Entrepreneurship

Management
by Prof. Arun Kumar V वाघचौर
Covers 258 unique MCQ Questions
Last compiled on 20th Sep 2020
Always check for latest and additionally added MCQs from
classsesnotes.com

Sr. Questions Ans Difficulty Level

1 Which is not a characteristic of an Intrapreneur? Easy

A Risk Taking
B Passive
C Perseverance
D Proactive

2 The need for outsourcing arises because of Difficult

A Increase in size and complexity of business
B Increase in number employees in business
C Government rules and regulations
D All of the above

3 Which of the following is essential if your business deals with the Paper production?. Difficult
A Operational Plan
B Bank loan
C Production plan
D Organizational plan

4 Which of the following is not a problem faced by women entrepreneurs? Difficult

A High employee turnover
B Low risk bearing capability
C Lack of family encouragement
D Lack of education

The longest lasting trade agreement with the objective of liberalizing trade by eliminating
5 or reducing tariffs, subsidies and quotas is Difficult
A Free trade area – FTA
B European community – EC
C General agreement on tariffs and trade – GATT
D The North American free trade agreement – NAFTA

6 What is not a benefit of EDP? Difficult

A Economic Growth
B Makes excellent manager
C Improve standard of living

1
D Develops skills to become an entrepreneur

7 Major Benefits of ancillarisation drive to a country is: Difficult

A Growth of government
B Growth of employment
C Growth of GDP
D Growth of entrepreneurship

8 Which of the following is an example of process franchising? Difficult

A Soft-drink industry
B Petroleum industry
C Insurance industry
D Automobile industry

The entrepreneur’s_______________ depends on his perception of the

9 opportunity. Difficult
A Commitment to opportunity
B Commitment of resources
C Control of resources
D Strategic orientation

10 Which of the following does not account for growth of BPO’s in India Average
A Tax incentives from government
B Fluctuating Dollar price
C Low cost of employment
D Large number of graduate passouts each year

Which one of the following is the process of entrepreneurs developing new products that
11 over time make current products obsolete?
A Creative destruction
B New business model
C Anatomization
D None of the given options

Which is one of the most important leadership qualities among managers and employees
12 in the organization? Difficult
A Entrepreneurship
B Communication
C Motivation
D Staffing

13 Developing a new idea through inquiry and testing is called: Difficult

A Heuristics
B Forced relationship
C Scientific method
D Value analysis

2
14 Which of the following contains large number of new ideas? Difficult
A Files of Patent office
B Official Gazette
C Government patent Board
D All of the given option

15 Which of the following is not a primary purpose of a business plan? Average

A Starting Business
B Expanding Business
C Obtaining finance
D Document to submit to the government

The resistance of employees in an organization against flexibility, growth, and

16 diversification can be overcome by developing: Average
A Entrepreneurship
B Intrapreneurship
C Managerial domain
D Administrative domain

17 For the success of business plan the goals should be Easy

A Limitless
B Generalized
C Specific
D Imaginary

18 Members of distribution channels are excellent sources for new ideas because: Average
A They are familiar with the needs of the market
B They earn a handsome profit from new business
C They do not bother if entrepreneur bears a loss
D They have well-developed sales force

19 Which of the following is NOT an essential part of the contract? Easy

A All the parties involved should be named
B Transaction should be described in detail
C Obtain signatures of the persons involved
D Place where contract takes place

20 Normally sponsor links are used in which of the following type of promotion? Average
A Publicity
B Trade shows
C Personal selling
D Internet advertising

21 The Grameen Bank model is effectively used by which of the following institutes? Average
A Education sector
B Finance Sector

3
C Rural Sector
D NGOs

22 Which of the following is representing a single expense account? Difficult

A Depreciation
B Cash account
C Wages & Salaries
D Utilities account

An actor and a person who managed large project were termed as the entrepreneur in the
23 _________. Difficult
A Earliest period
B Middle ages
C 17th century
D 19th and 20th century

24 Which of the following usually is NOT deducted to the salaries? Easy

A Provident fund
B Income Tax
C Insurance
D Zakat

Which one of the following is important for international business to avoid trade
25 barriers? Difficult
A Protectionist attitude
B Entrepreneurial partnering
C Free trade areas
D None of the given options

26 Which of the following is NOT an example of collecting primary data? Difficult

A Internet
B Focus Group
C Interview
D Observation

27 Which two work environments should be good for spawning the new enterprises? Difficult
A Finance and marketing
B Finance and R&D
C Marketing and R&D
D Marketing and IT

Which one of the following should consider in economy while conducting

28 environmental analysis? Difficult
A GNP
B Disposable income
C Unemployment
D Channel of distribution

4
29 __________ is commonly used to measure the short-term solvency of the venture? Difficult
A Debt to equity ratio
B Current ratio
C Profitability ratio
D Activity ratio

30 Which one of the following is a barrier to new product creation and development? Average
A Trial and error
B Opportunity parameter
C Opportunity cost
D Intrapreneurship culture

31 What is a target market? Difficult

A A group of customers a venture reaches by accident
B All consumers who purchase the venture’s product
A specific group of potential customers toward which a venture aims its marketing
C plan
D A chain of discount stores

32 In stage of responsibility allocation process the entrepreneur follows: Average

A Highly centralized decision making process
B Highly decentralized decision making process
C Somewhat centralized decision making process
D No particular standard

33 Which of the following ratio will be helpful for assessing the firm’s capital structure? Difficult
A Current ratio
B Acid test ratio
C Profitability ratio
D Debt to equity ratio

34 Factors contribute to the creation of new venture EXCEPT: Average

A Government
B Finance
C High interest rates
D Role models

Which one of the following gives suggestions for new product but also helps to market new
35 product in the market? Difficult
A Existing products and services
B Distribution channels
C Federal government
D Consumers

36 A typical inventor is usually ________________________. Difficult

A Highly creative & in love with the invention

5
B Does not encourage change
C Willing to modify the invention in order to augment commercial benefit
D None of the given options

Which of the following is the most important for the entrepreneur, while starting a new
37 venture, to make an assessment of? Average
A Risk
B Profit
C Market
D Competitors

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
38 source of this information? Difficult
A Supplier
B Retailer
C Competition
D Government bureau

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

39 between ages of Difficult
A 15 and 22
B 22 and 45
C 45 and 57
D 57 and 63

40 According to the governing bodies of common laws, the life of trade secret is: Easy
A 12 years
B 17 years
C 20 years
D As long as it remains confidential

41 A contract must be signed by: Easy

A At least one party
B Both the parties
C Not necessary to sign
D By third party

42 Selling goods to another country by taking care of transactions is called: Easy

A Indirect exporting
B Direct exporting
C Importing
D Management contract

43 Which of the following is alternatively called corporate venturing? Difficult

A Entrepreneurship
B Intrapreneurship

6
C Act of stating a new venture
D Offering new products by an existing company

Which one of the following is an important source of idea generation due to their
44 familiarity with the needs of market? Difficult
A Existing products and services
B Distribution channels
C Federal government
D Social Media

In which of the following situation the company is considered to be on break even

45 point? Easy
A No Profit no loss
B Profits are higher than expenses
C Expenses are higher than profits
D None of the given options

Companies identify their assets with the date of purchase, because it can be
46 helpful in determining depreciation for: Difficult
A Goodwill
B Trade rebate
C Tax purposes
D Capital structuring

The difference in the entrepreneurial and managerial domains has contributed

47 towards an increase interest in: Average
A Forming new firms
B Partnership
C Intrapreneurship
D Private firms

48 Which of the following is NOT a requirement of Disclosure Document? Difficult

A Description of the invention
B Claims for invention’s usefulness
C Photos of invention
D Cover letter

49 Professional support network includes following EXCEPT: Easy

A Personal affiliations
B Mentor
C Trade associations
D Friends

50 Which of the following is NOT a characteristic of a marketing plan? Average

A It should be flexible
B It should be long and detailed
C It should be based on facts and valid assumptions

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D It should provide a strategy

51 Degree of influence and control on other people is called: Difficult

A Locus of control
B Locomotion of control
C Locust of control
D Loss of control

52 Normally sponsor links are used in which of the following type of promotion? Average
A Publicity
B Trade shows
C Personal selling
D Internet advertising

53 Which one of the below is not a common factor of women entrepreneur in India? Easy
A Women with small families are more likely to become entrepreneurs
B A majority of women entrepreneurs are married
C Many women entrepreneurs belong to the high income group
D Working capital is limited and profit margins are low.

54 Which one of the following is NOT an internal factor? Difficult

A New technology
B Manufacturing
C Marketing
D Personnel

55 Which of the following is not a type of takeover Average

A Straight takeover by shares
B Mandatory takeover
C Takeover of sick company for its revival
D Bail out takeover

In which of the following business, the records are needed to be maintained on the basis
56 of monthly charges paid by the customers? Difficult
A Pharmaceutical
B Service venture
C Online venture
D Auto industry

57 Which of the following is the previous name of SME? Difficult

A SPCC
B SMEDA
C SBFC
D FMBC

58 What do social entrepreneurs primarily seek? Easy

8
A Profit
B Social value
C Break Even point
D Politics in society

59 Which of the following are the key factors for choosing the type of financing? Average
A Availability of funds
B Assets of the venture
C Prevailing interest rates
D All of the above options

60 The difference between the value of a country’s imports and exports over time is called: Difficult
A Deficit exports
B Deficit imports
C Balance of payment
D Balance of debt

61 Licensing is a significant marketing strategy to: Easy

A Use intellectual property of others
B Pirate others’ patents
C Grow the business in new markets
D Control the costs

62 The _________ plan should contain control points to ascertain progress. Average
A Business
B Marketing
C Financial
D Operational

Which one of the following method shows the term which is related to starting from
63 scratch to a bigger picture? Average
A Upward movement method
B Incremental method
C Downward movement method
D None of the above options

64 Assessment of the needed resources by the entrepreneur starts with: Average

A An appraisal of the entrepreneur’s present resources
B An assessment of economic conditions of the country
C A scanning of friends and family for funds
D 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
65 vodka and rights to distribute it in the US. This is an example of:
A Economic development
B Barter system
C Balance of payment

9
D International trade

66 Which of the following firm achieves modest growth: Easy

A High potential growth firm
B Foundation firm
C Life style
D Public company

67 Health insurance premium is less expensive if there is: Easy

A One insured participants
B Ten participants
C Large group of participants
D Very small group of participants

68 Which one of the following is a barriers to new product creation and development? Difficult
A Trial and error
B Opportunity parameter
C Opportunity cost
D Intrapreneurship culture

69 Targeting the market consists of ______ Procedures Difficult

A ¬1
B ¬2
C ¬3
D ¬4

70 In which of the following year implementation of SBA Financial plan took place? Difficult
A ¬ 1971
B ¬ 1972
C ¬ 1973
D ¬ 1974

71 The resources acquired from others(creditors, banks etc) are usually: Difficult
A Easily available
B Difficult to obtain
C Very useful
D Very cheap

72 The entrepreneur utilizes the resources through: Difficult

A Identifying and evaluating the opportunity
B Developing a business plan
C Implementing the business plan
D Manage the enterprise

73 Following are the types of non equity arrangements EXCEPT: Difficult

A Licensing

10
B Management contracts
C Direct export
D Turnkey projects

74 Focus group discussion carries in Difficult

A Formal Way
B Informal Way
C Both of the above
D Problematic way

75 Which of the following is included in the description of the business? Easy

A Location
B Products offered
C History
D All of the given options

Which one of the following best represents the environment of an entrepreneurial

76 oriented organization? Easy
A Corporate culture
B Entrepreneurial culture
C Intrapreneurial culture
D Traditional culture

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
77 called: Difficult
A Synectics
B Gordon method
C Checklist method
D Scientific method

78 Capital rising entirely depends on the entrepreneur in which of the following entity? Easy
A Corporation
B Sole Proprietorship
C Partnership
D All of the above

79 Which of the following is another exit to the equity partnership arrangement? Easy
A Impartial partnership
B General partnership
C Royalty partnership
D Minor partnership

Selling goods to another country through a person in the entrepreneur’s home

80 country is known as: Average
A Trading
B Direct export

11
C Indirect export
D Domestic sales

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

A Financial status
B Qualification
C Social status
D Achievement

82 What can be the effect on cash flows due to delays in payments by the clients? Average
A Positive cash flows
B Negative cash flows
C No effect on cash flows
D None of the given options

83 The Marketing Plan section should focus for the strategies of Difficult
A First Year
B First two years
C First Three Years
D First four years

84 The business plan should be prepared by: Difficult

A Entrepreneurs
B Consultants
C Engineers
D All of above options

85 All of the following are essential to maintain secrecy EXCEPT: Easy

A Train employees to refer sensitive questions to one person
B Discuss business in public places
C Provide escorts for all office visitors
D Use simple security such as locked file cabinets

86 Reason for women starting an enterprise is? Easy

A Economic necessity
B Self-identity and social status
C Success stories of friends and relatives
D All of the above

Which of the following is an aspect of David McClelland’s theory of achievement

87 motivation? Difficult
A Need for achievement
B Need for power
C Need for affiliation
D All of the above

12
88 Individuals who help the entrepreneur in business activities are called: Difficult
A Role models
B Moral support networks
C Professional support networks
D Business support networks

89 Type of takeover bid Easy

A Friendly takeover
B Hostile takeover
C All of the above
D None of the above

90 Which one of the factors should be considered while assessing the space for business? Easy
A Parking
B Access from roadways to facility
C Delivery rates
D All of the given options

91 What are the sources of idea generation? Easy

A Our own needs
B Observing markets
C Success stories of friends and relatives
D Brainstorming
E All of the above

Which one of the factors should be considered while assessing the space for
92 business? Easy
A Parking
B Access from roadways to facility
C Delivery rates
D All of the given options

93 LLC is more flexible than Difficult

A S Corporation
B Limited Partnership
C Sole Proprietor
D All of the above

94 Following are the problems in developing the economies EXCEPT: Difficult

A Gap of knowledge
B Variable rate of return
C Same communication style
D Different accounting system

The chief motivational factor for _________________ entrepreneurs to leave jobs is the
95 frustration of not being allowed to perform at the level of which they are capable. Easy
A Male

13
B Female
C Young
D All of the given options

96 A typical inventor is usually ________________________. Easy

A Highly creative & in love with the invention
B Does not encourage change
C Willing to modify the invention in order to augment commercial benefit
D None of the given options

97 Which of the following shows the example of collateral? Easy

A Real Estate
B Shares
C Tangible property
D All of the given options

Which one of the following is a business arrangement in which someone else is allowed
98 to use something of the company? Average
A Patent
B Trade mark
C Copyright
D Licensing

Which of the following method entrepreneur can use to do international business with
99 least risk? Difficult
A Turnkey projects
B Joint venture
C Merger
D Synergy

100 Combination of at least two firms at different market levels is called: Difficult
A Joint venture
B Synergy
C Horizontal merger
D Vertical merger

101 A patent is granted for a specified amount of time because of the assumption: Difficult
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

102 A/an ______ is an online connection between the company and its customers. Average
A Internet advertising
B Website
C E-Commerce
D World Wide Web

14
 Which one of the following is the next stage to the Concept Stage of Product Planning
103 and Development Process? Average
A Idea Stage
B Product Planning Stage
C Product Development Stage
D Test Marketing Stage

Which of the followings give the owners a negative right, preventing anyone from
104 making, using, or selling the invention? Easy
A Patent
B Copyright
C Trade mark
D Trade secret

Which one of the following is a longest lasting trade agreement with the objective of
105 liberalizing trade by eliminating or reducing tariffs, subsidies and quotas? Difficult
A Free trade area – FTA
B European community – EC
C General agreement on tariffs and trade – GATT
D The North American free trade agreement – NAFTA

Which of the following grants protection to owner from anyone else making, using and
106 selling the identified innovation? Difficult
A Utility patent
B Design patent
C Plant patent
D International patent

107 Which one of the followings statements is NOT true about trademarks? Difficult
A The entrepreneur can not 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

108 According to the governing bodies of common laws, the life of trade secret is: Difficult
A 12 years
B 17 years
C 20 years
D As long as it remains confidential

Which one of the following is the main problem for the entrepreneur in the beginning
109 stages of creating a new venture? Average
A Lack of experience
B Limited resources
C Lack of education
D None of the given options

15
 Which one of the following protects continuity of the business (specially in
110 partnership)? Average
A Property insurance
B Casualty insurance
C Life insurance
D Bonding

111 A legally binding agreement between two parties is called: Easy

A A contract
B Licensing
C Insurance
D A copyright

112 Information regarding all of the following is related to operations, EXCEPT: Average
A Location
B Promotion
C Raw materials
D Labor skills

113 Which of the following is NOT studied in industry analysis? Easy

A Economic conditions
B Technology advancements
C Organizational culture
D Legal concerns

Which one of the factors should be considered while assessing the location for
114 business? Easy
A Parking
B Access from roadways to facility
C Delivery rates
D All of the given options

115 Which one of the following is NOT included in four C’s evaluation by lender? Average
A Character
B Cost
C Continuity
D Contribution

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

A Help to achieve goals
B Share entrepreneur’s vision
C Do not exploit the partnership
D All of the given options

Having more than 50% ownership position that provides the entrepreneur with
117 managerial control is called: Easy
A Joint venture

16
B Majority interest
C Horizontal merger
D Diversified activity merger

Which one of the following is a sound strategic option for an entrepreneur when
118 synergy is present? Average
A Merger
B Joint venture
C Minority interest
D Majority interest

Which of the following is a method of selling goods to another country by taking care
119 of transactions? Easy
A Indirect exporting
B Direct exporting
C Importing
D Management contract

120 Following are the types of non-equity arrangements EXCEPT: Difficult

A Licensing
B Management contracts
C Direct export
D Turnkey projects

121 Andrew Carnegie is an example of entrepreneur of which century: Difficult

A Earliest period
B 19th and 20th century
C Middle ages
D 17th century

122 A person who managed large project was termed as the entrepreneur in the _________. Difficult
A Earliest period
B Middle ages
C 17th century
D 19th and 20th century

In some countries, point of purchase displays are not allowed in retail stores. Such
123 differences are studied by international entrepreneurs under __________. Difficult
A Economic Environment
B Political Environment
C Cultural Environment
D Technological Environment

124 Which of the following factor is most important in forming a new business? Difficult
A Finance
B Marketing
C Government support

17
D Family support

125 Most of the finance for the new firm comes from following resources EXCEPT: Difficult
A Friends
B Foreign aid
C Relatives
D Personal savings

The intersection of knowledge and a recognized social need to start a product

126 development process is called which of the following? Difficult
A Iterative synthesis
B Product-evolution process
C Ordinary innovation
D Situation analysis

127 A foundation company is formed through which of the following? Easy

A Fashion
B Most popular business
C A winding up company
D Research and development

Which of the following factors is the most important in forcing U.S companies to focus
128 on new product development and increased productivity? Difficult
A Entrepreneurship
B Hyper competition
C Governmental laws
D Organizational culture

Individuals influencing an entrepreneur’s career choice and style are known as which of
129 the following? Easy
A Role model
B Moral-support network
C Professional support network
D Support system

130 An entrepreneur is also successful in international business as well if he understands: Easy

A Difference of domestic and international business
B Domestic business
C International business
D None of the given options

131 Which of the following is NOT an important aspect of international success? Easy
A Planning
B Diversification
C Reporting
D Control

18
 Which of the following has not yet been empirically established as a
132 distinguishing characteristic of entrepreneurs? Difficult
A Locus of control
B Feeling about independence
C Need for achievement
D Risk taking

A company dealing in beer has a merger with cigarettes manufacturing firm. This merger
133 is called: Difficult
A Horizontal merger
B Product extension merger
C Market extension merger
D Vertical merger

134 LMM stands for: Easy

A Locally Manufactured Machinery
B Locally Manufactured Marble
C Local Marble Market
D Local Meat Market

Which one of the following is the most important characteristic of a successful

135 business website? Average
A Speed
B Innovation
C Graphics
D Products

136 SBA stands for: Average

A Small business accountants
B Small business administration
C Small business adequacy
D Small business advisors

137 Why should an entrepreneur do a feasibility study for starting a new venture? Average
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

138 Which one of the following guide the firm through the long term decision making? Easy
A Mission statement
B Product forecast
C Industry analysis
D None of the given options

139 Which of the following is included in the description of the business? Easy
A Location

19
B Products offered
C History
D All of the given options

140 Which of the following is TRUE for Disclosure Document? Easy

A It gives recognition that he was the inventor of the idea in past
B It gives recognition that he is the first the inventor of the idea
C It gives recognition that he will be the invent an idea in future
D It gives recognition that he wants to copy the idea

141 Which of the following is idea generation method that focuses on parameters? Difficult
A Brainstorming
B Reverse brainstorming
C Creative problem solving
D Synoptic

The transitional disturbance and lack of reform has led to a booming black market
142 in: Difficult
A China
B Hungary
C Singapore
D Poland

143 GATT is established in 1947, under: Easy

A German leadership
B French leadership
C U.S. leadership
D U.K. leadership

144 Which of the following shows the process of creating something new? Easy
A Business model
B Modeling
C Innovation
D Creative flexibility

In the administrative domain, the commitment of resources is for which of the

145 following? Difficult
A Periodic intervals
B Total amount needed
C For certain tasks
D For long time

146 Which is the most common cause of business failure? Average

A Insufficient capital
B Unstable market
C Insufficient experience
D Poor entrepreneurship

20
147 Which of the following areas are preferred by women entrepreneurs? Average
A Administration
B Utilities
C Manufacturing
D None of the above

148 Personal characteristics to be a successful entrepreneur includes Easy

A Understanding environment
B Creating management options
C Encourage open discussion
D All of the above

149 Without top management commitment, the organization will Easy

A Be able to make changes
B Not be able to make any changes
C Not be able to make effective changes
D None of the above

150 Entrepreneurs are concerned about basic issues of: Easy

A Sales, costs and benefits
B Customers, sales and costs
C Risk, costs and benefits
D None of the above

151 Licensing arrangements have Easy

A Low risk process involved
B Easy way to generate incremental income
C Several pitfalls
D All of the above

152 Joint ventures have been used by entrepreneur: Easy

A When the entrepreneur wants to purchase local knowledge
B When rapid entry in to the market is needed
C Both of the options given
D None of the above

153 A horizontal merger is Difficult

A Is the combination of firms in successive stages of production
B Is the combination of firms that produce closely related projects in same area
C Is the combination of firms that produce same products and sell in different areas
D None of the above

154 Main reason(s) for merger is (are) Easy

A When synergy is present
B When complementary resources can be combined

21
C Economies of scale can be achieved
D All of the above

155 First stage of production planning and development processes is Difficult

A Idea stage
B Concept stage
C Concept stage
D Establishing and evaluating criteria stage

Which of the following techniques is an excellent method for

initially screening ideas and concepts in addition to generating new
156 ideas? Difficult
A Focus group
B Brainstorming
C Problem inventory analysis
D Reverse brainstorming

When the multiplicity of environments become too complex to

157 handle, the international entrepreneurs often __________. Difficult
A Go for mergers
B Diversify
C Decentralize operations
D Sale out the foreign business

158 Gazelles are the firms with: Average

A High growth rate
B Moderate growth rate
C Zero% growth rate
D Low growth rate

159 An entrepreneur doing business within the national border is called: Easy
A International entrepreneurship
B Intrapreneurship
C Domestic entrepreneurship
D Imports

160 Which of the following statements about the intrapreneurial climate is (are) true? Easy
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

161 The activities which occur when the new venture is started are called: Difficult
A Motivation
B Goal orientation
C Departure point
D Business skills

22
162 There is evidence that an entrepreneur usually has _______________ parents. Easy
A Self employed
B Discouraged
C Non supportive
D Strict

163 Being one’s own boss is a need of: Average

A Independence
B Achievement
C Affiliation
D Authority

164 Trade barriers cause: Average

A Increase in cost
B Decrease in cost
C Increase in profit
D None of the given options

165 All of the following are true regarding male entrepreneurs EXCEPT: Easy
A Typically most male entrepreneurs are first-borns
B Dissatisfaction with present job is a departure point for a male entrepreneur
Male entrepreneurs mostly have a occupational background of middle-management
C or administrative-experience in the field
D Male entrepreneurs tend to be opinionated and persuasive in their approach

166 Entrepreneurial endeavors consist of all of the following key elements Except: Average
A New business venturing
B Increasing productivity
C Innovativeness
D Proactiveness

167 What is a target market? Difficult

A A group of customers a venture reaches by accident
B All consumers who purchase the venture’s product
A specific group of potential customers toward which a venture aims its
C marketing plan
D A chain of discount stores

168 Which of the following is the previous name of SME? Difficult

A SPCC
B SMEDA
C SBFC
D FMBC

23
169 Licensing is a significant marketing strategy to: Difficult
A Use intellectual property of others
B Pirate others’ patents
C Grow the business in new markets
D Control the costs

Which of the following factors has allowed small companies to act like they
170 are big ones? Difficult
A Competition
B Economic development
C Technology
D Customers

171 Which of the followings is NOT followed in brainstorming? Difficult

A Criticism is done by the group members
B The wilder idea is better
C Quantity of ideas is required
D The session should be fun, with no on dominating the discussion

How many perspectives should be considered while preparing business

172 plan? Difficult
A One
B Three
C Four
D Not specific

173 For which of the following copyright acquisition is desirable? Difficult

A Songs
B Poems
C Models
D All of the given options

174 A utility patent has a term of: Difficult

A 10 years
B 40 years
C 20 years Page
D 80 years

175 Which of the following body issues patents? Difficult

A GATT
B NAFTA
C FTA
D PTO

24
176 What is an entrepreneur? Difficult
A Someone who invests time and money to start a business.
B Someone who makes a lot of money.
C Someone who takes a risk to make a profit.
D Both A & C

177 Define Free Enterprise: Difficult

A A business taking a risk to make a profit.
B A program administered by the Government.
C People in business trying to make a profit.
D A business adventure or undertaking.

178 Capital is: Easy

A Money available to invest.
B Prohibitive cost of entry.
C A guarantee that a company will be successful.
D A & B.

179 Quality Control is defined as: Difficult

A How many & what types of people are shopping at a store.
B Tells you what the customer will buy
C Tells you how much the customer will pay for the product.
D All of the above.

180 A market survey is important because it tells you: Easy

A How many & what types of people are shopping at a store.
B Tells you what the customer will buy.
C Tells you how much the customer will pay for the product.
D All of the above.

181 Making a purchase you had not planned is called: Easy

A Consumer shopping.
B A warranty.
C Impulse buying.
D Comparison shopping.

182 Product planning tells you: Easy

A Where you will produce your product.
B Cost to produce your product.
C Your Net profit
D Total revenues

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183 Cost per serving means: Average
A How much it will cost to produce one recipe
B How much it will cost to produce what you sell in one day.
C How much it will cost to make “One.”
D How much it will cost to make one batch.

184 What things could you change to adjust your profit? Easy
A Price.
B Number.
C Less expensive supply sources.
D All of the above.

185 Gross profit is the Average

A Amount of money you get for profit lab.
B Amount of money collected from selling products
C Amount of money your product costs to produce
D Has nothing to do with money.

186 Net profit is the: Average

A Amount of money you get for profit lab.
B Amount of money collected from selling products.
C Amount of money your product costs to produce.
D Has nothing to do with money.

187 To figure the Gross Profit: Average

A Add up the ticket sales from selling day.
Add up the ticket sales from selling day and subtract the cost of the
B ingredients
C Add up cost to produce the product and subtract the total sales.
D Add the cost to produce the product and add the total sales.

188 To figure the Net Profit: Average

A Add up the ticket sales from selling day.
Add up the ticket sales from selling day and subtract the cost of the
B ingredients.
C Add up cost to produce the product and subtract the total sales.
D Add the cost to produce the product and add the total sales.

189 What makes a good advertisement? Average

A Color, Attracts attention, ingredients in product.
B Name of product, price, location, attractive.
C Easy to read, price, color, location, why customers should buy it.
D Nutritional information, price, color, where to buy it, easy to read.

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190 Which of the following are traits of successful entrepreneurs? Average
A aloofness
B confidence
C responsibility
D agnostic
E only b and c
F all of the above

191 Who of the following can be an entrepreneur Easy

A a dentist
B a market analyst
C a burger flipper at a fast food place
D a teacher
E only a, b, and d
F all of the above

192 Which is NOT a benefit of being an entrepreneur? Easy

A being your own boss
B being able to do work you're interested in
C setbacks for which you are solely responsible
D earning a large profit

193 Three main advantages of a sole proprietorship are: Easy

easy and inexpensive startup, owner has total control, many government
A regulations
easy and inexpensive startup, owner has total control, minimal government
B regulations
C easy and inexpensive startup, limited liability, very easy to earn money
D complex startup, government regulated, owner has total control

194 A franchise agreement is: Easy

A a document that binds all franchise owners to each other
B a document that gives the franchisee the power to change a brand
C the legal document that sets up a franchise
an agreement between two franchisors that enables them to collapse their
D franchises into one business (e.g. Pizza Hut/Taco Bell restaurant)

195 The costs to keep a business running are called: Difficult

A operating expenses
B running costs
C running expenses
D operating costs

196 A business plan is a(n) Easy

PowerPoint presentation that entrepreneurs give to sponsors in order to raise
A money
B written document that describes a business and how it will operate

27
C document that business owners look at before they acquire a new franchise
description of the business to be distributed to marketing companies for product
D promotion

197 The U.S. Small Business Administration (SBA): Difficult

was created to administer trade agreements and provide technical assistance to
A small businesses
B was created to help America’s entrepreneurs form successful businesses
C promotes fair advertising and selling practices
is an organization developed to keep small business from becoming larger and
D turning into monopolies

If an owner is responsible for all the debts and choices of a business he is

198 considered to have Average
A unlimited liability
B unlimited responsibility
C public liability
D warranty

A business that has only one location and is not part of any other business is called
199 a(n) Easy
A franchise
B isolationist
C private business
D independent business

200 Which of the following inputs is not involved in entrepreneurship? Difficult

A Opportunity
B Proactive individual
C Risk
D External locus of control

If someone starts a new business that is a service station, this is an example of a

201 (n) Easy
A new concept/new business
B existing concept/new business
C existing concept/existing business
D new concept/existing business.

202 Experts Average

A agree that anyone can be taught to be an entrepreneur
believe that entrepreneurship can be taught only to someone who is under 20
B years of age
believe that entrepreneurship can be taught only to those who are over 20 years of
C age.
D disagree on whether entrepreneurship can be taught

203 If an entrepreneur has an internal locus of control, this means that he/she Average

28
A has a high need for achievement
B feels comfortable in an unstructured situation
C believes that success or failure depends on his/her own actions
D believes fate is a powerful force.

204 Entrepreneurs would be best described as risk Average

A averse
B rewarders
C managers
D loving

205 Which of the following is a common entrepreneurial trait ? Easy

A Viewing changes as threatening
B A need for structured environments
C A high need for achievement
D All of the above

206 A person's belief in his capability to perform a task is known as Average

A self-recognition, beliefs, and values
B beliefs and values
C self-efficacy
D self-determination

207 Which of the following personality characteristics are included in the "Big Five?" Average
A Introversion
B Close-mindedness
C Being disagreeable
D Extraversion and conscientiousness

208 The process of gathering information about trends is called: Easy

A need for achievement
B tenacity
C neuroticism.
D scanning the environment

209 The opposite of "opportunity thinking" is: Easy

A self-efficacy.
B obstacle thinking
C thought self-leadership
D adaptive response behavior

210 The entrepreneurial process is relatively rare in the United States Easy
A a. True
B b. False

211 One of the spheres of influence on entrepreneurs is the ethnocultural environment Easy

29
A a. True
B b. False

The disadvantages of entrepreneurship include autonomy, the challenge of a

212 startup, and less control over personal finances Easy
A a. True
B b. False

213 Culture does not affect the image or status of entrepreneurs Easy
A a. True
B b. False

214 Self-efficacy is a person's need for achievement Easy

A a. True
B b. False

Resources will change as the organisation's purpose changes. In addition, they will
215 also be influenced by what is happening outside in the environment. Easy
A a. True
B b. False

216 Which of the following is not an internal factor affecting organisational purpose? Easy
A Ownership
B Innovation
C Leadership
D Co-operation

What, according to Nelson and Winter, is the critical factor constraining an

217 organisation's ability to develop its resource capabilities? Difficult
A Innovation and entrepreneurship
B Availability of new resources in the market
C Investment funds
D Organisational routines

218 Which of the following is an example of an early-mover advantage? Difficult

A Legal barriers to imitation
B Building networks of complementors
C Developing intangible barriers to imitation
D Exploiting market size and scale economies

Which of the following is not one of the ways in which resource advantages can be
219 sustained and protected from imitation? Difficult
A Exploiting market size and scale economies
B Entering into exclusive distribution contracts
C Incremental improvements in the product or service
D Legal barriers to imitation

30
220 The word ‘entrepreneur’ is derived from _________ Easy
A Latin.
B Hebrew.
C Greek.
D French.

As per the view of _____________ entrepreneur’s function is to combine factors

221 into a producing organism. Difficult
A Adam Smith.
B Richard Cantillon.
C Carl Menger.
D Joseph Schumpeter.

._______________ opined that the entrepreneur adds value to the original

222 resource and this value is rewarded through profits. Difficult
A Adam Smith.
B Richard Cantillon.
C Carl Menger.
D Joseph Schumpeter.

According to ___________ an entrepreneur is the one who always searches for

223 change, responds to it and exploits it as an opportunity. Difficult
A Adam Smith.
B Peter Drucker.
C Carl Menger.
D Joseph

____________ refers to identification of innovative ideas and setting up of a new

224 enterprise Easy
A Entrepreneurship.
B Intrapreneurship.
C Self Employment.
D Income Generation.

225 Full time involvement in one’s own occupation is referred as ___________. Easy
A Entrepreneurship.
B Intrapreneurship.
C Self Employment.
D Income Generation.

Engaging in part-time, casual and practised with a view of raising additional income
226 is known as ______________. Easy
A Entrepreneurship.
B Intrapreneurship.
C Self Employment.
D Income Generation.

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227 _________ is the process of putting new ideas into action. Easy
A Innovation.
B Independence.
C Outstanding performance.
D Respect for work.

When one is encouraged to do things on his own and is provided help and
228 guidance, only if asked for, one is oriented towards Average
A Innovation.
B Independence.
C Outstanding performance.
D Respect for work.

The performance to strengthen the belief of the entrepreneurs and influence the
environment, and displaying certain standards of excellence are considered as
229 ________________. Average
A Innovation.
B Independence.
C Outstanding performance.
D Respect for work.

__________ provides the goal direction that encourages entrepreneurs to pursue

230 a path where the rewards and incentives are linked to their personal efforts Average
A Innovation.
B Independence.
C Outstanding performance.
D Respect for work.

231 The ability to bring something new into existence is known as ____________. Easy
A Creativity.
B Innovation.
C Entrepreneurship.
D Intrapreneurship.

232 _________ is a process of doing new things. Easy

A Creativity.
B Innovation.
C Entrepreneurship.
D Intrapreneurship.

_______ can be viewed as a creative and innovative response to the environment

233 and an ability to recognise, initiate and exploit an economic opportunity. Average
A Creativity.
B Innovation.
C Entrepreneurship.
D Intrapreneurship.

32
 _________ is an inner state that energises activities and directs or channels
234 behaviour towards goal. Average
A Creativity.
B Innovation.
C Entrepreneurship.
D Motivation.

Unemployment or dissatisfaction with existing job is one of the factors of

235 entrepreneurial motivation which is characterised under ___________. Average
A Entrepreneurial ambition.
B Compelling factors.
C Supportive factors.
D Facilitating factors.

To secure self-employment or independent living is one of the factors of

236 entrepreneurial motivation which is characterised under Average
A Entrepreneurial ambition.
B Compelling factors.
C Supportive factors.
D Facilitating factors.

To gain social prestige is one of the factors of entrepreneurial motivation which is

237 characterised under ___________. Average
A Entrepreneurial ambition.
B Compelling factors.
C Supportive factors.
D Facilitating

Previous knowledge is one of the factors of entrepreneurial motivation which is

238 characterised under ___________. Average
A Entrepreneurial ambition.
B Compelling factors
C External factors.
D Facilitating factors.

Encouragement by family members, friends and relatives is one of the factors of

239 entrepreneurial motivation which is characterised under ___________. Average
A Entrepreneurial ambition
B Compelling factors.
C Supportive factors.
D External factors.

___________ entrepreneurs are motivated by their desire for self-fulfilment and to

240 achieve or prove their excellence in job performance. Average
A Spontaneous.
B Motivated.
C Induced.

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D Compulled.

___________ entrepreneurs are motivated by their desire to make use of their

241 technical and professional expertise and skills. Average
A Spontaneous.
B Motivated.
C Induced.
D Compulled.

___________ viewed entrepreneur as an innovator playing the role of dynamic

242 business man Difficult
A Adam Smith.
B Richard Cantillon
C Carl Menger.
D Joseph Schumpeter.

.____________ entrepreneurs are those who are induced to take up

entrepreneurship due to policy measures of the government promoting
243 entrepreneurship. Average
A Spontaneous.
B Motivated.
C Induced.
D Compulled.

244 The chief motive of ___________ entrepreneur is security. Average

A Managing.
B Innovative.
C Imitative.
D Controlling.

245 _________ entrepreneurs who primarily look for excitement. Average

A Managing.
B Innovative.
C Imitative.
D Controlling.

The entrepreneurs who fulfil their desire for power is known as _________
246 entrepreneurs. Average
A Managing.
B Innovative.
C Imitative.
D Controlling.

A moderator leads a group of people through open and in-depth discussion rather
than simply asking questions to solicit participant response; such group is known
247 as ___________. Average
A Peer group.

34
B Rival group.
C Focus group.
D Brainstorming.

A business person who accepts both the risks and the opportunities involved in
creating and operating a new business venture is
248 called _________. Average
A Chief Executive Officer.
B Sole Operator
C Entrepreneur.
D Administrative Officer.

249 The first step in starting a small business is to find out ______________. Easy
A Business Idea
B Business Comment.
C Investment.
D Initiation

Use the following price list to do the problems below (do not figure tax).
Hot dog $0.75
Cheeseburger $0.95
Onions $0.10
Small fries $0.65
Small soft drink $0.60
Hamburger $0.85
Lettuce & tomato $0.30
Large fries $0.85
Large soft drink $0.80
Milkshakes $1.10

250 10 people ordered 1 hamburger with lettuce, tomato, onion, and a small drink. Easy
A $1.85.
B $1.80.
C $18.50.
D $18.00.

251 The bus driver ordered 2 hot dogs, a small fry, and a milkshake. Easy
A $3.00.
B $3.15.
C $3.20.
D $3.25.

Marcy ordered one cheeseburger, a large fry, a milkshake for herself and one for a
252 friend. How much does she owe? Easy
A $3.75.
B $2.90.
C $4.25.

35
D $4.00.

When counting change back to a customer, you should always give the
253 ____________ amount of coins possible Average
A best.
B least.
C most.
D correct.

If a customer’s bill totals $.65 and the customer gives you $1.00, the correct
254 amount of change (according to our worksheet) would be: Easy
A 3 dimes and 1 nickel.
B 5 pennies and 3 dimes.
C 1 quarter and 1 dime.
D 1 quarter and 2 nickels.

255 Gross profit is the Average

A Amount of money you get for profit lab.
B Amount of money collected from selling products.
C Amount of money your product costs to produce.
D Has nothing to do with money.

256 Net profit is the: Average

A Amount of money you get for profit lab.
B Amount of money collected from selling products.
C Amount of money your product costs to produce.
D Has nothing to do with money.

257 To figure the Gross Profit: Average

A Add up the ticket sales from selling day.
B Add up the ticket sales from selling day and subtract the cost of the ingredients.
C Add up cost to produce the product and subtract the total sales.
D Add the cost to produce the product and add the total sales.

258 To figure the Net Profit: Average

A Add up the ticket sales from selling day.
B Add up the ticket sales from selling day and subtract the cost of the ingredients.
C Add up cost to produc3 the product and subtract the total sales.
D Add the cost to produce the product and add the total sales.

36