Entrepreneurship and Small Business Management | Set 2
1. All of the following are questions an opportunity assessment plan might answer except:
Correct : A. How much capital do I need?
2. Which of the following statements is (are) true?
Correct : A. The business plan describes both internal and external elements.
3. Which of the following interested parties should not have access to the venture's business
plan?
Correct : A. Competitors
4. The depth and detail of a business plan depend on:
Correct : B. The size and scope of the new venture.
5. When evaluating business plans _________ are primarily concerned with the general
guidelines of credit.
Correct : D. lenders
6. Equity investors often place more emphasis on the entrepreneur's _________ than lenders do.
Correct : A. character
7. Which of the following documents is not usually included in the Financial Plan?
Correct : C. Price lists from suppliers
8. _______ identifies potential hazards and alternative strategies to meet business plan goals
and objectives.
Correct : A. Assessment of risk
9. All of the following are questions that should be considered in the environmental and
industry analysis section of the business plan except:
Correct : C. What is my promotional strategy?
10. New small business owners have which of the following two common motivations?
Correct : A. Be their own bosses, greater reward potential
11. The other names for a small business include:
Correct : D. none
12. According to development commissioner a sick company should have :
Correct : D. Bank financing is restricted to 25% of networth.
13. Incipient sickness is not an indication of:
Correct : B. Continuous losses for last two years
14. Industrial sickness occurs as per Kapoor Committee if:
Correct : C. Accumulated cash losses to a minimum 50% of peak networth
15. BIFR became operational from:
Correct : B. 15th May, 1987
16. Committee concerned with industrial sickness is:
Correct : C. Goswami committee
17. Tiny sector was launched by
Correct : C. IPR- 1985
18. Number of items dereserved during 2001-02 was:
Correct : D. 51
19. Nayak Committee was concerned with:
Correct : D. Institutional credit
20. Which Committee has given focus on cluster system;
Correct : D. AbidHussain Committee
21. Abolition of Reservations was recommended by:
Correct : C. AbidHussain committee
22. Kapoor Committee was constituted to assess:
Correct : D. Government support system
23. Policy of reservation was primarily initiated in
Correct : B. 1967
24. Violation of reservation policy is punishable under
Correct : C. I (D & R) Act
25. ______ are three basic forms of franchising.
Correct : C. Trade name, product distribution, and business format
26. ______ is a document designed to detail the major characteristics of a firm.
Correct : B. Business plan
27. ______ is NOT a business plan concern of family and friend investors.
Correct : C. Competitive advantage
28. All of these are business plan concerns of bankers EXCEPT
Correct : A. Monitoring compliance.
29. ______ is not included in the business planning presentation types.
Correct : D. Annual objectives
30. What is an ideal length of an elevator pitch?
Correct : C. 60 – 100 words
31. The firm's goals and competitive advantages can be described by
Correct : A. Mission statement.
32. _______ is a one- to two-page overview of the business, its business model, market,
expectations, and immediate goals.
Correct : B. Executive summary
33. The appropriate size for a business plan, where the type of business is well established is
Correct : C. 10 pages.
34. A one-page document on letterhead introducing the business plan is considered a
Correct : A. Cover letter.
35. ______ is a product or service that is kept as a trade secret or is protected legally using
patients, trademarks, copyright, or service mark.
Correct : C. Test marketing
36. ______ is NOT an idea that good marketing strategy focuses on.
Correct : A. Harvesting the business plan
37. ______ is a statement that is not expected in the business plan.
Correct : C. SEC filing statement
38. ______ is when a firm sells its products in a limited area, for a limited time.
Correct : D. Test marketing
39. ______ is a firm whose product is new to the industry.
Correct : B. Pioneering business
40. All of these are special purpose plans EXCEPT which of these?
Correct : A. Business plan
41. ______ provides information on the company and critical risks to prospective business
partners.
Correct : A. Partner plan
42. Out of the total population of people you approach, __________ is the percentage of people
who buy.
Correct : C. Hit rate
43. The distinction between an "entrepreneur" and "small business owner" , if made, revolves
around:
Correct : B. b.the Small Business Administration definitions
44. Which of the following was NOT one of the classifications of entrepreneurs presented in
our text?
Correct : A. Franchise entrepreneur
45. The primary reason entrepeneurs start companies is to:
Correct : C. create something new
46. One study found that entrepreneurs tend to demonstrate all of the following traits except:
Correct : A. opinionated
47. The technical characteristics of the small business would include all of the following
except:
Correct : B. owned by an individual or a small group of investors
48. Which of the following might be termed a disadvantage faced by the small business?
Correct : D. d.more personal service
49. Key features of a well written business plan would include all of the following except:
Correct : D. a review of the advertising firms analyzed
50. Which of the following is not a main element of the project management process?
Correct : D. Systems design.
51. Which of the following is not a main project objective?
Correct : B. Structure.
52. Which of the following is a main PRINCE project aim?
Correct : D. All of the above
53. Which of the following is not a reason to reduce project completion time?
Correct : C. Eliminate project critical path.
54. Which of the following is the benefit of the network analysis approach?
Correct : C. Allows progress to be monitored against plan.
55. A project can be considered to have failed if it:
Correct : D. does not meet the business requirements.
56. Why are small businesses important to a country's economy?
Correct : D. All the above.
57. Which of the following factors is the most important in forcing U.S companies to focus
on new product development and increased productivity?
Correct : B. Hyper competition
58. Which of the following is alternatively called corporate venturing?
Correct : B. Intrapreneurship
59. Individuals influencing an entrepreneur’s career choice and style are known as which of the
following?
Correct : B. Role model
60. The activity which occurs when the new venture is started is called:
Correct : C. Departure point
61. The level at which an individual is viewed by society is called:
Correct : C. Social status
62. Which one of the following is an important source of idea generation due to their
familiarity with the needs of market?
Correct : B. Distribution channels
63. Members of distribution channels are excellent sources for new ideas because:
Correct : B. They are familiar with the needs of the market
64. Which one of the following is the most important characteristic of a successful business
website?
Correct : B. Speed
65. Which one of the following is the next stage to the Concept Stage of Product Planning and
Development Process?
Correct : C. Product Development Stage
66. SBA stands for:
Correct : B. Small business administration
67. An example of collecting primary data is;
Correct : D. All of the above
68. An internal environmental variable.
Correct : A. Financial resources
69. What is a target market?
Correct : C. A specific group of potential customers toward which a venture aims its marketing plan.
70. Monitoring ___________ during the implementation of the marketing plan allows the entrepreneur to establish controls on the process.
Correct : A. sales data
71. The ___________ of a marketing plan is sometimes dependent on the solvency of the
organization.
Correct : C. failure
72. A product can include all of these except _______.
Correct : A. price
73. ______ refers to a quality of a service in which each time it is provided it will be slightly
different from the previous time.
Correct : C. Heterogeneity
74. A balanced combination of good and service is called a(n)
Correct : B. Hybrid products.
75. ______ is the group of people on which a marketer focuses promotion and sales efforts.
Correct : C. Target market
76. ______, in the new product development process, is the stage that comes after idea generation.
Correct : D. Idea screening
77. The difference between the buying and selling price is called _____ and it should be enough
to cover all fixed costs.
Correct : C. mark-up
78. A product for which there are few substitutes and for which a change in price has little
effect on quantity purchased is considered __________.
Correct : B. inelastic
79. Charging the highest price the market will bear is called which of these?
Correct : C. Skimming
80. Setting a price that ends in the number 5, 7, or 9 is considered
Correct : D. Odd even pricing
81. ______ refers to setting the price for an item relatively low and then charging much higher
prices for the expendables it uses.
Correct : D. Captive pricing
82. Which of the following applies to organizations with 15 or more employees?
Correct : A. The Civil Rights Act of 1991
83. Which of these is the first step in crafting a job description?
Correct : D. Job title
84. ______ is an area that Job analysis does NOT cover.
Correct : A. The competitive pay required
85. Which of the following questions might give you insight into an applicant's career goals?
Correct : D. Are you willing to work flextime?
86. When interviewing candidates, the questions asked should be seeking all of these EXCEPT
______.
Correct : C. Personal information
87. Which of these training is delivered to employees while they perform their regular jobs?
Correct : B. On-the-job
88. ______ is NOT an on-the-job training method.
Correct : A. Case studies
89. Which of these factors is most important to employees, according to Jill Kickul's research?
Correct : D. Autonomy and growth
90. ______ refers to employees' beliefs about the promises between the employee and the firm.
Correct : C. Psychological contract
91. A suggested guideline for training is
Correct : B. Think of training as an investment.
92. Which of Kickul's factors, includes the psychological contract item, job training?
Correct : A. Rewards and opportunities
93. A management philosophy of selecting and promoting people based on their being the most
capable person for the job is considered which of the following?
Correct : B. Meritocracy
94. The first step in the small business development process is:
Correct : A. Planning
95. The tasks a new business owner must identify to develop a critical path analysis include:
Correct : D. All of the above
96. The critical path chart is a living document that should be _________ during the process of actually accomplishing the tasks.
Correct : C. Modified
97. The location decision should address all of the _________ points required for your industry
and should enhance the _________ points.
Correct : A. Orthodox / unorthodox
98. The _____________ describes attempts to sell current products to new customers.
Product-customer exploitation strategy
Correct : A. Product development strategy
99. All of the following are signals of potential decline in organizational performance EXCEPT:
Correct : D. Negative cash flow
100. ________ is a common short-run strategy designed to address organizational weaknesses
that are leading to performance declines.