MGT602 2010

MIDTERM EXAMINATION
Spring 2010
MGT602- Entrepreneurship (Session - 2)
Time: 60 min
Marks: 47

Question No: 1 ( Marks: 1 ) - Please choose one
The level at which an individual is viewed by society is called:

► Financial status
► Qualification
► Social status
► Achievement

Question No: 2 ( Marks: 1 ) - Please choose one
Which one of the following is the next stage to the Concept Stage of Product Planning and Development Process?

► Idea Stage
► Product Planning Stage
► Product Development Stage
► Test Marketing Stage

Question No: 3 ( Marks: 1 ) - Please choose one
Which one of the following is NOT included in four C’s evaluation by lender?

► Character
► Cost
► Continuity
► Contribution

Question No: 4 ( Marks: 1 ) - Please choose one
Which of the following is NOT essential part of the contract?

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

Question No: 5 ( Marks: 1 ) - Please choose one
Which one of the following is the way by which an entrepreneur can enter into international business?

► Export
► Non equity arrangements
► Direct foreign investment
► All of the given options

Question No: 6 ( Marks: 1 ) - Please choose one
The entrepreneur was distinguished from capital provider in:

► Middle ages
► 18th century
► 17th century
► 19th and 20th century

Question No: 7 ( Marks: 1 ) - Please choose one
Andrew Carnegie is an example of entrepreneur of which century:

► Earliest period
► 19th and 20th century
► Middle ages
► 17th century

Question No: 8 ( Marks: 1 ) - Please choose one
Which of the following two work environments should be good for spawning the new enterprises?

► Finance and marketing
► Finance and R&D
► Marketing and R&D
► Marketing and IT

Question No: 9 ( Marks: 1 ) - Please choose one
Most of the finance for the new firm comes from following resources EXCEPT:

► Friends
► Foreign aid
► Relatives
► Personal savings

Question No: 10 ( Marks: 1 ) - Please choose one
What is the process by which individuals pursue opportunities without regard to resources they currently control?

► Startup management
► Entrepreneurship
► Financial analysis
► Feasibility planning

Question No: 11 ( Marks: 1 ) - Please choose one
Which one of the following is a firm that achieves modest growth?

► High potential growth firm
► Foundation firm
► Life style
► Public company

Question No: 12 ( Marks: 1 ) - Please choose one
Which of the following factors is the most important in forcing U.S companies to focus on new product development and increased productivity?

► Entrepreneurship
► Hyper competition
► Governmental laws
► Organizational culture

Question No: 13 ( Marks: 1 ) - Please choose one
Which of the following typical culture has a climate and reward system that favors conservative decision making?

► Entrepreneurial
► Intrapreneurial
► Corporate Page 16
► None of the given options

Question No: 14 ( Marks: 1 ) - Please choose one
What takes place during the product-evolution process?

► Innovation is developed and commercialized through entrepreneurial activity Page8
► The product/service is evaluated and any scope of further development is charted
► The business branches into separate units of development and marketing
► The product/service is evaluated to identify its global marketability

Question No: 15 ( Marks: 1 ) - Please choose one
All the following qualities are requisites for an entrepreneur Except:


► Driven by perception of opportunity
► Learning from business failure
► Cognitive adaptability
► Effectuation

Question No: 16 ( Marks: 1 ) - Please choose one
Which one of the following factor does not differ in motivating male and female entrepreneurs?

► Independence page22
► Money
► Job satisfaction
► Opportunity

Question No: 17 ( Marks: 1 ) - Please choose one
Female entrepreneurs differ from male entrepreneurs in terms of all of the following EXCEPT:

► Motivation Page22
► Business skills
► Departure point
► Goal orientation

Question No: 18 ( Marks: 1 ) - Please choose one
Which one of the following may need the business plan?

► Employees
► Investors page50 – (need to check)
► Advisors
► All of the given options

Question No: 19 ( Marks: 1 ) - Please choose one
Which of the following refers to new products with some technological change?
► Ordinary innovation
► Technological innovation
► Breakthrough innovation Page5
► Technical innovation

Question No: 20 ( Marks: 1 ) - Please choose one
Which of the following is/are known as barriers to new product creation and development?

► Trial and error
► Opportunity parameters page13
► Opportunity cost
► Intrapreneurial culture

Question No: 21 ( Marks: 1 ) - Please choose one
According to research, when do the female entrepreneurs tend to start their first significant venture?
► In their mid 20s
► In their mid 30s
► In their mid 40s
► In their mid 50s

Question No: 22 ( Marks: 1 ) - Please choose one
Which of the following statements describes “International entrepreneurship”?
► It is the process of an entrepreneur conducting business activities across national boundaries page27
► It is the process of an entrepreneur conducting business activities within the national boundaries
► It is an innovative corporate management style that encourages employees within an organization to create new product ideas
► It is a business structure in which an individual and his company are considered a single entity for tax and liability purposes

Question No: 23 ( Marks: 1 ) - Please choose one
Which of the following best describes the term “indirect exporting”?
► It refers to selling goods made in one country to another country
► It refers to buying and selling of commodities
► It refers to a commercial activity of buying and bringing in goods from a foreign country
► It refers to selling goods to another country through a person in the entrepreneur’s home country

Question No: 24 ( Marks: 1 ) - Please choose one
Identify the term which best describes the term “management contracts”?
► It refers to selling goods made in one country to another country
► It refers to buying and selling of commodities
► It is a commercial activity of buying and bringing in goods from a foreign country
► It is method of doing specific international task Page33

Question No: 25 ( Marks: 1 ) - Please choose one
Which of the following best defines “minority interest”?
► It refers to having less than 50 percent ownership position Page33
► It refers to forming a third company by combining two companies
► It refers to having more than 50 percent ownership position
► It refers to selling goods made in one country to another country

Question No: 26 ( Marks: 1 ) - Please choose one
In which of the following centuries the people of Malaysia peninsula were converted from Islam?
► 14th century
► 15th century
► 16th century
► 17th century
Ref Wiki: By the end of the 14th century, Islam controlled isolated pockets, particularly ports eg Sumatra, north coast of Java but had little penetration to the interior. King Parameswara of Srivijaya who became the ruler of Malacca (Malaysia) in 1410, apparently converted to Islam leading to Islam’s spread via conquest over a century while Malacca became the centre of Islam in SE Asia (Khan p 139).

Question No: 27 ( Marks: 1 ) - Please choose one
Identify the statement which best defines “reverse brainstorming”.
► It refers to groups of individuals providing in a structured format
► It refers to a group method for obtaining new ideas focusing on the negative (Not Sure- I select due criticism is allowed)
► It refers to a method for individuals to solve problems through one of four mechanisms
► It refers to a method for developing new ideas when the individuals are unaware of the problem

Question No: 28 ( Marks: 1 ) - Please choose one
Identify the statement which best defines “checklist method”
► It refers to developing a new idea through a list of related issues
► It refers to a group method for obtaining new ideas focusing on the negative
► It refers to a method for individuals to solve problems through one of four mechanisms
► It refers to a method for developing new ideas when the individuals are unaware of the problem

Question No: 29 ( Marks: 1 ) - Please choose one
Which one of the following is a method for obtaining new ideas and solutions by focusing on problems?

► Problem inventory analysis Page37
► Gordon method
► Checklist method
► Scientific method

Question No: 30 ( Marks: 1 ) - Please choose one
Which of the following statements best defines “forced relationship”?
► It refers to developing a new idea through a chain of word associations
► It refers to developing a new idea by looking at product combinations Page38
► It refers to developing a new idea through inquiry and testing
► It refers to developing a new idea by evaluating the worth of aspects of ideas

Question No: 31 ( Marks: 1 ) - Please choose one
How many major stages of “product planning and development process” are there?
► Four
► Five Page41
► Six
► Seven

Question No: 32 ( Marks: 1 ) - Please choose one
Which of the following denote no relationship between the mark and the goods or services?
► Coined marks Page45
► Arbitrary marks
► Suggestive marks
► Descriptive marks

Question No: 33 ( Marks: 1 ) - Please choose one
A design patent has a term of:

► 20 years
► 14 years Page43
► 10 years
► 40 years

Question No: 34 ( Marks: 1 ) - Please choose one
Lenders focus on four Cs of credit. Identify which of the following is NOT included in those four Cs.
► Character
► Cash flow
► Collateral
► Code of ethics

Question No: 35 ( Marks: 3 )
Briefly discuss licensing and its benefits.


Question No: 36 ( Marks: 5 )
What is a business plan and what purpose does it serve?


Question No: 37 ( Marks: 5 )
Discuss the role of “export management firm” in indirect exporting.