CONFIDENTIAL

UNIVERSITI KUALA LUMPUR

Malaysian Institute Of Chemical & Bioengineering Technology

• FINAL EXAMINATION
JANUARY 2015 SESSION

SUBJECT CODE : MPU 2222

SUBJECT TITLE : INTRODUCTION TO ENTREPRENEURSHIP

LEVEL : DIPLOMA

TIME / DURATION : 1 HOUR 30 MINUTES

INSTRUCTIONS TO CANDIDATES

• 1. Please read CAREFULLY the instructions given in the question paper.

2. This question paper has information printed on both sides of the paper.

3. There are TWO (2) sections in this QUESTION BOOKLET.

4. Answers ALL questions in Section A in the OMR FORM.

5. Answer ALL questions in Section B in the ANSWER BOOKLET provided.

THERE ARE 7 PAGES OF QUESTIONS, EXCLUDING THIS PAGE.

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SECTION A (Total : 30marks)

Answer ALL questions in the OMR FORM provided.

1. An individual who creates an enterprise that becomes a new entry into the market
is called a(n) :

A. Innovator
B. Inventor
C. Entrepreneur
D. Franchiser
E. Networker

2. All of the statements below are myths or mistruths about entrepreneurship EXCEPT:

A. Entrepreneurs are born, not made.

B. Entrepreneurs are mostly male and white as the new millennium begins.
C. It is necessary to have access to money to become an entrepreneur.
D. Entrepreneurs tend to successful on their first ventures.
E. Entrepreneurship involves creating a business enterprise capable of entering
new or established markets.

3. Which is not a characteristic commonly associated with an entrepreneur?

A. Modesty
B. Need for achievement
C. Internal locus of control
D. Willingness to take risks
E. Self-confidence

4. A person who believes success and failure should be attributed to himself or

herself has :

A. A high need for achievement

B. Strong self-confidence
C. An internal locus of control
D. Micromanaging tendencies
E. An aversion to risk

5. A person who believes what happens is due to luck, fate, or factor's beyond the
person's control is :
A. An underachiever
B. Low on self-efficacy
C. Someone with an external locus of control
D. Destined to fail
E. Risk aversive
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6. All of the following are important skills for entrepreneurs EXCEPT:

A. Negotiation skills
B. Personal networking skills
C. Business networking skills
D. Leadership skills
E. Business modelling skills

7. All of the following contribute to business failures EXCEPT:

A. Lack of capital
B. Governmental intervention
C. Poor knowledge of the market
D. Faulty product design
E. Human resource problems

8. All of the following may be considered valuable aspects of entrepreneurship EXCEPT:

A. New companies help maintain glass ceilings

B. Entrepreneurial firms create new jobs for the national labour force
C. Entrepreneurship is strongly connected to innovation
D. Entrepreneurial firms have created new opportunities for females
E. Entrepreneurial firms have created new opportunities for minorities

9. Entrepreneurs tend to:

A. Take moderate risks

B. Avoid risks
C. Seek out high-risk situations
D. Not consider risks
E. Only take risks that are low

10. A former college professor helping an entrepreneur by providing free consulting is

part of entrepreneur's:
A. Management team
B. Personal network
C. Business network
D. Corporate structure
E. Transformation process

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11. A business owned by a single person is called a:

A. personal venture
B. proprietorship
C. limited partnership
D. singular operation
E. lone vendor company

12. An association of two or more persons acting as co-owners of a business is called a:

A. dual career operation

B. common ownership program
C. franchise
D. partnership
E. limited operation

13. A person who is able to borrow money from a bank at a good rate is exhibiting:

A. negotiation skills
B. personal networking skills
C. business networking skills
D. leadership skills
E. self-sufficiency skills

14. Tan Sri Johar loses his personal fortune because someone in his company created
liabilities which ended up in lawsuit which the company lost. He was involved in which
form of ownership?

A. propriertorship
B. partnership
C. corporation
D. collaboration
E. collective capital

15. Which form of business ownership offers limited liability to owners?

A. a proprietorship
B. a partnership with only two partners
C. a partnership with more than two partners
D. a corporation
E. an unrestricted ownership

16. When Sam Walton helped build a vision and culture at Wal-Mart that turned the company
into a retailing giant, he was exhibiting:

A. charisma
B. personal power
C. negotiating skills
D. strong networking skills
E. transformational leadership skills
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JANUARY 2015

17. McDonald's, Pizza Hut and Baskin Robbins are what form of entrepreneurial ventures?

A. intrapreneurships
B. spin-off
C. franchises
D. venture capital operations
E. internal expansions

18. When a business fails because the owner fell in love with an invention that did not
have sufficient appeal to generate sales to sustain the company, the problem is:

A. poor market knowledge

B. insufficient capital
C. faulty product design
D. misguided promotions
E. poor understanding of the competition

19. All the following should be part of a business idea EXCEPT:

A. a description of the product or service

B. a plan for manufacturing the product
C. a description of past economic conditions
D. a plan for growth of the business
E. sources of funding

20. A legal entity separate from the individuals who own it is called:

A. an extended partnership
B. an institution
C. a corporation
D. a endowed organization
E. cooperative ownership

21. Failure to make scheduled loan repayment leads to:

A. cash flow problems

B. bankruptcy
C. greater equity financing
D. investor financing
E. legal search and seizure

22. The following ideas are true about high achievers EXCEPT:

A. They do not like to rely on luck

B. They are moderate risk takers
C. They like to gamble
D. They tend to accomplish goals
E. They prefer to do constructive things to improve themselves

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CONFIDENTIAL

23. An entrepreneur who discovers his two partners are fighting over office space and
finds a way to make both partners feel like they got their way has found which kind
of solution?

A. good faith
B. win-win
C. compromise
D. indeterminate
E. problem avoidance

24. A new tavern opens in a college town but fails because other establishments in the
area offer discounts, contests and other promotions to keep their customer bases,
which means the entrepreneur failed because of:

A. Lack of capital
B. Faulty product/service design
C. Human resources problems
D. Poor understanding of competition
E. Lack of promotions

25. Datuk Kamil is a millionaire who wants to start a new company without risking his
personal fortune. Which form of ownership should he use?

A. proprietorship
B. partnership
C. corporation
D. limited partnership
E. silent ownership

26. The following are under macro environment EXCEPT:

A. structure
B. economy
C. technology
D. socio-culture
E. political and legislation

27. Demographic change is a major concern for any organization to determine for
marketing and advertising needs. It includes:

I. Income level
II. Age distribution
III. Education level
IV. Population size and distribution

A. I and II only
B. I, II and IV only
C. II, Ill and IV only
D. I, II and III only
E. All of the above
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JANUARY 2015

28. "High unemployment, low wages and a lack of consumer confidence in the economy".
The statement is referring to:

A. Depression cycle
B. Prosperity cycle
C. Recovery cycle
D. Recession cycle
E. All of the above

29. Those are all marketing mix EXCEPT:

A.
B.
C.
D.
product
price
process
place
•
E. promotion

30. Which of the following is not types of financial risks?

A. loans
B. credit
C. liquidity level
D. foreign exchange
E. capital requirement

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SECTION B (Total : 70 marks)

Answer ALL questions and write the answer in the ANSWER BOOKLET provided.

1. What is " creative destruction " and give an example ?

(7 marks)

2. List four (4) key characteristics of successful entrepreneurs (personal

entrepreneurial competencies) and define them ?
(12 marks)

3. Business environment comprises wide range of forces that affect its performance
• to build and maintain successful relationships with target customers.

a. List four (4) main components in macro environment.

(4 marks)

b. Briefly explain three (3) micro environment components.

(12 marks)

4. A business opportunity involves sale or lease of any product, service, equipment

and others that will enable to begin a business.

a. Define two (2) instances for the existence of business opportunities.

(6 marks)

• b. List four (4) major steps to be taken by an entrepreneur for business opportunity.

c. Briefly explain four (4) forms of innovation and give an example for each.
(6 marks)

(16 marks)

5. Promotion is really needed in order to introduce new product to the market. You
as a Marketing Manager in the company that deals with mosquito aerosol and been
instructed to promote your new product and company to the public. Briefly explain
what is/are the best promotion(s) to be carried out.
(7 marks)

- THIS IS THE END OF THE QUESTION PAPER -

ALL THE BEST!