MGT602 Final Term Past Papers 14 Set 2

FINALTERM EXAMINATION · Spring 2010 · MGT602- Entrepreneurship

Q1. Which one of the following is important for international business to avoid trade barriers? (1 marks)

1. Protectionist attitude
2. Entrepreneurial partnering
3. Free trade areas
4. None of the given options

Correct answer: Entrepreneurial partnering

VU TEACHER reply Let me explain in more detail for your better understanding that there are different sort of barriers to international trade such as General Agreement on Tariffs and Trade, increasing protectionist attitude, trade blocks and free trade areas. In response to avoid these barriers entrepreneurs adopt a strategy known as entrepreneurial partnering. According to this strategy an entrepreneur who wants to enter in international market makes partnership with another entrepreneur of a foreign country. As this partner have better knowledge of the country’s social and political environment that’s why business transactions have less chances of failures.

Q2. The concept of World Wide Web pages was developed in: (1 marks)

1. 1960s
2. 1970s
3. 1980s
4. 1990s

Correct answer: 1990s

Q3. Which one the following is the best protection against product liability? (1 marks)

1. Avoid negligence
2. Warn consumers of any potential hazards
3. Give warranty
4. Avoid misrepresentation

Correct answer: Warn consumers of any potential hazards

Q4. Which of the following is a powerful marketing tool for expansion of business in new market? (1 marks)

1. Licensing
2. Product safety
3. Insurance
4. Copy rights

Correct answer: Licensing

Ref: Licensing has significant value as a marketing strategy to holders of patents

Q5. Bankers say that most businesses fail because of the _____ inability to plan properly. (1 marks)

1. Investor’s
2. Marketer’s
3. Entrepreneur’s
4. Consultant’s

Correct answer: Entrepreneur’s

Bankers say that most businesses fail because of the entrepreneur’s inability to plan effectively (page 60)

Q6. Which of the following plan has names, addresses, and resumes of the directors and officers of the corporation? (1 marks)

1. Operations
2. Marketing
3. Production
4. Organizational

Correct answer: Organizational

Organizational Plan

The organizational plan section should describe the venture’s form of ownership. If the venture is a corporation, this should include the number of shares authorized, share options, and names and addresses of the directors and officers. It is helpful to provide an organization chart indicating the line of authority. This chart shows the investor who controls the organization and how members interact.

Q7. Which of the following is necessary to initiate the market research? (1 marks)

1. Data
2. Budget
3. Problem
4. Objectives

Correct answer: Data

arch&hl=en&ei=LK0HTdbHB4brOZTV3cMJ&sa=X&oi=book_result&ct=result&resnum=1&v ed=0CCMQ6AEwAA#v=onepage&q=initiate%20the%20market%20research&f=false

Q8. Which of the following should be considered when the market for new venture is highly concentrated? (1 marks)

1. Indirect Sale
2. Direct Sale
3. Market Research
4. None of the given options

Correct answer: Market Research

(vu teacher reply )

Q9. Which of the following is a process of dividing the market into smaller homogeneous groups? (1 marks)

1. Situation analysis
2. Marketing
3. Market segmentation
4. Target marketing

Correct answer: Market segmentation

Market segmentation is the process of dividing the market into smaller homogeneous groups. (page 65)

Q10. Which statement of the following relates with the ultimate goal of Business? (1 marks)

1. Vision Statement
2. Mission Statement
3. Goal Statement
4. Profit Statement

Correct answer: Vision Statement

Q11. Which of the following is the most sensitive plan in the business plan? (1 marks)

1. Financial Plan
2. Marketing Plan
3. Production Plan
4. Operational Plan

Correct answer: Marketing Plan

Q12. Which of the following shows the standard acceptable term of a Limited Liability Company? (1 marks)

1. Three
2. Ten
3. Twenty
4. Thirty

Correct answer: Thirty

The standard acceptable term of an LLC is 30 years.

(PAGE 73)

Q13. Which of the following shows the characteristic of the corporation with reference to taxation system? (1 marks)

1. Single taxation system
2. Double taxation system
3. Triple taxation system
4. No taxation system
5. Tax Issues for Corporation ( page 72)

The corporation has the advantage of being able to take many deductions not otherwise available. The disadvantage is that dividends are taxed twice. This double taxation can be avoided if the income is distributed as salary. The corporation tax may also be lower than the individual rate.

Q14. Which of the following statement provides projections of all operating expenses for each month of the first year? (1 marks)

1. The pro forma balance sheet
2. The pro forma income statement
3. The pro forma cash flow statement
4. The actual balance sheet

Correct answer: The pro forma income statement

The pro forma income statements also provide projections of all operating expenses for each month of the first year (page 78)

Q15. Which of the following is NOT the determinant of entrepreneur's ownership? (1 marks)

1. Cash
2. Debt