TTV 2161

TECHNOPRENEUR VENTURE

28 AUGUST 2015

Instruction: Answer ALL 50 Multiple Choice Questions (MCQs)

Shade your answers in the MCQ Answer Sheet paper provided at the back
1.

Entrepreneurs are known to focus their efforts on achieving all of the following.
I
Innovation
II
Stable sales
III
Profitability
IV
Moderate sales
V
Sustainable growth
A. I, II, III & IV

B. I, II &V

C. I, III & V

D. III, IV & V

2.

Which of the following statements is FALSE?

A. Fast growing businesses are called Gazelles
B. Gazelles refer to high tech or IT companies
C. Gazelles are known to be leaders in innovation
D. Gazelles account for most of the radical innovations

3.

With regards to schools of entrepreneurial thought, which of the following do NOT belong
in the Micro view of entrepreneurship?
A. The entrepreneurial trait school of thought
B. The venture opportunity school of thought
C. The strategic formulation school of thought
D. The cooperation partnership school of thought

4.

Which of the following statements is TRUE?

A. Corporate entrepreneurship is also known as capital ventures
B. Social entrepreneurship is dedicated to global investments and making profits
C. The two major perspectives of entrepreneurship are statistical and environmental
D. Entrepreneurs are known as aggressive catalysts for change within the marketplace

5.

Which of the following statements is NOT a myth of entrepreneurship?

A. Entrepreneurs are often considered pioneers of todays business successes
B. Entrepreneurs are extreme risk takers who often gamble with their decisions
C. Entrepreneurs are often academic and social misfits that fit a particular profile
D. Entrepreneurs are doers who take action rather than thinkers who consider the risks

6.

With reference to only the five commercialization steps below, arrange these steps in
sequence so that they represent the CORRECT sequence of the commercialization process.
(The sign means leads to or followed by).
I
Feasibility
II
Business Plan
III
Opportunity
IV
Field Test
V
Launch
A. I II III IV V
B. III V II IV I
C. I IV III V II
D. III I IV II V
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TTV 2161

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7.

In entrepreneurship, the external environment includes all of the following EXCEPT

A. the general environment
B. the industry environment
C. the competitor environment
D. the administrative environment

8.

Which of the following elements of the industry is NOT featured in the Five Forces Model?
A. Market business regulators
B. Industry competitors
C. Suppliers or buyers
D. New entrants

9.

Deservedness refers to the strength of community support for the business venture based on
the extent the community perceives ______________________
A. the entrepreneur himself / herself deserves its support
B. the entrepreneurs business model deserves its support
C. the entrepreneurs type of business deserves its support
D. the entrepreneurs ethical behavior deserves its support

10. Possible constraints (obstacles) to industry development include all of the following EXCEPT
A. Erratic product quality
B. Absence of infrastructure
C. Size of the company and quality of the staff
D. Inability to obtain raw materials and components
11. Business incubators usually provide such services EXCEPT
A. below-market-rate rental space
B. potential client or customer lists
C. financial and technical assistance
D. sharing of equipment and services
12. Business incubators benefit the community in all of the following ways below EXCEPT
A. diversification of the local economic base
B. enhancement of the localitys image as a tourism center
C. increased employment opportunities for the entire community
D. creation of opportunities for either public or private partnerships
13. To build an effective team in entrepreneurship, we need all of the following EXCEPT
A. members who all have a common background in entrepreneurship studies
B. members who share a common vision and are passionate about the business
C. members dedicated to the start-up and are willing to endure financial constraints
D. members who have a network of industry contacts and experience with the industry
14. Which of the following statements is FALSE regarding the gathering of secondary data for
the purpose of marketing research?
A. Secondary data refers to information that has already been compiled
B. The advantage of secondary data is that it is available and is less expensive
C. The disadvantage of secondary data is that it is outdated and lack specificity
D. Secondary data consists of information gathered specifically for the research at hand
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15. Which of the following is NOT a marketing philosophy in developing the marketing concept?
A. Sales-driven philosophy
B. Product-driven philosophy
C. Consumer-driven philosophy
D. Production-driven philosophy
16. Which of the variables below are considered demographic variables in market segmentation?
I
Age
II
Marital Status
III
Sex
IV
Occupation
V
Income
VI
Style
A.
B.
C.
D.

I & III
I, II, IV & V
I, II, III & VI
I, II, III, IV & V

17. What does the Marketing Information System (one element of marketing planning) do?
A. It plans and categorizes data relating to personal details from the main client directory
B. It simplifies and arranges data relating to shopping habits of clients from the online store
C. It highlights and isolates data relating to consumer preferences and current buying trends
D. It compiles and organizes data relating to cost, revenue and profit from the customer base
18. A method of accounting whereby revenue and expenses are recorded only when received and
paid, respectively, without regard for the period to which they apply is known as ________.
A. Cash flow
B. Financial statement
C. Cash system of accounting
D. Accrual system of accounting
19. _______ refers to proposed or estimated financial statements (forecast statements) to include
in your business plan.
A. Collateral
B. Pro forma
C. Cash flow
D. Operating capital
20. Which balance sheet category would a firms delivery trucks fit into?
A. Expenses
B. Fixed assets
C. Owners equity

D. Current assets

21. The statement of cash flows shows the activities from which a firm obtains and uses cash
and includes all of the following EXCEPT
A. selling activities
B. operating activities
C. investing activities
D. financing activities
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22. _____ is used to find relationships between variables for the purpose of predicting future values.
A. Ratio analysis
B. Regression analysis
C. Break-even analysis
D. Comparative analysis
23. Which of the following best relates to the break-even analysis calculated by an entrepreneur
starting a new venture or producing a new product? The point ______________________.
A. where total revenue received equals total costs associated with the output of the new
venture or product
B. at which the new venture or products assets equals liabilities plus owners equity
C. where the new venture or products profit equals revenues less expenses
D. at which an initiatives cash flows return its initial investment
24. Which of the following is NOT the common method used in capital budgeting?
A. Payback Method
B. Internal Rate of Return
C. Net Present Value Method
D. Contribution Margin Approach
25. Which financial statement records all of a firms revenue and expenses for a given period
and shows whether the firm is making a profit or experiencing a loss?
A. Balance sheet
B. Income statement
C. Forecast statement
D. Statement of cash flows
26. A(n) __________ is a snapshot of a companys assets, liabilities and owners equity at a
specific point in time.
A. balance sheet
B. income statement
C. cash flow statement
D. pro forma statement
27. Linear regression is a statistical forecasting technique. The equation is Y = a + bx. What
does a represent?
A. expected sales
B. the vertical (y-axis) intercept
C. the slope of the line of correlation
D. the factor on which sales are dependent
28. Cash plus items are readily convertible to cash, such as accounts receivable, marketable
securities and inventories are classified as ________ on a firms balance sheet.
A. current assets
B. long term assets
C. temporary assets
D. intermediate term assets

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29. A business plan is important for all of the following reasons EXCEPT a business plan ____.
A. provides an investor with something to react to
B. provides investors assurance that they will earn high returns on their investments
C. forces a firms founders to systematically think through each aspect of their new venture
D. is a selling document that enables a company to present itself to potential suppliers and
business partners
30. Why is the executive summary perhaps the most important section of the business plan?
A. This section of the plan provides in-depth discussion of the major trends in the industry in
which the firm intends to compete
B. This section of the plan focusses mainly on the mission and vision of the company
C. If this section of the plan fails to attract an investors interest, he or she is unlikely to read
the remainder of the plan
D. This section of the plan deals with the day-to-day operations of the company
31. In which section of a business plan should issues like facilities and equipment be discussed?
A. Financial plan
B. Marketing plan
C. Operations plan
D. Industry analysis
32. All of the following are commonly found in the appendix of a business plan EXCEPT
A. photos
B. product prototype diagrams
C. resumes of top management
D. discussion of the business model
33. The financial plan in a business plan presents _________ for the future of the business.
A. trends
B. studies
C. finances
D. forecasts
34. The business plan should convey ideas, research findings and _________.
A. proposed plans and strategies
B. past failed business ventures of the entrepreneur
C. detailed personal information concerning competitors
D. suggestions concerning personal investment strategies
35. The financial data section of the business plan should contain the following element(s):
A. Start-up budget
B. Break-even analysis
C. Pro forma cash flow statements
D. All of the above
36. In developing a well-conceived business plan, what are the guidelines for the entrepreneur to
remember?
A. Critical risks are to be highlighted
B. The target market is to be identified
C. The Business Plan must capture the readers interest
D. All of the above

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37. The typical Executive Summary contains _____________.

A. names and addresses of all owners
B. detailed cash flow information
C. complex technical drawings
D. none of the above
38. Elements of a business plan usually includes all of the following EXCEPT
A. Marketing
B. Harvest strategy
C. Historical records
D. Milestone schedule
39. One the most important factors considered by lenders when judging the viability of a
business plan and future business success is ___________________.
A. the quality of the management team
B. general economic and market trends
C. the location strategy of the entrepreneur
D. the detail of the technical information provided in the business plan
40. Any patents, trademarks or copyright held by the entrepreneur is known as __________.
A. special trade assets
B. intellectual property
C. disclosure document
D. none of the above
41. Any word, phrase, symbol or design, or combination of them that identifies and
distinguishes the source of the product of one party from another is a _________.
A. logo
B. copyright
C. trademark
D. service mark
42. An invention that is unprotected by a patent is considered to be public domain, meaning that
A. nobody can sell the invention
B. the inventor can publicly sell the right to manufacture the invention
C. only the inventor can manufacture the invention and profit from selling it
D. anyone can manufacture the invention and profit from selling it without paying the inventor
43. Which of the following qualifies as rules in securing a patent?
A. Prepare a patent plan in detail
B. Establish an infringement budget
C. Pursue patents that are broad and commercially significant
D. All of the above
44. Copyright is given for artistic works of the mind. Which of the following examples
CANNOT be copyrighted?
A. A computer program
B. An unpublished novel
C. A listing of key ingredients in a recipe
D. All of the above can be copyrighted

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45. How long does a patent (other than design patents) last once it has been granted?
A. 7 years
B. Until the inventor dies
C. 20 years after you apply
D. Forever and ever, there is no limit at all
46. Trade secrets are used by companies when they do not want to release the information by
claiming a patent because patents expire after a specific amount of time, whereas a trade
secret can be kept secret indefinitely. What company has a famous and still unknown trade
secret?
A. Apple
B. Toyota
C. Microsoft
D. Kentucky Fried Chicken
47. Suzanne is making a copy of a computer game for a backup before she plays, in case the
original CD becomes scratched. Peter is making a design to print on a T-shirt, copied from a
picture in a new book by an artist. Which is a better example of fair use?
A. Peters T-shirt
B. Suzannes copy
C. Both A and B
D. None of the above is fair use
48. The bankruptcy type that is most common is _______ bankruptcy.
A. Chapter 7
B. Chapter 11
C. Chapter 13
D. All of the above
49. Which of the following statements is FALSE?
A. Chapter 7 bankruptcy is for the purpose of adjustment of debts
B. Chapter 7 bankruptcy can sometimes be referred to as liquidation
C. Chapter 7 bankruptcy requires the debtor to surrender all property
D. Chapter 7 bankruptcy can be petitioned by either debtors or creditors
50. The Copyright Act specifically excludes copyright protection for the following:
I
Idea in someones mind
II
Procedure for cooking
III
Process in making bricks
IV
Method of operation
V
Recorded original music
A.
B.
C.
D.

I & II
I, II & III
I, II, III & IV
I, II, III, IV & V

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TTV 2161

TECHNOPRENEUR VENTURE

MCQ Answer Sheet

Question

28 AUGUST 2015

Student ID Number (required): _____________________

Answers

Mark Question

Answers

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