Entrepreneurship and Product Development (20MS2004) - Lect 2

SBA stands for:

• Small business administration

• Small business accountants

• Small business adequacy

• Small business advisors

Why should an entrepreneur do a feasibility study for starting a new venture

• To see if there are possible barriers to success

• To identify possible sources of funds

• To estimate the expected sales

• To explore potential customers

A Micro Enterprise is an enterprise where investment in plant and machinery does not exceed according to MSMED Act, 2006):

• Rs. 25 Lakh

• Rs. 10 Lakh

• Rs. 15 Lakh

• Rs. 20 Lakh

A corporate manager who starts a new initiative for their company which entails setting up a new distinct business unit and board of directors can be regarded as?

• Intrapreneur

• Technopreneur

• Ecopreneur

• Social Entrepreneur

Venture capital is concerned with:

• New project having potential for higher profit

• New project of high technology

• New project having high risk

• New project having low risk

Which one of the following actions by an entrepreneur is most likely to contribute to creative destruction?

• Development of a new product

• Take-over of a competitor

• Issuing shares

• Reducing prices

Which one of the following is an advantage of a small firm in the innovation process?

• Ability of the entrepreneur to act on new ideas or product development

• Ability to raise finance

• Ability of the entrepreneur to carry out multiple tasks

• Ability to carry out R&D

External links may provide incentives to:

• Introduce improvements to products

• Introduce new working practices

• Raise finance

• Attend business exhibitions

Innovative small firms are more likely in:

• Knowledge-based sectors

• Biotechnology

• Automobile manufacture

• Aerospace manufacture

Schumpeter considered that innovative entrepreneurs would:

• Be absorbed within large innovative firms

• Disappear

• Thrive

• Be absorbed within non-innovative firms