Entrepreneurship Management

1. Which one of the following theory has the attribute of moderate risk taking as a function of skill, not chance?

1. Need for independence
2. Need for achievement
3. Need for affiliation
4. Need for authority

Correct answer: (B)
Need for achievement

2. Foundation companies are formed from:

1. Fashion
2. Research and development
3. Most popular business
4. winding up company

Correct answer: (B)
Research and development

3. All of the following are the broad categories of External forces EXCEPT:

1. Economic forces
2. S Socioeconomic forces
3. Technological forces
4. Competitive forces

Correct answer: (B)
S Socioeconomic forces

4. A ______________ is a professional money manager who makes risk investment from a pool of equity capital to obtain a high rate of return on investments.

1. venture capitalist
2. entrepreneur
3. businessman
4. buyer

Correct answer: (A)
venture capitalist

5. Members of distribution channels are excellent sources for new ideas because:

1. They are familiar with the needs of the market
2. They earn a handsome profit from new business
3. They do not bother if entrepreneur bears a loss
4. They have well-developed sales force

Correct answer: (A)
They are familiar with the needs of the market

6. Which of the following geographical area is having least interest to U.S. entrepreneurs?

1. Europe
2. The Far East
3. Central Asia
4. Transition economies

Correct answer: (C)
Central Asia

7. Andrew Carnegie is an example of entrepreneur of which century:

1. Earliest period
2. 19th and 20th century
3. Middle ages
4. 17th century

Correct answer: (B)
19th and 20th century

8. The activity which occurs when the new venture is started are called:

1. Business skills
2. Motivation
3. Departure point
4. Goal orientation

Correct answer: (C)
Departure point

9. The business plan should be prepared by:

1. Entrepreneurs
2. Consultants
3. Engineers
4. Small business administration services

Correct answer: (A)
Entrepreneurs

10. What is the primary concern of founders who trade equity for capital for their growing venture?

1. Capitalization
2. Control
3. Valuation
4. Investor capabilities

Correct answer: (A)
Capitalization

11. The importance of intellectual property should be understood by entrepreneur even before:

1. Hiring a manager
2. Engaging an attorney
3. Developing a product
4. Establishing new venture

Correct answer: (B)
Engaging an attorney

12. A patent is granted for a specified amount of time because of the assumption:

1. That during this time firm will cover its development costs
2. That firm will earn a sufficient profit during this period
3. To limit the monopoly of the firm
4. That it will stimulate idea and development of a better product

Correct answer: (D)
That it will stimulate idea and development of a better product

13. External forces directly affect all of the following EXCEPT:

1. Market segmentation strategies
2. Types of products/services offered
3. Management structure of organization
4. Choice of businesses to acquire or sell

Correct answer: (C)
Management structure of organization

14. Which of the following is alternatively called corporate venturing?

1. Intrapreneurship
2. Entrepreneurship
3. Act of stating a new venture
4. Offering new products by an existing company

Correct answer: (A)
Intrapreneurship

15. Following are the types of non equity arrangements EXCEPT:

1. Licensing
2. T turnkey project
3. Direct export
4. Management contracts

Correct answer: (C)
Direct export

16. Government can help in forming new venture by providing:

1. finance
2. technology
3. infrastructure
4. funds

Correct answer: (C)
infrastructure

17. The longest lasting trade agreement with the objective of liberalizing trade by eliminating or reducing tariffs, subsidies and quotas is:

1. Free trade area - FTA
2. European community - EC
3. General agreement on tariffs and trade - GATT
4. The North American free trade agreement - NAFTA

Correct answer: (C)
General agreement on tariffs and trade - GATT

18. Entrepreneurial success has been significant because of the culture and the political and economic systems in ––––––––.

1. Asian countries
2. European countries
3. Transition economies
4. Middle East

Correct answer: (A)
Asian countries

19. The transitional disturbance and lack of reform has led to boom black market in:

1. China
2. Hungary
3. Singapore
4. Poland

Correct answer: (D)
Poland

20. Which of the following factors has allowed small companies to act like they are big ones?

1. Customers
2. Competition
3. Economic development
4. Technology

Correct answer: (D)
Technology

21. Gazelles are the firms with:                                                                          

1. High growth rate
2. M moderate growth rate
3. Zero% growth rate
4. Low growth rate                                                   

Correct answer: (A)
High growth rate

22. Professional support network includes following EXCEPT:                          

1. Personal affiliations
2. Mentor
3. Friends
4. Trade associations                                                  

Correct answer: (C)
Friends

23. The period in which the money person entered into a contract with the go-between to sell his goods is known as

1. Middle ages
2. 18th century
3. 17th century
4. Earliest period                                                      

Correct answer: (D)
Earliest period

24. Which one of the Following is not the way by which an entrepreneur can enter into international business?

1. Export
2. Non equity arrangements
3. Direct foreign investment
4. Communication                                                    

Correct answer: (D)
Communication

25. ______________ viewed the entrepreneur as a risk taker who "buy(s) at an uncertain price, therefore operating at a risk".

1. Eli Whitney
2. Edward hariman
3. Richard cantillon
4. Thomas Edison                                                     

Correct answer: (C)
Richard cantillon

26. Female entrepreneurs differ from male entrepreneurs in terms of all of the following EXCEPT:

1. Motivation
2. business skills
3. Departure point
4. Goal orientation                                                   

Correct answer: (D)
Goal orientation

27. 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?

1. Supplier
2. Retailer
3. Competition
4. Government bureau                                             

Correct answer: (B)
Retailer

28. Which of the following factors does not affect a person for being an entrepreneur?

1. Gender
2. Education
3. Family background
4. values                                                                   

Correct answer: (C)
Family background

29. Which of the following factors does not affect a person for being an entrepreneur?

1. Work history
2. Nationality
3. Education
4. Personal values                                                     

Correct answer: (B)
Nationality

30. The former USSR received technology and syrup from Pepsi and provided it with Soviet vodka and rights to distribute it in the US. This is an example of:

1. Economic development
2. Balance of payment
3. Barter system
4. International trade                                                

Correct answer: (C)
Barter system

31. Which one of the following is NOT a condition of a contract?

1. An offer is made
2. Consideration is given
3. An acceptance of offer
4. Contract must be illegal                      

Correct answer: (D)
Contract must be illegal

32. Government can help in forming new venture by providing:

1. Finance
2. Technology
3. Infrastructure
4. Subsidiaries                                                 

Correct answer: (C)
Infrastructure

33. A contract must be signed by:                                                            

1. At least one party
2. Both the parties
3. Not necessary to sign
4. By third party                                               

Correct answer: (B)
Both the parties

34. Which of the following areas are preferred by women entrepreneurs?

1. Administration
2. Organization
3. Utilities
4. Manufacturing                                             

Correct answer: (A)
Administration

35. A typical inventor is usually ______________.                                         

1. Highly creative & in love with the invention
2. Does not encourage change
3. Willing to modify the invention
4. Not enthusiastic

Correct answer: (A)
Highly creative & in love with the invention

36. Which one of the following is the fourth step in the entrepreneurial process?

1. Developing successful business ideas
2. Initiating New rules
3. Deciding to become an entrepreneur
4. Growing the entrepreneurial firm                                                

Correct answer: (D)
Growing the entrepreneurial firm

37. The commitment of administrative domain to the resources is for:

1. Periodic intervals
2. Total amount needed
3. For certain tasks
4. For long time                                            

Correct answer: (B)
Total amount needed

38. Developing a new idea through inquiry and testing is called:

1. Forced relationship
2. Heuristics
3. Scientific method
4. Value analysis                                              

Correct answer: (C)
Scientific method

39. Which of the following is not a source of idea generation?

1. Consumers
2. Federal government
3. Brain storming
4. Training                                                       

Correct answer: (D)
Training

40. Which of the following cannot be covered under the copyright protection?

1. Computer software
2. Poems and songs
3. Computer hardware
4. Models and sculpture                             

Correct answer: (D)
Models and sculpture