FINALTERM EXAMINATION
Spring 2009
MGT602- Entrepreneurship

Marks: 80

Question No: 1 ( Marks: 1 ) - Please choose one
In some countries, point of purchase displays are not allowed in retail stores. Such
differences are studied by international entrepreneurs under __________.

  • Political Environment
  • Cultural Environment
  • Technological Environment
  • Economic Environment


Question No: 2 ( Marks: 1 ) - Please choose one
The intersection of knowledge and a recognized social need to start a product
development process is called:

  • Iterative synthesis
  • Product-evolution process
  • Ordinary innovation
  • Situation analysis


Question No: 3 ( Marks: 1 ) - Please choose one
A set of reasons for engaging in a particular behavior, especially human behavior is
known as _____________.


  • Values
  • Vision
  • Entrepreneurship
  • Motivation


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Question No: 4 ( Marks: 1 ) - Please choose one
_____________ System is necessary for expansion or elimination of intrapreneurial
units.

  • Management
  • Evaluation
  • Reward
  • Training


Question No: 5 ( Marks: 1 ) - Please choose one
Which one of the following factors does not affect a person for being an entrepreneur?

  • Work history
  • Education
  • Personal values
  • Nationality


Question No: 6 ( Marks: 1 ) - Please choose one
Which one of the following factors does not affect a person for being an entrepreneur?

  • Family background
  • Education
  • Personal values
  • Gender


Question No: 7 ( Marks: 1 ) - Please choose one
Individuals who give psychological support to an entrepreneur are called:

  • Roles models
  • Moral support networks
  • Professional support networks
  • Informal networks


Question No: 8 ( Marks: 1 ) - Please choose one
The evaluation criteria for the new product should include all of the following, EXCEPT:

  • Determination of market demand
  • Determination of the suppliers
  • Pricing and marketing policies of other competing firms
  • Product should be profitable


Question No: 9 ( Marks: 1 ) - Please choose one
Which one of the following is a method for obtaining new ideas and solutions by
focusing on problems?

  • Product inventory analysis
  • Gordon method
  • Checklist method
  • Scientific method

Question No: 10 ( Marks: 1 ) - Please choose one
Which one of the following reviews the trends and competitive strategies?

  • Environmental analysis
  • Product forecast
  • Contingency plan
  • Industry analysis


Question No: 11 ( Marks: 1 ) - Please choose one
Which of the following is a idea generation method that focuses on parameters?

  • Brainstorming
  • Reverse brainstorming
  • Creative problem solving
  • Synectics


Question No: 12 ( Marks: 1 ) - Please choose one
Which of the following is a more structured method of problem solving, including
principles and rules for concept formation, making observations and experiments, and
finally validating the hypothesis?

  • Scientific method
  • Heuristics
  • Attribute listing
  • Value analysis


Question No: 13 ( Marks: 1 ) - Please choose one
Which of the following is the most important factor for the entrepreneur, while starting a
new venture, to make an assessment of business?

  • Profit
  • Risk
  • Market
  • Competitors


Question No: 14 ( Marks: 1 ) - Please choose one
The goals of venture should have all of the following characteristics to be successful,
EXCEPT:

  • Measurable
  • Specific
  • Properly monitored
  • Independent of time


Question No: 15 ( Marks: 1 ) - Please choose one
Which of the following kind of need should be documented by the entrepreneur before
preparing the plan?

  • Market
  • Customer
  • Investor s
  • His own


Question No: 16 ( Marks: 1 ) - Please choose one
The marketing plan section of the business plan should focus on strategies for how many
years of the venture?

  • 2
  • 3
  • 4
  • 5


Question No: 17 ( Marks: 1 ) - Please choose one
Secondary data can be obtained from all of the following sources, EXCEPT:

  • Internet
  • Magazine
  • Bureau of statistics
  • Focus group


Question No: 18 ( Marks: 1 ) - Please choose one
Which of the following is the simplest approach of gathering primary data?

  • Interviews
  • Observations
  • Surveys
  • Focus Group


Question No: 19 ( Marks: 1 ) - Please choose one
In which of the following entity capital rising entirely depends on the entrepreneur?

  • Corporation
  • Sole Proprietorship
  • Partnership
  • All of the above


Question No: 20 ( Marks: 1 ) - Please choose one
Which of the following represents the environment in which entrepreneurship can t
grow?

  • Boom
  • Vacuum
  • Maturity
  • Introductory Phase


Question No: 21 ( Marks: 1 ) - Please choose one
Which of the following shows the standard acceptable term of a Limited Liability
Company?

  • Three
  • Ten
  • Twenty
  • Thirty


Question No: 22 ( Marks: 1 ) - Please choose one
In entrepreneurship the starting capital is also called:

  • Equity Capital
  • Seed Capital
  • Financial Capital
  • Short term Capital



Question No: 23 ( Marks: 1 ) - Please choose one
Which one of the following an entrepreneur must develop while preparing a pro forma of
sales budget?

  • Cash flow statement
  • Balance sheet
  • Income statement
  • Statement of retained earnings


Question No: 24 ( Marks: 1 ) - Please choose one
For how many years should a financial plan needs to provide the projected financial data?

  • One
  • Three
  • Five
  • Ten


Question No: 25 ( Marks: 1 ) - Please choose one
In the preparation of the pro forma income statement, the entrepreneur must have to
develop first:

  • A production budget
  • A sales budget
  • An operating budget
  • A capital budget


Question No: 26 ( Marks: 1 ) - Please choose one
Which of the following statement provides projections of all operating expenses for each
month of the first year?

  • The pro forma balance sheet
  • The pro forma income statement
  • The pro forma cash flow statement
  • The actual balance sheet


Question No: 27 ( Marks: 1 ) - Please choose one
In which of the following sources the large positive cash flow may need to be invested?

  • Long term
  • Short term
  • Average term
  • None of the above options


Question No: 28 ( Marks: 1 ) - Please choose one
Which of the following is NOT the determinant of entrepreneur's ownership?

  • Cash
  • Debt
  • None of the given options
  • Equity


Question No: 29 ( Marks: 1 ) - Please choose one
Which of the following cannot be used as basis of loan?

  • Worth of the business
  • Perishable item
  • Fixed asset
  • All of the given options


Question No: 30 ( Marks: 1 ) - Please choose one
In inventory loans, finished goods inventory can be financed up to what percent of
inventory value?

  • 50%
  • 70%
  • 80%
  • 100%


Question No: 31 ( Marks: 1 ) - Please choose one
What is the practical maximum limit to the amount of loan guaranteed by Small Business
Administration for starting of new venture?

  • $ ten thousand
  • $ hundred thousand
  • $ one million
  • There is no limit


Question No: 32 ( Marks: 1 ) - Please choose one
The overall coordinating party in an agreement is:

  • Limited partner
  • Major partner
  • Minor partner
  • General partner


Question No: 33 ( Marks: 1 ) - Please choose one
Which of the following is the oldest development financing institution?

  • Small Business Finance Corporation
  • Khushhali Bank
  • Regional Development Finance Corporation
  • Industrial Development Bank of Pakistan


Question No: 34 ( Marks: 1 ) - Please choose one
Which of the following is a type of leverage ratio?

  • Debt ratio
  • Net profit margin
  • Return on investment
  • Current ratio


Question No: 35 ( Marks: 1 ) - Please choose one
A source of cash resulting from an entrepreneur selling the business is called:

  • Positive cash flow
  • Negative cash flow
  • Terminal value
  • Earnings valuation


Question No: 36 ( Marks: 1 ) - Please choose one
Which of the following can be used for collateral?

  • Shares
  • Tangible property
  • All of the given options
  • Real State


Question No: 37 ( Marks: 1 ) - Please choose one
The __________ venture capital firm invests in technology created by the school

  • Corporate
  • University-sponsored
  • SBA
  • State-sponsored


Question No: 38 ( Marks: 1 ) - Please choose one
In most cases, the venture capitalist:

  • Seeks control of the company
  • Never expects a seat on the board of directors
  • Expects the management team to run the daily operations
  • Prefers not to interfere in planning and expertise areas



Question No: 39 ( Marks: 1 ) - Please choose one
Determining first-mover advantage depends on all of the following, EXCEPT:

  • The ability of the company to maintain a legal monopoly in the market
  • The stability of the environment surrounding the entry
  • The ability of the entrepreneur to erect barriers to entry and imitation in order to extend the firm's lead time
  • The ability of the entrepreneur to educate customers


Question No: 40 ( Marks: 1 ) - Please choose one
Which of the following would be an advantage of starting a new business over
acquisition?

  • Established customer base
  • Customer response to location
  • Existing employees
  • All of the given options


Question No: 41 ( Marks: 5 )
Suppose you are working in a manufacturing organization. What constitutes your budget
plan?

Question No: 42 ( Marks: 5 )
What do you know about "private offerings" to the entrepreneurs? Discuss briefly.

Question No: 43 ( Marks: 10 )
What are Small Business Administration Loans? In what circumstances are they used by
entrepreneurs? Discuss important features of Small Business Administration loans with
the prospect of entrepreneurship.


Question No: 44 ( Marks: 10 )
Managing inventory is an important task of entrepreneurs, along with managing cash, to
run the venture successfully. Describe various tools and techniques to manage the
inventory.

Question No: 45 ( Marks: 10 )
Competitor analysis is the most important factor while considering the SWOT analysis.
Being an entrepreneur what questions you will consider while performing the analysis of
the competitors?