1. Which one of the following theory has the attribute of moderate risk taking as a function of skill, not
chance?
a) Need for independence
b) Need for achievement
c) Need for affiliation
d) Need for authority
2. Foundation companies are formed from:
a) Fashion
b) Research and development
c) Most popular business
d) winding up company
3. All of the following are the broad categories of External forces EXCEPT:
a) Economic forces
b) S Socioeconomic forces
c) Technological forces
d) Competitive forces
4. A ______________ is a professional money manager who makes risk investment from a pool of equity
capital to obtain a high rate of return on investments.
a) venture capitalist
b) entrepreneur
c) businessman
d) buyer
5. Members of distribution channels are excellent sources for new ideas because:
a) They are familiar with the needs of the market
b) They earn a handsome profit from new business
c) They do not bother if entrepreneur bears a loss
d) They have well-developed sales force
6. Which of the following geographical area is having least interest to U.S. entrepreneurs?
a) Europe
b) The Far East
c) Central Asia
d) Transition economies
7. Andrew Carnegie is an example of entrepreneur of which century
a) Earliest period
b) 19th and 20th century
c) Middle ages
d) 17th century
8. The activity which occurs when the new venture is started are called:
a) Business skills
b) Motivation
c) Departure point
d) Goal orientation
9. The business plan should be prepared by:
a) Entrepreneurs
b) Consultants
c) Engineers
d) Small business administration services
10. What is the primary concern of founders who trade equity for capital for their growing venture?
a) Capitalization
b) Control
c) Valuation
d) Investor capabilities