Solved MCQs of Entrepreneurship (with proper reference and explanation)

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

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

Reference & Explanation:

(http://books.google.com.pk/books?id=s01P0agnLPUC&pg=PA94&lpg=PA94&dq=Which+of+the+following+is+used+by+entrepreneurs+to+acquire+experience+in+an+international+market+before+making+a+major+commitment&source=bl&ots=rCNwzr1ZA_&sig=jOefpOz349LldzTxKVQZ_kLb1fg&hl=en&ei=L47FS6i5OaXCmgP_r_XLDg&sa=X&oi=book_result&ct=result&resnum=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+experience+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=onepage&q=minority%20interest%20is%20used%20by%20entrepreneurs%20to%20acquire%20experience%20in%20an%20international%20market%20before%20making%20a%20major%20commitment&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

The entrepreneur was distinguished from capital provider in:

► Middle ages

► 18^th century

► 17^th century

► 19^th and 20^th century

Referece and Explanation:

(Page # 3 of handouts)

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

A person who managed large project was termed as the entrepreneur in the _________.

► Earliest period

► Middle ages

► 17^th century

► 19^th and 20^th 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

Having less than 50 percent of equity share in an international venture is called:

► Minority interest

► Joint venture

► Majority interest

► 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

► Majority interest

► Horizontal merger

► 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

► 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

Which of the following is alternatively called corporate venturing?

► Entrepreneurship

► 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

► Moral-support network

► Professional support network

► 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

Professional-support network

Individuals who help the entrepreneur in business activities

Question No: 14

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 (

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

► All of the given options

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+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 )

Question No: 26 ( Marks: 1 ) - Please choose one

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

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.

Question No: 28 ( Marks: 1 ) - Please choose one

Which of the following are the Fast-growth young companies?

► Gazelles

► Life style

► Foundation Company

► None of the given options

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

Question No: 29 ( Marks: 1 ) - Please choose one

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