MGT602 Entrepreneurship Spring 2009 Final Term paper

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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
  

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?