following is a formalized method for obtaining funds from private investors?
Private placement
Private offering
Regulation D
Bootstrap financing
Private placement refers to the process of obtaining funds from private parties such
as investors.
When did the Sindh Small Industries Corporation launch its credit scheme?
1972-73
1978-79
1988-89
1992-93
The SSIC also launched a credit scheme in 88, /89.
www.vuzs.info
Which of the following is a type of leverage ratio?
Debt ratio
Net profit margin
Return on investment
Current ratio
Debt ratio helps the entrepreneur assess the firm’s ability to meet all its obligations.
The mean age of entrepreneurial enterprises in Pakistan is:
12 years
15 years
20 years
22 years
Age Pattern: “The mean age of entrepreneur was found to be 42 years and of their enterprises 12 years.
It is comparable to the Korean age pattern (46)”.
www.vuzs.info
In most cases, the venture capitalist:
Seeks control of the company

Never expects a seat on the board of directors
Expects the management team to run the daily operations
Prefers not to interfere in planning and expertise areas
The venture capitalist will play an important role in management of the business and wants the
entrepreneurs to be pliable and willing to accept this involvement. These investors will also demand high
rates of return and will thus focus on the market and financial projections.
Conflicts in Management thoughts and Entrepreneur thoughts are resolved by which of the following
company?
Xerox
Unilever
Walls
Volta
Creative
Conceptualization
www.vuzs.info
In which of the following era entrepreneur enters into a contract with government to perform a service?
20th century
Earliest period
Middle ages
17th century
17th Century: In the 17th century the entrepreneur was a person who entered into a contract with
the government to perform a service Richard Cantillon, a noted economist of the 1700s, developed
theories of the entrepreneur and is regarded as the founder of the term.
Which one of the following is a firm that achieves modest growth?

Foundation firm
Life style
Public company
A life-style firm exists primarily to support the owners and usually has little growth opportunity. This type
of firm may grow after several years to 30 or 40 employees.
In entrepreneurial domain the commitment to opportunity has short time span but in managerial domain it
is:
For 1 month
For 6 months
For long time span
For 1 year
www.vuzs.info
Spouses
Friends
Business associates
Relatives
Moral support network of family and friends. Most entrepreneurs indicate that their spouses are
their biggest supporters.
Professional support network includes all of the following EXCEPT:
Mentor
Trade associations
Friends
1. A mentor-protégé relationship is an excellent way to secure the needed
professional advice.
2. Affiliations with individuals developed in hobbies, sporting events, civic
involvements and school alumni groups are excellent sources of referrals, advice, and
information.
3. Trade associations are good network additions, as they keep up with new
developments and can provide overall industry data.
Question No: 41 ( M - 5 )
Differentiate the operating budget from capital budget?
www.vuzs.info
It is said that advertising agencies are meant for the promotional tools. Why do you think that it is a
correct statement?
An "S Corporation" is a corporation which has elected to have its profits pass through to its shareholders,
in the same manner as a partnership or sole proprietorship. Write down the pros and cons of "S
Corporation".
Suppose you want to calculate the net worth of your business. What kind of statement will you use in
order to calculate the net profit? Also discuss its key feature.
Product or service is the basis of building the marketing plan. What are the major factors which should be
included while writing the marketing plan of a product or service?
MGT602 latest MCQs for Final Papers
by
Mar 9, 2014
If cash disbursement for some items becomes greater than budgeted then it
may indicate a need for tighter _______.
Cash control
Cost control
Asset control
Debt control
All of the following are the most effective sources of hiring entry level and less
skilled positions except:
Networking
Business associates
Personnel agencies
Venture capitalist
Which of the following is a major disadvantage of the corporate form of

business?
Double taxation of dividends
Limited liability of shareholders
Transferability of interest
Inability of the firm to raise large sums of additional capital
Which one of the following shows the financial condition of the business at a
specific time?
Projected balance sheet
Projected income statement
Projected Cash flow statement
None of the above
LMM stands for:
Locally Manufactured Machinery
Locally Manufactured Marble

Local Marble Market
Local Meat Market
The small entrepreneurs of third world countries can take the advantage of
taxes through:
Ignorance
Small setup
Bad governance
Undocumented activity
By which one of the following control elements the firm can ensure maximum
service to the customer?
Inventory control
Quality control
Sales control
Production control
Which of the following is the maximum amount that SBA can guaranteed
unless it is a specialized program?
$65,000.
$350,000.
$750,000.
$1,000,000.
In which of the following business, the records are needed to be maintained

on the basis of monthly charges paid by the customers?
Pharmaceutical
Service venture
Online venture
Auto industry
Which of the following is independently owned and operated and not dominant
in its field of operation?
Diversified Organization
International Business
Small Business
Entrepreneurship
Which of the following statements is incorrect for a sole proprietorship?

The sole proprietor has complete freedom to sell or transfer any part of
business.
The sole proprietor makes all decisions and can act immediately
The owner of a sole proprietorship faces double taxation
The sole proprietor has unlimited liability
In which form of the business the entrepreneur makes all decisions and can
act immediately?
Sole proprietorship
Partnership
Corporation
S Corporation
Which of the following is the special type of partnership where liability is

limited and continuity options are more flexible?
General partnership
Limited partnership
Limited liability company (LLC)

S corporation
Which of the following describes the interaction between internal and external
factors that affect venture’s ability to provide goods and services to meet
customer needs?
Marketing research
Marketing system
Marketing plan
Marketing mix
Which one of the following is an advantage of Corporation that is not an

advantage as a limited partner in a partnership?
Limited liability
Easy transfer of ownership position
Double taxation
None of the given
Considering strengths and weaknesses of the venture is one step for

preparing:
Financial Plan
Marketing Plan
Business Plan
Organizational Plan
Which of the following is not considered a reason for the entrepreneur to

business failure?
Business experience
Change in law
Overspending and under spending
Lack of commitment to the business or the family

Which of the following is the process of gathering of data in order to determine

the information as who will buy the product, what price should be charged and
what is the most effective promotion strategy?
Marketing Plan
Marketing Research
Marketing Mix
Target Market
From which of the following R & D limited partnerships provide funds to

entrepreneurs in high technology fields?
Equity contribution from investors
Debt from lenders
Cash from company operations

Investors looking for tax shelters
A Focus Group mainly consists of a sample of
8-10 People
10-12 People
12-14 People
14-16 People
View Comments
solved by vuZs solution team
(Marina , shamir, glory, umeed, shafia, Tariq)
GNP
Disposable income (Tariq)
Unemployment
Channel of distribution
Economic Trends: The macro economic environment analysis will identify trends
such as changes in personal disposable income, interest
rates, inflation and unemployment rates.
Which of the following source of capital is relatively faster and less costly than other funding? Select
correct option:
Outsourcing
Public offering
Private offering (shamir)
Bootstrap financing
page # 89: A private offering is faster and less costly than other funding.
future of the new venture depends on the ________. Select correct option:
Positive Cash flow (shafia)
Employees loyalty
Business ideas
Economy
following has NO liability on the part of entrepreneur business? Select correct option:
Partners
Board of advisors
Shareholders (shafia)
Board of directors
Current ratio
Acid test ratio
Profitability ratio
Debt to equity ratio (MK)
page no 100 :Debt to equity ratio assesses the firm’s capital structure. It provides a measure of risk by
considering the funds invested by creditors and investors.
Licensing
Direct export (MK)
Turnkey projects
Pgae no 31 Lesson 11
Operational Plan
Bank loan
Production plan (MK)
Organizational plan
Page 58
If a new venture is a manufacturing operation, a production plan is necessary. This plan should describe
the complete manufacturing process, including whether or not the process is to be subcontracted.
The startups which rarely go public are called: Select correct option:
Life style
Foundation Company (MK)
Small company
page no 8 : A type of company formed from research and development that usually does not go public.
This
firm can grow in five to ten years from 40 to 400 employees.
following firm achieves modest growth: Select correct option:
Foundation firm (MK)
Life style
Public company
following factor can create the managerial difficulties in the joint ventures between foreign companies?
Select correct option:Cultural differences (MK)
Economic policies
Public ignorance
Government taxes
Page no 103 : Cultural differences can create managerial difficulties. Government policies sometimes can
have a negative impact on the venture. The benefits usually outweigh the drawbacks.
________ is commonly used to measure the short-term solvency of the venture? Select correct option:
Current ratio (MK)
Profitability ratio
Activity ratio
Page no 99 : Current ratio is commonly used to measure the short-term solvency of the venture or its
ability to meet its short-term debts.
Which of the following is NOT a characteristic of a marketing plan? Select correct option:
It should be long and detailed (MK)
it should provide a strategy
Which of the following is the best option for starting the business with equity financing? Select correct
option:
Sole Proprietor
Corporation (doubted) mk
Partnership firm
None of the above
Page 81 : Equity financing offers the investor some form of ownership position in the venture.
a. The investor shares in the profits of the venture.
b. Key factors in choosing the type of financing are availability of funds, assets of the venture, and
prevailing interest rates.
c. Usually a combination of debt and equity financing is used.
SIDB was established for the province of ________.

NWFP (glory)
Sindh
Punjab
Balochistan
ref at pg 84 under training center heading lec 37
Which one of the following is a method for obtaining new ideas and solutions by focusing on problems?

Gordon method
Checklist method
Scientific method
ref pg 35
Which of the following is NOT an advantage of the acquisition?
Goodwill
Skilled employees
Favorable location
Political instability (umeed)
The private investors are primarily interested in recovering his/her investment plus a good________.
Dividend
Shares prices
Rate of return (umeed)
Business repute
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 (glory)
Gordon method
Checklist method
Scientific method
ref at pg 35 lec 16 under creative problem heading

MGT602_Online_Quiz No 03c
View Comments
Entrepreneurship(MGT602)
Solved MCQ's
1. What causes people to do something?
Motivation
2. Individuals who help the entrepreneur in business activities
Role models
Parents
3. The managers in an organization strongly supporting intrapreneurship is called ------

-----------------
Top management commitment
Upper management commitment
Lower management intrapreneur
Upper management intrapreneur

4. ------------- involves a manufacturer giving a foreign manufacturer the right to use a
patent, trademark or technology in return for a royalty
Licensing
Turn-key projects
5. Female entrepreneurs differ in terms of --------------------, -----------------------, and -

--------------------------
Motivation
Business skills
Occupational background
6. In terms of ------------------------------, most entrepreneurs initiate their

entrepreneurial careers between the ages of 22 and 45.
Chronological age
7. Creativity tends to decrease with age and education
True
False
8. Arriving activity occurring when the venture is started
True
False
9. The creator is an individual who creates something new
True
False
10. An attribute indicating the sense of control that a person has over life is called locus
of control
True
False
5) In chronological age , most entrepreneurs start their careers between ages
a) 22 and 55
b) 30 and 55
c) 40 and 65
6) ___________________ is the combination of at least two firms doing similar

businesses at the same market level.
a) Diversified activity Merger
b) Horizontal Merger
c) Joint Venture
d) Vertical Merger
7) Which of the following is NOT recognized as a misconception about

entrepreneurship?
a) Entrepreneurship is found only is small businesses.
b) Entrepreneurship is easy.
c) Successful entrepreneurship needs only a great idea.
d) Entrepreneurial ventures and small businesses are different
9) All of the following are recognized as potential sources of entrepreneurial ideas

EXCEPT:
a) Work experiences, skills, and abilities
b) Familiar and unfamiliar products and services

c) Personal interests or hobbies
d) All of the selections are recognized as potential sources of entrepreneurial ideas.
10) An _______________________ is an individual who creates something for the first

time, is a highly driven individual motivated by his or her own work and personal ideas.
a) Entrepreneur
b) Inventor
c) Both a and b
The importance of intellectual property should be understood by entrepreneur even before:
Hiring a manager
Engaging an attorney
Developing a product
Establishing new venture
for more contents visit
Which one of the following is NOT an external factor?
New regulations
Competition
Social changes
Manufacturing
Which one of the following is NOT a condition of a contract?
An offer is made
An acceptance of offer
Contract must be illegal
Consideration is given
Which one of the following is a sound strategic option for an entrepreneur when synergy is present?
Merger
Joint venture
Minority interest
Majority interest
International entrepreneurship
Intrapreneurship
Domestic entrepreneurship
Imports
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
One insured participants
Ten participants
Large group of participants
Very small group of participants
Which one of the following is not a source of idea generation?
Consumers
Brain storming
Focus group
Quite confusing question Answer Required
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 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
Checklist method
Scientific method
Which of the following geographical area is having least interest to U.S. entrepreneurs?
Europe
The Far East
Central Asia
Transition economies
In an international perspective, which of the following decisions are NOT covered under strategic
planning of an entrepreneur?
What are unique characteristics of each market?
Who should be involved in marketing decisions?
What customer benefits are provided by the product?
What are the company’s major strengths and weaknesses?

Which one of the following insurance is required by law?
Life insurance
Property insurance
Disability and vehicle coverage
Health care coverage
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
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 (Page 53)
Entrepreneurship(MGT602)
Recent Online Quiz No 2
Question # 1 of 20 ( Start time: 05:04:17 PM ) Total

Visit this group
M-1
The creative process for problem solvin that involves makin the stranefamiliar in first step and
then makin the familiar strane throuh personal, direct or symbolic analoy is called:
Synectics
ordon method
Checklist method
Scientific method Bottom of Form
Question # 2 of 20 ( Start time: 05:05:43 PM ) Total M - 1
Which of the followin is included in the description of the business?
Location
Products offered
History
All of the iven options
Which of the followin can not be covered under the copyriht protection?
Computer software
Computer hardware
Poems and sons
Models and sculpture
In an international perspective, which of the followin decisions are NOT covered

under strateic plannin of an entrepreneur?
What are unique characteristics of each market?
Who should be involved in marketin decisions?
What customer benefits are provided by the product?
What are the company’s major strenths and weaknesses?
All of the followin are essential to maintain secrecy EXCEPT:

Which one of the followin contracts should be in written?
Real estates
Lease
Rentals
Which one of the factors should be considered while assessin the space for business?
Parkin
Access from roadways to facility
Delivery rates
Which of the followin is a more structured method of problem solvin, includin principles and rules for
concept formation, makinobservations and experiments, and finally validatin the hypothesis?
Scientific method
Heuristics
Attribute listin
Value analysis
The importance of intellectual property should be understood by entrepreneur even before:
Hirin a manaer
Enain an attorney
Developin a product
Establishin new venture
Which of the followin is/are a source of idea eneration?
Consumers
Federal overnment
Brain stormin
All of the above
Idea of new product is tested in potential consumers to determine consumer acceptance at

_________ stae.
Concept
Product development
Test marketin
Commercialization
Followin are the types of non equity arranements EXCEPT:
Licensin
Manaement contracts
Direct export
Turnkey projects
Followin are the important aspects of international success EXCEPT:
Plannin
Diversification
Reportin not sure
Control
One insured participants
Ten participants
Lare roup of participants
Very small roup of participants
21) Which one of the following is the next stage to the Concept Stage of Product Planning and
Idea Stage
22) Which of the following contains large number of new ideas?
Files of Patent office
Official Gazette
Government patent Board
All of the given option
23) 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
MGT602 MCQs From Quiz
Solved By vuZs Solution Team
(simple.look100@gmail.com)
18th century
17th century
19th and 20th century
Middle ages
Individuals influencing an entrepreneur’s career choice and style are known as:
Role model
Moral-support network
Professional support network Visit this group
Support system
Ref:
Role models
Individuals influencing an entrepreneur’s career choice and style

The person with capital was differentiated from the one who needed the capital in the:
Middle ages
17th century
18th century
20th century
Ref:
In the 18th century the person with capital was differentiated from the one who needed capital. In
other words, entrepreneur was distinguished from the capital provider.
Many of the inventions developed during this time as was the case with the inventions of Eli Whitney
and Thomas Edison were unable to finance invention themselves. Both were capital users
(entrepreneurs), not capital providers (venture capitalists.) Whitney used expropriated crown
property. Edison raised capital from private sources.
Idea Stage
Ref:
Concept Stage
In the concept stage the refined idea is tested to determine consumer acceptance without
manufacturing it. One method of testing is the conversational interview in which respondents are
exposed to statements that reflect attributes of the product. Features, price, and promotion should
be evaluated in comparison to major competitors to indicate deficiencies or benefits. The relative
advantages of the new product versus competitors should be determined.
In this stage, consumer reaction is determined, often through a consumer panel. The panel can be
given samples of the product and competitors’ products to determine consumer preference.
Participants keep the record of their use of product and comment on its virtues and deficiencies.
Investor
Marketer
Entrepreneur
Consultant
Ref:
Bankers say that most businesses fail because of the
entrepreneur’s inability to plan effectively. The entrepreneur can enhance efficient

Ref:
Before preparing a business plan, the entrepreneur should do a quick feasibility study to see if there
are possible barriers to success
Which of the following is NOT part of entrepreneurial strategy?
A feedback loop
Generation of a new entry opportunity
Expansion of an existing opportunity
Exploitation of a new entry opportunity
Ref:
http://highered.mcgraw-hill.com/sites/0073210560/student_view0/chapters13/mixed_quiz.html

The long-term future of the new venture depends on the __________.
Positive Cash flow
Employees loyalty
Business ideas
Economy
An ice cream producing company merges with a cotton spinning company this merger is an example
of:
Diversified activity merger
Product extension merger
Market extension merger
Vertical merger
Ref:
A diversified activity merger is a conglomerate merger involving the consolidation of two unrelated
firms.
Banks are usually reluctant to give loan to the

Partnership firm
Sole Proprietor
Following are the types of foreign direct investment EXCEPT:
Joint venture
Minority interest
Merger
Ref:
Entrepreneurs can contract their management techniques and skills, often following a turn-key
project. The management contract allows the purchasing country to gain foreign expertise without
turning ownership over to a foreigner
Licensing is a significant marketing strategy to:
Use intellectual property of others

Pirate others’ patents
Grow the business in new markets
Control the costs
Ref:
LICENSING Licensing is an arrangement between two parties, where one party has proprietary rights
protected by a patent, trademark, or copyright. This requires the licensee to pay a royalty to the
holder of the proprietary rights in return for permission to copy the
The entrepreneur utilizes the resources through:
Identifying and evaluating the opportunity
Developing a business plan
Implementing the business plan
Manage the enterprise
Reference Handouts page # 14

''Phase 4: Manage the Enterprise.
The entrepreneur must employ these resources through implementation of the business plan.
Which one of the following culture that has a climate and reward system that favor conservative
decision making?
Entrepreneurial
Intrapreneurial
Corporate

Ref:
The typical corporate culture has a climate and reward system that favors conservative decision
making. Emphasis is on gathering large amounts of data as the basis for a rational decision. Risky
decisions are often postponed until hard facts are gathered or a consultant is hired. Often there are
so many approvals required that no individual feels personally responsible for the
Which one of the following is the first step in the entrepreneurial process?
Developing successful business ideas
Deciding to become an entrepreneur
Growing the entrepreneurial firm
Moving from an idea to an entrepreneurial firm
12 years
17 years
20 years
As long as it remains confidential
The most important characteristic of a successful business website is::

Speed
Innovation
Graphics
Products
Which of the following cannot be used as basis of loan?
Worth of the business
Inventory
Fixed asset
All of the above
Heuristics
Forced relationship
Scientific method
Value analysis
Professional support network includes following EXCEPT
Mentor
Trade associations
Friends
Which one of the following is not a source of idea generation?
Consumers
Brain storming
Focus group
Which of the following is NOT a requirement of Disclosure Document?
Description of the invention
Claims for invention’s usefulness
Photos of invention
Cover letter
Which one of the following is a sound strategic option for an entrepreneur when synergy is present?
Merger
Joint venture
Minority interest
Majority interest
Ref:
Two firms get together and form a third company in which they share the equity. Joint ventures
have been used by entrepreneurs in two situations:
1. When the entrepreneur wants to purchase local knowledge and an established facility.
2. When rapid entry into a market it needed. The keys to success of joint ventures have not been
well understood. Reasons for forming a joint venture today are different than those in the past.
Originally, joint ventures were used for trading purposes and were one of the oldest ways of
transacting business. Joint ventures in the U.S. took the form of vertical joint ventures used by
mining concerns and railroads. Motives for the significant increase in the use of joint ventures:
a. To share the costs and risks of an uncertain project.

b. ToTo gain synergy between the two firms.
Which of the following conversion system is most complex and requires careful evaluation of
inventory?
FIFO to LIFO
LIFO to FIFO
Single entry to double entry
Double entry to single entry
In stage of responsibility allocation process the entrepreneur follows:
Highly centralized decision making process
Highly decentralized decision making process
Somewhat centralized decision making process
No particular standard
Government can help in forming new venture by providing:
Finance
Technology
Infrastructure
Subsidiaries
Ref:
The government also contributes by providing the infrastructure to help a new venture.
In which of the following business, the records are needed to be maintained on the basis of monthly
charges paid by the customers?
Pharmaceutical
Service venture
Online venture
Auto industry
Which of the following budget is required for the purchase of new equipment?
Sales Budget
Operational Budget
Capital Budget
Manufacturing Budget
Ref:
A capital budget may project expenditures for new equipment, vehicles, or new facilities
Self employed
Discouraged
Non supportive
Strict
Which of the following 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 dominating the discussion
The ______ plan describes how the product will be distributed and priced.

Financial
Production
Venture
Marketing
Which one the following is the uncontrollable factor in international trade?
Economic
Cultural
Technological
Locus of control
Locomotion of control
Locust of control
Loss of control
Lenders are primarily interested in the:
Personal relationship
Ability to pay back loan
Progress of the venture
No concern
Foundation companies are formed from:
Fashion
Most popular business
A winding up company
Research and development
Which one of the following ratios is a more careful test of the short-term liquidity of the venture?
Debt ratio
Activity ratio
Acid test ratio
Profitability ratio
Ref:
Acid test ratio is a more rigorous test of the short-term liquidity of the venture
Which of the following gives the owners a negative right, preventing anyone from making, using, or
selling the invention?
Patent
Copyright
Trade mark
Trade secret
Which of the following contains all backup material that is not included in the text of business plan?
History of entrepreneur
Financial plan
Appendix
Bibliography
The commitment of administrative domain to the resources is for:

Periodic intervals
Total amount needed
For certain tasks
For long time
When the Directorate of Industries, Balochistan was formed?
1972
1973
1975
1976
Which of the following is the best option for starting the business with equity financing?
Sole Proprietor
Corporation
Partnership firm
None of the above
Which of the following contains large number of new ideas?

Files of Patent office
Official Gazette
Government patent Board
All of the given option
What can be the effect on cash flows due to delays in payments by the clients?
Positive cash flows
Negative cash flows
No effect on cash flows
Ref:
Using internal credit makes the firm responsible for collecting delinquent payments, and payment
delays can create negative cash flows.
All of the following are essential to maintain secrecy EXCEPT:
Andrew Carnegie is an example of entrepreneur of which century:

Earliest period
Middle ages
17th century
The assessment of the needed resources by the entrepreneur starts with:
An appraisal of the entrepreneur’s present resources
An assessment of economic conditions of the country
A scanning of friends and family for funds
A survey of banks and other financial institutions in the area
Highly creative & in love with the invention
Does not encourage change
Willing to modify the invention in order to augment commercial benefit

The activity which occurs when the new venture is started are called:
Motivation
Business skills
Departure point
Goal orientation
Profit Statement
Goal Statement
Mission Statement
Vision Statemen
Which one of the following is the systematic assembly of all the facts about a job?
Job Specification
Job Description
Job Identification
Job Analysis
___________ is required if a company wants to be more flexible in adopting changes.
Technology
More productivity
In which rule under ‘Regulation-D’, a company can sell up to $500,000 of securities to any number
of investors in any 12-month period?
Rule 502
Rule 503
Rule 504
Rule 505
Ref:
Under Rule 504 a company can sell up to $500,000 of securities to any number of investors in any
12-month period.
__________ is commonly used to measure the short-term solvency of the venture?

Current ratio
Profitability ratio
Activity ratio
Ref:
Liquidity Ratios Current ratio is commonly used to measure the short-term solvency of the venture
or its ability to meet its short-term debts. The current liabilities must be covered from cash or its
equivalent
On the part of entrepreneur which of the following has/ have a great concern to the Investors
Experience
Commitment
Knowledge
All of the above
Being one’s own boss is a need of:
Independence
Achievement
Affiliation
Authority
Ref:
Need for independence. Being one’s own boss-one of the strongest needs of an entrepreneur
An actor and a person who managed large project were termed as the entrepreneur in the
_________.

Earliest period
Middle ages
17th century
Ref:
Middle Ages
Entrepreneurs
Consultants
Engineers
Small business administration services
Ref:
A business plan is a written document prepared by the entrepreneur
________________ distribute profits to owners through dividends
Sole Proprietor
General Partnership
Limited Partnership
Corporation
Ref:
Corporations distribute profits through dividends to stockholders.
Which of the following shows the example of collateral?
Real State
Shares
Tangible property
Ref:
The collateral or tangible assets being secured
Which one of the following culture that has a climate and reward system that favor conservative
decision making?
Entrepreneurial
Intrapreneurial
Corporate
Ref:
The typical corporate culture has a climate and reward system that favors conservative decision
making.
___________ is required if a company wants to be more flexible in adopting changes.
Select correct option
Technology
More productivity
Ref:
Without top management commitment, the organization will never be able to make the necessary
changes.
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

mgt602 Entreprenurship Mcqs Quiz File Final Term

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mgt602 Entreprenurship Mcqs Quiz File Final Term

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Virtual University MCQs BANK - MCQs

Collection from Online Quizzes

What is a target market?

MGT602 SOLVED MCQs (A)

1-Writing business plan can ensure that

2-Your ________ is a concise communication of your strategy including your business

3-High-potential ventures are

7-Entrepreneurs view change as

9-Breakthrough innovations are

2-A ______________ is an entity formed between two or more parties to undertake

3-Combination of at least two firms at different market levels is:

5-A spirit of entrepreneurs must be:

6-Most of the innovations are:

7-The _________________ refers to the ways managers make decisions.

8-Without _______________ , the organization will never be able to make the

9-The companies use the technology to make itself:

10-The___________________ is the term used to describe the complete process

Which of the following areas are preferred by women entrepreneurs?

Degree of influence and control on other people is called:

Which of the following shows the process of creating something new?

There is an evidence that an entrepreneur usually has _______________ parents.

Following are the problems in developing the economies EXCEPT:

Which of the following is used by entrepreneurs to acquire experience in an international

Which of the following plan shows the economically feasibility of business?

What are the number of questions a marketing plan usually answers?

In which of the following, banks are usually reluctant to give loan?

In which of the following majority holds the management control?

Which one of the following provides a guideline in determining hiring procedures?

Which of the following is the base of Job Advertisement?

The overall coordinating party in an agreement is:

The mean age of entrepreneurial enterprises in Pakistan is:

In most cases, the venture capitalist:

The entrepreneur must possess the abilities:

Which one of the following is a firm that achieves modest growth?

Moral support network includes all of the following EXCEPT:

There is evidence that an entrepreneur usually has _______________ parents.

Following are the problems in developing the economies EXCEPT:

► Highly creative & in love with the invention

The level at which an individual is viewed by society is called:

An individual’s need to be recognized is called:

► Need for independence

► Existing products and services

The concept of World Wide Web pages was developed in:

How many perspectives should be considered while preparing business plan?

Which one of the following can be registered under design patent?

Which of the following is a characteristic of a good partner?

► Help to achieve goals

Which one of the following receives highest investment?

Which of the following is a second step in the entrepreneurial process?

► Length of the opportunity

Which one of the following is true regarding female entrepreneurs?

► Currently the number of companies owned by female entrepreneurs exceeds those

In terms of chronological age, most entrepreneurs initiate their entrepreneurial carrier

Following are the types of non-equity arrangements EXCEPT:

Which of the following abilities must be possessed by an entrepreneur?

“Management of enterprise” is an important aspect of entrepreneurial process. Which

Which of the following is NOT a goal of an Intrapreneurial culture?

Which of the following best defines “minority interest”?

Which of the following is an idea generation method that focuses on parameters?

Business plan should be prepared by an entrepreneur. All of the following should be

A typical inventor is usually ________________________.

► Highly creative & in love with the invention

Being one’s own boss is a need of: