1. An individual who starts, creates and manages a new business can be called__________.

A. A leader

B. A manager

C. A professional

D. An entrepreneur

ANSWER: D

2. Trademarks relate to _______.

A. Practice and knowledge acquired through experience

B. The protection of proprietary information of commercial value

C. The right to reproduce ones own original work

D. Brand identity

ANSWER: D

3. Which could provide an individual with the motivation to start a new business venture?

A. The financial rewards.

B. A desire to be independent.

C. Risk taking

D. All the above.

ANSWER: D

4. Which of the following factors should not be included in PESTLE analysis?

A. Government re-cycling policy.

B. Proposed reduction in interest rates.

C. Competitor activity.

D. Demographic changes.

ANSWER: C

5. Which industrial sector promotes small-scale businesses and Entrepreneurship, and has lower barriers to market entry?

A. Service.

B. Manufacturing.

C. Distribution.

D. Agriculture.

ANSWER: A

6. Why are small businesses important to a country’s economy?

A. They give an outlet for entrepreneurs.

B. They can provide specialist support to larger companies.

C. They can be innovators of new products.

D. All the above.

ANSWER: D

7. A business arrangement where one party allows another party to use a business name and sell its products or services is known as__________.

A. A cooperative.

B. A franchise.

C. An owner-manager business.

D. A limited company.

ANSWER: B

8. Which of the following is the reason for business failure __________.

A. Lack of market research.

B. Poor financial control.

C. Poor management.

D. All the above.

ANSWER: D

9. The use of informal networks by entrepreneurs to gather information is known as _______.

A. Secondary research.

B. Entrepreneurial networking.

C. Informal parameters.

D. Marketing

ANSWER: B

10. Good sources of information for an entrepreneur about competitors can be obtained from_________.

A. Websites.

B. Product information leaflets.

C. Company reports and published accounts.

D. All the above.

ANSWER: D

11. A new venture’s business plan is important because ______.

A. It helps to persuade others to commit funding to the venture.

B. Can help demonstrate the viability of the venture.

C. Provides a guide for business activities by defining objectives.

D. All the above.

ANSWER: D

12. Primary data is________. 

A. the most important data.B. the data that is collected first.

C. new data specifically collected for a project.

D. data that is collected second.

ANSWER: C

13. Innovation can best be defined as_______.

A. the generation of new ideas.

B. the evolution of new ideas.

C. the opposite of creativity.

D. the successful exploitation of new ideas.

ANSWER: D

14. Which of these statements best describes the context for entrepreneurship?

A. Entrepreneurship takes place in small businesses.

B. Entrepreneurship takes place in large businesses.

C. Entrepreneurship takes place in a wide variety of contexts.

D. Entrepreneurship does not take place in social enterprises.

ANSWER: C

15. Entrepreneurs are motivated by _________.

A. money.

B. personal values.

C. pull influences.

D. All the above.

ANSWER: D

16. Which of the following are described as one of the Big Five personality traits?

A. tolerance of others.

B. need for achievement.

C. propensity to leadership.

D. locus of control.

ANSWER: B

17. Which of the following is least likely to influence the timing of new business births?

A. Government policies.

B. Profitability.

C. Consumer expenditure.

D. Weather conditions.

ANSWER: D

18. Which of the following statements is false?

A. Market segmentation is a useful process for small businesses to undertake.

B. Selling is essentially a matching process.

C. A benefit is the value of a product feature to a customer.

D. It is a good idea for small businesses to compete solely on price.

ANSWER: D

19. The purpose of all good small business strategy is__________.

A. to increase turnover.

B. to increase profitability.

C. to achieve competitive advantage.

D. to achieve stated objectives.

ANSWER: D

20. Which of the following is a recognized disadvantage of setting up as a start-up as compared 

with other routes to market entry?

A. less satisfaction of the owners.

B. less help from various agencies.

C. there are more funds required.

D. there is a high failure rate.

ANSWER: D

21. Someone legally appointed to resolve the financial difficulties of an insolvent firm is called____________.

A. an administrator.

B. a predator.

C. an auditor.

D. a turnaround consultant.

ANSWER: A

22. Goods or services reach the market place through ________.

A. marketing channels.

B. multilevel pyramids.

C. monopolies.

D. multiplication.

ANSWER: A

23. To provide financial assistance to entrepreneurs the government has set up a number of___________.

A. financial advisors.

B. financial intermediaries.

C. Industrial estates.

D. financial institutions.

ANSWER: D

24. State Industrial corporations engage in the development of__________.

A. industrial estates.

B. institutional estates.

C. individual investors.

D. agricultural entrepreneurs.

ANSWER: A

25. ________ is the first development bank of the country.

A. ICICI.

B. IDBI.

C. SFC.

D. IFCI.

ANSWER: D