Entrepreneurial Management Midterm Examination

I: In today's global environment, an entrepreneur has the ability to influence the local landscape. II: High rates of population are located in rural areas. III: The managerial approach of an entrepreneur is characterized by adaptability rather than innovation. IV: The executive summary is an outline of the main body of the business plan and resembles a table of contents.

• Only I and III are true.
• All are True.

• Only II and IV are true.
• Only II and III are true.
• None are true.

I: A unique service needs an effective distribution strategy to get suppliers into demand. II: Priorities should be set for refocusing entrepreneurial attention on metropolitan regions and for creating new businesses that will boost our economy. III: An enterprise ceases whenever an individual takes the risk and invest resources to make something new of unique. IV: Being an entrepreneur is a calling that everyone should undertake.

• Only I and III are true.
• All are True.

• Only II and IV are true.
• Only II and III are true.
• None are true.

I: The managerial approach of an entrepreneur is characterized by adaptability rather than innovation. II: An entrepreneur is a visionary who perceived inherent threats in the exchange of goods. III: Marketing environment is identified by the entrepreneur and marshals resources to pursue existing risk and makes immediate action. IV: Exploitation of opportunities available at entrepreneur’s disposal shouldn’t be one of priorities.

• Only I and III are true.
• All are True.

• Only II and IV are true.
• Only II and III are true.
• None are true.

I: A manager is considered as an innovator since the manager employs discipline and methodological approach in solving problems II: An entrepreneur is considered as an adapter since entrepreneurs discovers problem with unique solutions. III: Real entrepreneur is an individual with drive for expansion and growth while driving away from profit achievement and resource exploitation. IV: Retail outlets need a site that is convenient with supplies.

• Only I and III are true.
• All are True.

• Only II and IV are true.
• Only II and III are true.
• None are true.

I: An entrepreneur develop dependency on existing operation of the enterprise as he takes the lead in all activities of the organization. II: The elimination of risk can be achieved through the use of SWOT analysis. III: Entrepreneurs create an environment in which failure is uncontrollable. IV: The primary motivation for entrepreneurs is personal gain rather than the satisfaction of customer needs.

• Only I and III are true.
• All are True.

• Only II and IV are true.
• Only II and III are true.
• None are true.

I: Forecasting environmental risk is an antidote to future business risk. II: Every business plan should begin with a statement of purpose. III: The cost of rent is a regular annual expense and must be sustained with possible income that may or may not be generated. IV: Business capital for expansion, except from savings, can come from any other sources.

• Only I and III are true.
• All are True.

• Only II and IV are true.
• Only II and III are true.
• None are true.

I: Identifying your target customer is an important purpose of your business plan. II: Success in entrepreneurial activity is based on the external compulsion to achieved overrated difficulties. III: Personal communication and networks must be the banner in negotiations and effective personal communication is the key in opening business deals. IV: Ability to manage people and resources means the manner on which the physical and material resources outside the entrepreneur’s disposal is being utilized.

• Only I and III are true.
• All are True.

• Only II and IV are true.
• Only II and III are true.
• None are true.

I: The central objective of the business is to produce goods and services for the customers. II: Improving efficiency work create more space for growth and development. III: Entrepreneurs must economize their revenues. IV: Legal matters and intricate government transaction must be handled personally by the entrepreneur as this may affect business operation.

• Only I and III are true.
• All are True.

• Only II and IV are true.
• Only II and III are true.
• None are true.

I: Individual talent and intelligence coupled with strategies akin to other people are totally extrinsic to an entrepreneur. II: Achievements are the result of the people with desire for independence. III: Power to make decision is independent from creativity and innovativeness. IV: Politics becomes an investment for power and money and is considered as an essence of public service.

• Only I and III are true.
• All are True.

• Only II and IV are true.
• Only II and III are true.
• None are true.

I: Dealing with emergences are one if the questions that an entrepreneur needs to answer in setting up new business II: Innovation and creation of goods and services are driven by exiting market and environmental forces. III: The development of an economic activity is the making of small and medium enterprise which is mostly located in the urban areas. IV: Product innovation and development generates income and employment.

• Only I and III are true.
• All are True.

• Only II and IV are true.
• Only II and III are true.
• None are true.