MGT602 Midterm MCQs 2025

Q1. Major disadvantage of buying an existing business is:

1. Unsatisfactory location
2. Cultural diversity
3. Customers
4. Employee salary

Correct answer: Unsatisfactory location

Q2. The findings of Bolton report were published in.

1. 1970
2. 1972
3. 1971
4. 1973

Correct answer: 1971

Q3. Robotics manufacturing and reliance on high tech industrial resources are the fluent attribute of:

1. Efficiency driven economy
2. Innovation driven economy
3. Virtually driven economy
4. Factor driven economy

Correct answer: Innovation driven economy

Q4. A business that has to reinvest most of its earnings is considered as:

1. Valuable
2. Risky
3. Accountable
4. Unprofitable

Correct answer: Risky

Q5. Non quantitative factors play an important role while valuating a business. Which of the following is an important non quantitative factor to valuate a business?

1. Growth potential
2. Product packaging
3. Market rate
4. Union contracts

Correct answer: Growth potential

Q6. Findings of the Bolton report told the characteristics of:

1. Technological revolution
2. Small businesses
3. Industrial cartels
4. Multinational firms

Correct answer: Small businesses

Q7. Succession planning is also a major issue in __________business.

1. Young entrepreneurship
2. Co-entrepreneurship
3. Home based business
4. Family Business

Correct answer: Family Business

Q8. Enterprise nature of mankind urges him to look for solutions against a problem.

1. False
2. True

Correct answer: True

Q1. Which of the following economic indicator leads to becoming an entrepreneur?

1. All of the given options
2. Tax rebates
3. Industry growth rate
4. Price competition

Correct answer: All of the given options

Q2. Which of the following is an important advantage of buying an existing business?

1. Cultural diversity
2. Employee salary
3. Satisfactory Location
4. Fixed expenses

Correct answer: Satisfactory Location

Q3. A country is largely dependent on its agricultural output to strengthen its annual budget and other economic matters. That country has a:

1. Factor driven economy
2. Efficiency driven economy
3. Innovation driven economy
4. Crops driven economy

Correct answer: Factor driven economy

Q4. Findings of the Bolton report told the characteristics of:

1. Industrial cartels
2. Small businesses
3. Multinational firms
4. Technological revolution

Correct answer: Small businesses

Q5. Own investment is not considered as burden until business gets established.

1. True
2. False

Correct answer: True

Q6. Which one of the following is NOT a drawback of being an entrepreneur?

1. Fast growth
2. High income
3. Multitasking
4. High profits

Correct answer: Fast growth

Q7. Before buying any existing business, it is not necessary to consider potential of expansion.

1. True
2. False

Correct answer: False

Q8. All of the following are different ways to become an entrepreneur except:

1. Franchising
2. Starting new venture
3. Getting a new job
4. Joining family business

Correct answer: Getting a new job

Q9. Sajid wishes to start a new entrepreneurial venture and a business incubation center can primarily help him by providing:

1. Market space
2. Office space
3. List of customers
4. List of suppliers

Correct answer: Office space

Q10. New entrepreneurs read stories of successful entrepreneurs and overlook the struggle which frustrates them if they don’t reach the similar point of success. This concept is referred to as:

1. Inside-out approach
2. Academic spinout
3. Outside-in approach
4. Entrepreneurship myopia

Correct answer: Entrepreneurship myopia