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

SME Management (MGT601)

Multiple Choice Questions (MCQs)

 

Objective Questions

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

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

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 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

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

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

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

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

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

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

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

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

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