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1. 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
2. In some countries, points of purchase displays are not allowed in retail stores. Such differences are
studied by international entrepreneurs under environment. a. Economic
b. Political
c. Cultural
d. Technological
3. Having more than 50% ownership position that provides the entrepreneur with managerial control
is called .
a. Joint venture
b. Majority interest
c. Horizontal merger
Expertise of an entrepreneur
5. A business where an individual is both the owner and conductor of the business affairs is
called .
a. Sole Proprietorship
b. Partnership
c. Corporation
a. Proprietorship
b. Partnership
7. The idea and actions that explain how a firm will make its profits refers to a.
Mission
b. Goal
c. Strategy
d. Objective
a) Strategic Orientation
b) Capitalization
c) Intrapreneurship
d) Management
11. The plan shows whether the business is economically feasible or not. a.
Financial
b. Business
c. Economic
d. Marketing
12. In which of the following, the ownership of venture is reflected by ownership of shares of stock?
a. Partnership
b. Limited partnership
c. Corporation
d. Proprietorship
14. The small business ‘owner-manager’ is always the founder of the business:
a. True
b. False (A management buyout is an example of a business where the owner-manager would
probably not have been the founder)
15. Which of these statements best describes the context for entrepreneurship:
16. Which of the following are described as one of the ‘Big Five’ personality traits?
a. propensity to leadership
b. need for achievement
c. extravert personality
d. tolerance of others
17. The period of business when an entrepreneur must position the venture in a market and make
necessary adjustments to assure survival is called the:
a. pre-startup stage.
b. startup stage.
18. Which of the following is a reason why a person might prefer to purchase a franchise rather
than open a completely new business?
b. increased independence.
a. Technological Capacity
b. Social environment
c. Political environment
d. Economic condition
21. requires proper review and reconsideration of the selected alternative before
implementing it.
a. Emotional blocks
b. Labour
c. Lack of sustained motivation
d. lack of vision
a. Samsung
b. Apple
c. Panasonic
d. Sony
a. Motive
b. Trait
c. Attitude
d. Ego
25. implies that women entrepreneurs are now economically independent and take
decisions independently.
26. Financial feasibility analysis can be done by comparing with the estimated sales
figure.
27. Which of the following is not considered while selecting the region?
28. Which one of the following is the step involved in setting up a new enterprises?
a.1
b.2
c.3
d.5
30. If someone starts a new business that is a service station, this is an example of a(n):
31. If an entrepreneur has an internal locus of control, this means that he/she:
a. obstacle thinking
b. thought self-leadership.
c. self-efficacy.
d. adaptive response behavior.
a. Life style
b. Foundation company
c. Small company
d. High potential venture
35. Which of the following factor can create the managerial difficulties in the joint ventures
between foreign companies?
a. Cultural differences
b. Economic policies
c. Public ignorance
d. Government taxes
Static
b. Continuous
c. Systematic
d. Dynamic
37. Barriers to new product creation and development are known as:
a. Promotion
b. Location
c. Raw materials
d. Labor skills
40. Which of the following is the key factor for choosing the type of financing?
a. Availability of funds
b. Assets of the venture
c. Prevailing interest rates
d. All of the given options
a. Planning
b. Organizing
c. Staffing
d. Directing
42. Which of the following is least likely to influence the timing of new business births?
a. Government policies
b. Profitability
c. Interest rates
d. Consumer expenditure
43. Which of the following is usually not a barrier to market entry for a small firm?
a. economy of scale
b. good ideas
c. switching costs
d. access to distribution
a. can allow new ventures to compete on more or less equal terms with large firms
b. offers a relatively inexpensive means of advertising and conducting market and
competitor research
c. can lead to small businesses having reduced contact with its customers
d. is rarely used in small businesses
45. Generally speaking the risk involved in launching as a franchise is greater than that as a
start up.
a. True
b. False
47. The entrepreneur who is committed to the entrepreneurial effort because it makes
good business sense is classed as a/an
a. inventor
b. opportunist
c. hacker
d. craftsman
48. To the , physical location does not matter because the Internet allows anyone
to link to any Web site no matter where in the world that site might be.
a. bricks-and-clicks retailer
b. e-tailer
c. bricks-and-mortar retailer
d. B-to-G business
49. Being interested in computers, Jim Johnson came up with an idea of personalizing the screen
saver programs with family pictures. After trying a couple of programs, Jim started marketing
this service to neighbors and area businesses. Jim’s activities can be described as a(n)
a. entrepreneurship.
b. intrapreneurship.
c. useless idea.
d. large business.
50. Today, inspired by the growth of companies such as Amazon.com, entrepreneurs are
flocking to the to start new businesses.
b. Internet
c. bookstore
d. mall
51. Which of these refers to the belief by individuals that their future is within their control
and that external forces will have little influence?
52. means that people are motivated to excel and pick situations in which success is likely.
53. Marleesha likes to set her own goals, which have an intermediate level of difficulty. Which of
the entrepreneurial characteristics does she probably possess?
a. brainstorming.
c. a hobby.
55. Before opening his own business, Tanay was writing a report that details the specifics of his
ideas and future business operations. This document is known as
a. a SWOT analysis.
b. a business portfolio.
c. a business plan.
d. a competitive analysis.
b. Proprietorship
c. Corporation
d. Association
57. Sangeeta , Kabir, and Ravi started selling computer software on college campuses under the
name Student Software Company. Each person contributed Rs.15000/- toward start-up costs
and agreed on dividing costs and profits equally. The legal structure for the company can best
be described as a
a. proprietorship.
b. partnership.
c. trade alliance.
d. corporation.
58. A group of companies or individuals that invests money in new or expanding businesses for
ownership and potential profits is known as
b. franchising.
d. a corporation.
59. An advantage of which of these tactics is that there is a shorter start-up time and an existing
track record?
c. Buy a franchise
d. Buy an existing business
60. Which of these refer to an arrangement by which the owner of a product or service
allows others to purchase the right to distribute the product or service with help from the
owner?
a. Franchising
b. Business incubation
c. Spinning-off
d. Globalization
61. Which of these offers the advantage that the entrepreneur has the ability to develop and
design the business in the entrepreneur's own way?
62. For Internet start-ups, one typical source of first funds is through
a. stock financing.
b. government funds.
c. angel financing.
a. development of partnerships.
d. IPO.
64. Felix is an entrepreneur. At this stage of his company , his main concerns are do we have
enough customers and money. What stage of growth is Felix’s company in?
a. Start-up
b. Survival
c. Takeoff
d. Resource maturity
e. Success
65. Entrepreneurs take the risk of starting a business for all of the following reasons except:
a. they want independence.
66. Steve Jacobi is an entrepreneur to the max. Steve has started three businesses, two of which he
sold for a great deal of money. He is now involved in running his third business, with plans to
sell it shortly and start yet another one. When commenting on his success as an entrepreneur,
he says that once an idea comes to him, he just can’t wait to start working on it and bring it to
reality, and that is what he focuses on. Which of the traits of successful entrepreneurs does this
suggest is characteristic of Steve?
a. Action-oriented
b. Self nurturing
c. Self-directed
d. Tolerant of uncertainty
c. a group from the Small Business Administration which consults with small
business owners.
68. Robert Vadera is a business owner who works from home as a freelance video producer. He
really enjoys his work, but isn’t looking to “set the world on fire” with his company. He just
wants to make a good living and spend time with his family when he can. Vadera would be
classified as a(n)
a. entrepreneur.
b. intrapreneur.
c. micropreneur.
d. venture capitalist.
b. A program through which private investment companies licensed by the S.B.A. lend
money to small businesses.
c. A center that offers new businesses low-cost offices with basic business services.
70. Indrayani Jungle wants to start a small business importing some products from her native
Kenya. Before she starts, some good advice to Indrayani would be:
71. A business plan for a new business does not need to include:
a. a marketing plan.
72. The primary concerns when first starting your business are:
74. Kylie is employed by Street Wheels, a large corporation that produces accessories for
scooters, bicycles, and other children's vehicles. She is a creative force within the company
and has helped launch several new successful products. Kylie is a/an
. a. Intrapreneur.
b. Partner
c. Entrepreneur
d. Owner
75. Babba, a licensed real estate broker, received notification that his application for a business
loan was denied. The bank refused his request because he failed to provide a blueprint
identifying the intended target market and competitive strategy. In order secure a bank loan
Babba evidently needs a:
A) bankruptcy lawyer.
B) business plan.
C) venture capitalist.
D) loan advocate.
76. As a Ronnie searches for firms in need of additional funding to achieve their goals.
In return for his investment, Ronnie becomes a part owner in the business. Ronnie operates
as a(n):
A) investment analyst.
B) venture capitalist.
Entrepreneurship
Intrapreneurship
Managerial domain
Administrative domain
78. Which one of the following is a barrier to new product creation and development?
Opportunity parameter
Opportunity cost
Intrapreneurship culture
Government
Finance
Role models
80. Which one of the following is the process of entrepreneurs developing new products that
over time make current products obsolete?
Creative destruction
Anatomization
International entrepreneurship
Intrapreneurship
Domestic entrepreneurship
Imports
Entrepreneurship
Intrapreneurship
Act of stating a new venture
83. In which of the following situation the company is considered to be on breakeven point?
No Profit no loss
85. Which one of the following best represents the environment of an entrepreneurial
oriented organization?
Corporate culture
Entrepreneurial culture
Intrapreneurial culture
Traditional culture
86. Individuals who help the entrepreneur in business activities are called:
Role models
Moral support networks
87. 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
88. A patent is granted for a specified amount of time because of the assumption:
That during this time firm will cover its development costs
Patent
Copyright
Trade mark
Trade secret
90. Which one of the followings statements is NOT true about trademarks?
The entrepreneur cannot file after the mark already been in use
The filing date for the trademark becomes the first date use of the mark
91. 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
92. Which one of the factors should be considered while assessing the location for business?
Parking
Delivery rates
All of the given options
93. Which one of the following is a sound strategic option for an entrepreneur when synergy
is present?
Merger
Joint venture
Minority interest
Majority interest
94. Why should an entrepreneur do a feasibility study for starting a new venture?
95. Kent is going to start his own business. He is concerned that the merchandise he wants to carry
will go out of style soon after opening his business. Which type of risk must he prepare for?
Human
Incompetence
Natural
Economic
irst«
1
»Last
1. An individual who organizes or operates a business is known as ______
A. employee
B. entrepreneur
C. speculator
D. agent
2. The word entrepreneur has been derived from the French word which is called _______
A. entroprenture
B. entreprendure
C. entreprenture
D. ontreprendure
3. The resistance of employees in an organization against flexibility, growth and diversification can be overc
A. Entrepreneurship
B. Intrapreneurship
C. Managerial domain
D. Administrative domain
4. Entrepreneurs are never satisfied with traditional or existing sources of materials due to their _____
A. unimaginative nature
B. habitual nature
C. traditional nature
A. Novice
B. Habitual
C. Serial
D. Portfolio
6. Which of the following is not one of the four phases of entrepreneurial development?
A. reality
B. ability
C. creativity Correct answer
D. capacity
8. Task presentation , Preparation , Incubation, Idea generation, Idea validation, Outcome assessment are all
A. stages of creativity
B. arena of creativity
C. result of creativity
D. loops of creativity
9. entrepreneurs are ________ in need-achievement
A. low
B. high
C. average
D. nutral
10. which of these is not a characteristic of an entrepreneur
A. dependence
B. vision
C. value addition
D. optimism
11. Entrepreneurs do not shoot in dark, they are not gamblers, Yes they do take risks but only __________ .
A. calculated risk
B. unspecified risk
C. vague risk
D. uncertain risk
12. entrepreneurship procedure is in which of these sequence ??
1. They see opportunities where others don’t.
2. They have a ‘vision’, a clear understanding of the concept and of what they’re trying to do.
3. They persuade others of their vision, they can communicate the concept effectively.
4. They gather resources to make their vision become a reality (money, people, things).
5. They organize these resources to create a new venture, product or market (leadership, teams).
6. They constantly change/adapt themselves according to the changing demands of the market.
A. 5>4>3>2>1>6
B. 1>3>2>5>4>6
C. 3>2>5>6>4>1
D. 1>2>3>4>5>6
13. What are the benefits of franchising?
D. All of these
14. Mc Donald is an example of _______.
A. Contract
B. Franchising
C. Joint venture
D. Agreement
E.
15. The combination of skills permits _______ in dealing with local market conditions and yet provides the pa
reasonable degree of control.
A. Flexibility Correct answer
B. Non flexibility
A. All of these
B. Idea Generation
C. Idea screening
D. Commercialization
D. conjoint analysis
E. All of these
18. ______ Is the starting point of the technology transfer process.
A. Valorisation
B. Detection
C. Protection
D. Exploitation
19. TTO stands for
D. None of these
20. Which theory assumes that the consumer is a rational decision maker with well-defined, stable preferences
skills to calculate which option will maximize his or her value and will choose on this basis?
B. attribution theory
D. calculated theory
E. affect theory
21. A metagoal refers to _________ .
A. None of these
A. bounded processing
B. working memory
C. bounded memory
A. Technology transfer
C. Detection
D. Exploitation
24. ________ detection should also involve a first assessment of the commercial potential before taking the fu
A. None of these
B. Quality
C. Quantity
D. Both of these
25. Which of the following is a type of consumer choice process?
A. attribute-based choice
B. affective choice
C. attitude-based choice
1. 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
2. In some countries, points of purchase displays are not allowed in retail stores. Such differences
are studied by international entrepreneurs under __________ environment.
a) Economic
b) Political
c) Cultural
d) Technological
3. Having more than 50% ownership position that provides the entrepreneur with managerial
control is called ___________.
a) Joint venture
b) Majority interest
c) Horizontal merger
4. The development of a new venture based on an inventor's work often requires ________.
a) Expertise of an entrepreneur
b) Partnership
c) Corporation
b) Partnership
7. The idea and actions that explain how a firm will make its profits refers to
a) Mission
b) Goal
c) Strategy
d) Objective
a) Managers
b) Venture capitalists
c) Planners
d) Doers
d) Are in conflict
10. _________________ 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
11. The _______ plan shows whether the business is economically feasible or not. a. Financial
b. Business
c. Economic
d. Marketing
12. In which of the following, the ownership of venture is reflected by ownership of shares of
stock?
a) Partnership
b) Limited partnership
c) Corporation
d) Proprietorship
d) a process involving innovation, new products or services, and value creation
16. Which of the following are described as one of the ‘Big Five’ personality traits?
a) propensity to leadership
c) extravert personality
d) tolerance of others
17. The period of business when an entrepreneur must position the venture in a market and
make necessary adjustments to assure survival is called the:
a) pre-startup stage.
b) startup stage.
18. Which of the following is a reason why a person might prefer to purchase a franchise rather
than open a completely new business?
a) higher failure rate.
b) increased independence.
b) Social environment
c) Political environment
d) Economic condition
b) Labour
d) lack of vision
b) Apple
c) Panasonic
d) Sony
24. ________________ can be defined as psychological features that enable an individual to take
action toward a desired goal?
a) Motive
b) Trait
c) Attitude
d) Ego
25. ___________ implies that women entrepreneurs are now economically independent and
take decisions independently.
c) Economic development
d) Employment generation
26. Financial feasibility analysis can be done by comparing ______________ with the estimated
sales figure.
a) cash flow statement
b) balance sheet
c) break-even point
b) Price of land
28. Which one of the following is the step involved in setting up a new enterprises?
a) Creating a business plan
d) Setting up infrastructure
b) 2
c) 3
d) 5
30. If someone starts a new business that is a service station, this is an example of a(n):
a) new concept/new business.
Question No: 1
Which of the following shows the process of creating something new?
a) Business model
b) Modeling
c) Creative flexibility
d) Innovation
Question No: 2
Which one of the following gives suggestions for new product and also help to market new
products?
a) Existing products and services
b) Federal government
c) Distribution Channels
d) Consumers
Question No: 3
Which of the following is used by entrepreneurs to acquire experience in an international market
before making a major commitment?
a) Merger
b) Minority Interest
c) Joint venture
d) Majority interest
Question No:4
GATT is established in 1947, under:
a) German leadership
b) U.S. leadership
c) French leadership
d) U.K. leadership
Question No: 5
The entrepreneur was distinguished from capital provider in:
a) Middle ages
b) 17th century
c) 18th century
d) 19th and 20th century
Question No: 6
A person who managed large project was termed as the entrepreneur in the .
a) Earliest period
b) Middle ages
c) 17th century
d) 19th and 20th century
Question No: 7
What is the process by which individuals pursue opportunities without regard to resources they
currently control?
a) Startup management
b) Entrepreneurship
c) Financial analysis
d) Feasibility planning
Question No: 8
Having less than 50 percent of equity share in an international venture is called:
a) Joint Venture
b) Majority interest
c) Minority interest
d) Exporting
Question No: 9
Having more than 50% ownership position that provides the entrepreneur with managerial control
is called:
a) Joint venture
b) Majority interest
c) Horizontal merger
c) Diversified activity merger
Question No: 10 –
Which one of the following is the process of entrepreneurs developing new products that over
time make current products obsolete?
a) New business model
b) Anatomization
c) None of the given options
d) Creative destruction
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?
a) Entrepreneurship
b) Hyper competition
c) Governmental laws
d) Organizational culture
Question No: 12
Which of the following is alternatively called corporate venturing?
a) Entrepreneurship
b) Intrapreneurship
c) Act of stating a new venture
d) Offering new products by an existing company
Question No: 13
Individuals influencing an entrepreneur’s career choice and style are known as which of the
following?
a) Moral-support network
b) Role model
c) Professional support network
d) Support system
Question No: 14
The activity which occurs when the new venture is started is called:
a) Motivation
b) Business skills
c) Departure point
d) Goal orientation
Question No: 15
The level at which an individual is viewed by society is called:
a) Financial status
b) Qualification
c) Social status
d) Achievement
Question No: 16
Which one of the following is an important source of idea generation due to their familiarity with
the needs of market?
a) Existing products and services
b) Distribution channels
c) Federal government
d) Consumers
Question No: 17
Members of distribution channels are excellent sources for new ideas because:
a) They earn a handsome profit from new business
b) They are familiar with the needs of the market
c) They do not bother if entrepreneur bears a loss
d) They have well-developed sales force
Question No: 18
Which one of the following is the most important characteristic of a successful business website?
a) Innovation
b) Speed
c) Graphics
d) Products
Question No: 19
Which one of the following is the next stage to the Concept Stage of Product Planning and
Development Process?
a) Idea Stage
b) Product Planning Stage
c) Product Development Stage
d) Test Marketing Stage
Question No: 20
SBA stands for:
a) Small business accountants
b) Small business administration
c) Small business adequacy
d) Small business advisors
Question No: 21
Why should an entrepreneur do a feasibility study for starting a new venture
a) To identify possible sources of funds
b) To see if there are possible barriers to success
c) To estimate the expected sales
d) To explore potential customers
Question No: 22
Information regarding all of the following is related to operations, EXCEPT:
a) Location
b) Promotion
c) Raw materials
d) Labor skills
Question No:23
A performance and credit rating scheme has been launched by the MSME Ministry to assess
creditworthiness and capabilities of industries in the sector. What is it called?
Question No: 24
A Micro Enterprise is an enterprise where investment in plant and machinery does not exceed
(According to MSMED Act, 2006):
(a) Rs. 15 Lakh
(b) Rs. 20 Lakh
(c) Rs. 25 Lakh
(d) Rs. 30 Lakh
Question No: 25
EDP (Entrepreneurship Development Programmes) is required to help:
(a) Existing entrepreneurs
(b) First generation entrepreneurs
(c) Future generations entrepreneurs
(d) None of the above
Question No: 26
A corporate manager who starts a new initiative for their company which entails setting up a new
distinct business unit and board of directors can be regarded as?
(a) Ecopreneur
(b) Technopreneur
(c) Intrapreneur
(d) Social Entrepreneur
Question No: 27
A women entrepreneur is supposed to have a minimum financial interest in share capital of
entrepreneur’s enterprise:
(a) 35 per cent
(b) 51 per cent
(c) 25 per cent
(d) None of the above
Question No: 28
Family business always interested to handover the change of his business to:
(a) Indian Administration Officers
(b) Professional Managers
(c) Next generation
(d) None of the above
Question No: 29
A corporate manager who starts a new initiative for their company which entails setting up a new distinct
business unit and board of directors can be regarded as?
(a) Ecopreneur
(b) Technopreneur
(c) Intrapreneur
(d) Social Entrepreneur
Question No: 30
Venture capital is concerned with:
13-1. An entrepreneur is someone who assumes the major risks of a new business
by committing which of the following?
a. equity.
b. time.
c. career.
d. all of the above.
13-3. It is estimated that approximately _____ percent of small businesses fail within
the first five years.
a. 10.
b. 25.
c. 50.
d. 75.
a. self-confident.
b. independent-minded.
c. perceptive.
d. follower.
13-5. The period of business when an entrepreneur must position the venture in a
market and make necessary adjustments to assure survival is called the:
a. pre-startup stage.
b. startup stage.
c. early growth stage.
d. later growth stage.
13-8. According to the textbook, which of the following management functions is the
least well done?
a. planning.
b. organizing.
c. leading.
d. controlling.
13-10. Which of the following are risks for entrepreneurs in small business?
a. administrative intrapreneurship.
b. opportunistic intrapreneurship.
c. acquisitive intrapreneurship.
d. imitative intrapreneurship.
The question was not answered. The correct answer is "c".
13-12. A person within a company who takes a leadership role and is positioned to
help ensure the success of an idea or innovation is often referred to as a:
a. supporter.
b. champion.
c. leader.
d. evangelist.
a. to attract financing.
b. to inform competitors of plans.
c. to discipline the entrepreneur to think of all aspects of the proposed venture.
d. a & c.
13-14. Who said that the job of the entrepreneur is "creative destruction"?
a. Peter Drucker.
b. Pierre Trudeau.
c. Joseph Schumpeter.
d. Brian Mulroney.
Question No: 1
Which of the following shows the process of creating something new?
► Business model
► Modeling
► Innovation
► Creative flexibility
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?
► Existing products and services
► Distribution channels
► Federal government
► 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
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
A person who managed large project was termed as the entrepreneur in the _________.
► Earliest period
► Middle ages
► 17th century
► 19th and 20th century
Referece and Explanation:
(Page # 3 of handouts)
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
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.
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
What is the process by which individuals pursue opportunities without regard to resources they
currently control?
► Startup management
► Entrepreneurship
► Financial analysis
► Feasibility planning
Reference & Explanation:
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
► Minority interest
► Joint venture
► Majority interest
► Exporting
Reference:
(page # 36)
Minority interest
Question No: 9
Having more than 50% ownership position that provides the entrepreneur with managerial
control is called:
► Joint venture
► Majority interest
► Horizontal merger
Reference:
(Page # 34)
Majority interest
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
► None of the given options
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?
► Entrepreneurship
► Hyper competition
► Governmental laws
► Organizational culture
Reference:
(page # 16)
Hyper competition has forced U.S. companies to focus on new product development and increased productivity.
Question No: 12
The activity which occurs when the new venture is started is called:
► Motivation
► Business skills
► Departure point
► Goal orientation
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:
► Financial status
► Qualification
► Social status
► Achievement
Reference:
(Page # 25)
Social status
The level at which an individual in viewed by society
Question No: 16
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
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: 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
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: 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
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
Reference:
(Page # 45)
Product planning and development process
Generally divided into five major stages: idea stage, concept stage, product development stage, test marketing
stage, and commercialization stage
Question No: 20 (
1. Location
2. Manufacturing operations
3. Raw materials
4. Equipment
5. Labor skills
6. Space
7. Overhead
Question No: 23
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+domain,
+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?
► Indirect exporting
► Direct exporting
► Importing
► Management contract
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.
Question No: 27 ( Marks: 1 ) - Please choose one
Reference:
(page # 7)
Gazelles
► 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
► Economic development
► 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