BAC – FIL/FIB

Entrepreneurship
Multiple Choice Questions.

1. An individual who starts, creates and manages a new business can be called
_____________.
A. A leader
B. A manager
C. A professional
D. An entrepreneur

2. Trademarks relate to _______.

A. Practice and knowledge acquired through experience
B. The protection of proprietary information of commercial value
C. The right to reproduce ones own original work
D. Brand identity

3. Which could provide an individual with the motivation to start a new business venture?
A. The financial rewards.
B. A desire to be independent.
C. Risk taking
D. All the above.

4. Which industrial sector promotes small-scale businesses and Entrepreneurship, and has
lower barriers to market entry?
A. Service.
B. Manufacturing.
C. Distribution.
D. Agriculture.
5. Why are small businesses important to a country's economy?
A. They give an outlet for entrepreneurs.
B. They can provide specialist support to larger companies.
C. They can be innovators of new products.
D. All the above.

6. A business arrangement where one party allows another party to use a business name
and sell its products or services is known as__________.
A. A cooperative.
B. A franchise.
C. An owner-manager business.
D. A limited company.

7. Which of the following is the reason for business failure __________.

A. Lack of market research.
B. Poor financial control.
C. Poor management.
D. All the above.
ANSWER: D

8. The use of informal networks by entrepreneurs to gather information is known as

_______.
A. Secondary research.
B. Entrepreneurial networking.
C. Informal parameters.
D. Marketing
 9. Good sources of information for an entrepreneur about competitors can be obtained
from_________.
A. Websites.
B. Product information leaflets.
C. Company reports and published accounts.
D. All the above.

10. A new venture's business plan is important because ______.

A. It helps to persuade others to commit funding to the venture.
B. Can help demonstrate the viability of the venture.
C. Provides a guide for business activities by defining objectives.
D. All the above.

11. Primary data is________.

A. the most important data.
B. the data that is collected first.
C. new data specifically collected for a project.
D. data that is collected second.

12. Innovation can best be defined as_______.

A. the generation of new ideas.
B. the evolution of new ideas.
C. the opposite of creativity.
D. the successful exploitation of new ideas.

13. Which of these statements best describes the context for entrepreneurship?
A. Entrepreneurship takes place in small businesses.
B. Entrepreneurship takes place in large businesses.
C. Entrepreneurship takes place in a wide variety of contexts.
D. Entrepreneurship does not take place in social enterprises.
14. Entrepreneurs are motivated by _________.
A. money.
B. personal values.
C. pull influences.
D. All the above.

15. Which of the following is least likely to influence the timing of new business births?
A. Government policies.
B. Profitability.
C. Consumer expenditure.
D. Weather conditions.

16. Which of the following statements is false?

A. Market segmentation is a useful process for small businesses to undertake.
B. Selling is essentially a matching process.
C. A benefit is the value of a product feature to a customer.
D. It is a good idea for small businesses to compete solely on price.

17. The purpose of all good small business strategy is__________.

A. to increase turnover.
B. to increase profitability.
C. to achieve competitive advantage.
D. to achieve stated objectives.
 18. Which of the following is a recognized disadvantage of setting up as a start-up as
compared with other routes to market entry?
A. less satisfaction of the owners.
B. less help from various agencies.
C. there are more funds required.
D. there is a high failure rate.

19. Goods or services reach the market place through ________.

A. marketing channels.
B. multilevel pyramids.
C. monopolies.
D. multiplication.

20. To provide financial assistance to entrepreneurs the government has set up a

number of___________.
A. financial advisors.
B. financial intermediaries.
C. Industrial estates.
D. financial institutions.

21. A commercial banker would prefer a ____________ debt-equity ratio over the years as it
indicates financial strength of a unit.
A. Declining.
B. Increasing.
C. Stable.
A. Fluctuating.

22. _____________ can be defined as a specifically evolved work plan densed to achieve a
specific objective within a specific period of time
A. Idea generation.
B. Opportunity Scanning.
C. Project.
D.Strategy.
23. Large investment is made in fixed assets, the project will be termed as __________.
A. Capital Intensive.
B. Labour Intensive.
C. Product Intensive.
D. Market Intensive.

24. _____________ is used to accomplish the project economically in the minimum

available time with limited resources
A. Project Scheduling.
B. Network Analysis.
C. Budget Analysis.
D.Critical Planning.

25. ______________ is a form of financing especially for funding high technology, high
risk and perceived high reward projects
A. Fixed capital.
B. Current capital.
C. Seed capital.
D. Venture capital.

26. In _________, machines and equipments are arranged in the order or sequence in
which they are to be used for manufacturing the product
A. Factory Layout.
B. Product Layout.
C. Process Layout.
D. Combined Layout.
27. The term ___________ denotes bonus or financial aid which is given by a government to
an industry to help it compete with other units
A. Incentive.
B. Subsidy.
C. Bounty.
D. Concession.

28. _____________ refers to some action which is a time consuming effort necessary
to complete a specific event.
A. A Network.
B. An Activity.
C. An Event.
D.A Node.

29. _____________ is a graphical representation of the various activity and event relating
to a project.
A. Network analysis.
B. Scheduling technique.
C. Logical Model.
D. Network Diagram

30. Activities which must be finished before a given event can occur are termed as
_________.
A. Preceeding Activities.
B. Succeeding Activities
C. Concurrent Activities
D. Dummy Activities.
31. Activities which can be accomplished simultaneously are termed as ___________.
A. Preceeding Activities.
B. Succeeding Activities.
C. Concurrent Activities
D. Dummy Activities.

32. ______________ may be defined as the excess of present value of project cash inflows
over that of out flows.
A. Net present value technique.
B. Average rate of return.
C. Benefit-Cost ratio.
D.Internal rate of return

33. Decisions taken by an entrepreneur on behalf of his enterprise are known as

_________.
A. Organizational decisions.
B. Personal decisions.
C. Routine decisions.
D. Strategic decisions

34. Decisions which are concerned with policy matters and exercise fundamental influence
on the objectives of the organization are called as____________.
A. Organizational decisions.
B. Personal decisions.
C. Routine decisions.
D. Strategic decisions.
35. __________________ is a problem -solving technique designed to produce numerous
ideas in a short period
A. Synectics.
B. Delphi technique.
C. Brain storming.
D. Nominal group technique.

36. The process of preparing an inventory of skills needed for effective implementation of
the project is called as ____________.
A. Economic viability.
B. Financial feasibility.
C. Technical feasibility.
D.Managerial competence.

37. _________________ implies the availability or otherwise of plant and machinery

and technical know how to produce the product.
A. Economic viability.
B. Financial feasibility.
C. Technical feasibility.
D. Managerial competence

38. Which of the list below does not form Intellectual Property?
A. Trade marks.
B. Patents.
C. Tangible assets.
D. Copyright.
39. A business arrangement where one party allows another party to use a business Name and
sell its products or services is known as__________.
A. A cooperative.
B. A franchise.
C.An owner-manager business.
D.A limited company.

40. What is the role of a Venture Capitalist?

A. To provide small business advice.
B. To provide capital for business development in exchange for a stake in the Business
ownership.
C. To set up a franchise business.
D. To assist an entrepreneur to open a lifestyle business.