McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Master of Business Administration (MBA) .
Chapters
| 101. |
All of the following are questions an opportunity assessment plan might answer except: |
| A. | How much capital do I need? |
| B. | What market need does it fill? |
| C. | What business skills do I have? |
| D. | Can a patent be obtained? |
| Answer» A. How much capital do I need? | |
| 102. |
Which of the following statements is (are) true? |
| A. | The business plan describes both internal and external elements. |
| B. | The preliminary business plan should be prepared by a lawyer. |
| C. | Most business plan resources on the Internet are too complex and expensive to be of use to the new venture. |
| D. | Once made, a business plan should not be changed. |
| Answer» A. The business plan describes both internal and external elements. | |
| 103. |
Which of the following interested parties should not have access to the venture's business plan? |
| A. | Competitors |
| B. | Lenders |
| C. | Investors |
| D. | Suppliers |
| Answer» A. Competitors | |
| 104. |
The depth and detail of a business plan depend on: |
| A. | The target audience. |
| B. | The size and scope of the new venture. |
| C. | The experience of the entrepreneur. |
| D. | The amount of capital needed. |
| Answer» B. The size and scope of the new venture. | |
| 105. |
When evaluating business plans _________ are primarily concerned with the general guidelines of credit. |
| A. | investors |
| B. | employees |
| C. | vendors |
| D. | lenders |
| Answer» D. lenders | |
| 106. |
Equity investors often place more emphasis on the entrepreneur's _________ than lenders do. |
| A. | character |
| B. | experience |
| C. | financial records |
| D. | personal viewpoint |
| Answer» A. character | |
| 107. |
Which of the following documents is not usually included in the Financial Plan? |
| A. | Statement of cash flows |
| B. | Income statement |
| C. | Price lists from suppliers |
| D. | Projected balance sheet |
| Answer» C. Price lists from suppliers | |
| 108. |
_______ identifies potential hazards and alternative strategies to meet business plan goals and objectives. |
| A. | Assessment of risk |
| B. | Financial planning |
| C. | Alternative planning analysis |
| D. | The financial plan |
| Answer» A. Assessment of risk | |
| 109. |
All of the following are questions that should be considered in the environmental and industry analysis section of the business plan except: |
| A. | what are total industry sales over the past five years? |
| B. | Who are the nearest competitors? |
| C. | What is my promotional strategy? |
| D. | What is anticipated growth in this industry? |
| Answer» C. What is my promotional strategy? | |
| 110. |
New small business owners have which of the following two common motivations? |
| A. | Be their own bosses, greater reward potential |
| B. | Achieve dependence, less reward potential |
| C. | Achieves dependence, become a stakeholder |
| D. | Be their own bosses, lower reward potential |
| Answer» A. Be their own bosses, greater reward potential | |
| 111. |
The other names for a small business include: |
| A. | Entrepreneurial businesses |
| B. | Small businesses |
| C. | Small-to-medium-sized-businesses |
| D. | none |
| Answer» D. none | |
| 112. |
According to development commissioner a sick company should have : |
| A. | Less than 50% capacity utilization |
| B. | More than 50% erosion in net worth |
| C. | Unit has remained closed for a period of more than six months |
| D. | Bank financing is restricted to 25% of networth. |
| Answer» D. Bank financing is restricted to 25% of networth. | |
| 113. |
Incipient sickness is not an indication of: |
| A. | Continuous cash losses from year to year and trend is expected to continue in future |
| B. | Continuous losses for last two years |
| C. | Deterioration in the current ratio |
| D. | Gradual erosion in the networth during the previous and current financial years |
| Answer» B. Continuous losses for last two years | |
| 114. |
Industrial sickness occurs as per Kapoor Committee if: |
| A. | Cash losses to a minimum 50% of networth |
| B. | Cash losses to a maximum 50% of peak networth |
| C. | Accumulated cash losses to a minimum 50% of peak networth |
| D. | Cash losses to a maximum 50% of networth |
| Answer» C. Accumulated cash losses to a minimum 50% of peak networth | |
| 115. |
BIFR became operational from: |
| A. | 1st April, 1987 |
| B. | 15th May, 1987 |
| C. | 1st July, 1987 |
| D. | 30th Sept. 1987 |
| Answer» B. 15th May, 1987 | |
| 116. |
Committee concerned with industrial sickness is: |
| A. | Kapoor committee |
| B. | Nayak committee |
| C. | Goswami committee |
| D. | Gupta committee |
| Answer» C. Goswami committee | |
| 117. |
Tiny sector was launched by |
| A. | IPR-1948 |
| B. | IPR- 1980 |
| C. | IPR- 1985 |
| D. | IPR- 1990 |
| Answer» C. IPR- 1985 | |
| 118. |
Number of items dereserved during 2001-02 was: |
| A. | 45 |
| B. | 49 |
| C. | 50 |
| D. | 51 |
| Answer» D. 51 | |
| 119. |
Nayak Committee was concerned with: |
| A. | Reservation of items |
| B. | Subsidy and incentives |
| C. | Investment ceiling |
| D. | Institutional credit |
| Answer» D. Institutional credit | |
| 120. |
Which Committee has given focus on cluster system; |
| A. | Kapoor committee |
| B. | Nayak committee |
| C. | Goswami committee |
| D. | AbidHussain Committee |
| Answer» D. AbidHussain Committee | |
| 121. |
Abolition of Reservations was recommended by: |
| A. | Kapoor committee |
| B. | Nayak committee |
| C. | AbidHussain committee |
| D. | Gupta committee |
| Answer» C. AbidHussain committee | |
| 122. |
Kapoor Committee was constituted to assess: |
| A. | Reservation of items |
| B. | Investment ceiling |
| C. | Credit delivery system |
| D. | Government support system |
| Answer» D. Government support system | |
| 123. |
Policy of reservation was primarily initiated in |
| A. | 1976 |
| B. | 1967 |
| C. | 1997 |
| D. | 1982 |
| Answer» B. 1967 | |
| 124. |
Violation of reservation policy is punishable under |
| A. | Small Industries act |
| B. | Consumer protection act |
| C. | I (D & R) Act |
| D. | None of the above |
| Answer» C. I (D & R) Act | |
| 125. |
______ are three basic forms of franchising. |
| A. | Sole proprietorship, partnership, and corporation |
| B. | Product, service, and mix-format |
| C. | Trade name, product distribution, and business format |
| D. | Regional, local, and global |
| Answer» C. Trade name, product distribution, and business format | |
| 126. |
______ is a document designed to detail the major characteristics of a firm. |
| A. | Mission statement |
| B. | Business plan |
| C. | Executive summary |
| D. | Marketing plan |
| Answer» B. Business plan | |
| 127. |
______ is NOT a business plan concern of family and friend investors. |
| A. | Amounts and schedules for returns |
| B. | Funds use |
| C. | Competitive advantage |
| D. | Stability of firm |
| Answer» C. Competitive advantage | |
| 128. |
All of these are business plan concerns of bankers EXCEPT |
| A. | Monitoring compliance. |
| B. | Asset/collateral base. |
| C. | Cash flow and cash cycle. |
| D. | Long-term prospects. |
| Answer» A. Monitoring compliance. | |
| 129. |
______ is not included in the business planning presentation types. |
| A. | Mission |
| B. | Elevator pitch |
| C. | Executive summary |
| D. | Annual objectives |
| Answer» D. Annual objectives | |
| 130. |
What is an ideal length of an elevator pitch? |
| A. | 20 – 50 words |
| B. | 250 – 500 words |
| C. | 60 – 100 words |
| D. | 5 – 10 words |
| Answer» C. 60 – 100 words | |
| 131. |
The firm's goals and competitive advantages can be described by |
| A. | Mission statement. |
| B. | Vision statement. |
| C. | Executive summary. |
| D. | Elevator pitch. |
| Answer» A. Mission statement. | |
| 132. |
_______ is a one- to two-page overview of the business, its business model, market, expectations, and immediate goals. |
| A. | Vision statement |
| B. | Executive summary |
| C. | Mission statement |
| D. | Elevator pitch |
| Answer» B. Executive summary | |
| 133. |
The appropriate size for a business plan, where the type of business is well established is |
| A. | 25 pages. |
| B. | 10 pages. |
| C. | 10 pages. |
| D. | 40 pages. |
| Answer» C. 10 pages. | |
| 134. |
A one-page document on letterhead introducing the business plan is considered a |
| A. | Cover letter. |
| B. | Business plan. |
| C. | Outline. |
| D. | Executive summary. |
| Answer» A. Cover letter. | |
| 135. |
______ is a product or service that is kept as a trade secret or is protected legally using patients, trademarks, copyright, or service mark. |
| A. | Tagline |
| B. | Pioneering business |
| C. | Test marketing |
| D. | Proprietary technology |
| Answer» C. Test marketing | |
| 136. |
______ is NOT an idea that good marketing strategy focuses on. |
| A. | Harvesting the business plan |
| B. | Overall strategy your firm pursues in the market |
| C. | The sales plan |
| D. | The longer-term competitive plan |
| Answer» A. Harvesting the business plan | |
| 137. |
______ is a statement that is not expected in the business plan. |
| A. | Balance sheet |
| B. | Income statement |
| C. | SEC filing statement |
| D. | Cash flow statement |
| Answer» C. SEC filing statement | |
| 138. |
______ is when a firm sells its products in a limited area, for a limited time. |
| A. | R & D venture |
| B. | Pioneering business |
| C. | New entrant business |
| D. | Test marketing |
| Answer» D. Test marketing | |
| 139. |
______ is a firm whose product is new to the industry. |
| A. | R & D venture |
| B. | Pioneering business |
| C. | New entrant business |
| D. | Test marketing |
| Answer» B. Pioneering business | |
| 140. |
All of these are special purpose plans EXCEPT which of these? |
| A. | Business plan |
| B. | Screening plan |
| C. | Invention plan |
| D. | Informational plan |
| Answer» A. Business plan | |
| 141. |
______ provides information on the company and critical risks to prospective business partners. |
| A. | Partner plan |
| B. | Invention plan |
| C. | Operational plan |
| D. | Concept plan |
| Answer» A. Partner plan | |
| 142. |
Out of the total population of people you approach, __________ is the percentage of people who buy. |
| A. | Mini plan |
| B. | Test marketing |
| C. | Hit rate |
| D. | Proof-of-concept |
| Answer» C. Hit rate | |
| 143. |
The distinction between an "entrepreneur" and "small business owner" , if made, revolves around: |
| A. | a.really nothing; they are truly one and the same |
| B. | b.the Small Business Administration definitions |
| C. | c.whether the business is an Internet based one or not |
| D. | d.the risk taking or re-invention of a business vs. someone who "simply" starts a |
| Answer» B. b.the Small Business Administration definitions | |
| 144. |
Which of the following was NOT one of the classifications of entrepreneurs presented in our text? |
| A. | Franchise entrepreneur |
| B. | Classic entrepreneur |
| C. | Multipreneur |
| D. | Intrapreneur |
| Answer» A. Franchise entrepreneur | |
| 145. |
The primary reason entrepeneurs start companies is to: |
| A. | prove they could do it |
| B. | recover from a layoff |
| C. | create something new |
| D. | make money |
| Answer» C. create something new | |
| 146. |
One study found that entrepreneurs tend to demonstrate all of the following traits except: |
| A. | opinionated |
| B. | emotionally aloof |
| C. | calm |
| D. | focused |
| Answer» A. opinionated | |
| 147. |
The technical characteristics of the small business would include all of the following except: |
| A. | independently managed |
| B. | owned by an individual or a small group of investors |
| C. | based locally, even though the market might be widespread |
| D. | significant influence in its industry |
| Answer» B. owned by an individual or a small group of investors | |
| 148. |
Which of the following might be termed a disadvantage faced by the small business? |
| A. | a.greater flexibility |
| B. | b.greater ability to serve specialized markets |
| C. | c.extreme personal commitment of the owner |
| D. | d.more personal service |
| Answer» D. d.more personal service | |
| 149. |
Key features of a well written business plan would include all of the following except: |
| A. | financial plan |
| B. | description of the product |
| C. | an analysis of the market |
| D. | a review of the advertising firms analyzed |
| Answer» D. a review of the advertising firms analyzed | |
| 150. |
Which of the following is not a main element of the project management process? |
| A. | Estimation. |
| B. | Schedule. |
| C. | Monitor. |
| D. | Systems design. |
| Answer» D. Systems design. | |
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