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MIDTERM EXAMINATION

Spring 2010

MGT602- Entrepreneurship (Session - 2)

Time: 60 min

Marks: 47

Question No: 1 ( Marks: 1 ) - Please choose one

The level at which an individual is viewed by society is called:

► Financial status

► Qualification

► Social status (Pa e !")

► Achievement

Social status

The level at which an individual in viewed by society

Question No: ! ( Marks: 1 ) - Please choose one

Which one of the following is the next stage to the Concept Stage of !oduct lanningand "evelopment !ocess#

► $dea Stage

► !oduct lanning Stage

► Pro#uct $e%elo&ment Sta e (Pa e 4')

► Test %a!&eting Stage

Pro#uct &lannin an# #e%elo&ment &rocess'ene!ally divided into five ma(o! stages: idea stage) concept stage) &ro#uct #e%elo&ment sta etest marketin sta e an# commerciali ation sta e

Question No: ' ( Marks: 1 ) - Please choose one

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Which one of the following is *+T included in fou! C,s evaluation by lende!#

► Cha!acte!

► Cost

► *ontinuit+

► Cont!ibution

Page #55 Lesson #21 Lenders are primarily interested in the ability of the new venture to pay the debt andfocus on the four C’s pf credit:

1 !he "ntrepreneur’s credit history or character.2. !heir ability to meet debt and interest payment (cash flow) !he collateral or tangible assets being secured

$ "%uity contribution or the amount of personal e%uity that has been invested by theentrepreneur

Question No: 4 ( Marks: 1 ) - Please choose one

Which of the following is *+T essential pa!t of the cont!act#

► All the pa!ties involved should be named

► T!ansaction should be desc!ibed in detail

► +btain signatu!es of the pe!sons involved

► Place ,here contract takes &lace

Question No: " (Marks: 1) - Please choose one

Which one of the following is the way by which an ent!ep!eneu! can ente! intointe!national business#

► -xpo!t

► *on e.uity a!!angements

► "i!ect fo!eign investment

► ll o. the i%en o&tions (Pa e '0/'1)

Question No: 6 ( Marks: 1 ) - Please choose one

The ent!ep!eneu! was distinguished f!om capital p!ovide! in:

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► %iddle ages

► 1 th centur+ (Pa e ')

► /0 th centu!y

► /1 th and 23 th centu!y

1 th *entur+

$n the /4th centu!y the pe!son with capital was diffe!entiated f!om the one who needed capital5 $nothe! wo!ds) ent!ep!eneu! was distinguished f!om the capital p!ovide!5

Question No: 7 ( Marks: 1 ) - Please choose one

And!ew Ca!negie is an example of ent!ep!eneu! of which centu!y:

► -a!liest pe!iod

► 1 th an# !0 th centur+ (Pa e ')

► %iddle ages

► /0 th centu!y

Question No: ( Marks: 1 ) - Please choose one

Which of the following two wo!& envi!onments should be good fo! spawning the newente!p!ises#

► Finance and ma!&eting

► Finance and 67"

► Marketin an# 23$

► %a!&eting and $T

6ef:

The company’s sales, marketing, and R&D organizations havebuilt andmanaged dynamic collaborative communities that increasecross-team collaboration; reduce email traffic; and spa n neinnovation in products, services, and marketing campaigns!

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semester# - ntreprenuership-chapter- -The-.ature-/01-2mportance-3f-ntreprenurs!ppt45hich4of4the4follo ing4t o4 ork4environments4should4be4good4for4spa ning4the4ne 4enterprises/(64/ 0/71/8946inance4and4marketing4/ 0/71/8946inance4and4R/01D4/ 0/71/894:arketing4and4R/01D4/ 0/71/894:arketing4and42T&cd (&hl en&ct clnk&gl pk

Question No: ( Marks: 1 ) - Please choose one

%ost of the finance fo! the new fi!m comes f!om following !esou!ces 5* PT :

► F!iends

► orei n ai#

► 6elatives

► e!sonal savings

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Question No: 10 ( Marks: 1 ) - Please choose one

What is the p!ocess by which individuals pu!sue oppo!tunities without !ega!d to!esou!ces they cu!!ently cont!ol#

► Sta!tup management

► ntre&reneurshi& (&a e 11)

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► Financial analysis

► Feasibility planning

*once&tuali e# entre&reneurshi& as a &rocess + ,hich in#i%i#uals - either on their

o,n or insi#e or ani ations - &ursue o&&ortunities ,ithout re ar# to the resources,hich the+ currentl+ control8

htt&:99,&s8&renhall8com9 &/ arrin er/entre&/19! 9747691 1' 7"8c,9content9in#e 8html

Question No: 11 (Marks: 1) - Please choose one

Which one of the following is a fi!m that achieves modest g!owth#

► Digh potential g!owth fi!m

► oun#ation .irm

► Eife style

► ublic company

5

Question No: 1! (Marks: 1) - Please choose one

Which of the following facto!s is the most impo!tant in fo!cing 5S companies to focuson new p!oduct development and inc!eased p!oductivity#

► -nt!ep!eneu!ship

► ;+&er com&etition (Pa e 16)

► 'ove!nmental laws

► +!ganiGational cultu!e

6-F:

The!e a!e social) cultu!al) and business p!essu!es fo! -nt!ep!eneu!ship5 Dype! competition hasfo!ced 5S5 companies to focus on new p!oduct development and inc!eased p!oductivity5

Question No: 1' ( Marks: 1 ) - Please choose one

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Which of the following typical cultu!e has a climate and !ewa!d system that favo!sconse!vative decision ma&ing#

► -nt!ep!eneu!ial

► $nt!ap!eneu!ial

► *or&orate (Pa e 1 )

► *one of the given options

The t+&ical co!po!ate cultu!e has a climate an# re,ar# s+stem that .a%ors conser%ati%e#ecision makin 8

Question No: 14 ( Marks: 1 ) - Please choose one

What ta&es place du!ing the p!oductHevolution p!ocess#► <nno%ation is #e%elo&e# an# commerciali e# throu h entre&reneurial acti%it+(Pa e )

► The p!oduct8se!vice is evaluated and any scope of fu!the! development is cha!ted

► The business b!anches into sepa!ate units of development and ma!&eting

► The p!oduct8se!vice is evaluated to identify its global ma!&etability

The product-evolution process is the &rocess throu h ,hich inno%ation #e%elo&s an#commerciali es throu h entre&reneurial acti%it+ ,hich in turn stimulates economicro,th8

Question No: 1" ( Marks: 1 ) - Please choose one

All the following .ualities a!e !e.uisites fo! an ent!ep!eneu! ce&t:

► "!iven by pe!ception of oppo!tunity

► =earnin .rom usiness .ailure

► Cognitive adaptability

► ..ectuation

..ectuation is logic of ent!ep!eneu!ial expe!tise) a dynamic and inte!active p!ocess of c!eating newa!tifacts in the wo!ld5 *o niti%e a#a&ta ilit+ ) defined as the ability to be dynamic) flexible) and selfH!egulating in oneIs cognitions given dynamic and unce!tain tas& envi!onments5

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>-2>1?>@A<-ffectuation<7a. f7a.i 7a.l 7o. 7gs !fai 7fp da/Bbd10 ? d0 f

Question No: 16 ( Marks: 1 ) - Please choose one

Which one of the following facto! does not diffe! in motivating male and femaleent!ep!eneu!s#

► <n#e&en#ence (Pa e !! 3 !4)

► %oney

► Job satisfaction

► +ppo!tunity

eelin s a out <n#e&en#ence an# Nee# .or chie%ement8 The entre&reneur also has thenee# .or in#e&en#ence to #o thin s in his or her o,n ,a+ an# time8

M>T<? T<>N ,hile moti%ations ma+ %ar+ the reason cite# most o.ten .or ecomin anentre&reneur in#e&en#ence-not ,ants to ,ork .or an+one else8 >ther moti%atin .actors#i..er et,een male an# .emale entre&reneurs8 Mone+ is the secon# reason .or men@sstartin a %enture8 Ao satis.action achie%ement o&&ortunit+ an# mone+ are the secon#or#er reasons .or ,omen 8

Question No: 17 (Marks: 1) - Please choose one

Female ent!ep!eneu!s diffe! f!om male ent!ep!eneu!s in te!ms of all of the following5* PT :

► %otivation

► @usiness s&ills

► "epa!tu!e point

► Boal orientation (Pa e !7)

Question No: 1 (Marks: 1) - Please choose one

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Which one of the following may need the business plan#

► -mployees

► $nvesto!s

► Adviso!s

► ll o. the i%en o&tions ( Pa e "4)

To un#erstan# the sco&e an# %alue o. the usiness &lan to in%estors len#ers em&lo+eessu&&liers an# customers8

Question No: 1 (Marks: 1) - Please choose one

Which of the following !efe!s to new p!oducts with some technological change#

► +!dina!y innovation

► Technological innovation

► Creakthrou h inno%ation (Pa e ")

► Technical innovation

D E T 2MS Creakthrou h inno%ations A new p!oduct with some technologicalchange

Question No: !0 (Marks: 1) - Please choose one

Which of the following is8a!e &nown as ba!!ie!s to new p!oduct c!eation anddevelopment#

► T!ial and e!!o!

► >&&ortunit+ &arameters (Pa e 14)

► +ppo!tunity cost

► $nt!ap!eneu!ial cultu!e

>&&ortunit+ &arameters

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@a!!ie!s to new p!oduct c!eation and development

Question No: !1 ( Marks: 1 ) - Please choose one

Acco!ding to !esea!ch) when do the female ent!ep!eneu!s tend to sta!t thei! fi!st

significant ventu!e#

► <n their mi# !0s

► <n their mi# '0s (correct)

► $n thei! mid B3s

► $n thei! mid 3s

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Question No: !! ( Marks: 1 ) - Please choose one

Which of the following statements desc!ibes K$nte!national ent!ep!eneu!shipL#

► <t is the &rocess o. an entre&reneur con#uctin usiness acti%ities across nationaloun#aries (Pa e ! )

► $t is the p!ocess of an ent!ep!eneu! conducting business activities within the national bounda!ies

► $t is an innovative co!po!ate management style that encou!ages employees within ano!ganiGation to c!eate new p!oduct ideas

► $t is a business st!uctu!e in which an individual and his company a!e conside!ed a

single entity fo! tax and liability pu!poses<nternational entre&reneurshi& is the p!ocess of an ent!ep!eneu! conducting business activitiesac!oss national bounda!ies

Question No: !' (Marks: 1) - Please choose one

Which of the following best desc!ibes the te!m Kindi!ect expo!tingL#

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► $t !efe!s to selling goods made in one count!y to anothe! count!y

► $t !efe!s to buying and selling of commodities

► $t !efe!s to a comme!cial activity of buying and b!inging in goods f!om a fo!eign

count!y

► <t re.ers to sellin oo#s to another countr+ throu h a &erson in theentre&reneur@s home countr+ (& '4)

<n#irect e &ortin involves a fo!eign pu!chase! in the local ma!&et o! using an expo!tmanagement fi!m5 Fo! ce!tain commodities) fo!eign buye!s see& out sou!ces of supply5 -xpo!tmanagement fi!ms) anothe! indi!ect method) a!e located in many comme!cial cente!s5

Question No: !4 (Marks: 1) - Please choose one

$dentify the te!m which best desc!ibes the te!m Kmanagement cont!actsL#

► $t !efe!s to selling goods made in one count!y to anothe! count!y

► $t !efe!s to buying and selling of commodities

► <t is a commercial acti%it+ o. u+in an# rin in in oo#s .rom a .orei ncountr+

► <t is metho# o. #oin s&eci.ic international task

-nt!ep!eneu!s can cont!act thei! management techni.ues and s&ills) often following a tu!nH&ey p!o(ect5 The mana ement contract allows the pu!chasing count!y to gain fo!eign expe!tisewithout tu!ning owne!ship ove! to a fo!eigne!5

Question No: !" ( Marks: 1 ) - Please choose one

Which of the following best defines Kmino!ity inte!estL#

► <t re.ers to ha%in less than "0 &ercent o,nershi& &osition (Pa e '6 )

► $t !efe!s to fo!ming a thi!d company by combining two companies

► $t !efe!s to having mo!e than 3 pe!cent owne!ship position

► $t !efe!s to selling goods made in one count!y to anothe! count!y

Minorit+ interest

Daving less than 3 pe!cent owne!ship position

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Question No: !6 (Marks: 1) - Please choose one

$n which of the following centu!ies the people of %alaysia peninsula we!e conve!tedf!om $slam#

► /Bth

centu!y

► 1" th centur+

► /? th centu!y

► /0 th centu!y

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Question No: !7 (Marks: 1) - Please choose one

$dentify the statement which best defines K!eve!se b!ainsto!mingL5

► $t !efe!s to g!oups of individuals p!oviding in a st!uctu!ed fo!mat

► <t re.ers to a rou& metho# .or o tainin ne, i#eas .ocusin on the ne ati%ePa e 40

► $t !efe!s to a method fo! individuals to solve p!oblems th!ough one of fou!

mechanisms

► $t !efe!s to a method fo! developing new ideas when the individuals a!e unawa!e of the p!oblem

2e%erse rainstormin

Simila! to b!ainsto!ming) but c!iticism is allowed and encou!aged as a way to b!ing out possible p!oblems with the ideas5

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Question No: ! (Marks: 1) - Please choose one

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$dentify the statement which best defines Kchec&list methodL

► <t re.ers to #e%elo&in a ne, i#ea throu h a list o. relate# issues (Pa e 41)

► $t !efe!s to a g!oup method fo! obtaining new ideas focusing on the negative

► $t !efe!s to a method fo! individuals to solve p!oblems th!ough one of fou!mechanisms

► $t !efe!s to a method fo! developing new ideas when the individuals a!e unawa!e of the p!oblem

*hecklist metho#

"eveloping a new idea th!ough a list of !elated issues is chec&list method of p!oblem solving5

Question No: ! (Marks: 1) - Please choose one

Which one of the following is a method fo! obtaining new ideas and solutions byfocusing on p!oblems#

► Pro lem in%entor+ anal+sis (Pa e 40)

► 'o!don method

► Chec&list method► Scientific method

Pro lem in%entor+ anal+sis

!oblem invento!y analysis uses individuals in a manne! that is analogous to focus g!oups togene!ate new p!oduct ideas5

Question No: '0 (Marks: 1) - Please choose one

Which of the following statements best defines Kfo!ced !elationshipL#

► $t !efe!s to developing a new idea th!ough a chain of wo!d associations

► <t re.ers to #e%elo&in a ne, i#ea + lookin at &ro#uct com inations (Pa e 41)

► $t !efe!s to developing a new idea th!ough in.ui!y and testing

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► B3 yea!s

$esi n Patents

Cove!ing new) o!iginal) o!namental) and unobvious designs fo! a!ticles) These a!e fo! a /BHyea!te!m and p!ovide a negative !ight)

Question No: '4 (Marks: 1) - Please choose one

Eende!s focus on fou! Cs of c!edit5 $dentify which of the following is *+T included inthose fou! Cs5

► Cha!acte!

► Cash flow

► Collate!al

► *o#e o. ethics (Pa e "")

Fou! C,s of c!edit:/5 The ent!ep!eneu!,s c!edit histo!y o! character.25 Thei! ability to meet debt and inte!est payments P cash flow 5;5 The collateral o! tangible assets being secu!ed5B5 Equity contribution o! the amount of pe!sonal e.uity that has been invested by the ent!ep!eneu!Question No: '" (Marks: ')

@!iefly discuss licensing and its benefits5

Eicensing in%ol%es a manu.acturer i%in a .orei n manu.acturer the ri ht to use a &atenttra#emark or technolo + in return .or a ro+alt+8 This arran ement is most a&&ro&riate,hen the entre&reneur has no &ros&ect o. enterin the market throu h e &ortin or #irectin%estment8 The &rocess is usuall+ lo, risk an# an eas+ ,a+ to enerate incrementalincome8 Fithout care.ul anal+sis licensin arran ements ha%e se%eral &it.alls 5

Question No: '6 ( Marks: " )

What is a business plan and what pu!pose does it se!ve#

business plan is a ,ritten #ocument &re&are# + the entre&reneur that #escri es all therele%ant e ternal an# internal elements in%ol%e# in startin a ne, %enture8 <t a##ressesoth short- an# lon -term #ecision makin 8 The usiness &lan is like a roa# ma& .or theusiness@ #e%elo&ment8 The <nternet also &ro%i#es outlines .or usiness &lannin 8ntre&reneurs can also hire or o..er eGuit+ to another &erson to &ro%i#e e &ertise in&re&arin the usiness &lan8 <n #e%elo&in the usiness &lan the entre&reneur can#etermine ho, much mone+ ,ill e nee#e# .rom ne, an# e istin sources 8

Question No: '7 ( Marks: " )

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