220+ Entrepreneurship and Small Business Management Solved MCQs

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Master of Business Administration (MBA) .

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51.	_____ includes initiative and risk taking, as well as competitive aggressiveness and boldness.
A.	New business venturing
B.	Self-renewal
C.	Innovativeness
D.	Proactive Behavior
Answer» B. Self-renewal

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52.	In regards to the differences between the entrepreneurial and administrative focuses which of the following is correct?
A.	Entrepreneurs focus on slow steady growth and managers’ focus on rapid growth
B.	Entrepreneurs rent or sporadically use resources; managers like to own resources
C.	Entrepreneurs are driven by controlled resources; managers by opportunity
D.	Entrepreneurs tend to use a hierarchical management structure; managers use a more fluid, flat approach
Answer» D. Entrepreneurs tend to use a hierarchical management structure; managers use a more fluid, flat approach

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53.	. Entrepreneurial culture and growth orientation consists of all of the following except:
A.	Encouraging employees to generate ideas.
B.	Focusing on opportunities.
C.	The desire to grow at a slow and controlled pace.
D.	Being creative.
Answer» A. Encouraging employees to generate ideas.

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54.	All these are characteristics of an entrepreneurial environment except:
A.	there is short term horizons.
B.	new ideas are encouraged.
C.	the organization operates on frontiers of technology.
D.	it uses a multidiscipline teamwork approach.
Answer» B. new ideas are encouraged.

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55.	Which of the following is true about corporate entrepreneurship (Inrapreneurship)?
A.	Equity in a new venture should not be used as a reward due to its uncertain value
B.	A company must be willing to invest money without a guarantee of a return in the short term
C.	Teams should be segmented by department
D.	Top management should not be involved in the process.
Answer» B. A company must be willing to invest money without a guarantee of a return in the short term

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56.	Which of the following is a disadvantage of the 'drafting a traditional business plan' approach?
A.	They do not reflect the way in which people shape their entrepreneurial visions.
B.	It can be difficult to explain your vision to other people.
C.	This approach lacks rigour.
D.	The process involved can help an entrepreneur to improve their own understanding
Answer» A. They do not reflect the way in which people shape their entrepreneurial visions.

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57.	Which of the following are 'drivers' underlying the opportunity business model?
A.	Societal, commercial, legal, technological, people
B.	Societal, commercial, legal, technological
C.	Societal, ethical, commercial, legal, technological
D.	Societal, commercial, legal, technological, environmental.
Answer» B. Societal, commercial, legal, technological

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58.	What are the main sources of entrepreneurial opportunity?
A.	Personal - entrepreneurs experience or perceive something that others do not.
B.	Secondary research - from industry analyses.
C.	Primary research - from speaking to potential customers to determine their needs.
D.	Observation - of other peoples' experiences with products and services.
Answer» A. Personal - entrepreneurs experience or perceive something that others do not.

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59.	Social innovation refers to:
A.	the introduction of new social practices, activities or ways of organizing.
B.	the introduction of novelties; the alteration of what is established by the introduction of new elements or forms.
C.	new designs, processes, marketing approaches, or a new way of conducting training.
D.	the means by which entrepreneurs exploit change as an opportunity for a different business or service.
Answer» A. the introduction of new social practices, activities or ways of organizing.

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60.	Entrepreneurial opportunities are a particular type of opportunity, which could lead you to create a self-sustaining venture.
A.	True
B.	False
C.	all
D.	none
Answer» A. True

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61.	Porter also argues that much of innovation is 'dependent on a single, major technological breakthrough rather than mundane and incremental'
A.	True
B.	False
C.	all
D.	none
Answer» B. False

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62.	In the creativity and innovation matrix, what is a 'medium level of creativity' and a 'medium level of innovation' referred to as?
A.	Winner
B.	Loser
C.	Mediocre
D.	Average
Answer» D. Average

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63.	The following example of networking represents which type of activity: In an entrepreneurial setting, you might be: renewing contact with a old school friend, now working in a finance house, to provide advice or support for the venture; converting an informal contact made while on holiday into a potential client; or building a much closer relationship with a supplier, which may lead to a formal alliance or merger.
A.	Creating new ties
B.	Renewing and pruning existing ties
C.	Developing existing ties
D.	Extending existing ties
Answer» A. Creating new ties

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64.	_________ __________ between people in the personal contact network play an important communications role, enabling the entrepreneur to identify opportunities that are not evident to others.
A.	Good relations
B.	Weak ties
C.	Strong ties
D.	Unique connections
Answer» C. Strong ties

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65.	What are the missing words in the following definition: 'The management of regular marketing can be characterized by a careful planning process which is informed by _____ _____ to guide the selection of target markets and the composition of a marketing mix with which to position products competitively within the marketplace.
A.	Environmental forecasting
B.	Market research
C.	Product analysis
D.	Customer understanding
Answer» B. Market research

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66.	What characterizes the techniques used in entrepreneurial marketing?
A.	Mass media, passive reception, customer resistance
B.	Low cost, word-of-mouth
C.	Informal, personal and strongly interactive
D.	Guerrilla marketing and ambush marketing
Answer» C. Informal, personal and strongly interactive

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67.	New entrepreneurial ventures face the same marketing opportunities and challenges, as compared to their larger and more well-established counterparts.
A.	True
B.	False
C.	all
D.	none
Answer» B. False

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68.	Business opportunity relates with
A.	Business possibilities
B.	Commercially feasible projects
C.	Risky projects
D.	Favourable market demand
Answer» B. Commercially feasible projects

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69.	Early growth stage fails to consider following symptoms.
A.	Very slow
B.	Perceived comfort zone
C.	Very rapid
D.	Rapid
Answer» D. Rapid

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70.	Very rapid situation indicates
A.	Increase in production
B.	Rapid increase in production
C.	Rapid increase in sales
D.	Increase in sales
Answer» D. Increase in sales

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71.	Enterprise positioning is meant for
A.	Short-term arrangement
B.	Continuous process
C.	Long-term process
D.	None of the above
Answer» C. Long-term process

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72.	Techno-economic analysis deals with identification of the
A.	Supply potential
B.	Demand potential
C.	Export potential
D.	Import potential
Answer» B. Demand potential

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73.	Input analysis relates with
A.	Funding requirement
B.	Material requirement
C.	Labour requirement
D.	Resource requirement
Answer» D. Resource requirement

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74.	General objective of selecting a location is not he following
A.	Minimise the cost of production
B.	Minimise the distribution cost
C.	Minimise the cost of capital
D.	None of the above
Answer» C. Minimise the cost of capital

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75.	External economies affect location
A.	Generally
B.	Exceptionally
C.	All of the above
D.	None of the above
Answer» B. Exceptionally

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76.	The initial stages of the entrepreneurial process are generating new business ideas (i.e. creativity and innovation) and recognizing opportunities that have the potential for exploitation (i.e. evaluation and selection).
A.	True
B.	False
C.	all
D.	none
Answer» A. True

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77.	Which of the following is NOT one of the definitions of 'business models' as identified in the text?
A.	The system of components, linkages and associated dynamics, which that make commercial advantage of the Internet.
B.	A business model describes the rationale of how an organization creates, delivers and captures value.
C.	Business models identify where the resources necessary to establish a venture will come from.
D.	Business models describe, as a system, how the pieces fit together.
Answer» C. Business models identify where the resources necessary to establish a venture will come from.

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78.	Which of the following statements is true?
A.	The entrepreneurial process starts with creativity and the task of generating new ideas.
B.	The creativity process starts with innovation and the task of generating new ideas.
C.	The idea generation process starts with creativity and the task of innovation.
D.	The innovation process starts with creativity and the task of generating new ideas.
Answer» D. The innovation process starts with creativity and the task of generating new ideas.

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79.	What are markets made up of?
A.	Customers and competitors
B.	Customers and potential customers
C.	Customers, competitors and suppliers
D.	Customer, competitors, suppliers and regulators
Answer» B. Customers and potential customers

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80.	Product development process involves
A.	One stage
B.	Two stage
C.	Three stage
D.	Four stage
Answer» D. Four stage

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81.	Incubation stage deals with
A.	Sample development
B.	Idea development
C.	Prototype Development
D.	None of the above
Answer» C. Prototype Development

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82.	Product design defines
A.	Micro activities of the project
B.	Macro activities of the project
C.	Allied activities of the project
D.	Individual activities of the project
Answer» A. Micro activities of the project

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83.	Feasibility study is defined as
A.	Formal investigation of profitable opportunity
B.	Informal investigation of profitable opportunities
C.	Intensive investigation of profitable opportunities
D.	None of the above
Answer» A. Formal investigation of profitable opportunity

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84.	Project selection is
A.	Product idea is used as a basis for project idea
B.	Project idea is used as a basis for product idea
C.	Both are the same
D.	None of the above
Answer» A. Product idea is used as a basis for project idea

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85.	General criteria is concerned with
A.	Entrepreneur’s own interests
B.	Economic development of the country
C.	Business environment of the country
D.	None of the above
Answer» A. Entrepreneur’s own interests

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86.	A(n) ________ is defined as a form of business that is an association of two or more people acting as co-owners of a business.
A.	proprietorship
B.	partnership
C.	INC
D.	corporation
Answer» B. partnership

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87.	Which one of the following would not be considered an advantage to a partnership formation?
A.	Potential for double taxation
B.	Less governmental control
C.	Ease of formation
D.	Direct share of profits
Answer» A. Potential for double taxation

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88.	Which one of the following would not be considered a disadvantage of a corporation?
A.	Limited continuality of life of enterprise
B.	Extensive government regulations of activities
C.	High incorporation fees
D.	Corporate capital, profits, dividends, and salaries are double taxed
Answer» A. Limited continuality of life of enterprise

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89.	Entrepreneurships require financial backing in order to get started in the business world. Which of the following is not one of the methods commonly utilized to obtain the financial resources needed?
A.	Equity
B.	Commercial loans
C.	Personal finances provided by friends
D.	Venture capitalists
Answer» D. Venture capitalists

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90.	Of the following, which one would not be considered an alternative to independent entrepreneurship?
A.	Franchise
B.	Spin-off
C.	Intrapreneurship
D.	Extrapreneurship
Answer» B. Spin-off

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91.	Of the following, which is best identified as an independent entrepreneurship that produces a product or service that originated in a large company?
A.	Diversification
B.	Intrapreneurship
C.	Trade-off
D.	Franchise
Answer» A. Diversification

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92.	Management tactics purported to maximize innovation for an entrepreneurship include all but which of the following items?
A.	Cutting of losses
B.	Culture
C.	Benchmarking
D.	Customer orientation
Answer» B. Culture

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93.	In franchising, the entrepreneur assumes fewer risks because the franchise provides all but which one of the following?
A.	Established market for the product
B.	Management assistance in operating the business
C.	Economies of scale for purchasing
D.	Oversale of rights
Answer» A. Established market for the product

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94.	The ideas for new businesses that are obtained by entrepreneurs are derived from many sources. These various sources include all but _______.
A.	replication of an existing business
B.	trade journals
C.	trade shows
D.	family members
Answer» A. replication of an existing business

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95.	The steps involved in an entrepreneurial endeavor include all but which one of the following?
A.	Business plan formulation
B.	Obtaining financing
C.	Selecting the type of legal structure
D.	Hiring a partner
Answer» D. Hiring a partner

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96.	Common reasons for entrepreneurial failure include all but which one of the following?
A.	Poor implementation
B.	Lack of capital
C.	Adequate financial support
D.	Faulty product design
Answer» C. Adequate financial support

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97.	A/An ________ is defined as the blueprint describing the business strategy for entering the
A.	business alliance
B.	spin-off
C.	intrapreneurship
D.	competitor analysis
Answer» C. intrapreneurship

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98.	A(n) ________ is defined as a form of business that is an association of two or more people acting as co-owners of a business.
A.	proprietorship
B.	partnership
C.	INC
D.	corporation
Answer» B. partnership

discuss

99.	______ is best described as doing something differently and has been described as discontinuous or complementary change.
A.	Entrepreneurship
B.	Innovation
C.	Spin-off
D.	Variance
Answer» B. Innovation

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100.	An opportunity assessment plan:
A.	is the same thing as a business plan.
B.	is longer than a business plan.
C.	has a lot of computer-based spreadsheets.
D.	focuses on the opportunity, not the venture.
Answer» D. focuses on the opportunity, not the venture.

discuss

220+ Entrepreneurship and Small Business Management Solved MCQs

_____ includes initiative and risk taking, as well as competitive aggressiveness and boldness.

In regards to the differences between the entrepreneurial and administrative focuses which of the following is correct?

. Entrepreneurial culture and growth orientation consists of all of the following except:

All these are characteristics of an entrepreneurial environment except:

Which of the following is true about corporate entrepreneurship (Inrapreneurship)?

Which of the following is a disadvantage of the 'drafting a traditional business plan' approach?

Which of the following are 'drivers' underlying the opportunity business model?

What are the main sources of entrepreneurial opportunity?

Social innovation refers to:

Entrepreneurial opportunities are a particular type of opportunity, which could lead you to create a self-sustaining venture.

Porter also argues that much of innovation is 'dependent on a single, major technological breakthrough rather than mundane and incremental'

In the creativity and innovation matrix, what is a 'medium level of creativity' and a 'medium level of innovation' referred to as?

_________ __________ between people in the personal contact network play an important communications role, enabling the entrepreneur to identify opportunities that are not evident to others.

What characterizes the techniques used in entrepreneurial marketing?

New entrepreneurial ventures face the same marketing opportunities and challenges, as compared to their larger and more well-established counterparts.

Business opportunity relates with

Early growth stage fails to consider following symptoms.

Very rapid situation indicates

Enterprise positioning is meant for

Techno-economic analysis deals with identification of the

Input analysis relates with

General objective of selecting a location is not he following

External economies affect location

The initial stages of the entrepreneurial process are generating new business ideas (i.e. creativity and innovation) and recognizing opportunities that have the potential for exploitation (i.e. evaluation and selection).

Which of the following is NOT one of the definitions of 'business models' as identified in the text?

Which of the following statements is true?

What are markets made up of?

Product development process involves

Incubation stage deals with

Product design defines

Feasibility study is defined as

Project selection is

General criteria is concerned with

A(n) ________ is defined as a form of business that is an association of two or more people acting as co-owners of a business.

Which one of the following would not be considered an advantage to a partnership formation?

Which one of the following would not be considered a disadvantage of a corporation?

Entrepreneurships require financial backing in order to get started in the business world. Which of the following is not one of the methods commonly utilized to obtain the financial resources needed?

Of the following, which one would not be considered an alternative to independent entrepreneurship?

Of the following, which is best identified as an independent entrepreneurship that produces a product or service that originated in a large company?

Management tactics purported to maximize innovation for an entrepreneurship include all but which of the following items?

In franchising, the entrepreneur assumes fewer risks because the franchise provides all but which one of the following?

The ideas for new businesses that are obtained by entrepreneurs are derived from many sources. These various sources include all but _______.

The steps involved in an entrepreneurial endeavor include all but which one of the following?

Common reasons for entrepreneurial failure include all but which one of the following?

A/An ________ is defined as the blueprint describing the business strategy for entering the

A(n) ________ is defined as a form of business that is an association of two or more people acting as co-owners of a business.

______ is best described as doing something differently and has been described as discontinuous or complementary change.

An opportunity assessment plan:

_ __ between people in the personal contact network play an important communications role, enabling the entrepreneur to identify opportunities that are not evident to others.