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 lanning and "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 e( test marketin sta e( an# commerciali)ation sta e

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

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 and focus on the four Cs pf credit: 1 !he "ntrepreneurs 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 the entrepreneur

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! into inte!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:

 %iddle ages 10th centur+ (Pa e ') /0th centu!y /1th and 23th centu!y
10th *entur+ $n the /4th centu!y the pe!son with capital was diffe!entiated f!om the one who needed capital5 $n othe! 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 11th an# !0th centur+ (Pa e ') %iddle ages /0th centu!y Question No: 0 ( Marks: 1 ) - Please choose one Which of the following two wo!& envi!onments should be good fo! spawning the new ente!p!ises# Finance and ma!&eting Finance and 67" Marketin an# 23$ %a!&eting and $T 6ef: The companys sales, marketing, and R&D organizations have built and managed dynamic collaborative communities that increase cross-team collaboration; reduce email traffic; and spa n ne innovation in products, services, and marketing campaigns!

http"## ebcache!googleusercontent!com#search$ %&cache"a'ta()tb*m*+" !imsciences!net#uploads#secondsemester#,--ntreprenuership-chapter-,-The-.ature-/012mportance-3f-ntreprenurs!ppt45hich4of4the4follo ing4t o4 ork4enviro nments4should4be4good4for4spa ning4the4ne 4enterprise s/(64/-0/71/8946inance4and4marketing4 /-0/71/8946inance4and4R/01D4 /-0/71/894:arketing4and4R/01D4 /-0/71/894:arketing4and42T&cd&,(&hl&en&ct&clnk&gl&p k

Question No: 1 ( Marks: 1 ) - Please choose one %ost of the finance fo! the new fi!m comes f!om following !esou!ces 45*4PT: F!iends 6orei n ai# 6elatives e!sonal savings http:88www5google5com5p&89hl:en7biw:4337bih:;4/7.:%ost<of<the<finance<fo!<th e<new<fi!m<comes<f!om<following<!esou!ces<-=C- T>;A< >-2>1?>@A<F!iends<>-2>1?>@A<Fo!eign<aid<<>-2>1?>@A<6elatives< >-2>1?>@A< e!sonal<savings7a.:f7a.i:7a.l:7o.:7gsA!fai:7fp:da/Bbd10C?Cd 0Cf

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 4ntre&reneurshi& (&a e 11)

 Financial analysis Feasibility planning *once&tuali)e# entre&reneurshi& as a &rocess 7+ ,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&renhall8com97&/7arrin er/entre&/19!1974769111'07"8c,9content9in#e:8 html

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 6oun#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 F5S companies to focus on new p!oduct development and inc!eased p!oductivity# -nt!ep!eneu!ship ;+&er com&etition '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 has fo!ced F5S5 companies to focus on new p!oduct development and inc!eased p!oductivity5

(Pa e 16)

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

Which of the following typical cultu!e has a climate and !ewa!d system that favo!s conse!vative decision ma&ing# -nt!ep!eneu!ial $nt!ap!eneu!ial *or&orate (Pa e 10) *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 0) 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 economic ro,th8

Question No: 1" ( Marks: 1 ) - Please choose one All the following .ualities a!e !e.uisites fo! an ent!ep!eneu! 4:ce&t: "!iven by pe!ception of oppo!tunity =earnin .rom 7usiness .ailure Cognitive adaptability 4..ectuation
4..ectuation is logic of ent!ep!eneu!ial expe!tise) a dynamic and inte!active p!ocess of c!eating new a!tifacts in the wo!ld5 *o niti%e a#a&ta7ilit+) defined as the ability to be dynamic) flexible) and selfH !egulating in oneIs cognitions given dynamic and unce!tain tas& envi!onments5

http:88www5google5com5p&89hl:en7biw:4337bih:;4/7.:All<the<following<.ualities <a!e<!e.uisites<fo!<an<ent!ep!eneu!<-xcept>;A< >-2>1?>@A<"!iven<by<pe!ception<of<oppo!tunity< >-2>1?>@A<Eea!ning<f!om<business<failu!e<<< >-2>1?>@A<Cognitive<adaptability< >-2>1?>@A<-ffectuation<7a.:f7a.i:7a.l:7o.:7gsA!fai:7fp:da/Bbd10C?Cd0Cf

Question No: 16 ( Marks: 1 ) - Please choose one Which one of the following facto! does not diffe! in motivating male and female ent!ep!eneu!s# <n#e&en#ence (Pa e !! 3 !4) %oney Job satisfaction +ppo!tunity
6eelin s a7out <n#e&en#ence an# Nee# .or -chie%ement8 The entre&reneur also has the nee# .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 7ecomin an entre&reneur in#e&en#ence-not ,ants to ,ork .or an+one else8 >ther moti%atin .actors #i..er 7et,een male an# .emale entre&reneurs8 Mone+ is the secon# reason .or men@s startin a %enture8 Ao7 satis.action( achie%ement( o&&ortunit+( an# mone+ are the secon# or#er reasons .or ,omen8

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 following 45*4PT: %otivation @usiness s&ills "epa!tu!e point Boal orientation (Pa e !7)

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

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 7usiness &lan to in%estors( len#ers( em&lo+ees( su&&liers( an# customers8

Question No: 11 (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 D4E T42MS Creakthrou h inno%ations A new p!oduct with some technological change

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 and development# T!ial and e!!o! >&&ortunit+ &arameters (Pa e 14) +ppo!tunity cost $nt!ap!eneu!ial cultu!e
>&&ortunit+ &arameters

@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 $n thei! mid C3s http:88www5google5com5p&89hl:en7biw:4337bih:;4/7.:Acco!ding<to<!esea!ch >2C<when<do<the<female<ent!ep!eneu!s<tend<to<sta!t<thei!<fi!st<significant<ventu! e>;F<>-2>1?>@A<$n<thei!<mid<23s<<>-2>1?>@A<$n<thei!<mid<;3s< >-2>1?>@A<$n<thei!<mid<B3s< >-2>1?>@A<$n<thei!<mid<C3s7a.:f7a.i:7a.l:7o.:7gsA!fai:7fp:da/Bbd10C?C d0Cf

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 7usiness acti%ities across national 7oun#aries (Pa e !1) $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 an o!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 activities ac!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#

 $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 the entre&reneur@s home countr+ (& '4)
<n#irect e:&ortin involves a fo!eign pu!chase! in the local ma!&et o! using an expo!t management fi!m5 Fo! ce!tain commodities) fo!eign buye!s see& out sou!ces of supply5 -xpo!t management 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. 7u+in an# 7rin in in oo#s .rom a .orei n countr+ <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!tise without 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 C3 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 C3 pe!cent owne!ship position

Question No: !6 (Marks: 1) - Please choose one $n which of the following centu!ies the people of %alaysia peninsula we!e conve!ted f!om $slam# /Bth centu!y 1"th centur+ /?th centu!y /0th centu!y http:88www5thecommonwealth5o!g8Mea!boo&$nte!nal8/BC/?C8histo!y8

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 o7tainin ne, i#eas .ocusin on the ne ati%e Pa e 40 $t !efe!s to a method fo! individuals to solve p!oblems th!ough one of fou! mechanisms $t !efe!s to a method fo! developing new ideas when the individuals a!e unawa!e of the p!oblem
2e%erse 7rainstormin Simila! to b!ainsto!ming) but c!iticism is allowed and encou!aged as a way to b!ing out possible p!oblems with the ideas5 http:88boo&s5google5com5p&8boo&s# id:s3/ 3agnE FC7pg: A/;47d.:Which<one<of<the<following<is<a<method<fo!<obtainin g<new<ideas<and<solutions<by<focusing<on<p!oblems# 7hl:en7ei:uAGwTEC%AMemc$Dt.asN7sa:=7oi:boo&A!esult7ct:!esult7!esnum:/7ved:3 CCQQ?A-wAA9v:onepage7.7f:false

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

$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: !1 (Marks: 1) - Please choose one Which one of the following is a method fo! obtaining new ideas and solutions by focusing on p!oblems# Pro7lem in%entor+ anal+sis (Pa e 40) 'o!don method Chec&list method Scientific method
Pro7lem in%entor+ anal+sis !oblem invento!y analysis uses individuals in a manne! that is analogous to focus g!oups to gene!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 7+ lookin at &ro#uct com7inations (Pa e 41) $t !efe!s to developing a new idea th!ough in.ui!y and testing

 $t !efe!s to developing a new idea by evaluating the wo!th of aspects of ideas

6orce# relationshi& Fo!ced !elationship is the p!ocess of fo!cing !elationship among some p!oduct combination5 $t is techni.ue that as&s .uestions about ob(ects o! ideas in an effo!t to develop a new idea5

Question No: '1 ( Marks: 1 ) - Please choose one Dow many ma(o! stages of Kp!oduct planning and development p!ocessL a!e the!e# Fou! 6i%e (Pa e 4') Six Seven
The p!oduct planning and development p!ocess O is divided in to five ma(o! stages5

Question No: '! (Marks: 1) - Please choose one Which of the following denote no !elationship between the ma!& and the goods o! se!vices# *oine# marks (Pa e 41) A!bit!a!y ma!&s Suggestive ma!&s "esc!iptive ma!&s
*oine# marks denote no !elationship between the ma!& and the goods and affo!d the possibility of expansion5

Question No: '' ( Marks: 1 ) - Please choose one A design patent has a te!m of: 23 yea!s 14 +ears (Pa e 47) /3 yea!s

 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 in those 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 flow5Q ;5 The collateral o! tangible assets being secu!ed5 B5 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 &atent( tra#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 #irect in%estment8 The &rocess is usuall+ lo, risk an# an eas+ ,a+ to enerate incremental income8 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# 7+ the entre&reneur that #escri7es all the rele%ant e:ternal an# internal elements in%ol%e# in startin a ne, %enture8 <t a##resses 7oth short- an# lon -term #ecision makin 8 The 7usiness &lan is like a roa# ma& .or the 7usiness@ #e%elo&ment8 The <nternet also &ro%i#es outlines .or 7usiness &lannin 8 4ntre&reneurs can also hire or o..er eGuit+ to another &erson to &ro%i#e e:&ertise in &re&arin the 7usiness &lan8 <n #e%elo&in the 7usiness &lan the entre&reneur can #etermine ho, much mone+ ,ill 7e nee#e# .rom ne, an# e:istin sources8

Question No: '7 ( Marks: " )

"iscuss the !ole of Kexpo!t management fi!mL in indi!ect expo!ting5

<n#irect e:&ortin involves a fo!eign pu!chase! in the local ma!&et o! using an e:&ort mana ement .irm5 Fo! ce!tain commodities) fo!eign buye!s see& out sou!ces of supply5 -xpo!t management fi!ms) anothe! indi!ect method) a!e located in many comme!cial cente!s5