RIPHAH INTERNATIONAL UNIVERSITY

Riphah School of Leadership

Entrepreneurship

Teacher: Dean. Aman Ullah Khan Marks: 50

Semester: MBA 4th Time: 3 Hours

NOTE: Attempt all 100 questions.

Q1. An individual who initiates, creates d) Dual innovation

and manages a new business can be d) An acquirer
called Q6. Which of the following might be
a) A leader considered to be typical characteristics
b) A manager of entrepreneurs
c) A professional 1 Ability to seize opportunities
d) An entrepreneur 2 Persistent
Q2. A person owning and running a 3 Optimistic
small firm, is known as 4 The desire to be a winner
a) A manager-owner a) 4 only
b) An owner-manager b) 1 and 2 only
c) A professional adapter c) 1, 2 and 3 only
d) An enterprise worker d) 1, 2, 3 and 4
Q3. Zimmerer and Scarborough (2002) Q7. Which could provide an individual
define an entrepreneur as “one who with the motivation to start a new
creates a business venture
new business in the face of risk and 1 The financial rewards
uncertainty for the purpose of achieving 2 A desire to be independent
profit and 3 Being made redundant from existing
growth by identifying……….. job
a) Products 4 The desire to develop a hobby
b) People a) 1 only
c) Opportunities b) 1 and 2 only
d) Jobs c) 3 only
Q4. Someone who improves an existing d) 1, 2, 3 and 4
business can be called Q 8. Which of the following
a) An intrapreneur government actions could contribute to a
b) A professional more entrepreneurial society
c) A co-worker 1 Deregulation
d) A changeling 2 Financial start-up
Q5. Where individual skills are 3 Information and advice
collectively integrated into a group, this 4 Reduction in interest rates
is known as a) 1 only
a) Collective entrepreneurship b) 4 only
b) Intrapreneurship c) 3 and 4 only
c) Team entrepreneurship d) 1, 2, 3 and 4

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Q 9. Which industrial sector tends to b) A franchise
naturally promote small-scale businesses c) An owner-manager business
and entrepreneurship, and generally has d) A limited company
lower barriers to market entry Q14. One of the disadvantages of a
a) Service franchise business for a franchisee is
b) Manufacturing a) Lack of independence
c) Distribution b) Franchise businesses typically have a
d) Agriculture high failure rate
d) Young Initiative c) Lack of brand identity
d) Training is not normally provided by
Q10. Why are small businesses the franchisor
important to a country’s economy Q15. One of the key legal documents
1 They give an outlet for entrepreneurs required in the formation of a limited
2 They can provide specialist support to company is
larger companies a) A PAYE statement
3 They can be innovators of new b) The articles of registration
products c) A memorandum of association
4 They provide competition to large d) Registration of corporation
companies Q16. The use of informal networks by
a) 2 and 4 only entrepreneurs to gather information is
b) 1 and 3 only known as
c) 1 only a) Secondary research
d) 1, 2, 3 and 4 b) Entrepreneurial networking
Q11. Where there is no legal separation c) Informal parameters
between the assets and liabilities of a d) Marketing data
business, and the assets and liabilities of Q17. Good sources of information for
an individual, the business is an entrepreneur about competitors can be
a) A sole trader obtained from
b) A limited company 1 Websites
c) A cooperative 2 Product information leaflets
d) A partnership 3 Company reports and published
Q12. Intellectual Property laws can accounts
protect 4 Franchisors
1 Trademarks a) 1, 2, 3 and 4
2 Copyright b) 1, 2 and 3 only
3 Patents c) 3 only
4 Customer loyalty d) 1 only
a) 2 only Q18. Data that already exists about
b) 3 only potential markets is known as
c) 1, 2 and 3 a) Primary data
d) 1, 2, 3 and 4 b) Secondary data
Q13. A business arrangement where one c) Intelligent data
party allows another party to use a d) Association data
business name and sell its products or
services is known as
a) A cooperative

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Q19. What is the role of a “Business 2 The size of each market segment
Angel?” 3 The key characteristics of buyers in
a) To provide small business advice each business segment
b) To provide capital for business 4 A description of your product offering
development in exchange for a stake in a) 1 only
the business ownership b) 1 and 2 only
c) To set up a franchise business c) 1, 2 and 3 only
d) To assist an entrepreneur to open a d) 1, 2, 3 and 4
lifestyle business Q25. A key aspect of the financial
Q20. Acquiring the use of equipment section of the business plan is
such as machinery without owning it, is a) A statement of management skills
known as b) A realistic sales forecast
a) Leasing c) Production capacity
b) Hire purchase d) A description of competitors
c) Factoring Q 26. As a new company grows, the
d) Acquisition entrepreneur will need to
Q21. A new venture’s business plan is 1 Be responsive to changes in the market
important because 2 Ensure financial controls are
1 It helps to persuade others to commit maintained
funding to the venture 3 Build a management team
2 Can help demonstrate the viability of 4 Determine roles and responsibilities in
the venture the business
3 Provides a guide for business activities a) 1 only
by defining objectives b) 1 and 2 only
4 Forms a benchmark by which to asses c) 3 and 4 only
performance d) 1, 2, 3 and 4
a) 1 only Q 27. A business plan should be
b) 1 and 2 only produced
c) 3 and 4 only 1 At a new business start-up
d) 1, 2, 3 and 4 2 As part of an on-going review
Q22. Which type of business should 3 When the entrepreneur is faced with a
prepare a business plan for a new major decision
venture 4 Every month
a) Sole traders only a) 1 only
b) Limited companies only b) 2 and 3 only
c) All businesses c) 1, 2 and 3 only
d) Only those asked to by the bank d) 4 only
Q23. A cash flow forecast will form part Q 28. The business planning process
of which section of the business plan sometimes fails because
a) Operations 1 The planning process is poorly
b) Marketing managed
c) Finance 2 Plans are impractical
d) Executive summary 3 Planners lack the appropriate skills
Q24. The “Markets and Competitors” 4 Lack of government support
section of a business plan should contain a) 1 only
1 A statement of the target market b) 1 and 2 only

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c) 1, 2 and 3 only
d) 1, 2, 3 and 4
Q29. One of the common mistakes
when starting a new business venture is
being overoptimistic about market size.
This could be a result of
1 Inaccurate planning
2 Poor market research
3 Diversifying too soon
4 Focusing on sales volume rather than
profit
a) 1 only
b) 1 and 2 only
c) 1, 2 and 4 only
d) 3 and 4 only
Q 30: International entrepreneur’s
decisions are more complex because of:
A. Business expansion
B. Analysis of Huge information is
difficult
C. Complex transactions
D. Uncontrollable factors
Q 31: Which one of the following is
NOT the problem in developing the
economies
under different developed countries?
A. Gap of knowledge
B. Variable rate of return
C. Different accounting system
D. Same communication style
Q 32: When the multiplicity of
environments become too complex to
handle, the
international entrepreneurs often
__________.
A. Go for mergers
B. Diversify
C. Decentralize operations
D. Sale out the foreign business
Q 33: In stage of responsibility
allocation process the entrepreneur
follows:
A. Highly decentralized decision making
process
B. Somewhat centralized decision
making process
C. Highly centralized decision making
process
D. No particular standard
Q 34: Following are the types of foreign
direct investment EXCEPT:
A. Joint venture
B. Management contracts
C. Management contracts
D. Merger
Q 35: An ice cream producing company
merges with a cotton spinning company
this
merger is an example of:
A. Product extension merger
B. Diversified activity merger
C. Market extension merger
D. Vertical merger
Q 36: Which one of the following gives
suggestions for new product but also
helps to
market new product in the market?
A. Existing products and services
B. Distribution channels
C. Federal government
D. Consumers
Q 37: Which one of the following is
important for international business to
avoid trade
barriers?
A. Protectionist attitude
B. Entrepreneurial partnering
C. Free trade areas
D. None of the given options
Q 38: Which one of the following is
NOT a source of idea generation?
A. Consumers
B. Brain storming
C. Focus group
D. None of the given options
Q#39: A patent is granted for a specified
amount of time because of the
assumption:
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A. That during this time firm will cover
its development costs
B. That firm will earn a sufficient profit
during this period
C. To limit the monopoly of the firm
D. That it will stimulate idea and
development of a better product
Q# 40: Which of the following is NOT
followed in brainstorming?
A. The wilder idea is better
B. Criticism is done by the group
members
C. Quantity of ideas is required
D. The session should be fun, with no on
dominating the discussion
Q# 41: Developing a new idea through
inquiry and testing is called:
A. Heuristics
B. Scientific method
C. Forced relationship
D. Value analysis
Q# 42: The product life cycle starts with
which stage of product planning and
development process?
A. Test marketing stage
B. Product development stage
C. Commercialization stage
D. Product planning and development
process is a part of product life cycle
Q# 43: The evaluation criteria for the
new product should include all of the
following,
EXCEPT:
A. Determination of market demand
B. Pricing and marketing policies of
other competing firms
C. Determination of the suppliers
D. Product should be profitable
Q# 44: Which of the following is NOT a
requirement of Disclosure Document?
A. Description of the invention
B. Photos of invention
C. Claims for invention’s usefulness
D. Cover letter
Q# 16: Which of the following grants the
owner protection from anyone else
making,
using and selling the identified
innovation?
A. Utility patent
B. Design patent
C. Plant patent
D. International patent
Q# 45: Which of the following can
NOT be covered under the copyright
protection?
A. Computer software
B. Computer hardware
C. Poems and songs
D. Models and sculpture
Q# 46: Licensing is a significant
marketing strategy to:
A. Use intellectual property of others
B. Pirate others’ patents
C. Grow the business in new markets
D. Control the costs
Q# 47: Which one of the following is the
main problem for the entrepreneur in the
beginning?
A. Lack of experience
B. Lack of education
C. None of the given options
D. Limited resources
Q 48: Which of the following is NOT
essential part of the contract?
A. All the parties involved should be
named
B. Transaction should be described in
detail
C. Obtain signatures of the persons
involved
D. Place where contract takes place
Q 49:A typical inventor is usually
A. Highly creative & in love with
the invention
B. Does not encourage change
C. Willing to modify the invention
in order to augment commercial
benefit
D. None of the given options
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 Q 50: Which one of the following is true
regarding female entrepreneurs?
a. Currently the number of companies
owned by female entrepreneurs
exceeds those owned by their male
counterparts
b. Women-owned businesses grow
thrice that national rate for all private
companies
c. 53 percent of all private companies
are women-owned businesses
d. One-third of women-owned
businesses are connected with health
care and social services
Q 51: All of the following are true
regarding male entrepreneurs EXCEPT:
a. Typically most male
entrepreneurs are first-borns
b. Dissatisfaction with present job
is a departure point for a male
entrepreneur
c. Male entrepreneurs mostly have
a occupational background of
middle-management or
administrative-experience in the
field
d. Male entrepreneurs tend to be
opinionated and persuasive in
their approach
Q 52: Please choose one
It has been observed that usually the
entire country is organized
under single:
a. Economic system
b. Culture
c. Living standard
d. Legal environment
Q 53: Following are the types of non-
equity arrangements EXCEPT:
a. Licensing
b. Management contracts
c. Direct export
d. Turnkey projects
Q 54:
Identify the type of innovation which
refers to new products with significant
technological advancement.
a. Ordinary innovation
b. Technological innovation
c. Breakthrough innovation
d. Technical innovation
Q 55: Which of the following best
defines “minority interest”?
a. It refers to having less than 50
percent ownership position
b. It refers to forming a third
company by combining two
companies
c. It refers to having more than 50
percent ownership position
d. It refers to selling goods made in
one country to another country
Q 56: Which of the following techniques
is an excellent method for initial
screening of ideas and concepts?
Focus group
Problem inventory analysis
Brain storming
Reverse brainstorming
Q 57:
Which of the following is an idea
generation method that focuses on
parameters?
a. Brainstorming
b. Reverse brainstorming
c. Creative problem solving
d. Synectics
Q 58:
Which of the following best describes
“contract”?
a. It refers to a legally binding
agreement between two parties
b. It grants holder protection from
others making, using or selling
similar idea
c. It may be a word, symbol, design
or some combination that identifies
the source of certain goods
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 d. It refers to a legal document
giving official permission to do
something
Q 59: There are three perspectives that
should be considered when preparing the
plan. Which of the following does NOT
refer to the
plan?
a. Entrepreneurial perspective
b. Marketing perspective
c. Investor’s perspective
d. Religious perspective
Q 60: Business plan should be prepared
by an entrepreneur. All of the following
should be consulted while preparing this
plan EXCEPT:
a. Lawyers
b. Accountants
c. Marketing consultants
d. General public
Q 61: Data that support the opportunity
for the venture should be briefly
stated in the executive summary. If this
venture is an internet business, all of the
following facts should be stated by an
entrepreneur EXCEPT:
a. Growth in the number of internet
users Growth in the average
amount of time spent on the
internet
b. Growth in sales dollars generated
on the internet
c. Growth rate of population
Q62: Individuals who help the
entrepreneur in business activities are
called:
a. Role models
b. Moral support networks
c. Professional support networks
d. Business support networks
Q 63:Following are the problems in
developing the economies EXCEPT:
a. Gap of knowledge
b. Variable rate of return
c. Same communication style
d. Different accounting system
Q 64: Which one the following is the
best protection against product Liability?
a. Avoid negligence
b. Warn consumers of any potential
hazards
c. Give warranty
d. Avoid misrepresentation
Q65: Which one of the following
reviews the trends and competitive
strategies?
a. Environmental analysis
b. Product forecast
c. Contingency plan
d. Industry analysis
Q66: A utility patent has a term of:
a. 10 years
b. 40 years
c. 20 years
d. 80 years
Q67: Which of the following body issues
patents?
a. GATT
b. NAFTA
c. FTA
d. PTO
Q68: Which of the following is a more
structured method of problem solving,
including principles and rules for
concept formation, making
observations and experiments, and
finally validating the hypothesis?
a. Scientific method
b. Heuristics
c. Attribute listing
d. Value analysis
Q69: Which one of the following gives
suggestions for new product and also
help to market new products?
a. Existing products and services
b. Distribution channels
c. Federal government
d. Consumers

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Q70: GATT is established in 1947,
under:
a. German leadership
b. French leadership
c. U.S. leadership
d. U.K. leadership
Q71:A foundation company is formed
through which of the following?
a. Fashion
b. Most popular business
c. A winding up company
d. Research and development
Q72: Which of the following is a fourth
step in the entrepreneurial process?
a. Developing successful business
ideas Deciding to become an
entrepreneur
b. Growing the entrepreneurial firm
c. Moving from an idea to an
entrepreneurial firm
Q73: Which one of the following is
NOT a phase of entrepreneurial
process?
a. Identification and evaluation of
opportunity
b. Development of business plan
c. Deciding to become an
entrepreneur
d. Determination of required
resources
Q74: Which one of the following is not
the intrapreneurial leadership
characteristic?
a. Understands environment
b. Encourage the team work
c. Not flexible
d. Persistent
Q75: Which of the following system is
necessary for expansion or elimination
of intrapreneurial units?
a. Management
b. Evaluation
c. Reward
d. Training
Q76: Professional support network
includes all of the following EXCEPT:
a. Personal affiliations
b. Mentor
c. Trade associations
d. Friends Page
Q77: Following are the types of foreign
direct investment EXCEPT:
a. Joint venture
b. Management contracts
c. Minority interest
d. Merger
Q78: Following are the types of non-
equity arrangements EXCEPT:
a. Licensing
b. Management contracts
c. Direct export
d. Turnkey projects
Q79: According to Henning and Jardim,
female executives tend to be
thefirstborn. Which of the following
supports this research?
a. Because firstborn has to be more
responsible
b. Because firstborn needs special
care
c. Because firstborn tends to be
more flexible
d. Because firstborn receives
special attention
Q80:In terms of personality, there are
strong similarities between men and
women entrepreneurs. Which of the
following does not refer to this
statement?
a. Both are energetic
b. Both are goal oriented
c. They want to be independent
d. Males are more confident than
women
Q81: “Paying for goods indirectly
through another source” refers to:
a. Barter
b. Trading
c. Third-party arrangement
d. Balance of payment
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Q82: Which of the following best b. Arbitrary marks
defines “diversified activity merger”? c. Suggestive marks
a. It refers to combining two firms d. Descriptive marks
with noncompeting products
b. It refers to forming a third Q86: Which of the following trademarks
company by combining two is used to suggest certain features,
companies qualities, ingredients or characteristics of
c. It refers to combining at least two a product or service?
totally unrelated firms a. Coined mark
d. It refers to combining at least two b. Arbitrary mark
firms at different market levels c. Suggestive mark
d. Descriptive mark
Q83: Which of the following statements Q87: The resistance of employees in an
best defines “brainstorming”? organization against flexibility, growth,
a. It refers to groups of individuals and diversification can be overcome by
providing in a structured format developing:
b. It refers to a group method for a. Entrepreneurship
obtaining new ideas and b. Intrapreneurship
solutions c. Managerial domain
c. It refers to a method for d. Administrative domain
obtaining new ideas and Q88: For the success of business plan the
solutions by focusing on goals should be
problems a. Limitless
d. It refers to a method for b. Generalized
obtaining new ideas focusing on c. Specific
the parameters d. Imaginary

Q84: Identify the statement which refers
to “licensing”.
a. It grants holder protection from
others making, using or selling
similar idea
b. It may be a word, symbol, design
or some combination that
identifies the source of certain
goods
c. It protects original works of
authorship
d. It is a contractual agreement
giving rights to others to use
intellectual property in return for
a royalty or fee
Q85:Which of the following denote no
relationship between the mark and the
goods or services?
a. Coined marks
Q89: LMM stands for:
a. Locally Manufactured Machinery
b. Locally Manufactured Marble
c. Local Marble Market
d. Local Meat Market
Q90:Which of the following is NOT
essential part of the contract?
a. All the parties involved should
be named
b. Transaction should be described
in detail
c. Obtain signatures of the persons
involved
d. Place where contract takes place
Q91: Normally sponsor links are used in
which of the following type of
promotion?
a. Publicity

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 b. Trade shows starting a new venture, to make an
c. Personal selling assessment of?
d. Internet advertising a. Risk
b. Profit
Q92: The Grameen Bank model is c. Market
affectively used by which of the d. Competitors
following institute? Q99. Before developing the pro forma
a. Education sector income statement, the entrepreneur
b. Finance Sector should
c. Rural Sector a. Prepare operating budgets
d. NGOs b. Capital budgets.
Q93: Which of the following usually is c. None of the options given
NOT deducted to the salaries? d. Both a ,b
a. Provident fund Q100: Which of the following statement
b. Income Tex is true?
c. Insurance a. Cash flow is same as profit.
d. Zakat b. Profit is the result of adding
Q94:LLC is more flexible than expenses from sales.
a. S Corporation c. Cash flow results from the
b. Limited Partnership difference between all cash
c. Sole Proprietor available and cash payments.
d. All of the above d. Cash flows only when actual
Q95: Which of the following is NOT an payments are made or received
example of collecting primary data?
a. Internet
b. Focus Group
c. Interview
d. Observation
Q96: Which two work environments
should be good for spawning the new
enterprises?
a. Finance and marketing
b. Finance and R&D
c. Marketing and R&D
d. Marketing and IT
Q97:Which one of the following is the
process of entrepreneurs developing new
products that over time make current
products obsolete?
a. Creative destruction
b. New business model
c. Anatomization
d. None of the given options
Q98: Which of the following is the most
important for the entrepreneur, while

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