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MIDTERM EXAMINATION
Spring 2009
MGT602 - Entrepreneurship

Ref No:
Time: 60 min
Marks: 50
Student Info
StudentID:

Center:

ExamDate: Wed, May 06, 2009

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Question No: 1 ( Marks: 1.0/1 )

With a commercial history of only 300 years, which country was a new comer to the
international arena?

► Japan
Selected answer U.S
► China
► U.K

Question No: 2 ( Marks: 1.0/1 )

Which one of the following is a business arrangement in which someone else is allowed
to use something of the company?

► Patent
► Trade mark
► Copy right
Selected answer Licensing

Question No: 3 ( Marks: 0.0/1 )

Which of the following is a obstacle to going in international business?

Selected answer Mergers

► Trade barriers
► Rivalry
► Protectionist attitudes

Question No: 4 ( Marks: 1.0/1 )

A patent is granted for a specified amount of time because of the assumption:

► That during this time firm will cover its development costs
► That firm will earn a sufficient profit during this period
► To limit the monopoly of the firm
Selected answer That it will stimulate idea and development of a better product

Question No: 5 ( Marks: 1.0/1 )

Which one of the following is the next stage to the Concept Stage of Product Planning
and Development Process?

► Idea Stage

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► Product Planning Stage

Selected answer Product Development Stage
► Test Marketing Stage

Question No: 6 ( Marks: 1.0/1 )

Being one’s own boss is a need of:

Selected answer Independence

► Achievement
► Affiliation
► Authority

Question No: 7 ( Marks: 1.0/1 )

Which one of the following is a longest lasting trade agreement with the objective of
liberalizing trade by eliminating or reducing tariffs, subsidies and quotas?

► Free trade area – FTA

► European community – EC
Selected answer General agreement on tariffs and trade – GATT
► The North American free trade agreement – NAFTA

Question No: 8 ( Marks: 1.0/1 )

Which of the following is an example of coined mark?

Selected answer Kodak films

► Apple computers
► Pantene Shampoo
► Mobil oil

Question No: 9 ( Marks: 1.0/1 )

Which one of the following is the most important characteristic of a successful business
websit?

Selected answer Speed

► Innovation
► Graphics
► Products

Question No: 10 ( Marks: 1.0/1 )

Which one the following is the best protection against product liability?

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

Question No: 11 ( Marks: 0.0/1 )

Who should prepare the business plan?

► Entrepreneurs
Selected answer Consultants
► Engineers
► Small business administration services

Question No: 12 ( Marks: 1.0/1 )

Which one of the followings statements is NOT true about trademarks?

Selected answer The entrepreneur can not file after the mark already been in use
► A trademark could be a slogan or a particular sound
► Some trademarks have no relationship with the product
► The filing date for the trademark becomes the first date use of the mark

Question No: 13 ( Marks: 0.0/1 )

Information regarding all of the following is related to operations, EXCEPT:

Selected answer Location

► Promotion
► Raw materials
► Labor skills

Question No: 14 ( Marks: 1.0/1 )

Why should an entrepreneur do a feasibility study for starting a new venture?

Selected answer To see if there are possible barriers to success

► To identify possible sources of funds
► To estimate the expected sales
► To explore potential customers

Question No: 15 ( Marks: 1.0/1 )

Which of the following is NOT studied in industry analysis?

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► Economic conditions
► Technology advancements
Selected answer Organizational culture
► Legal concerns

Question No: 16 ( Marks: 1.0/1 )

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
Selected answer Place where contract takes place

Question No: 17 ( Marks: 1.0/1 )

Which of the following is included in the description of the business?

► Location
► Products offered
► History
Selected answer All of the given options

Question No: 18 ( Marks: 1.0/1 )

For which of the following copy right acquisition is desirable?

► Songs
► Poems
► Models
Selected answer All of the given options

Question No: 19 ( Marks: 1.0/1 )

Which of the following is TRUE for Disclosure Document?

► It gives recognition that he was the inventor of the idea in past

Selected answer It gives recognition that he is the first the inventor of the idea
► It gives recognition that he will be the invent an idea in future
► It gives recognition that he wants to copy the idea

Question No: 20 ( Marks: 1.0/1 )

The product life cycle starts with which stage of product planning and development
process?

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► Test marketing stage

► Product development stage
Selected answer Commercialization stage
► Product planning and development process is a part of product life cycle

Question No: 21 ( Marks: 0.0/1 )

Which of the following is a idea generation method that focuses on parameters?

► Brainstorming
► Reverse brainstorming
► Creative problem solving
Selected answer Synectics

Question No: 22 ( Marks: 0.0/1 )

Having less than 50 percent of equity share in an international venture is called:

► Minority interest
► Joint venture
Selected answer Majority interest
► Exporting

Question No: 23 ( Marks: 1.0/1 )

Developing a new idea through inquiry and testing is called:

► Heuristics
► Forced relationship
Selected answer Scientific method
► Value analysis

Question No: 24 ( Marks: 1.0/1 )

GATT is established in 1947, under:

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

Question No: 25 ( Marks: 0.0/1 )

A utility patent has a term of:

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► 10 years
Selected answer 40 years
► 20 years
► 80 years

Question No: 26 ( Marks: 1.0/1 )

Which one of the following gives suggestions for new product and also help to market
new products?

► Existing products and services

Selected answer Distribution channels
► Federal government
► Consumers

Question No: 27 ( Marks: 1.0/1 )

An entrepreneur is a person who is a:

► Risk taker
► Initiator
► Actor
Selected answer All of the given options

Question No: 28 ( Marks: 1.0/1 )

Which of the following factors is the most important in forcing U.S companies to focus
on new product development and increased productivity?

► Entrepreneurship
Selected answer Hyper competition
► Governmental laws
► Organizational culture

Question No: 29 ( Marks: 0.0/1 )

Which of the following is NOT a potential cost of becoming an entrepreneur?

► Financial reward
Selected answer Long hours
► Financial insecurity
► Loneliness

Question No: 30 ( Marks: 1.0/1 )

A foundation company is formed through which of the following?

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► Fashion
► Most popular business
► A winding up company
Selected answer Research and development

Question No: 31 ( Marks: 0.0/1 )

The resources acquired from outsiders(creditors, banks etc) are usually:

► Easily available
► Difficult to obtain
► Very useful
Selected answer Very cheap

Question No: 32 ( Marks: 0.0/1 )

In an entrepreneurial domain,an entrepreneur is used to have resources for which of the
following?

► Periodic intervals
► Whole project
Selected answer For certain tasks
► None of the given options

Question No: 33 ( Marks: 0.0/1 )

Which of the following makes the formation of new venture difficult within a corporate
culture?

► Lack of intrapreneurial talent

► Lack of freedom to make autonomous decisions
► Lack of market opportunity
Selected answer All of the given options

Question No: 34 ( Marks: 1.0/1 )

Entrepreneurial endeavors consist of all of the following key elements Except:

► New business venturing

Selected answer Increasing productivity
► Innovativeness
► Proactiveness

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Question No: 35 ( Marks: 1.0/1 )

Which one of the following is the process of entrepreneurs developing new products that
over time make current products obsolete?

► New business model

► Anatomization
Selected answer Creative destruction
► None of the given options

Question No: 36 ( Marks: 1.0/1 )

Degree of influence and control on other people is called:

Selected answer Locus of control

► Locomotion of control
► Locust of control
► Loss of control

Question No: 37 ( Marks: 0.0/1 )

Which is the most common cause of business failure?

Selected answer Insufficient capital

► Unstable market
► Insufficient experience
► Poor entrepreneurship

Question No: 38 ( Marks: 0.0/1 )

Moral support network includes all of the following EXCEPT:

Selected answer Spouses

► Friends
► Business associates
► Relatives

Question No: 39 ( Marks: 1.0/1 )

It has been observed that usually the entire country is organized under single:

Selected answer Economic system

► Culture
► Living standard

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► Legal environment

Question No: 40 ( Marks: 1.0/1 )

Which one of the following may need the business plan?

► Employees
► Investors
► Advisors
Selected answer All of the given options

Question No: 41 ( Marks: 5.0/5 )

X.Y.Z Company has launched a product in the market. And the customers are
complaining about the quality of the product. Company is not taking any action against it.
Customers want to sue the company. How many ways customers can claim regarding
product liability? And also suggest the best which is suitable in this situation with sound
reasons.

Question No: 42 ( Marks: 4.0/5 )

Discuss the ‘age’ factor as an important characteristic of entrepreneurs.

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