DEPARTMENT OF BUSINESS ADMINISTARTION

FACULTY OF ADMINISTARTION
AHMADU BELLO UNIVERSITY, ZARIA

SECOND SEMESTER EXAMINATION: 2013/2014 SESSION

Course: Entrepreneurship and Innovation (GENS 202)

Class: 200 level
INFORMATION AND INSTRUCTIONS:
1. Attempt all questions
2. Answer the questions in the answer sheet provided at the end of this booklet.
3. Time allowed: 1 ½ Hrs
4. Each multiple-choice question carries one mark
5. Use of handsets is not allowed
6. This question paper must be submitted together with the answer sheet at the end of the examination.

SATURDAY, 25TH OCTOBER, 2014

QUESTIONS:
1. Which of the following is not a feature of organisations?
a) It is a group of people
b) Structured and managed to achieve a common objective
c) It applies ICT in all its operations*
d) Rules are communicated to all

2. All the following EXCEPT ONE explain why organizations are important:
a) They makes management simple and efficient
b) They impress techniques
c) They pay salaries and wages*
d) They encourage constructive thinking

3. Alfred Marshall’s Theory of Entrepreneurship posits that the characteristics of a successful entrepreneur include all
EXCEPT:
a) Critical business thinking*
b) Thorough understanding of the industry
c) Good leadership skills
d) Foresight of demand and supply changes

4. Which of the following is NOT one of the features of Joseph Schumpeter’s Innovation Theory?
a) Create a product
b) Availability of technology and infrastructure*
c) Discover a new market for product
d) Find new ways of making things

5. Which of these is NOT one of the early contributors to entrepreneurship theory?

a) Peter Drucker
b) Harvey Leibenstain
c) Abraham Maslow*
d) Frank Knight

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6. According to Mark Casson’s Economic Theory of entrepreneurship, all the underlisted economic factors EXCEPT
--------------- encourage or discourage entrepreneurship.
a) Easy access to finance on favourable terms
b) Determining profitable activities*
c) Marketing opportunities
d) Easy availability of raw materials

7. Barriers to entrepreneurial practice can be classified into the following broad categories EXCEPT _____.
a) Startup barriers*
b) Regulatory barriers
c) Cultural and social barriers
d) Financial and economic barriers

8. ______________entails a set of values, norms and traits that are conducive to the growth of entrepreneurship
a) Entrepreneurial drive
b) Entrepreneurial environment
c) Entrepreneurial organisation
d) Entrepreneurial culture*

9. According to -------------------“Regardless of the level of development and firm size, entrepreneurial behaviour remains
a crucial engine of innovation and growth for the economy….”
a) Babson College, USA (1999)
b) Entrepreneurship Development Agency (EDA) 1996
c) Global Entrepreneurship Monitor (GEM) 2006*
d) United Nations and the Organisation for Economic Cooperation and Development

10. The main factors that affect business in Nigeria are:

a) Social, legal, political, technological and economic
b) Social, legal, ethical, economic, political and environmental
c) Social, legal, economic, political, technological and ethical*
d) Social, legal, economic, environmental, ethical and technological.

11. Which of the following is NOT ONE of the reasons why markets change?
a) That business can have social benefits*
b) Customers develop new needs and wants
c) New competitors enter the market
d) Government introduces new legislation

12. Which of the following is not one of the ways a business could react to competition?
a) Cut prices
b) Spend more on promotion
c) Reduce costs
d) None of the above*

13. Which of the following will help assess the potential of any business opportunity?
a) Consider the stability of the company associated with the opportunity
b) Assess the good or service offered by the business
c) Have a comprehensive and well defined distribution system
d) All of the above*

14. Which of these is NOT true of Intellectual Property?

a) Creations by entrepreneurs that have commercial value
b) The creations that are given legal rights
c) Creations by entrepreneurs which always give them exclusive rights over products*
d) Protecting intellectual property is a practical business decision

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15. Which of these statements is not true of entrepreneurs?
a) They generally stick to the processes already in use*
b) They change the way businesses convert inputs into outputs
c) They apply innovative ideas
d) They take risks

16. Which of the following is not a social barrier to entrepreneurship?

a) Difficulties of language
b) Self-employment is more common among some ethnic groups*
c) Lack of information on the available institutions
d) When entrepreneurial culture is not promoted

17. Social entrepreneurs do not have to be individuals. They can also be all of the following EXCEPT
a) Communities
b) Non-Governmental Organizations (NGOs)
c) Continents*
d) Networks

18. Which of the following is NOT one of the environmental factors that may influence entrepreneurship?
a) Affluent population providing a market
b) Industries in the economy of scales
c) New competitors enter a new market
d) Increase in value or satisfaction to the customer*

19. Which one of the following statement is NOT a valid reason why small businesses are important to a country’s
economy?
a) They generate new jobs for themselves and those they employ
b) They can be innovators of new products
c) They provide competition to large companies
d) They use capital-intensive methods of production*.

20. The second strategy for the protection of an Intellectual Property is to keep it secret and demonstrate ownership. This
means:
a) Keeping your idea secret
b) Demonstrate ownership of your idea
c) Do not infringe on anyone else’s IP
d) All of the above*.

21. Which is NOT one of the SIX factors militating against effective copyright protection in Nigeria as identified by Prof.
Uche Ewelukwa?
a) Poor public consultation or lack of popular support
b) Frequent changes in government*
c) Corruption and weak custom enforcement
d) Understanding of IP laws is poor in the country

22. “Technology is an accelerator.” Who made this statement?

a) Bacon
b) Jim Collins*
c) Locke
d) Descartes

23. Which of these statements is NOT true of technology and innovation?

a) Changes in technological innovation have had some of the most dramatic effects on business
b) Computer technology has had an enormous input on education and health care
c) Technological progress does not have some negative side effects*
d) Technology is a critical factor in economic development.

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24. Which of these defines innovation?
a) Invent a new product
b) Modify a product
c) Modify a process
d) All of the above*

25. The three main responsibilities involved with managing an entrepreneurial venture once it is up and running include all
of the following EXCEPT:
a) Managing processes
b) Managing people
c) Managing bureaucracy*
d) Managing growth

26. Economic growth is important because:

a) People will be happier
b) People want higher income and more consumer goods*
c) People want a better environment
d) People want less crime

27. An individual that has no prior business ownership experience as a business founder, inventor of a business or a
purchaser of a business is called a(n)____________________________
a) Habitual
b) Novice*
c) Serial
d) Portfolio

28. Competition, drought and government policy are examples of:

a) Weakness
b) Business risk
c) Opportunities
d) Threats*

29. Innovative entrepreneurs face special issues in raising:

a) Development capital
b) Structural capital
c) Human capital
d) Seed capital*

30. An advantage of the small firm in the innovation process is:

a) Ability to carry out Research and Development
b) Ability to raise finance
c) Ability of the entrepreneur to carry out multiple tasks
d) Ability of the entrepreneur to act on new ideas or product development*.

31. An exclusive right granted for an invention is:

a) Intellectual property right
b) Patent*
c) Trademark
d) Trade secret

32. Copy right is distinct from other forms of creator protection in that:
a) It legally protects words and symbols.
b) It protects a device that indicates the provider of a particular service or good
c) It protects the expression of an idea*
d) None of the above

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33. What two factors are the principal determinants of the dynamics of fast changing markets?
a) Fashion and change
b) Competition and regulation
c) Market opportunity and market share
d) The pace and nature of technological change*

34. Which of these is an agent of technology transfer?

a) Governments
b) Multinational corporations
c) None of these
d) (a) and (b) above*

35. An individual who has prior business ownership experience is called a(n)___________________ entrepreneur
a) Novice
b) Habitual*
c) Serial
d) Portfolio

36. Which of the following is NOT one of the FOUR reasons why innovation is needed by the entrepreneur?
a) To face competition
b) To encourage creative conflict*
c) To stand out in the clutter
d) To solve certain problems

37. Successful entrepreneurs often distinguish their ventures through:

a) Product positioning, differentiation and innovation
b) Product differentiation, niche specification and innovation*
c) Market segmentation, niche specification and innovation
d) Branding, packaging and innovation

38. According to Drucker, innovation by imitating and adapting products created in developed countries by entrepreneurs
in less-developed countries is called:
a) Creative receptivity
b) Creative researchability
c) Creative adaptation
d) Creative imitation*

39. A specialized market that attempts to fulfill the needs of a specific subset of consumers is:
a) Market specification
b) Market differentiation
c) Product differention
d) Niche*

40. Entrepreneurs would be best described as risk:

a) Loving*
b) Averse
c) Rewarders
d) Managers

41. Which statement(s) is/are true of female entrepreneurs?

a) Women who have majority shareholding and take active interest in decision-making, risk-taking and day-to-
day management of a business enterprise.
b) Women entrepreneurs can be found in less traditional sectors like manufacturing, construction and
transportation
c) Percentage of female entrepreneurs worldwide still remains low
d) All of the above*

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42. Which of these is NOT one of the main measures of promoting female entrepreneurship?
a) Networking
b) Advice and consultancy mentoring
c) Promoting cultural values*
d) Funding

43. Which of the following helps to keep the entrepreneur focused?

a) Risk propensity
b) Initiative
c) Internal locus of control*
d) All of the above

44. The number of suggested good practices for women entrepreneurship is:
a) Four
b) Five*
c) Seven
d) Three

45. The process by which individuals build or transform institutions to advance solutions to social problems is:
a) Social responsibility
b) Social thinking
c) Social responsiveness
d) Social entrepreneurship*

46. The problem of innovation management suggests there is a fundamental tension between the:
a) Need for stability and the need for creativity
b) Need for marketing effort and the need for science and technology
c) Need for creativity and the need for innovation*
d) Need for research and development and the need for stability

47. Qualities of a social entrepreneur include all of the under listed EXCEPT:
a) Ability to overcome apathy
b) Ability to listen
c) Ability to be comfortable with uncertainty
d) Ability to manage financial resources*

48. Two individuals associated with successfully pioneering social entrepreneurship are:
a) Richard Cantillon and Jean Baptiste
b) Muhammed Yunus and Fazle H Abed*
c) David Mcclelland and Peter Drucker
d) Israel Kirtzner and Frank Knight

49. The objective of social entrepreneurship is to:

a) Maximize profits
b) Build lasting respected entity
c) Maximize some form of social impact*
d) Maximize utility of the human capital

50. Social entrepreneur ventures differ from Government in these ways EXCEPT:
a) Address problems from top-down
b) Address problems from bottom-up*
c) Interact with a problem on the ground level
d) The social entrepreneur has the luxury of trying crazy ideas

51. Which is NOT ONE of the ways to nurture innovation in education?

a) Integrate the idea that everyone is a change agent in the curriculum right from grade school
b) Encourage students to ask questions
c) Acknowledge the fact that emotional learning is as important as cognitive learning

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 d) None of the above*

52. Steps individuals can take to support social entrepreneurship include all the following except:
a) The individual has to deepen his/her self knowledge
b) The individual must first understand what he/she cares about
c) The individual must know his/her financial strength*
d) The individual should know his/her strength and weaknesses

53. Which of these is NOT a component of a good feasibility report?

a) Marketability and demand analysis
b) Production requirements, forecast production limit, factory layout
c) Environmental impact assessment
d) None of the above*

54. Which of these is NOT a source of business information?

a) One’s mindset or subconscious mind
b) Physical qualities of the entrepreneur*
c) Environmental scanning
d) Extensive travels around the locality or beyond

55. Some of the factors that increase entrepreneur resistance to change include the following EXCEPT
a) Uncertainty about the impact of change
b) Economic implications*
c) Political implications
d) Lack of proper communication*

56. Which of the following best defines opportunity recognition?

a) The founding and formation of a new venture
b) The significant improvement of an existing venture
c) (a) and (b) above*
d) None of the above

57. All EXCEPT------- are among the four elements in venture creation:
a) A profitable business venture
b) A good understanding and application of ICT*
c) Entrepreneurial initiative
d) Business know-how of the entrepreneur

58. Entrepreneurial ability refers to the sum of:

a) Financial and human capabilities
b) Marketing and managerial capabilities
c) Social and economic capabilities
d) Technical and business capabilities*

59. The following factors are key drivers of globalization:

a) Government, action, exchange rates, competition and socio-demographic factors.
b) Market convergence, competition, exchange rates and cost advantages
c) Cost advantages, government action, economic cycles and competition
d) Market, cost, competition and government policies*

60. Which is NOT ONE of the THREE crucial driving forces of entrepreneurship as proposed by Timmon (1994)?
a) Investment clubbing*
b) The founders (entrepreneurs)
c) The resources needed to form the firm
d) The recognition of the opportunity