In the name of ALLAH, the most beneficient, the most merciful

SME Management (MGT601)

Multiple Choice Questions (MCQs)

 

Objective Questions

Question

In which year the restructuring of Small Business Finance Corporation (SBFC) was done?

  1. 1998
  2. 2000
  3. 2001
  4. 2002

Answer: 1 Chapter No.  

Question

Following are the main functions of Punjab Small Industries Corporation (PSIC) EXCEPT:

  1. Technology transfer
  2. Vocational infrastructure
  3. Financial assistance
  4. Entrepreneurial Development

Answer: 1 Chapter No.  

Question

According to Gallup survey 2001, which of the following factor is responsible for the decline of export in Pakistan?

  1. Infrastructure
  2. Law and order
  3. Taxation
  4. Literacy

Answer: 1 Chapter No.  

Question

What kind of management level training is required for SME a sector that is not provided by Pakistan institute of Management Sciences (PIMS)?

  1. Top Level Management
  2. Middle Level Management
  3. Low Level Management
  4. Corporate Level Management

Answer: 3 Chapter No.  

Question

Technological obsolescence, low capacity utilization, non-availability of spares and poor machinery maintenance are the postoperative problems that can be emerged in which of the following areas?

  1. Production
  2. Capital
  3. Customer
  4. Sale

Answer: 1 Chapter No.  

Question

Which of the following national institute had conducted a survey about the development of SME in Pakistan with the collaboration of United Nations Industrial Development Organization (UNIDO)?

  1. Lahore Chamber of Commerce
  2. SME Bank
  3. Ministry of Trade
  4. SMEDA

Answer: 4 Chapter No.  

Question

Which of the following is an external source of information for new product idea?

  1. Analysis of concepts in the light of existing problems
  2. Search of memories to find information related to the concept
  3. Newspapers, trade journals, professional journals
  4. Recombining the elements found in new and useful ways

Answer: 3 Chapter No.  

Question

Which of the following year was considered as starting period of industrialization in Pakistan?

  1. 1947
  2. 1950
  3. 1955
  4. 1960

Answer: 4 Chapter No.  

Question

How many years ago the first piece of writing about the small business was discovered?

  1. 3000 years
  2. 3500 years
  3. 4000 years
  4. 4500 years

Answer: 3 Chapter No.  

Question

According to a research conducted by SMEDA and UNIDO, what is the percentage of large firms that avails the facility of loan from banks and other financial institutions?

  1. 67%
  2. 80%
  3. 75%
  4. 83%

Answer: 2 Chapter No.  

Question

Who is the secretary general of National Planning Committee (NPC) developed in 1938?

  1. MR . K.T. Shah
  2. MR . K.Y. Shah
  3. MR . K.S. Shah
  4. MR . K.K. Shah

Answer: 1 Chapter No.  

Question

What kind of business transaction was reported in the first written material available on small business?

  1. Purchase of land for business
  2. Loan from bank for business
  3. Purchase of machinery for business
  4. Purchase of material for business

Answer: 2 Chapter No.  

Question

How many major changes an entrepreneur of a small business can bring in the industry?

  1. 3
  2. 4
  3. 5
  4. 6

Answer: 3 Chapter No.  

Question

Which of the following topic/s has/have pivoted importance for short to medium term issues?

  1. Delivery of Assistance and Access to Resources
  2. Business Environment
  3. Monitoring Developments
  4. All of the given options

Answer: 4 Chapter No.  

Question

What is the average mean age of entrepreneur of Pakistan according to a survey conducted by World Bank?

  1. 40 Years
  2. 43 Years
  3. 45 Years
  4. None of the given options

Answer: 4 Chapter No.  

Question

Which of the following is an expressed form of IPO?

  1. Initial Public Offering
  2. International Public Office
  3. Initial Price Offer
  4. Imitating Public Officer

Answer: 1 Chapter No.  

Question

In retailing business, how much percent have owner share in the business?

  1. 70%
  2. 80%
  3. 90%
  4. 99%

Answer: 4 Chapter No.  

Question

There are how many types of businesses?

  1. two
  2. three
  3. four
  4. five

Answer: Chapter No.  

Question

The successful entrepreneur who is/has _______.

  1. self-disciplined
  2. leading skills
  3. authority
  4. communication skills

Answer: Chapter No.  

Question

_______ is/are used to describe the inability of an employee to freely leave a job because doing so will result in the loss of employee benefits.

  1. Job Lockin
  2. Golden handcuffs
  3. Social stigma
  4. Job Lockin & Golden handcuffs

Answer: Chapter No.  

Question

According to a research conducted by SMEDA and UNIDO, what is the percentage of small firms which avail the facility of loan from banks and other financial institutions?

  1. 16%
  2. 18%
  3. 25%
  4. 30%

Answer: Chapter No.  

Question

SMEDA is an SME ______ body for the government of Pakistan but also facilitates other stakeholders in addressing their SME development agendas.

  1. Policy making
  2. Policy advisory
  3. Policy implementing
  4. all of these

Answer: Chapter No.  

Question

Following are the basic reasons behind low tax base in Pakistan EXCEPT?

  1. High cost of book keeping
  2. Harassment of tax authorities
  3. Non cooperative role of CBR
  4. High physiological cost

Answer: Chapter No.  

Question

In the formation of SMEs, the most benefited from this sector ________.

  1. lower class
  2. middle class
  3. both a & b
  4. upper class

Answer: 3 Chapter No.  

Question

Which of the following termed is acronym as NEQS?

  1. National Environment Quality Standards
  2. National Environmental Qualification System
  3. National Environmental Qualification Standard
  4. National Environment Quality System

Answer: Chapter No.  

Question

The development process was initiated in the sixties and the concept of development derived its origin from the _______ of small enterprise development.

  1. Indian model
  2. Ayubian model
  3. Calcutta
  4. Dhaka

Answer: 1 Chapter No.  

Question

SMEDA is directly associated with which of the following ministries?

  1. Ministry of Commerce
  2. Ministry of Economic Affairs & Statistics
  3. Ministry of Industry and Production
  4. Ministry of Planning & Development

Answer: Chapter No.  

Question

Fabian Entrepreneurs belongs to _______.

  1. middle class
  2. family business
  3. partnership business
  4. ruling class

Answer: Chapter No.  

Question

In Pakistan SMEs have a significant contribution in the total GDP of Pakistan, according to SMEDA and Economic survey reports, the share in the annual GDP is _______.

  1. 30%
  2. 35%
  3. 40%
  4. 45%

Answer: Chapter No.  

Question

In recent years, per worker productivity of Pakistani labour force has decreased up to what percent as compared to China's per worker productivity?

  1. 25%
  2. 30%
  3. 35%
  4. 40%

Answer: Chapter No.  

Question

According to the definition of SMEDA Pakistan “a business with employment size up to 250, paid up capital up to 25 million and annual sales up to 250 million is said to be small and medium business”. In which year this definition has been presented?

  1. SME Policy 2002
  2. SME Policy 2004
  3. SME Policy 2005
  4. SME Policy 2007

Answer: 4 Chapter No.  

Question

Which of the following is true about today’s global economy?

  1. Knowledge Based Economy
  2. Industrial Based Economy
  3. Economy of Socialism
  4. Capital Economy

Answer: Chapter No.  

Question

Before the partition of Sub-continent which city was the industrial hub in the continent?

  1. Dhaka
  2. Calcutta
  3. Bombay
  4. Karachi

Answer: Chapter No.  

Question

Which of the following is the indigenous product of Pakistan?

  1. Kinno
  2. Software
  3. Dates
  4. Dairy Product

Answer: Chapter No.  

Question

According to which country an enterprise will be a small enterprise if its number of employees is less than 10?

  1. USA
  2. Russia
  3. France
  4. Japan

Answer: Chapter No.  

Question

Following factors can be assessed by cash flow statement EXCEPT:

  1. Company’s need of cash for procurements
  2. Company’s need for external financing
  3. Company’s ability to generate positive cash flows
  4. Company’s ability to pay dividends

Answer: Chapter No.  

Question

To which category SME belongs if the number of employees is not more than 50, total assets up to 50 million and sales not exceeding Rs. 300 million.

  1. Manufacturing
  2. Trading/Services
  3. Cottage industry
  4. Exporting

Answer: Chapter No.  

Question

If a person is evaluated high on many traits because of a belief that the individual is high in one trait. This perception is affected by which of the following effects?

  1. Contrast
  2. Dominance
  3. Halo
  4. Perceptual

Answer: Chapter No.  

Question

Generally in what terms performance of an employee is evaluated?

  1. Quality
  2. Quantity
  3. Time
  4. All of the given

Answer: 4 Chapter No.  

Question

What type of industry it will be if number of employees ranges from 36 to 99 and productive assets ranges from 20 to 40 million?

  1. Micro
  2. Small
  3. Medium
  4. Large

Answer: 3 Chapter No. 1 

Question

Which one of the following parameters is considered in declaring a business as a small business?

  1. Share in the economy
  2. Number of competitors
  3. Resources control
  4. Volume of production

Answer: 4 Chapter No. 1 

Question

Why small businesses became object of contempt in Egyptians, Arabs, Babylonians, Jews, Greeks and Roman eras?

  1. Poor salesmanship of entrepreneur
  2. Lack of desired skills of workforce
  3. Cheating and degrading of consumers
  4. Competitor's negative propaganda

Answer: 3 Chapter No. 1 

Question

Which of the following is abbreviated as NPC?

  1. National Planning Committee
  2. National Planning Council
  3. National Press Committee
  4. National Press Competition

Answer: 1 Chapter No. 1 

Question

What kind of resources are utilized by small businesses as compare to large ones?

  1. Primary Resources
  2. Secondary Resources
  3. Macro Resources
  4. Surplus Resources

Answer: 2 Chapter No. 1 

Question

What kind of link will exist between small and business sectors if a portion of all the material available is procured by the small unit who manufactures a specific part needed by large company?

  1. Merchandising
  2. Purchase sub-contracting
  3. Complementary products
  4. Job sub-contracting

Answer: 2 Chapter No. 2 

Question

The rate of interest charged for soft loan is at _________.

  1. Below market rate
  2. Above market rate
  3. Twice the market rate
  4. Without considering the market rate.

Answer: 1 Chapter No. 2 

Question

Pakistan’s economy heavily depends on the _______.

  1. export
  2. small & medium size firms
  3. agriculture
  4. manufacturing

Answer: 2 Chapter No. 2 

Question

According to research conducted in MIT, Harvard University, USA, following are the main objectives for a technology entrepreneur EXCEPT:

  1. Creating something novel and useful
  2. Creditability
  3. Building long-term value
  4. Freedom

Answer: 2 Chapter No. 3 

Question

In 1959 Bison and Meyers replaced the terms with “management” and “organization” for ________.

  1. entrepreneurship
  2. entrepreneur
  3. business
  4. administration

Answer: 1 Chapter No. 3 

Question

Imitating entrepreneurs depend on the _______.

  1. government
  2. private firms
  3. developing countries
  4. advanced countries

Answer: 4 Chapter No. 3 

Question

Which one of the following entrepreneurs duplicates existing activities and put them into practice without any expenditure on research?

  1. Innovating entrepreneurs
  2. Imitating Entrepreneur
  3. Fabian Entrepreneurs
  4. Drone Entrepreneurs

Answer: 2 Chapter No. 4 

Question

What kind of an entrepreneur will he/she be, IF he/she follows the old traditions, avoids risk taking and responds to change only in situations where it becomes necessary to do so?

  1. Innovative
  2. Imitating
  3. Fabian
  4. Drone

Answer: 3 Chapter No. 4 

Question

SMEs are considered as engines of _______ growth in both developed and developing countries.

  1. business
  2. GDP
  3. economic
  4. none of these

Answer: 3 Chapter No. 5 

Question

Following are the financial institutions developed to promote SME in Pakistan EXCEPT:

  1. Segmented Business Fund Corporation (SBFC)
  2. Youth Investment Promotion Scheme (YIPS)
  3. Regional Development Finance Corporation (RDFC)
  4. Industrial Development Bank of Pakistan (IDBP)

Answer: 1 Chapter No. 7 

Question

How many craftsman colonies were developed by Sindh Small Industries Corporation (SSIC)? (as per survey 2001)

  1. 2
  2. 4
  3. 6
  4. 10

Answer: 3 Chapter No. 7 

Question

NGOs are ________ based organizations with their own management structure.

  1. social
  2. community
  3. economic
  4. social & community

Answer: 2 Chapter No. 8 

Question

SMEDA was established in _______ to take on the challenge of developing Small & Medium Enterprises (SMEs) in Pakistan.

  1. October 1997
  2. November 1997
  3. October 1998
  4. November 1998

Answer: 3 Chapter No. 8 

Question

EPB stands for:

  1. Employee Promotion Bureau
  2. Export Producing Benefits
  3. Employee Pension Benefits
  4. Export Promotion Bureau

Answer: 4 Chapter No. 9 

Question

Which of the following can be abbreviated as ILO?

  1. International Labour Order
  2. Industrial Legal Order
  3. Industrial Labour Order
  4. International Labour Organization

Answer: 4 Chapter No. 9 

Question

What percent of SMEs are the member of business associations?

  1. 50%
  2. 52%
  3. 54%
  4. 56%

Answer: 1 Chapter No. 13 

Question

In which of the following source of information, an entrepreneur can get new idea by screening the product physically.

  1. Trade Fairs
  2. Ancillarisation
  3. Trade Journals
  4. Catalogues

Answer: 2 Chapter No. 15 

Question

In technical feasibility, you can identify all of the following critical technical specifications EXCEPT:

  1. Durability
  2. Reliability of performance
  3. Safety
  4. Sales volume and profitability

Answer: 4 Chapter No. 16 

Question

What is the basic purpose of a cash flow statement for an entrepreneur in an accounting period?

  1. Provides information about investments
  2. Provides information about financing activities
  3. Provides information about cash inflows and outflows
  4. All of the given options

Answer: 4 Chapter No. 18 

Question

What kind of activity is taking place when department manager provides a complete tour of company or plant to the new member?

  1. Appraisal
  2. Orientation
  3. Training
  4. Socialization

Answer: 2 Chapter No. 27 

Question

Which of the following is NOT a prime outcome of a training program in an organization?

  1. Increase in proficiency
  2. Organizational growth
  3. Personal growth
  4. Increase number of workplace accidents

Answer: 4 Chapter No. 28 

Question

Which of the following CANNOT be accessed by performance appraisal?

  1. Traits
  2. Behaviors
  3. Task outcomes
  4. Attitudes

Answer: 3 Chapter No. 29 

Question

Which of the following is true for quality control in engineering and manufacturing?

  1. It is a set of measures taken to ensure that defective products are not produced
  2. It is a set of measures taken to ensure that defective services are not produced
  3. It is a set of measures taken to ensure that the design meets performance requirements.
  4. All of the given

Answer: 4 Chapter No. 30 

Question

Which of the following segmentation types has characteristics like traits, attitudes, interests, or lifestyles of potential customer groups?

  1. Behavior segmentation
  2. Demographic segmentation
  3. Geographic segmentation
  4. Psychographic segmentation

Answer: 4 Chapter No. 32 

Question

Which of the following is the expressed form of PLC?

  1. Product Learning Cycle
  2. Production Length Cycle
  3. Product Life Cycle
  4. Product lifetime Customers

Answer: 3 Chapter No. 33 

Question

Which of the following statement is True?

  1. There is a close relationship between industry & technology.
  2. The relationship between industry and technology is waived.
  3. Both are independent and not affected by each other.
  4. Technology always follows the industrial change

Answer: 1 Chapter No. 35 

Question

Until 2000, 79 member countries of WTO have maintained a list of MFN (Most Favorite Nation) exemptions. The list contains how many exemptions?

  1. 360
  2. 370
  3. 380
  4. 390

Answer: 4 Chapter No. 40