Course Code: MGT303

Course Title: Entrepreneurship & New Business Formation

Topic: Entrepreneurship Process
Lecturer: Mr. B. Botsoma Jnr.
Multiple Choice Questions:

1. Which of the following is NOT a component of feasibility analysis according to the

Hisrich and Peters Model?
A) Market analysis
B) Financial analysis
C) Product development
D) Technical analysis

2. What is the primary purpose of a business plan according to the Hisrich and Peters
Model?
A) Secure funding from investors
B) Outline the vision and mission of the venture
C) Provide a roadmap for venture growth
D) All of the above

3. Resource acquisition in entrepreneurship primarily involves obtaining:

A) Human capital
B) Financial capital
C) Physical assets
D) All of the above

4. Implementation challenges in entrepreneurship may include:

A) Market competition
B) Regulatory hurdles
C) Technology limitations

1
D) All of the above

5. Which of the following is NOT a key aspect of managing a venture according to the
Hisrich and Peters Model?
A) Financial management
B) Marketing strategies
C) Employee termination
D) Strategic planning

6. Risk management in entrepreneurship aims to:

A) Eliminate all risks
B) Minimize potential losses
C) Ignore potential risks
D) Encourage risky behavior

7. Effective leadership in entrepreneurship involves:

A) Delegating all tasks to subordinates
B) Inspiring and motivating team members
C) Micromanaging every aspect of the venture
D) Avoiding risks at all costs

8. In the opportunity recognition stage, entrepreneurs focus on:

A) Identifying problems and challenges
B) Ignoring market trends
C) Limiting creativity
D) Avoiding new opportunities

9. Which of the following is NOT a type of resource entrepreneurs need to acquire

according to the Hisrich and Peters Model?
A) Financial

2
B) Technological
C) Intellectual
D) Cultural

10. The primary purpose of adjusting strategies in entrepreneurship is to:

A) Maintain the status quo
B) Ignore market changes
C) Adapt to new trends and challenges
D) Avoid competition

11. Opportunity recognition involves:

A) Ignoring market trends
B) Recognizing potential problems
C) Identifying new business ideas
D) Avoiding creativity

12. The primary goal of feasibility analysis is to:

A) Discourage entrepreneurship
B) Assess the viability of a business idea
C) Eliminate all risks
D) Ignore market trends

13. well-developed business plan:

A) Guarantees venture success
B) Outlines the vision and mission of the venture
C) Provides no value to entrepreneurs
D) Is optional for startups

14. Risk management involves:

3
A) Encouraging risky behavior
B) Ignoring potential threats
C) Minimizing potential losses
D) Eliminating all risks

15. Effective leadership in entrepreneurship requires:

A) Avoiding risks at all costs
B) Micromanaging every aspect of the venture
C) Inspiring and motivating team members
D) Delegating all tasks to subordinates

16. The purpose of adjusting strategies in entrepreneurship is to:

A) Maintain the status quo
B) Ignore market changes
C) Adapt to new trends and challenges
D) Avoid competition

17. Resource acquisition involves obtaining:

A) Human capital only
B) Financial capital only
C) Physical assets only
D) Various types of resources

18. Implementation challenges may include:

A) Easy market entry
B) Regulatory compliance
C) Limited competition
D) Unrestricted growth

4
19. Feasibility analysis assesses:
A) Market trends
B) Regulatory hurdles
C) Business idea viability
D) All of the above

20. Effective entrepreneurship requires:

A) Avoiding risks at all costs
B) Ignoring market changes
C) Continuous innovation and adaptation
D) Limiting creativity

5
 Section B

Question 1:

Using the Hisrich and Peters Entrepreneurship Model, discuss the significance of
opportunity recognition in the entrepreneurial process. Provide examples of how
entrepreneurs in the music industry identify opportunities and explain why this stage
is crucial for venture success. (20 marks)

Question 2:

Feasibility analysis is a critical stage in the entrepreneurship process. Describe the

components of feasibility analysis according to the Hisrich and Peters Model and
explain how entrepreneurs like those behind Facebook assess the viability of their
business ideas. Support your answer with examples from real-world ventures. (20
marks)

Question 3:

Outline the key elements of business plan development according to the Hisrich and
Peters Entrepreneurship Model. Discuss why a well-developed business plan is
essential for entrepreneurial success and provide examples of how effective business
planning contributes to the growth of ventures like WhatsApp. (20 marks)

Question 4:

Resource acquisition is a fundamental aspect of entrepreneurship. Using the Hisrich

and Peters Model, explain the types of resources entrepreneurs need to acquire and
the strategies they can employ to obtain them. Provide real-life examples of ventures
in the music industry that effectively managed their resource acquisition process. (20
marks)

Question 5:

6
Implementation is a critical stage in the entrepreneurship process. Discuss the
challenges entrepreneurs face during the implementation phase according to the
Hisrich and Peters Model. How did ventures like Facebook overcome implementation
challenges and achieve success? (20 marks)

Question 6:

Managing the venture is essential for sustainable growth. Using the Hisrich and Peters
Model, explain the key aspects of managing a venture and discuss how entrepreneurs
behind WhatsApp effectively managed their ventures to ensure long-term success. (20
marks)

Question 7:

Entrepreneurship involves continuous innovation and adaptation. According to the

Hisrich and Peters Model, discuss how entrepreneurs in the music industry identify
market changes and adjust their strategies to remain competitive. Provide examples
to support your answer. (20 marks)

Question 8:

Risk management is integral to entrepreneurship. Explain the concept of risk

management according to the Hisrich and Peters Model and discuss how
entrepreneurs mitigate risks in ventures like Facebook. Provide examples of risk
mitigation strategies. (20 marks)

Question 9:

Discuss the role of leadership in entrepreneurship according to the Hisrich and Peters
Model. How do effective leaders influence the success of ventures like WhatsApp?
Provide examples of leadership qualities demonstrated by entrepreneurs in these
ventures. (20 marks)

Question 10:

7
Reflecting on the entire entrepreneurship process outlined by the Hisrich and Peters
Model, discuss the importance of resilience and perseverance for entrepreneurs. How
do ventures in the music industry exemplify resilience in the face of challenges?
Provide specific examples. (20 marks)

Question 11:

Describe the opportunity recognition process behind InDrive, a ride-sharing startup.

How did InDrive identify opportunities in the transportation sector, and why is
opportunity recognition crucial for entrepreneurial success? (20 marks)

Question 12:

Feasibility analysis is essential for evaluating business ideas. How would a fast-food
chain like KFC conduct feasibility analysis before expanding into a new market? Discuss
the factors they would consider and the methods they might use. (20 marks)

Question 13:

Outline the key components of a business plan for a franchise model, using McDonald's
as an example. Discuss why a well-structured business plan is crucial for franchise
operations. (20 marks)

Question 14:

Resource acquisition is crucial for startup success. In the context of Multi-Choice, a

media company, discuss the types of resources they need to acquire and the strategies
they can employ to obtain them during the initial stages of business development. (20
marks)