MGT602 2010

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
► 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
► 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
► 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
► 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
► 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
► 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
► 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
► 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

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
► 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

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
► 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
► 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
► 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
► 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
► 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
► 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.

Question No: 1 ( Marks: 1 ) - Please choose one
Individuals who help the entrepreneur in business activities are called:

► Role models
► Moral support networks
► Professional support networks
► Business support networks

Question No: 2 ( Marks: 1 ) - Please choose one
Following are the problems in developing the economies EXCEPT:

► Gap of knowledge
► Variable rate of return
► Same communication style
► Different accounting system

Question No: 3 ( Marks: 1 ) - Please choose one
Which one the following is the best protection against product liability?

► Avoid negligence
► Warn consumers of any potential hazards
► Give warranty
► Avoid misrepresentation

Question No: 4 ( 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: 5 ( Marks: 1 ) - Please choose one
A utility patent has a term of:

► 10 years
► 40 years
► 20 years
► 80 years

Question No: 6 ( Marks: 1 ) - Please choose one
Which of the following body issues patents?

► GATT
► NAFTA
► FTA
► PTO

Question No: 7 ( 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: 8 ( Marks: 1 ) - Please choose one
Which one of the following gives suggestions for new product and also help to market new products?

► Existing products and services
► Distribution channels
► Federal government
► Consumers

Question No: 9 ( Marks: 1 ) - Please choose one
GATT is established in 1947, under:

► German leadership
► French leadership
► U.S. leadership
► U.K. leadership

Question No: 10 ( Marks: 1 ) - Please choose one
Factors contribute to the creation of new venture EXCEPT:

► Government
► Finance
► High interest rates
► Role models

Question No: 11 ( Marks: 1 ) - Please choose one
A foundation company is formed through which of the following?
► Fashion
► Most popular business
► A winding up company
► Research and development

Question No: 12 ( Marks: 1 ) - Please choose one
Which one of the following is the primary cause of failure in small businesses?

► Poor financial control
► Poor location
► Management mistakes
► Improper inventory control

Question No: 13 ( Marks: 1 ) - Please choose one
Which of the following is a fourth step in the entrepreneurial process?
► Developing successful business ideas
► Deciding to become an entrepreneur
► Growing the entrepreneurial firm
► Moving from an idea to an entrepreneurial firm

Question No: 14 ( Marks: 1 ) - Please choose one
Which one of the following is NOT a phase of entrepreneurial process?

► Identification and evaluation of opportunity
► Development of business plan
► Deciding to become an entrepreneur
► Determination of required resources

Question No: 15 ( Marks: 1 ) - Please choose one
Which one of the following is not the intrapreneurial leadership characteristic?


► Understands environment
► Encourage the team work
► Not flexible
► Persistent

Question No: 16 ( Marks: 1 ) - Please choose one
Which of the following system is necessary for expansion or elimination of intrapreneurial units?

► Management
► Evaluation
► Reward
► Training

Question No: 17 ( Marks: 1 ) - Please choose one
Which of the following factor does not affect a person for being an entrepreneur?

► Nationality
► Education
► Personal values
► Work history

Question No: 18 ( Marks: 1 ) - Please choose one
Professional support network includes all of the following EXCEPT:

► Personal affiliations
► Mentor
► Trade associations
► Friends

Question No: 19 ( Marks: 1 ) - Please choose one
Following are the types of foreign direct investment EXCEPT:


► Joint venture
► Management contracts
► Minority interest
► Merger

Question No: 20 ( Marks: 1 ) - Please choose one
Following are the types of non-equity arrangements EXCEPT:
► Licensing
► Management contracts
► Direct export
► Turnkey projects

Question No: 21 ( Marks: 1 ) - Please choose one
According to which of the following, an entrepreneur is the person who brings resources, labor, materials and other assets into combinations that increase their value?
► Economist
► Psychologist
► Businessman
► Sociologist

Question No: 22 ( Marks: 1 ) - Please choose one
Which of the following abilities must be possessed by an entrepreneur?

► Creative
► Conceptualization
► Understanding environment
► All of the given options

Question No: 23 ( Marks: 1 ) - Please choose one
Which of the following options can be very helpful to start-up new ventures?
► Seed Capital
► Infrastructure
► Technology
► Experience

Question No: 24 ( Marks: 1 ) - Please choose one
According to Henning and Jardim, female executives tend to be the firstborn. Which of the following supports this research?
► Because firstborn has to be more responsible
► Because firstborn needs special care
► Because firstborn tends to be more flexible
► Because firstborn receives special attention

Question No: 25 ( Marks: 1 ) - Please choose one
In terms of personality, there are strong similarities between men and women entrepreneurs. Which of the following does not refer to this statement?
► Both are energetic
► Both are goal oriented
► They want to be independent
► Males are more confident than women

Question No: 26 ( Marks: 1 ) - Please choose one
Which of the following businesses women entrepreneurs prefer to start?
► Manufacturing
► Construction
► Educational services
► High-technology fields

Question No: 27 ( Marks: 1 ) - Please choose one
“Paying for goods indirectly through another source” refers to:
► Barter
► Trading
► Third-party arrangement
► Balance of payment

Question No: 28 ( Marks: 1 ) - Please choose one
Which of the following best defines “diversified activity merger”?
► It refers to combining two firms with noncompeting products
► It refers to forming a third company by combining two companies
► It refers to combining at least two totally unrelated firms
► It refers to combining at least two firms at different market levels

Question No: 29 ( Marks: 1 ) - Please choose one
Which of the following statements best defines “brainstorming”?
► It refers to groups of individuals providing in a structured format
► It refers to a group method for obtaining new ideas and solutions
► It refers to a method for obtaining new ideas and solutions by focusing on problems
► It refers to a method for obtaining new ideas focusing on the parameters

Question No: 30 ( Marks: 1 ) - Please choose one
Identify the statement which refers to “licensing”.
► It grants holder protection from others making, using or selling similar idea
► It may be a word, symbol, design or some combination that identifies the source of certain goods
► It protects original works of authorship
► It is a contractual agreement giving rights to others to use intellectual property in return for a royalty or fee

Question No: 31 ( Marks: 1 ) - Please choose one
Which of the following denote no relationship between the mark and the goods or services?
► Coined marks
► Arbitrary marks
► Suggestive marks
► Descriptive marks

Question No: 32 ( Marks: 1 ) - Please choose one
Which of the following trademarks is used to suggest certain features, qualities, ingredients or characteristics of a product or service?
► Coined mark
► Arbitrary mark
► Suggestive mark
► Descriptive mark

Question No: 33 ( Marks: 1 ) - Please choose one
Data that support the opportunity for the venture should be briefly stated in the executive summary. If this venture is an internet business, all of the following facts should be stated by an entrepreneur EXCEPT:
► Growth in the number of internet users
► Growth in the average amount of time spent on the internet
► Growth in sales dollars generated on the internet
► Growth rate of population

Question No: 34 ( Marks: 1 ) - Please choose one
Which of the following make the business plan difficult to control and implement?
► Too general goals and objectives
► Too specific goals and objectives
► Realistic goals and objectives
► None of the given options

Question No: 35 ( Marks: 3 )
Describe any three issues that should be addressed in executive summary.


Question No: 36 ( Marks: 5 )
Briefly discuss the status of entrepreneurship in Europe.


Question No: 37 ( Marks: 5 )
Discuss what kind of information should be mentioned in “description of venture” section of a business plan.