MGT602 Midterm Solved Papers by ZS Team

MIDTERM EXAMINATION · Spring 2009 · MGT602- Entrepreneurship

Solved by vuZs Team Mehreen Humayun

Time: 60 min Marks: 50

Q1. Which of the following has not yet been empirically established as a distinguishing characteristic of entrepreneurs? (1 marks)

 Locus of control  Feeling about independence  Need for achievement

 Risk taking

The traits most frequently researched are the need for achievement, locus of control, risk-taking, and gender identity.

Q2. The level at which an individual is viewed by society is called: (1 marks)

 Financial status  Qualification

 Social status

 Achievement Lesson 09 Social status: The level at which an individual in viewed by society

Q3. Which one of the following is a business arrangement in which someone else is allowed to use something of the company? (1 marks)

 Patent  Trade mark  Copy right

 Licensing

Lesson 11 Licensing involves a manufacturer giving a foreign manufacturer the right to use a patent, trademark, or technology in return for a royalty.

Q4. Which of the following method entrepreneur can use to do international business with least risk? (1 marks)

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 Turnkey projects

 Merger  Synergy Lesson 11 Turn-key projects: Lesser-developed countries are able to obtain manufacturing technology without surrendering economic control through turn-key projects.

Q5. A company dealing in beer has a merger with cigarettes manufacturing firm. This merger is called: (1 marks)

 Horizontal merger

 Product extension merger

 Market extension merger  Vertical merger

Q6. Which one of the following is an important source of idea generation due to their familiarity with the needs of market? (1 marks)

 Consumers

Q7. Members of distribution channels are excellent sources for new ideas because: (1 marks)

 They are familiar with the needs of the market

 They earn a handsome profit from new business  They do not bother if entrepreneur bears a loss  They have well-developed sales force

Q8. Which one of the following is the most important characteristic of a successful business websit? (1 marks)

 Speed

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 Graphics  Products A successful website has three characteristics: speed, speed, and speed.

Q9. Which one of the following is the next stage to the Concept Stage of Product Planning and Development Process? (1 marks)

 Idea Stage  Product Planning Stage

 Product Development Stage

 Test Marketing Stage Product planning and development process: Generally divided into five major stages: idea stage, concept stage, product development stage, test marketing stage, test marketing stage, and commercialization stage.

Q10. According to the governing bodies of common laws, the life of trade secret is: (1 marks)

 12 years  17 years  20 years

 As long as it remains confidential

Q11. SBA stands for: (1 marks)

 Small business accountants

 Small business administration

 Small business adequacy  Small business advisors

Q12. Why should an entrepreneur do a feasibility study for starting a new venture? (1 marks)

 To see if there are possible barriers to success

 To identify possible sources of funds  To estimate the expected sales  To explore potential customers Before preparing a business plan, the entrepreneur should do a quick feasibility study to see if there are possible barriers to success.

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