Entrepreneurship Management

11. The importance of intellectual property should be understood by entrepreneur even before:

  1. Hiring a manager
  2. Engaging an attorney
  3. Developing a product
  4. Establishing new venture
Correct answer: (B)
Engaging an attorney

12. A patent is granted for a specified amount of time because of the assumption:

  1. That during this time firm will cover its development costs
  2. That firm will earn a sufficient profit during this period
  3. To limit the monopoly of the firm
  4. That it will stimulate idea and development of a better product
Correct answer: (D)
That it will stimulate idea and development of a better product

13. External forces directly affect all of the following EXCEPT:

  1. Market segmentation strategies
  2. Types of products/services offered
  3. Management structure of organization
  4. Choice of businesses to acquire or sell
Correct answer: (C)
Management structure of organization

14. Which of the following is alternatively called corporate venturing?

  1. Intrapreneurship
  2. Entrepreneurship
  3. Act of stating a new venture
  4. Offering new products by an existing company
Correct answer: (A)

15. Following are the types of non equity arrangements EXCEPT:

  1. Licensing
  2. T turnkey project
  3. Direct export
  4. Management contracts
Correct answer: (C)
Direct export

16. Government can help in forming new venture by providing:

  1. finance
  2. technology
  3. infrastructure
  4. funds
Correct answer: (C)

17. The longest lasting trade agreement with the objective of liberalizing trade by eliminating or reducing tariffs, subsidies and quotas is:

  1. Free trade area - FTA
  2. European community - EC
  3. General agreement on tariffs and trade - GATT
  4. The North American free trade agreement - NAFTA
Correct answer: (C)
General agreement on tariffs and trade - GATT

18. Entrepreneurial success has been significant because of the culture and the political and economic systems in ––––––––.

  1. Asian countries
  2. Eu ropean countries
  3. Transition economies
  4. Middle East
Correct answer: (A)
Asian countries

19. The transitional disturbance and lack of reform has led to boom black market in:

  1. China
  2. Hungary
  3. Singapore
  4. Poland
Correct answer: (D)

20. Which of the following factors has allowed small companies to act like they are big ones?

  1. Customers
  2. Competition
  3. Economic development
  4. Technology
Correct answer: (D)
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