© AminuAliyu - 08026268757

USMANU DANFODIYO UNIVERSITY, SOKOTO

FACULTY OF MANAGEMENT SCIENCES
DEPARTMENT OF PUBLIC ADMINISTRATION

Venture Creation and Growth (GST 312)

(PAST QUESTIONS)
1. Businesses broadly approach and identify their customers through …
(a) Target marketing
(b) Mass production
(c) Mass marketing
(d) A and C

2. …………….. is the process of dividing the market into distinct and meaningful groups of buyers.
(a) Mass market
(b) Market segmentation
(c) Mass production
(d) Target marketing

3. One of the following is not an example of market segmentation.

(a) Psychographic
(b) Demographic
(c) Behaviorist
(d) None of the above

4. The process of focusing all marketing efforts on specific group of people is …

(a) Price targeting
(b) Product targeting
(c) Target marketing
(d) Marketing

5. The process of dividing the market into the basis of age, sex, religion and race is … segmentation.
(a) Geographic
(b) Behaviorist
(c) Demographic
(d) Market

6. When entrepreneurs get accustomed to organizational loyalty, they are said to demonstrate …
(a) Moral and ethical commitment
(b) Creative and artistic excitement
(c) Religious and theological ecstasy
(d) Cultural and ethical identity

7. In business, doing what is considered to be right in the face of pressure demands the following
excepts …
(a) The portrayal of personal integrity
(b) The manifestation of courage
(c) The embodiment of pride and conceit
(d) Patience

8. The equal treatment of individuals by ethically minded entrepreneurs do not demand that they
become ……
(a) Highly tolerant
(b) Used to diversification
(c) Willing to admit being wrong
(d) Inconsiderate towards others
Page 1 of 18 © AminuAliyu - 08026268757
© AminuAliyu - 08026268757

9. To abide by laws and regulations guiding business activities is to be ………

(a) Ethically conscious
(b) Selfishly ambitious
(c) Morally unsound
(d) Deceptively persuasive

10. In the performance of their duties, entrepreneurs that operate ethically strive to increase
proficiency in all areas of responsibility because …………
(a) Excellence is the end result
(b) Good impression is not a requirement
(c) Ostentation is necessary
(d) Advantage seeking is a virtue

11. Helping to live by moral principle, guides ……

(a) Competitive remorse
(b) Ethical decisions
(c) Moral degradation
(d) Profit orientation

12. In order to maintain organization reputation, while building employee morale, ethically minded
entrepreneurs tend to
(a) Undermine good
(b) Be indifferent towards goodness
(c) Encourage disloyalty
(d) Inculcate praiseworthy attitudes

13. At all times, ethical quality of business should be. ....

(a) Compromised
(b) Adhered to
(c) Disregarded
(d) Omitted

14. The provision of compass is a requirement for ...

(a) The upkeep of ethical values
(b) A way out of ethical dilemmas
(c) A way out of ethical decadence
(d) All of the above

15. Behaviour that is beyond the limit of legal rules should be subjected to ...
(a) Ethical regulation
(b) Psychological manipulation
(c) Identity promotion
(d) Moral degradation

16. Trade credit as a source of funds occurs when a buyer makes an arrangement with the. ..... to buy
goods on credit
(a) Bank
(b) Supplier
(c) Consumer
(d) Marketer

17. Another name for Accrual account is. ....

(a) Accrual payment
(b) Accounts payables
Page 2 of 18 © AminuAliyu - 08026268757
© AminuAliyu - 08026268757

(c) Retained accounts

(d) None of the above

18. ................ is a form of business finance in which funds borrowed to operate a business venture are
not taken as loan but converted to equity.
(a) Equity financing
(b) Debenture
(c) Bond
(d) All of the above

19. The financing option that from outside business is known as ........ funds
(a) Outside
(b) External
(c) Internal
(d) None of the above

20. ............... is the term for a firm using its profits as a source of capital for new investment.
(a) Dividend
(b) Shares
(c) Retained earnings
(d) All of the above

21. The most favourable interest rate is referred to as ...........

(a) Principal
(b) Prime rate
(c) Favourable interest
(d) None of the above

22. Cooperative society, thrift society and esusu are examples of ......
(a) Formal institutions
(b) Informal institutions
(c) Savings
(d) Microfinance

23. Preference shares must be paid before ............ shares

(a) Debenture
(b) Ordinary
(c) Bonds
(d) None of the above

24. One of the following requires an initial deposit by customer before the immediate use of an
asset................
(a) Leasing
(b) Hire purchase
(c) Debenture
(d) All of the above

25. Is an overdrawn bank account

(a) Loan overdraft
(b) Bank overdraft
(c) Commercial papers
(d) None of the above

26. The primary difference between e-commerce and e-business is ...........

(a) Communication
(b) Electronic business
Page 3 of 18 © AminuAliyu - 08026268757
© AminuAliyu - 08026268757

(c) Online exchange of information

(d) All of the above

27. The benefit of e-commerce is ..........

(a) Cost saving
(b) Timely information
(c) Fraud
(d) Product promotion

28. Phase four of the transition ends with

(a) Red-tape crisis
(b) Delegation crisis
(c) Leadership crisis
(d) None of the above

29. ............ is the ability to move people through the stages to make change works
(a) Change
(b) Transformation
(c) Transition
(d) Recovery

30. Decisions that are taken based on available facts are said to be taken under. ...... condition
(a) Certainty
(b) Uncertainty
(c) Risk
(d) All of the above

31. ........ is the choice made from at least two alternatives based on some criteria
(a) Choice
(b) Option
(c) Decision
(d) All of the above

32. Infrequent decisions that lack standardized decision rules are referred to as
(a) Programmed
(b) Non-programmed
(c) Unknown
(d) Known

33. The start-up phase comes to an end when the business experiences ..........
(a) Red tapism
(b) Leadership crisis
(c) Delegation of powers
(d) All of the above

34. Informal communication is associated with. ....... Phase

(a) Maturity
(b) Adolescent
(c) Start-up
(d) Growth

35. Going public is an important characteristics of ............ phase

(a) Infancy
(b) Growth
(c) Adolescent
(d) Maturity
Page 4 of 18 © AminuAliyu - 08026268757
© AminuAliyu - 08026268757

36. It is generally concluded that the duration of each phase of a business depends on the ...
(a) Size of the business
(b) Market
(c) Employees
(d) Management

37. The phase where the entrepreneurs create products and open up markets is known as .............
phase
(a) Infancy
(b) Start-up
(c) A & B
(d) B only

38. Some of the basic steps undertaken to establish promotional campaign include .........
(a) Identifying the target market
(b) Objectives of the elements of the promotional mix
(c) Develop unifying message
(d) All of the above

39. ........... is the marketing mix through which products/services get to the customers
(a) Place
(b) Form
(c) Promotion
(d) Price

40. ............ is a well-recognized channel of distribution

(a) Retailers
(b) Brokers
(c) A & B
(d) None of the above

41. ............ is "what you do to get into the minds of the respect"
(a) Proposition
(b) Promotion
(c) Positioning
(d) Production

42. Which of the following helps marketers to decide where to position their products?
(a) Attacking competitors
(b) Looking for holes in the market place
(c) Creating confusion
(d) A & C

43. All but one of the following are basic steps adopted in management planning process
(a) Defining the opportunity
(b) Financial forecast
(c) Resources allocation
(d) Business name

44. One of the first legal issues in starting a business is ..........

(a) Business structure
(b) Choice of business
(c) Name of the entrepreneur
(d) Business name

45. The following are reasons for establishing business except ...........
Page 5 of 18 © AminuAliyu - 08026268757
© AminuAliyu - 08026268757

(a) Sick of working for others

(b) Taking advantage of opportunity
(c) Financial ambition
(d) Underutilized resources

46. All but one of the following are primary issues that a proposed business should consider
(a) Identification of niche market
(b) Market timeliness
(c) New venture
(d) Industry attractiveness

47. ............. proceeds the business planning process

(a) Review of current situation
(b) Feasibility analysis
(c) Product analysis
(d) None of the above

48. The following are variables under economic feasibility except.......

(a) Inflation
(b) Taxation policy
(c) Exchange rate
(d) Leadership style

49. Industry feasibility can also be referred to as ............. feasibility

(a) Economic
(b) Product
(c) Service
(d) Market

50. The preliminary financial analysis of whether a business idea is prudent is known as. ...............
feasibility
(a) Social
(b) Political
(c) Industry
(d) None of the above

51. The transaction theory was used to explain ………… theory

(a) Lifecycle
(b) Gene-combination
(c) Scale boundary
(d) All of the above

52. The theory that explain phases of business existence is known as ……… theory
(a) Cycle theory
(b) Stages
(c) Lifecycle
(d) All of the above

53. Competitions that come from available cheap substitutes is known as …………. Competition
(a) Indirect
(b) Direct
(c) Close
(d) Cheap

54. Another name for organic growth is …………… growth

(a) Non-organic
Page 6 of 18 © AminuAliyu - 08026268757
© AminuAliyu - 08026268757

(b) Internal
(c) Inorganic
(d) All of the above

55. Upgrading technology to increase production quality and reduce cost and wastages is known as ……
(a) Upgrade
(b) Technology
(c) Modernization
(d) All of the above

56. The coming together of two firms to become one is called …………
(a) Amalgamation
(b) Combination
(c) Merger
(d) None of the above

57. Another name for acquisition is …………

(a) Amalgamation
(b) Takeover
(c) Modernization
(d) None of the above

58. The name given to two or more firms who mutually decide to establish a new enterprise is referred
to as ………………
(a) Modernization
(b) Diversification
(c) Joint Venture
(d) Venture

59. The theory of growth by Mao was propounded in the year …………
(a) 2005
(b) 2006
(c) 2008
(d) 2009

60. The identification of unmet needs and wants of the consumer is called ……………
(a) Idea
(b) Business plan
(c) Feasibility studies
(d) None of the above

61. One of the first legal issue when starting a business

(a) Business name
(b) People name
(c) Choice of business
(d) Name of the entrepreneur

62. Desire to be my own boss is the most cited reason selected by business owners for starting their
own business
(a) True
(b) False

63. Another legal consideration in starting a business is the type and structure of business that is what
to create.
(a) True
(b) False
Page 7 of 18 © AminuAliyu - 08026268757
© AminuAliyu - 08026268757

64. The planning process determines how all the assets of the company will be marshaled to achieved
the goals and objectives
(a) True
(b) False

65. The term enterprise growth is used to refer to various things such as
(a) Increase in the total sales volume per annum
(b) Increase in the production capacity
(c) Increase in employment
(d) All of the above

66. Theories of growth were traced to the writings of ………………

(a) Penrose (1959)
(b) Schumpeter’s
(c) Peter Drucker
(d) Mao (2009)

67. Enterprises growth according to the lifecycle theory can be divided into the following except …
(a) Rebirth stage
(b) The regeneration
(c) Growth of mature stage
(d) The aging stage

68. Business enterprises tries to achieve growth in order to obtain the following advantages except …
(a) Obtaining the economies of scale
(b) Exploitation of business opportunities
(c) Gaining economic and market power
(d) To pay salary

69. Business growth can take place as an ………

(a) Organic growth
(b) Inorganic growth
(c) Outside
(d) Internal

70. Internal growth strategy takes the following forms except …

(a) Diversification
(b) Extension
(c) Intensification
(d) Modernization

71. External growth has been attempted through ………

(a) Mergers
(b) Acquisitions
(c) Partnership
(d) Joint venture

72. The following are the main growth strategies available to firms except ……
(a) Intensive growth strategy (Expansion)
(b) Diversification
(c) Modernization
(d) Extensive

73. Advantages of intensive growth strategy are ……

(a) Growth is slow and natural
(b) Capital required for expansion can be taken from the firm’s funds
Page 8 of 18 © AminuAliyu - 08026268757
© AminuAliyu - 08026268757

(c) Existing resources can be better utilized

(d) External changes are required in the organization and management systems of business

74. Practical problem of intensive growth strategy is ………

(a) Security of funds
(b) Risk
(c) Product
(d) Marketing

75. Companies have increasingly adopted diversification strategy due to ……

(a) Better use of its resources
(b) Decline in sales
(c) Competition from other companies
(d) All of the above

76. The form of sources of finance that requires plough in profit for business expansion is known as …
(a) Equity financing
(b) Bank loan
(c) Retained earnings
(d) Accrual account

77. A situation whereby an entrepreneur obtains funds from outside of the firm is called ……
(a) Personal savings
(b) Internal sources
(c) External sources
(d) All of the above

78. A banking arrangement that allows a customer to draw above his account balance is called ……
(a) Under draft
(b) Below draft
(c) Overdraft
(d) None of the above

79. …………… is a financing source that allows a business owner to raise fund based on the value of its
invoices yet paid.
(a) Leasing
(b) Hiring purchase
(c) Micro finance Bank
(d) Factoring

80. The acronym SEC stands for ………………

(a) Secondary Executives Councils
(b) Second Tier Executive Committee
(c) Securities and Exchange Commission
(d) None of the above

81. A situation where an entrepreneur continues to acquire current liability of a particular business is
called ……
(a) Retained earnings
(b) Accrual account
(c) Equity financing
(d) All of the above

82. The financing arrangement that allows a buyer to buy goods on credit and pays later is called …
(a) Bank loan
(b) Equity financing
Page 9 of 18 © AminuAliyu - 08026268757
© AminuAliyu - 08026268757

(c) Retained earnings

(d) Trade credit

83. A time draft that is payable at a stipulated date which involves a bank and its customer is known as
(a) Bills discounting
(b) Commercial papers
(c) Commercial draft
(d) Banker’s Acceptance

84. Microfinance banks are established to expand the financial requirement of the ……
(a) Macro and big enterprises
(b) Established enterprises
(c) Micro, small and big enterprises
(d) All of the above

85. ………… is not a type of preference shares

(a) Cumulative preference shares
(b) Non-cumulative preference shares
(c) Redeemable preference shares
(d) Collateral security

86. The features of commercial activity are better addressed if business ethics is ………
(a) Conceptualized
(b) Applied
(c) Theorized
(d) Formalized

87. Business ethics as normative discipline is grounded on ……………

(a) Advocacy
(b) Applicability
(c) Analysis
(d) Assessment

88. Moral and social values are centred around …………

(a) Consumer elation
(b) Self-control
(c) Welfare negation
(d) Treatment control

89. Some of the consequences of unethical business behavior exclude disruption in the relationship
amongst …………
(a) Employees
(b) Consumers
(c) Shareholders
(d) Deviants

90. Ethical entrepreneurs should not be …………

(a) Principled
(b) Honourable
(c) Upright
(d) Vulgar

91. In business, doing what is considered to be right in face of pressure demands not
(a) The portrayal of personal integrity
(b) The manifestation of courage
(c) The embodiment of pride and conceit
Page 10 of 18 © AminuAliyu - 08026268757
© AminuAliyu - 08026268757

92. To abide by laws and regulations guiding business activities is to be …………

(a) Ethically conscious
(b) Selfishly ambitious
(c) Morally unsound
(d) Deceptively persuasive

93. Helping to live by moral principles, guides ……..

(a) Competitive remorse
(b) Ethical decision
(c) Moral degradation
(d) Profit orientation

94. At all time, ethical quality of business decisions should be ……

(a) Compromised
(b) Adhered to
(c) Disregarded
(d) Omitted

95. Behavior that is beyond limit of legal rules, should be subjected to ….

(a) Ethical regulation
(b) Psychological manipulation
(c) Identity promotion
(d) Moral degradation

96. Customers are not any different from consumers

(a) True
(b) False

97. Geographic segmentation could be implemented in all the following ways except
(a) Market potential segmentation
(b) Years of entry segmentation
(c) Regional segmentation
(d) Usage rate segmentation

98. If closely examined, the first P of the marketing mix (Product) is a complex and multidimensional
concept that includes ……
(a) Product, service and branding
(b) Product packaging and service
(c) Product branding and content
(d) None of the above

99. Inspiration for positioning of a product comes from all the following excepts………
(a) Competitors weakness
(b) Holes in the market place
(c) Leading through your weaknesses
(d) Targeting different market segments

100. Marketing can be seen as ………

(a) Selling, promotion and advertising
(b) Needs assessment and market research
(c) Pricing and development
(d) All of the above

101. The quality of an effective transition plan is dependent on ………

(a) Thoroughness
(b) Sound objective
Page 11 of 18 © AminuAliyu - 08026268757
© AminuAliyu - 08026268757

(c) Understanding
(d) All of the above

102. ………………. is not necessary step for effective transition

(a) Identification of needs
(b) Setting up of transition team
(c) Procrastination of actions
(d) Finalizing the plan

103. The ability of start-up entrepreneurs to mentor and be mentored is linked to the following
actions excepts …
(a) Seminar attendance
(b) Shunning advice
(c) Reading of books
(d) Emulating other people

104. Challenge of business start-up does not include …

(a) Unsound business plan
(b) Lack of confidence
(c) Relentless determination
(d) Customer discovery

105. To manage fast growth and have business revenue doubled ……… may not be necessary
(a) Working hard
(b) Working with smart people
(c) Working without aim
(d) Working to be creative

106. In business, a turnaround stages is critical when there is the need to save a falling business, but
it may also fall due to
(a) Poor handling of required changes
(b) Wrong management decision
(c) Inappropriate timing
(d) A sense of urgency

107. Effective management of business transition process entails ……

(a) Encouraging open discussion with regards to transitional challenge
(b) Building the transitional management plan on weak foundation
(c) Indifference to transitional stage and related issues
(d) Lack of strategic managerial innovation

108. The important principles of planning exclude …

(a) Primacy of planning
(b) Planning to fail
(c) Planning control
(d) Optional planning

109. Difficult business or entrepreneurial decision typically involves issues that exclude …
(a) Uncertainty
(b) Complexity
(c) Subservience
(d) Unfriendly consequences

110. Personal use of business funds leads to business ……

(a) Failure
(b) Exploration
Page 12 of 18 © AminuAliyu - 08026268757
© AminuAliyu - 08026268757

(c) Exploitation
(d) Agility

111. ………… requires plough in profit for business expansion

(a) Equity financing
(b) Bank loan
(c) Retained earnings
(d) Accrual account

112. ………… does not describe the necessary steps for effective transition
(a) Identification of needs
(b) Setting of transition team
(c) Procrastination of actions
(d) Finalizing the plan

113. ……… does not indicate stages in organization life cycles

(a) Infancy
(b) Childhood
(c) Feminist
(d) Adolescent

114. The ability of start-up entrepreneurs to mentor and the mentored is not linked
(a) Seminar attendance
(b) Shunning advice
(c) Reading books
(d) Emulating other people

115. To transit from start-up to growth, the entrepreneur must not ……

(a) Be flexible
(b) Seek advice
(c) Priories sales
(d) Ans

116. Challenges of business start-up does not include ……

(a) Unsound business plan
(b) Lack of confidence
(c) Relentless determination
(d) Customer discovery

117. The fast growth phase of business is characterized by ……

(a) Decrease in occupational hazard
(b) Increase in employee size and income
(c) Decrease in output
(d) Increase in formality

118. To manage fast growth and have business revenue doubled, working …… may not be necessary
(a) Hard
(b) With smart people
(c) Without aim
(d) To be creative

119. The need to understand and be responsive to changes in the market place requires ……
(a) Strong leadership
(b) Strategic plan
(c) Information about market
(d) All of the above
Page 13 of 18 © AminuAliyu - 08026268757
© AminuAliyu - 08026268757

120. In business, a turn-around stage is critical when there is the need to save a falling business, but
it may also fail due to ………
(a) Poor handling of required changes
(b) Wrong management decision
(c) Inappropriate timing
(d) A sense of urgency

121. In order to sustain Business growth, or success, ……… does not becomes necessary.
(a) Focus on productive areas of innovation
(b) Provision of sustained benefit for all stakeholders
(c) Deceptive advertisement approach
(d) Expansion of business model innovation

122. Effective management of business transition process entails ………

(a) Encouraging open discussion with regards transitional challenge
(b) Building the transitional management plan on weak foundation
(c) Indifference to transitional stage and related issues
(d) Lack of strategic managerial innovation

123. The common causes of failure in business transition include ………

(a) Choosing a profitable business
(b) Plausible product pricing
(c) Over-reliance on limited key customers
(d) Adequate managerial experience

124. The important principles of planning excludes …

(a) Primacy of planning
(b) Planning to fail
(c) Planning control
(d) Optional planning

125. Planning for successful transition involves seeking answers with regards to all but one of the
following
(a) Object of achievement
(b) Nature of personnel situation
(c) Nature of current business situation
(d) A declining commitment

126. Difficult business or entrepreneurial decision, typically involves issues that excludes ……
(a) Uncertainty
(b) Complexity
(c) Subservience
(d) Unfriendly consequences

127. The basic processes of rational decision includes …………

(a) Problem definition
(b) Lack of alternative decision
(c) Inaction
(d) Unreliable data gathering

128. Personal use of business funds leads to business ………

(a) Failure
(b) Exploration
(c) Exploitation
(d) Agility

Page 14 of 18 © AminuAliyu - 08026268757

© AminuAliyu - 08026268757

129. Beyond the growth and success of business comes in the danger of ……
(a) Autocracy
(b) Democracy
(c) Bureaucracy
(d) Aristocracy

130. The quality of an effective transition plan is dependent on …………

(a) Understanding
(b) Thoroughness
(c) Sound objective
(d) All of the above

131. Steps in management planning process are ………

(a) Understanding
(b) Thoroughness
(c) Sound objective
(d) All of the above

132. ……… is the first legal issue to be considered when starting a business
(a) Business name
(b) People name
(c) Choice of business
(d) Name of the entrepreneur

133. Keeping track of competitors is an ongoing process in business

(a) True
(b) False

134. Desire to ‘be my own boss’ is the most cited reason selected by business owners for starting
their own business.
(a) True
(b) False

135. A financial forecast is sometimes referred to as a company budget

(a) True
(b) False

136. Another legal consideration in starting your business is the type and structure of business that
you want to create.
(a) True
(b) False

137. People go into business because they are sick of working for someone else and want to be the
captain of their own ship.
(a) True
(b) False

138. The planning process determines how all the assets of the company will be marshaled to
achieve the goals and objectives.
(a) True
(b) False

139. Obtaining a business license is one of the business legal requirements

(a) True
(b) False

Page 15 of 18 © AminuAliyu - 08026268757

© AminuAliyu - 08026268757

140. The term ‘Enterprise Growth’ is used to refer to various things such as ……
(a) Increase in the total sales volume per annum
(b) Increase in the production capacity
(c) Increase in employment
(d) All of the above

141. Enterprise growth connotes the following except ……

(a) Sales volume
(b) Profit
(c) Asset gross
(d) Decrease in output volume

142. Theories of growth were traced to the writings of ……

(a) Penrose (1959)
(b) Schumpeters
(c) Peter Drucker
(d) Mao (2009)

143. Theories of growth does not include ……

(a) Scale boundary theory
(b) Lifecycle theory
(c) Gene combination theory
(d) Socialization theory

144. Enterprise growth according to the lifecycle theory divided into the following except the ……
(a) Rebirth stage
(b) Regeneration
(c) Growth or mature stage
(d) Aging stage

145. The reason which derives business enterprises towards growth is ……

(a) Survival
(b) Prestige
(c) Economics of scale
(d) Emergence of new technology

146. Business enterprise tries to achieve growth in order to obtain the following advantages except
……
(a) Obtaining the economies of scale
(b) Exploitation of business opportunities
(c) Gaining economic and market power
(d) To pay salary

147. Enterprise growth has its own limitations as follows

(a) Finance
(b) Market
(c) Management
(d) All of the above

148. Business growth can take place as ……

(a) Organic growth
(b) Inorganic growth
(c) Outside
(d) Internal

149. Internal growth strategy takes the following forms except ……

Page 16 of 18 © AminuAliyu - 08026268757
© AminuAliyu - 08026268757

(a) Intensification
(b) Diversification
(c) Modernization
(d) Extension

150. External growth has been attempted through the following strategies ……
(a) Mergers
(b) Acquisition
(c) Partnership
(d) Joint ventures

151. Business gets easily affected by changes in the marketplace such as ……

(a) New move by competitors
(b) Fluctuation in the overall business environment
(c) Change in employee attitude
(d) Changes in customers

152. …… is not among the main growth strategies available to firms

(a) Intensive Growth Strategy (Expansion)
(b) Diversification
(c) Modernization
(d) Extensive

153. Intensive growth strategy takes the following forms except ……

(a) Market penetration
(b) Product expansion
(c) Market development
(d) Product development

154. Advantages of intensive growth strategy are ……

(a) Growth is slow and natural it can be handled easily
(b) Capital required for expansion can be taken from the firm’s own funds
(c) Existing resources can be better utilized
(d) External changes are required in the organization and management systems of business

155. One of the limitations of intensive Growth Strategy is ……

(a) Growth is very slow and it takes a long time for growth to actually happen
(b) Business enterprise exploits many business opportunities
(c) It is always possible to grow in the present product market
(d) Internal resources are put to better use

156. Practical problems of intensive growth strategy are ……

(a) Scarcity of funds
(b) Risks
(c) Products
(d) Marketing

157. Business enterprises may choose the strategy of diversification under the following situations.
(a) When diversification promises greater profitability than expansion
(b) When the firms cannot attain its growth target by the strategy expansion alone
(c) When the financial resources of the firm are much in excess of the requirements of expansion
(d) When an enterprise lose interest in the business

158. Companies have increasingly adopted diversification strategy due to ………

(a) Better use of its resources
(b) Decline in sales
Page 17 of 18 © AminuAliyu - 08026268757
© AminuAliyu - 08026268757

(c) Competition from other companies

(d) All of the above

159. The limitations of diversification are ……

(a) Huge funds are required
uired for diversification. The internal savings of the business may not be
sufficient to finance growth.
(b) The functions and responsibilities of top executives increase because of need to handle new
product, technology and markets
(c) The management may not fin find problems in coordination
(d) Diversification may involve new technology and new markets and present staff may face
problems in adjusting to this growth pattern.

160. The lending option that allows a lender to be part of ownership of a business venture is called …
(a) Bank loan
(b) Equity financing
(c) Personal savings
(d) Retained earnings
By:
Aminu Aliyu
08026268757