Blog: Mgt602 VU Final Term Current Paper (Feb 2011)

Mgt602 VU Final Term Current Paper (Feb 2011)

MY PAPER-MGT602

Total : 91 Marks
Total Questions : 69 
MCQs : 62
3 Marks Questions : 3
5 Marks Questions : 4


Question No: 1 ( Marks: 1 ) - Please choose one 
An individual's desirability to form a new venture depends upon all of the following except:
► Culture
► Family
► Teachers
► Personal savings

Question No: 2 ( Marks: 1 ) - Please choose one ...
The environment of an entrepreneurial oriented organization is called:
► Corporate culture
► Entrepreneurial culture
► Intrapreneurial culture
► Traditional culture

Question No: 3 ( Marks: 1 ) - Please choose one ...
Most of the finance for the new firm comes from following resources EXCEPT:
► Friends
► Foreign aid
► Relatives
► Personal savings

Question No: 4 ( Marks: 1 ) - Please choose one ...
GATT is established in 1947, under:
► German leadership
► French leadership
► U.S. leadership
► U.K. leadership

Question No: 5 ( Marks: 1 ) - Please choose one ...
Having more than 50% ownership position that provides the entrepreneur with managerial control is called:
► Joint venture
► Majority interest 
► Horizontal merger
► Diversified activity merger

Question No: 6 ( Marks: 1 ) - Please choose one ...
Which one of the following is an important source of idea generation due to their familiarity with the needs of market?
► Existing products and services
► Distribution channels
► Federal government
► Consumers

Question No: 7 ( Marks: 1 ) - Please choose one ...
Which of the following techniques is an excellent method for initially screening ideas and concepts in addition to generating new ideas?
Focus group
Problem inventory analysis
Brainstorming 
Reverse brainstorming

Question No: 8 ( Marks: 1 ) - Please choose one ...
Which one of the following is a longest lasting trade agreement with the objective of liberalizing trade by eliminating or reducing tariffs, subsidies and quotas?
Free trade area – FTA
European community – EC
General agreement on tariffs and trade – GATT 
The North American free trade agreement – NAFTA

Question No: 9 (Marks: 1) - Please choose one ... 
GATT is established in 1947, under: 
► German leadership 
► French leadership 
► U.S. leadership 
► U.K. leadership 

Question No: 10 (Marks: 1) - Please choose one ... 
Which one of the following gives suggestions for new product and also helps to market new products? 
► Existing products and services 
► Distribution channels
► Federal government 
► Consumers 

Question No: 11 (Marks: 1) - Please choose one ... (This was a lucky question as last one is also same) 
Members of distribution channels are excellent sources for new ideas because: 
► They are familiar with the needs of the market
► They earn a handsome profit from new business 
► They do not bother if entrepreneur bears a loss 
► They have well-developed sales force

Question No: 12 (Marks: 1) - Please choose one ... 
Which among the following ranks the highest in funding options for start ups to finance initial expenses?
Short term loans
Bank loans
Private investors
Credit cards

Question No: 13 (Marks: 1) - Please choose one ...
GEF stands for:
Global Execution Fund
Grant Entrepreneur Fund
Global Environmental Fund
Global Enterprises Fund

Question No: 14 (Marks: 1) - Please choose one ...
Front level managers have _____ Skill 
Select correct option: 
Conceptual
Communicational
Technical
All of the above

Question No: 15 (Marks: 1) - Please choose one ...
The _______ plan should contain control points to ascertain progress. 
Select correct option: 
Business 
Marketing 
Financial 
Operational


Question No: 16 (Marks: 1) - Please choose one ...
Which of the following is a separate entity that involves a partnership of two or more participants? 
► Merger 
► Joint venture 
► Corporation 
► Acquisition


Question No: 17 (Marks: 1) - Please choose one ...
Which one of the following ratios is a more rigorous test of the short-term liquidity of the venture?
► Debt ratio
► Activity ratio
► Acid test ratio
► Profitability ratio

Question No: 18 (Marks: 1) - Please choose one ...
Which of the following institute started the LMM financing scheme?
► PSIC
► SSIC
► SIDB
► IDBP

Question No: 19 (Marks: 1) - Please choose one ...
Which of the following statement provides projections of all operating expenses for each month of the first year?
► The pro forma balance sheet
► The pro forma income statement
► The pro forma cash flow statement
► The actual balance sheet


Question No: 20 (Marks: 1) - Please choose one ...
Which of the following best describes "industry analysis"?
► It is an assessment of external uncontrollable variables that may impact the business plan
► It reviews industry trends and competitive strategies 
► It refers to the assessment of a business to deal with the planning, budgeting, monitoring, forecasting and improving of all financial details within an organization
► It is the process by which companies determine what products or services may be of customers' interest


Question No: 21 (Marks: 1) - Please choose one ...
Which of the followings best describes "design patents"?
► It grants the owner protection from anyone else making, using, and/or selling the invention
► It covers the original and ornamental aspects of a product 
► It covers certain types of plants
► None of the given options

Question No: 22 (Marks: 1) - Please choose one ...
How many agencies control the Small Business Innovation Research (SBIR) grant program? 
► 10 Agencies
► 11 Agencies
► 12 Agencies
► 13 Agencies

Question No: 23 (Marks: 1) - Please choose one ...
Which of the following is another exit to the equity partnership arrangement?
► Minor partnership 
► General partnership 
► Royalty partnership
► Impartial partnership

Question No: 24 (Marks: 1) - Please choose one ...
In which of the following entity capital rising entirely depends on the entrepreneur?
► Corporation
► Sole Proprietorship
► Partnership 
► All of the above

Question No: 25 (Marks: 1) - Please choose one ...
Which of the following is an example of coined mark?
► Kodak films
► Apple computers 
► Pantene Shampoo
► Mobil oil

Question No: 26 (Marks: 1) - Please choose one ...
When two or more separate companies forming a new company, it is known as:
► Merger 
► Acquisition
► Corporation
► Joint venture

Question No: 29 (Marks: 1) - Please choose one ...
________ is usually represents one or more segments of the entire market.
► Local market 
► Target market
► Market orientation
► Market segmentation


Question No: 30 (Marks: 1) - Please choose one ...
In which of the following, banks are usually reluctant to give loan?
► Sole Proprietor
► Public Limited Companies
► Partnership firm
► Private Limited Companies

Question No: 31 (Marks: 1) - Please choose one ...
Which of the following plan describes market conditions and strategy related to products?
► Production plan
► Operational plan
► Financial plan
► Marketing plan

Question No: 32 (Marks: 1) - Please choose one ...
The marketing plan section should focus for the strategies for how many years?
► First Year
► First Three Years
► First four years
► First two years

Question No: 33 (Marks: 1) - Please choose one ...
Having less than 50 percent of equity share in an international venture is called:
► Minority interest 
► Joint venture
► Majority interest
► Exporting

Question No: 34 (Marks: 1) - Please choose one ...
The penetration growth strategy is all of the following, EXCEPT: 
► Focuses on developing comparable products for the existing market
► Relies on creating a new target market share
► Expands the firm's product offering with comparable products
► Encourages more frequent repeat purchases

Question No: 35 (Marks: 1) - Please choose one ...
Which of the following best describes the term "indirect exporting"?
► It refers to selling goods made in one country to another country
► It refers to buying and selling of commodities
► It refers to a commercial activity of buying and bringing in goods from a foreign country
► It refers to selling goods to another country through a person in the entrepreneur's home country

Question No: 36 (Marks: 1) - Please choose one ...
Which of the following statements describes "International entrepreneurship"?
► It is the process of an entrepreneur conducting business activities across national boundaries
► It is the process of an entrepreneur conducting business activities within the national boundaries
► It is an innovative corporate management style that encourages employees within an organization to create new product ideas 
► It is a business structure in which an individual and his company are considered a single entity for tax and liability purposes her problem...

Question No: 37 (Marks: 1) - Please choose one ...
There are many factors that make it possible to create a new venture. Identify the factor which must be there to put together the best total package of product, price, distribution and promotion needed for successful product launching.
► Marketing
► Finance
► Research and Development
► Advertising

Question No: 38 (Marks: 1) - Please choose one ...
In terms of chronological age, most entrepreneurs initiate their entrepreneurial carrier between ages of: 
► 15 and 22 
► 22 and 45 
► 45 and 57 
► 57 and 63

Question No: 39 (Marks: 1) - Please choose one ...
Short-term funds can be obtained by reducing all of following, EXCEPT:
► Short-term assets
► Cash
► Fixed Assets
► Inventory

Question No: 40 (Marks: 1) - Please choose one ...
The actual amounts of costs and profits are compared with budgeted amounts for a specific period through:
► Interim income statement
► Interim balance sheet
► Pro forma income statement
► Pro forma cash flows

Question No: 41 (Marks: 1) - Please choose one ...
Which of the following shows the characteristic of the corporation with reference to taxation system?
► Single taxation system
► Double taxation system
► Triple taxation system
► No taxation system

Q-63. What do you understand by pro forma cash flow statement? Discuss the two methods used to project cash flow. ... (3)
Q-64. Discuss the types of private investors available to an entrepreneur. ... (3)
Q-65. Discuss the corporate status of entrepreneurial venture in Pakistan. ... (3)
Q-66. What type of loan a bank gives to entrepreneur if entrepreneur has credit worthy clients? ... (5)
Q-67. How the costs and profits may be managed by the entrepreneur keeping in view the importance of interim income statement? ... (5)
Q-68. Discuss why contracts are considered important for entrepreneurs. ... (5)
Q-69. What are Small Business Administrative Loans? In what circumstances they are used by entrepreneur? (5)