1. 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
Ans: Retailer
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
Ans: Cultural
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
d. Diversified activity merge
Ans:
Majority Interest
4. 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
Ans: 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
d. None of the above
Ans: Sole
Proprietorship
6. In __________________, the
entrepreneur has the right to sell any assets.
a. Proprietorship
b. Partnership
c. Limited Liability Company
d. None of the given options
Ans: Proprietorship
7. The idea and actions that explain
how a firm will make its profits refers to
a. Mission
c. Strategy
d. Objective
Ans: Strategy
8. Entrepreneurs are best as
________________
a. Managers
b. Venture capitalists
c. Planners
d. Doers
Ans:
Doers
9. Entrepreneurs and ventures
capitalists:
a. Get along well
b. Are the best friends
c. Are cordial friends
d. Are in conflict
Ans: 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
Ans: Inrapreneurship
11. The _______ plan shows whether the
business is economically feasible or not.
a. Financial
b. Business
c. Economic
d. Marketing
Ans:
Business
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
Ans: Corporation
13. Entrepreneurship can best be described
as:
a. a process that requires setting up a
business
b. taking a significant risk in a
business context
c. having a strong vision
d. a process involving innovation, new
products or services, and value creation
Ans:
A process involving innovation new products or services, and value creation
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)
Ans: False
15. Which of these statements best
describes the context for entrepreneurship:
a. Entrepreneurship takes place in
small businesses
b. Entrepreneurship does not take place
in social enterprises
c. Entrepreneurship takes place in a
wide variety of contexts
d. Entrepreneurship takes place in
large businesses
Ans: Entrepreneurship
takes place in a wise variety of contexts
16. 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.
Ans : Start-up stage
17
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?
a.
Human
b.
Incompetence
c.
Natural
d.
Economic
Ans: Economic
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.
c. ability to benefit from previous
experience.
d. reduced royalty fees.
Ans: Ability to benefit
from previous experience
19. MSMED stands to ___________
a. Micro, Small & Medium
Enterprises Development
b. Mini, Small & Medium Enterprises
Development
c. Micro, Small & Medium
Entrepreneurship Development
d. Micro, Small & Medium
Enterprises Department
Ans: Micro, Small &
Medium Enterprises Development
20. Which of the following is an
internal factor that influences entrepreneurs?
a. Technological Capacity
b. Social environment
c. Political environment
d. Economic condition
Ans:
Technological Capacity
21.__________________ requires
proper review and reconsideration of the selected alternative before
implementing it.
a. Developing possible alternatives
b. Selecting the best alternative
c. Checking the decision
d.
Exploring
the developed alternatives
Ans: Selecting the best
alternative
22. Which one of the following is an
economic barrier to an entrepreneur?
a. Emotional blocks
b. Labour
c. Lack of sustained motivation
d. lack of vision
Ans:
Labour
23. Which of the following enterprises
was found by Akio Morita?
a. Samsung
b. Apple
c. Panasonic
d. Sony
Ans: 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
Ans: Motive
25. ___________ implies that women
entrepreneurs are now economically independent and take decisions
independently.
a. Better utilization of resources
b. Improved quality life
c. Economic development
d. Employment generation
Ans: Improved Quality
Life
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
d.
profit
and loss statement
Ans: Break-even point
27. Which of the following is not
considered while selecting the region?
a. Law and order
b. Price of land
c. Availability of raw materials
d. Proximity to the product market
Ans: Price of land
28. Which one of the following is the
step involved in setting up a new enterprises?
a. Creating a business plan
b. Making a product choice
c. Selecting the location
d. Setting up infrastructure
Ans: Setting up
infrastructure
29. The parties involved in franchise
business are ___________.
a. 1
b. 2
c. 3
d. 5
Ans: 2
30. If someone starts a new business
that is a service station, this is an example of a(n):
a. new concept/new business.
b. new concept/existing business
c. existing concept/new business.
d. existing concept/existing business
Ans: Exiting concept/
New Business
31. If an entrepreneur has an internal
locus of control, this means that he/she:
a. has a high need for achievement
b. believes that success or failure
depends on his/her own actions.
c. feels comfortable in an unstructured
situation
d. believes fate is a powerful force
Ans:
Believes the success or failure depends on his/her own actions
32. The process of gathering information
about trends is called:
a. need for achievement.
b. tenacity.
c. Trend
d. neuroticism
Ans: Trend
33. The opposite of "opportunity
thinking" is:
a. obstacle thinking
b. thought self-leadership.
c. self-efficacy.
d. adaptive response behavior.
Ans: Obstacle Thinking
34. The startups which rarely go public
are called:
a. Life style
b. Foundation company
c. Small company
d. High potential venture
Ans: Foundation company
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
Ans: Cultural
differences
36.
___________
process of creating incremental wealth is called Entrepreneurship. a. a. Static
b. Continuous
c. Systematic
d. Dynamic
Ans:
Dynamic
37. Barriers to new product creation and
development are known as:
a. Trial and error
b. Opportunity cost
c. Opportunity parameters
d. Intrapreneurship culture
Ans: Opportunity
parameters
38. Information regarding all of the
following is related to operations, EXCEPT:
a. Promotion
b. Location
c. Raw materials
d. Labor skills
Ans: Promotion
39. which of the following cannot be
used as basis of loan?
a. Worth of the business
b. Fixed asset
c. Perishable asset
d. All of the given options
Ans: Perishable asset
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
Ans: All of the given options
41. Entrepreneur actually starts setting
up of an enterprise by
a. Planning
b. Organizing
c. Staffing
d. Directing
Ans:
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
Ans: Profitability
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
Ans: Good ideas
44. Which of the following statements is
false? Electronic commerce:
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
Ans: 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
Ans: True
46. Venture capital firms are usually
organized as
a. closed-end mutual funds
b. limited partnerships
c. corporations
d. nonprofit businesses
Ans: Limited
partnerships
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
Ans: Opportunist
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
Ans: E-tailer
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.
Ans: Entrepreneurship
50. Today, inspired by the growth of
companies such as Amazon.com, entrepreneurs are flocking
to the to start new businesses.
a.
Small
Business Administration
b.
Internet
c.
bookstore
d.
mall
Ans: Internet
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?
a.
Awareness
of passing time
b.
Tolerance
for ambiguity
c.
Internal
locus of control
d.
External
locus of control
Ans: Internal locus of control
52. means that people are motivated to
excel and pick situations in which success is likely.
a. External locus of control
b. Tolerance for Ambiguity
c. Awareness of passing time
d. Need to achieve
Ans: Need to achieve
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.
A
high need for achievement
b.
A
high need for power
c.
An
external locus of control
d.
An
inability to deal with uncertainty
Ans: A high need for achievement
54. The most cited source of new
business ideas is
a.
brainstorming.
b.
in-depth
understanding of industry/profession.
c.
a
hobby.
d.
copying
someone else
Ans: In-depth understanding of industy/ profession
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.
Ans: A business plan
56.
______
refers to an unincorporated business owned by an individual for profit.
a.
Partnership
b.
Proprietorship
c.
Corporation
d.
Association
Ans:
Proprietorship
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.
Ans:
Partnership
58.
A
group of companies or individuals that invests money in new or expanding
businesses for ownership and potential profits is known as
a. an equity financing firm.
b. franchising.
c. a venture capital firm.
d. a corporation.
Ans: A venture capital
firm
59.
An
advantage of which of these tactics is that there is a shorter start-up time
and an existing track record?
a.
Participate
in a business incubator
b.
Start
a new business
c.
Buy
a franchise
d.
Buy
an existing business
Ans: 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
Ans: Franchising
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?
a.
Participate
in a business incubator
b.
Start
a new business
c.
Buy
a franchise
d.
Buy
an existing business
Ans: Start a new business
62.
For
Internet start-ups, one typical source of first funds is through
a.
stock
financing.
b.
government
funds.
c.
angel
financing.
d.
community
development financing.
Ans: Angel financing
63. The final step in the start-up
process is often the
a. development of partnerships.
b.
launching
the company.
c. obtaining venture capital.
d. IPO.
Ans: 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
Ans: Start-Up
65. Entrepreneurs take the risk of
starting a business for all of the following reasons except:
a. they want independence.
b. they like the challenge and the
risk.
c. they want to make money for
themselves.
d. they want to work less.
Ans: They want to work less
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
Ans: Action-oriented
67. An entrepreneurial team is:
a. a group of people who work within a
corporation to launch new products.
b. a group of experienced people who
join together to develop and market a new product.
c. a group from the Small Business
Administration which consults with small business owners.
d. a group of managers who get together
to find creative solutions to problems.
Ans: A group of experienced people who
join together to develop and market a new
product
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.
Ans: Micropreneur
69. An incubator is:
a. A government agency that advises and
assists small businesses.
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.
d. A specific geographic area to which
governments try to attract private businesses by a variety of means.
Ans: 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: |
a.
talk
to others who have been or are in the import business.
b.
get
a loan right away.
c.
find
a business to buy as soon as possible.
d.
incorporate
immediately.
Ans: Talk to others who
have been or are in the import business
71.
A
business plan for a new business does not need to include:
a. a marketing plan.
b. a discussion of the purpose of the
business.
c. a description of the company
background.
d. the name of the lending bank.
Ans: The name of the lending bank
72.
The
primary concerns when first starting your business are:
a. marketing and accounting.
b. planning and human resources.
c. financing and planning.
d. financing and marketing.
Ans:
Financing and planning
73.
What
are the primary sources of funding for entrepreneurs?
a. personal savings and individual
investors
b. finance companies and banks
c. the Small Business Administration
and banks
d. former employers and the Economic
Development Authority
Ans: Personal saving
and individual investors
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
Ans: Intrapreneur
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.
Ans: Business plan
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.
c.corporate
raider.
d.securties
trader.
Ans:
Venture capitalist
77. 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
Ans: Intrapreneurship
78. Which one of the following is a
barrier to new product creation and development?
a. Trial and error
B)
Opportunity
parameter
C)
Opportunity
cost
D)
Intrapreneurship
culture
Ans: Opportunity cost
79. Factors contribute to the creation
of new venture EXCEPT:
a. Government
b. Finance
c. High interest rates
d. Role models
Ans: High interest
rates
80. 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
Ans: Creative
destructive
81. An entrepreneur doing business
within the national border is called: a.International entrepreneurship
b.Intrapreneurship
c. Domestic entrepreneurship
d. Imports
Ans: Domestic
entrepreneurship
82 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
Ans: Intraprenurship
83. In which of the following situation the company is
considered to be on breakeven point?
a. No Profit no loss
b. Profits are higher then expenses
c. Expenses are higher then profits
d. None of the given options
Ans: No profit no loss
84. Licensing is a significant marketing
strategy to: a. Use intellectual property of others
b. Pirate others’ patents
c. Grow the business in new markets
d. Control the costs
Ans: Pirate others
patents
85. Which one of the following best
represents the environment of an entrepreneurial oriented organization?
a.
Corporate
culture
b.
Entrepreneurial
culture
c.
Intrapreneurial
culture
d.
Traditional
culture
Ans: Entrepreneurial
Culture
86. Individuals who help the entrepreneur in business
activities are called:
a. Role models
b. Moral support networks
c. Professional support networks
d. Business support networks
Ans: Professional
support networks
87. Which one of the following is a
business arrangement in which someone else is allowed to use something of the
company?
a.
Patent
b.
Trade
mark
c.
Copy
right
d.
Licensing
Ans: Licensing
88. A patent is granted for a specified
amount of time because of the assumption: a. That during this time firm will
cover its development costs
b. That firm will earn a sufficient
profit during this period
c. To limit the monopoly of the firm
d. That it will stimulate idea and
development of a better product
Ans: That firm will
earn a sufficient profit during this period
89. Which of the followings give the
owners a negative right, preventing anyone from making, using, or selling the
invention?
a.
Patent
b.
Copyright
c.
Trade
mark
d.
Trade
secret
Ans: Patent
90. Which one of the followings
statements is NOT true about trademarks? a. The entrepreneur cannot file after
the mark already been in use
b. A trademark could be a slogan or a particular sound c.
Some trademarks have no relationship with the product
d. The filing date for the trademark
becomes the first date use of the mark
Ans: 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?
a.
Lack
of experience
b.
Limited
resources
c.
Lack
of education
d.
None
of the given options
Ans: Lack of experience
92. Which one of the factors should be
considered while assessing the location for business? a. Parking
b. Access from roadways to
c.facility Delivery rates
d. All of the given options
Ans: All of the given
options
93. Which one of the following is a
sound strategic option for an entrepreneur when synergy is present?
a.
Merger
b.
Joint
venture
c.
Minority
interest
d.
Majority
interest
Ans: Merger
94. Why should an entrepreneur do a feasibility study for
starting a new venture?
a. To see if there are possible
barriers to success
b. To identify possible sources of
funds
c. To estimate the expected sales
d. To explore potential customers
Ans: To see if there
are possible barriers to business
95 As a
new company grows, the entrepreneur will need to .
a.
be responsive to changes in the market.
b.
ensure financial controls are maintained.
c.
build a management team.
d.
all the above.
Ans: All the above
96
As a new company grows, the entrepreneur will
need to .
a.
be responsive to changes in the market.
b.
ensure financial controls are maintained.
c.
build a management team.
d.
all the above.
Ans: all
the above
97
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.
Ans:
Retailer
98
Entrepreneurship can best be described as .
a.
a process that requires setting up a business.
b.
taking a significant risk in a business context.
c.
having a strong vision.
d.
a process involving
innovation, new products or services, and value creation.
Ans: A process involving innovation, new
products or services, and value creation
99 One
of the disadvantages of a franchise business for a franchisee is .
a Lack of independence.
b. Franchise businesses typically have a
high failure rate.
c. Lack of brand identity.
d. Training is not normally provided by
the franchisor.
Ans: Lack
of independence
100 The
Markets and Competitors section of a business plan should contain .
a.
A statement of the target market.
b.
The size of each market segment.
c.
The key characteristics of buyers in
each business segment.
d.
All the above.
Ans: All the above
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