Entrepreneurship and Small Business Management solved MCQs

chapters
1 of 9
chapter:   Unit 1

1. Which of the following is the correct definition of the term 'entrepreneur', as used by the OECD?

a. Entrepreneurs are those people who start new businesses with the aim of making a profit.

B. Entrepreneurs are those persons (business owners) who seek to generate value through the creation or expansion of economic activity, by identifying and exploiting new products, processes or markets.

c. Entrepreneurs are those persons who seek to create value by starting new businesses with innovative products and services.

d. Entrepreneurs are those people who seek to create value for local communities, people or customers by starting new ventures which exploit new products, processes or markets.

2. What is the definition of the term, 'social enterprise'?

a. A commercial organization that seeks to combine a profit seeking motive with the provision of social benefits.

B. A trading organization that is motivated by profit and a societal orientation.

c. A social enterprise undertakes social marketing and can take a variety of legal forms, including co-operative, a limited company and a community interest company.

d. A trading organization which serves a social purpose and which can take a variety of legal forms, including co-operative, a limited company and a community interest company.

3. Intrapreneurship often takes the form of ...

a. a semi-autonomous group (e.g. an internal venture team), operating within the overarching structure of the parent organization.

B. a spinout venture from a university to commercial a new invention.

c. a subsidiary of a large corporation developing a new product.

d. a semi-autonomous group operating outside the overarching structure of the parent organization.

4. The goals motivating entrepreneurial activity can include which of the following options:

a. To improve the social welfare of people, e.g. in terms of their health.

B. To improve the wealth of the entrepreneurs.

c. To maintain influence amongst powerful local figures.

d. All of the above.

5. Can entrepreneurship be 'learned'?

a. Entrepreneurs are born and not made

B. It's a discipline and like any other discipline it can be learned.

c. You will never become an entrepreneur simply by reading a book

d. Practical exercises, study and critical reflection can be a good way to think about

6. Which of these statements best describes the context for entrepreneurship?

a. Entrepreneurship takes place in small businesses.

B. Entrepreneurship takes place in large businesses.

c. Entrepreneurship takes place in a wide variety of contexts.

d. Entrepreneurship does not take place in social enterprises.

7. Which statement is not true of entrepreneurs?

a. They change the way businesses convert inputs into outputs

B. They generally stick to the processes already in use.

c. They take risks

d. They apply innovative ideas

8. Pichot suggested three roles for the intrapreneur in promoting innovation. What are they?

a. Team builder, information source and advocate

B. Inventor, innovator and sponsor

c. Inventor, developer and marketer

d. Inventor, product champion and sponsor

9. Why is the notion of 'vision' important in entrepreneurship?

a. Without it there is no driving force or sense of direction.

B. People need a sense of fantasy in order to create ambitious ventures.

c. Investors prefer to invest in visionaries.

d. Having a vision helps to create a paradigm shift.

10. What are the two key issues that arise when you create an effective entrepreneurial teamfrom scratch?

a. Team mentality and team synergy

B. Team numbers and team quality

c. Team composition and team roles

d. Team experience and team experience

11. Establishing a shared vision amongst team members refers to:

a. Members of the team starting out with an essentially similar set of ideas about what they want to create.

B. Members of the team sharing moral principles and standards of behaviour.

c. Members of the team sharing the factors driving them to take part in the venture.

d. Members of the team sharing profits in an equitable manner.

12. What are the main differences between marketing in a 'corporate setting' and an 'entrepreneurial' one?

a. Lack of resources; lack of brand name; difficulties in making contacts.

B. Greater emphasis on personal selling and personal networking.

c. Faster decision making; more personal responsibility.

d. Better profit margins; lower costs and greater flexibility.

13. According to Schumpeter, Innovation occur in the following forms:

a. 2

B. 3

c. 4

d. 5

14. Innovative entrepreneur ensures:

a. Static equilibrium

B. Dynamic equilibrium

c. Static disequilibrium

d. Dynamic disequilibrium

15. The book “Innovation and Entrepreneurship” is written by:

a. J.B. Say

B. J.A. Schumpeter

c. Peter F. Drucker

d. Cantillon

16. No. of sources for innovative opportunity is given by Peter Drucker.

a. 5

B. 6

c. 7

d. 8

17. Fabian Entrepreneurs are characterized by:

a. Hardworking

B. Religious and traditional

c. Shy and Lazy

d. Ready to take risk

18. Drone entrepreneur are those who generally

a. Earn super profit

B. Earn normal profit

c. Earn profit or even losses

d. Incur losses

19. Systematic innovation means

a. Monitoring different sources of or innovative opportunity

B. Developing different types of entrepreneurial behavior

c. Identifying different new business opportunity

d. Creating bases for systematic creativity

20. Supply of entrepreneur depends on the

a. Rate of the profit available

B. Prevailing social climate

c. Rate of profit and social climate

d. None of the above

21. The 'enterprise culture' is a general interest in developing new ventures

a. True

B. False

c. all

d. none

22. Which of the following is presented as evidence of social factors influencing whethersomeone becomes an owner-manager?

a. Although people believe self-employment runs in families, there is little evidence to support this view.

B. There seems to be little relationship between self-employment and age.

c. Self-employment is more common among some ethnic groups.

d. Self-employment is more common among single people than among the married.

23. Which of the following is not one of the environmental factors that may influence the potential of a small business?

a. Close contacts with customers related to problem solving activities

B. Clusters of technically advanced small firms

c. An industry with economies of scale

d. Banks recognising the needs of small firms

24. What factors have contributed to the blurring of boundaries between different industries?

a. Technological innovation; political change; legal and socio-economic changes

B. Technological innovation

c. Changes amongst customers, competitors and suppliers

d. Both (a) and (d)

25. One of the differences between marketing in a corporate setting and an entrepreneurial one is the reliance by the entrepreneur on personal credibility and skills in persuasive communication.

a. True

B. False

c. all

d. none

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