UNITY UNIVERSITY COLLEGE

SCHOOL OF DISTANCE AND CONTINUING EDUCATION

Worksheet for Entrepreneurship (Mgmt 292)

Part I: Multiple Choice (2.5 marks)

______1. “Entrepreneurs play a crucial role in economic growth and development.” One of the
following statements strongly opposes the above proposition:
A. a nation’s natural endowment will suffice for its development;
B. entrepreneurs are highly resistant to change;
C. the backwardness of a nation can, partly, be attributed to the scarcity of
entrepreneurs;
D. entrepreneurs are satisfied by personal growth;
E. All but C
F. All but D
______2. All are innovations except:
A. changing routine delivery system;
B. cutting out intermediaries;
C. the way in which the product is produced;
D. modifying channels of communication outside the organization;
E. practically imitating an existing theme.
______3. Choose the correct statement:
A. an investor is an entrepreneur but the converse is not necessarily true;
B. as a rule, the entrepreneur managing the venture is a major shareholder in it;
C. entrepreneurs seldom drive their own innovations to the market by themselves;
D. an entrepreneur is a manager and the converse also holds true;
E. none of the above.
______4. Which one is not an integral element of entrepreneurship?
A. The ability to perceive opportunities;
B. The ability to commercialize the opportunities;
C. The ability to pursue opportunities in a sustainable basis;
D. The ability to pursue opportunities through systematic means;
E. None of the above.

______5. All are noticeable factors in the development of private entrepreneurship except:
A. Stability and business confidence;
B. Adverse regulatory and bureaucratic red-tape;
C. Easy mobility of entrepreneurship across the whole region;
D. Availability of information in business opportunity;
E. None of the above.
______6. Which one is wrong about entrepreneurs?
A. They keep their ears open for new opportunities;
B. They let opportunities take priority over innovation;
C. They don’t get excited about a good idea rather they will focus on real opportunity;
D. They seek knowledge to confirm their opportunities;
E. None of the above.
______7. Which one is not categorized under achievement cluster of PECs?
A. Goal setting;
 B. Persistence;
C. Opportunity seeking and initiative;
D. Risk taking;
E. Commitment to the work contract.
______8. ________ is a decision rule based on insight and experience:
A. Product blending; D. Customer proposal;
B. Problem analysis; E. Market mapping.
C. Heuristics;
______9. An entrepreneurial stage mainly concerned with assessing the viability of the new
venture is called:
A. Start-up stage; D. Later growth stage;
B. Pre-startup stage; E. None of the above.
C. Early growth stage;

______10. What is the main purpose of opportunity evaluation?

A. To screen out risk-free opportunities;
B. To select risky ventures and ruling out non rewarding investment possibilities;
C. To resort to business options where there are no competitors challenge;
D. All of the above;
E. None of the above.

Part II: Say True or False (2.5 marks)

_______1. Since profit is the heart of the free enterprise system, money per se, therefore is an
end to an entrepreneurial venture.
_______2. The motto of the twenty first century entrepreneurship is: “the business of business is
doing business, the society be damned.”
_______3. There is nothing more rewarding than stable income, intellectual stimulation, status
and a degree of security. Thus it is not surprising to see people dissuaded from
entrepreneurial venture.
_______4. A desire to gain social standing is one of the push factors which encourages
entrepreneurs by making the conventional option less attractive.
_______5. Physically bringing the venture to life does not preclude a rational decision maker
from deciding whether or not to proceed the venture.
_______6. Whatever the means used, an effective entrepreneur is always zealous to solicit ideas
from customers.
_______7. During the process of opportunity screening, the prime concern must be the
determination of the immediate and the long-term capital requirement for soliciting
fund is a secondary issue once the business opportunity is proved feasible.
_______8. The civil service reform being under way in Ethiopia has in effect eliminated adverse
regulatory and bureaucratic tentacles thereby making the road to entrepreneurship a
rose bed.
_______9. Entrepreneurs are uncomfortable to situations of information and communication
overload.
_______10. An entrepreneur has to be a major shareholder in the concern for it is a necessary
pre-requisite to attain effectiveness and efficiency.

Part III: Matching items (2.5 Marks)

Match items in column “A
“A” with corresponding words and phrases in column “B
“B”
1
 Column “A”
_____1. Patent right
_____2. Key personnel
_____3. “Business Angles”
_____4. “Death Valley”
_____6. Indemnity
_____7. Avoidance
____ 8. Social peril
_____9. Insurance
_____10. Speculative risks
Column “B”
A. Negative cash flow
B. both severity and frequency of risk are high
C. Means to transfer risk to a third party
D. Mixing-up principal features from different products
E. Intellectual property right granted to an inventor
F. Copy right
G. Positive cash flow
H. Difficult to replace executives
I. Is not applicable to life insurance and physical injury
J. Theft, counterfeiting
K. Favorable and unfavorable outcome
L. Offer their skills, insights, and experience in addition to
capital backing
M. Social benefits
N. Product deleting
O. Only loss outcome

Part IV: Fill in the blanks (2.5 marks)

1. An entrepreneur is an agent of _____________ who transforms physical, natural and human
resources into production possibilities.
2. Government generates tax revenues from both businesses and individuals with the intention
of providing ________________.
3. The process of generating business ideas by pooling individual panelist’s know how is
popularly termed as _______________.
4. “Do I need a large or small organization” is a possible query posed in ________stage of
entrepreneurial process.
5. ___________is the ability to see or consider the business as a whole.

Part V: Write short notes on any two of the following (5 marks)

1. No entrepreneur works in a vacuum.
The venture they create touches the lives of many other people. List down and briefly
explain the various stakeholders involved in entrepreneurial ventures.
2. Enumerate the cardinal characteristics of entrepreneurs that distinguish them from ordinary
people.
3. Discuss the key decision variables in screening and selecting opportunities.
4. Explain the sources of funding available for the new venture. Give at least five examples.