MIDTERM EXAMINATION Spring 2010 MGT602- Entrepreneurship (Session - 3 Ti!e" 60 !

in M#r$s" %uestion No" 1 (M#r$s" 1 - &'e#se (hoose one A typical inventor is usually ________________________. )igh'* (re#ti+e , in 'o+e -ith the in+ention Does not encourage change Willing to modify the invention in order to augment commercial benefit None of the given options

%uestion No" 2

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- &'e#se (hoose one

Being ones own boss is # nee. o/" In.epen.en(e Achievement Affiliation Authority

%uestion No" 3

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The difference between the value of a countrys imports and e ports over time is called! Deficit e ports

 Deficit imports 0#'#n(e o/ p#*!ent Balance of debt

www.vuaskari.com %uestion No" 1 ( M#r$s" 1 - &'e#se (hoose one

A"an ______ is an online connection between the company and its customers. #nternet advertising 2e3site $%&ommerce World Wide Web

%uestion No" 4

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Which of the following grants protection to owner from anyone else ma'ing( using and selling the identified innovation) 5ti'it* p#tent Design patent *lant patent #nternational patent

%uestion No" 6

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All of the following are essentials to maintain secrecy( $+&$*T! Train employees to refer sensitive ,uestions to one person

 Dis(uss 3usiness in pu3'i( p'#(es *rovide escorts for all office visitors -se simple security such as loc'ed file cabinets

%uestion No" 6

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Who should prepare the business plan) $ntrepreneurs &onsultants $ngineers .mall business administration services

www.vuas'ari.com %uestion No" 7 ( M#r$s" 1 - &'e#se (hoose one

Which of the following body issues patents) /ATT NA0TA 0TA &TO

%uestion No" 8

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The product life cycle starts with which stage of product planning and development process) Test mar'eting stage

 &ro.u(t .e+e'op!ent st#ge &ommerciali1ation stage *roduct planning and development process is a part of product life cycle

%uestion No" 10

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Developing a new idea through in,uiry and testing is called! )euristi(s 0orced relationship .cientific method 2alue analysis

%uestion No" 11

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Which one of the following gives suggestions for new product and also help to mar'et new products) $ isting products and services Distri3ution (h#nne's 0ederal government &onsumers

%uestion No" 12

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Trade barriers cause! In(re#se in (ost Decrease in cost

 #ncrease in profit None of the given options

%uestion No" 13

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A person who managed large pro3ect was termed as the entrepreneur in the _________. $arliest period Mi..'e #ges 45th century 46th and 78th century www.vuas'ari.com

%uestion No" 11

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Which of the following is NOT a potential cost of becoming an entrepreneur) 0inancial reward 9ong hours 9in#n(i#' inse(urit* 9oneliness %uestion No" 14 ( M#r$s" 1 - &'e#se (hoose one

0actors contribute to the creation of new venture EX:E&T" /overnment 0inance :igh interest rates Ro'e !o.e's

%uestion No" 16

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;ost of the finance for the new firm comes from following resources EX:E&T! 0riends 9oreign #i. <elatives *ersonal savings %uestion No" 16 ( M#r$s" 1 - &'e#se (hoose one

What is the process by which individuals pursue opportunities without regard to resources they currently control) .tartup management Entrepreneurship 0inancial analysis 0easibility planning

%uestion No" 17

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Which of the following is NOT included in the opportunity evaluation process) 9ength of the opportunity <eal and perceived value of opportunity Go#'s #n. o3;e(ti+es o/ (usto!ers <is's and rewards of opportunity

%uestion No" 18

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The difference of the entrepreneurial and managerial domains has contributed towards an increase interest in which of the following) 9or!ing ne- /ir!s *artnership #ntrapreneurship *rivate firms %uestion No" 20 ( M#r$s" 1 - &'e#se (hoose one

Which is the most common cause of business failure) #nsufficient capital -nstable mar'et #nsufficient e perience www.vuas'ari.com &oor entrepreneurship %uestion No" 21 ( M#r$s" 1 - &'e#se (hoose one

#n which one of the following countries the entrepreneurial success has been significant because of the culture( the political and economic systems) $uropean countries Asi#n (ountries 0ar $ast countries ;iddle $ast countries

%uestion No" 22

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;oral support networ' includes all of the following EX:E&T! .pouses

 0riends 0usiness #sso(i#tes <elatives

%uestion No" 23

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*rofessional support networ' includes all of the following EX:E&T! *ersonal affiliations ;entor Trade associations 9rien.s

%uestion No" 21

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The former -..< received technology and syrup from *epsi and provided it with .oviet vod'a and rights to distribute it in the -.. This is an e ample of! $conomic development Barter system Balance of payment #nternational trade

%uestion No" 24

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__________ is prepared on the bases of levels of the internal structure of the business. Org#ni<#tion#' &'#n

 *roduction *lan ;ar'eting *lan 0inancial *lan

%uestion No" 26

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Which of the following abilities must be possessed by an entrepreneur) &reative &onceptuali1ation -nderstanding environment A'' o/ the gi+en options %uestion No" 26 ( M#r$s" 1 - &'e#se (hoose one

Which of the following is N=T a guiding principle in a traditional corporate culture) 0ollow given instructions T#$e responsi3i'it* #n. o-nership Do not ta'e initiative Do not ma'e mista'es

%uestion No" 27

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#n order to minimi1e the negative effect of any disruption in an organi1ation( which of the following characteristics an intrapreneur must possess) www.vuas'ari.com )e shou'. 3e .ip'o!#ti( :e should be conservative

 :e should be autocratic :e should be authoritative

%uestion No" 28

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According to research( when do the female entrepreneurs tend to start their first significant venture) In their !i. 20s #n their mid >8s #n their mid ?8s #n their mid @8s %uestion No" 30 ( M#r$s" 1 - &'e#se (hoose one

Which of the following best defines Ahori1ontal mergerB) It re/ers to (o!3ining #t 'e#st t-o /ir!s .oing si!i'#r 3usinesses #t the s#!e !#r$et 'e+e' #t refers to forming a third company by combining two companies #t refers to having more than @8 percent ownership position #t refers to combining at least two firms at different mar'et levels

%uestion No" 31

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Which of the following is an e ample of rising number of women entrepreneurs in &hina) /uau /uarymei Wataru =hashi Ca1uhi'o Nishi

 =i >#-Shing %uestion No" 32 ( M#r$s" 1 - &'e#se (hoose one

#dentify the statement which best defines Achec'list methodB It re/ers to .e+e'oping # ne- i.e# through # 'ist o/ re'#te. issues #t refers to a group method for obtaining new ideas focusing on the negative #t refers to a method for individuals to solve problems through one of four mechanisms #t refers to a method for developing new ideas when the individuals are unaware of the problem

%uestion No" 33

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Which of the following best describes AcontractB) It re/ers to # 'eg#''* 3in.ing #gree!ent 3et-een t-o p#rties #t grants holder protection from others ma'ing( using or selling similar idea #t may be a word( symbol( design or some combination that identifies the source of certain goods #t refers to a legal document giving official permission to do something

%uestion No" 31

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Which of the following is the title or cover page that provides a brief summary of the business plans content) Intro.u(tor* p#ge

 $ ecutive summary $nvironmental and industry analysis Description of venture

%uestion No" 34

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:ow the business plan is presented to potential investors) The description of the venture should be comprehensive. This should begin with the mission statement or company mission? which describes the nature of the business and what the entrepreneur hopes to accomplish. The new venture should be described in detail( including the product( location( personnel( bac'ground of entrepreneur( and history of the venture. The emphasis placed on location is a function of the type of business. ;aps that locate customers( competitors( and alternative locations can be helpful. Then the mar'eting plan describes how the products will be distributed( priced( and promoted. *otential investors regard the mar'eting plan as critical to the ventures success. %uestion No" 36 ( M#r$s" 4

Which factors should be studied by entrepreneur to conduct environmental analysis while preparing a business plan) $ plain the factors. www.vuas'ari.com The entrepreneur should first conduct an en+iron!ent#' #n#'*sis to identify trends and changes occurring on a national and international level that may impact the new venture. $ amples of environmental factors are! D $conomy D &ulture D Technology D 9egal concerns

E(ono!*" The entrepreneur first wants to 'now the economic situation of country where he wants to start the business because this has great impact on its success. #f economical situation is not stabili1es then investors will not willing to invest with us( which is the first step for every beginning of business. &ulture! #t has too much influence on our products which we made. #f we produce such thing which is not familiar to people where the business operate there should be loss for. 0or e ampleE if Bonan1a will start to produce .halwar F Camee1 suits in Arab countries who will buy( because in Arab countries there culture is different from us. .o( entrepreneur must first loo' about the culture trends. Te(hno'og*" Now a days technology changes day to day. $very day or wee' new inventions is there in mar'et( which help us to ma'e business easy for us. We should 'eep update ourselves in technology perspective to save more money and produce more. =eg#' :on(erns" These are important issue for every entrepreneur. As every country have its own and different laws there. Therefore( he"she must be having 'nowledge about the limitations and permissions from government of that country where he"she want to do business. %uestion No" 36 ( M#r$s" 4

While entering into the international mar'et the companies usually have strategic planning process. What should be considered in the strategic planning) .trategic *lanning offers ideas on how to match the organi1ations design to its products and capabilities( goals and resources. This process is much easier to e ecute once you have obtained a basic 'nowledge of e porting value%added food products( understand the mar'eting research process( and analy1ed the elements of the mar'eting mi . *roper organi1ation( both internally and e ternally( allow the firm to become more efficient in its operations and e pansion. After the information the first step in building a successful e port strategy is determining the firms readiness to e port. The following are guidelines on preparing an e port business plan( developing e port mar'eting s'ills( designing a template for an e port mar'eting plan

and considering mar'eting tools prior to engaging directly in promotional activities.