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

SME Management (MGT601)

Multiple Choice Questions (MCQs)

Objective Questions

  1. 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
  2. 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
  3. 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
  4. 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
  5. Which of the following is abbreviated as NPC?

    1. National Planning Committee
    2. National Planning Council
    3. National Press Committee
    4. National Press Competition
  6. 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
  7. To ensure profits entrepreneurs always avoid risks and abrupt changes.

    1. True
    2. False
  8. An entrepreneur not only innovates to cater market, but it also:

    1. Avert risk to avoid unexpected changes
    2. Exit the struggling markets to avoid losses
    3. Sustain the position through continues development
    4. All of the given
  9. Entrepreneurial thinking has a positive impact on the growth of SMEs.

    1. True
    2. False
  10. An entrepreneur should have technical, conceptual and human skills.

    1. True
    2. False
  11. Corporations are considered as one of the forms of SME.

    1. True
    2. False
  12. A business is said to be medium sized business if total strength of employees is greater than 36 and less than 99 and total productive assets valued Rs 40 Million. This definition is coined by which of the following institution of Pakistan?

    1. State Bank of Pakistan
    2. SME Bank of Pakistan
    3. SMEDA
    4. Lahore Chamber of Commerce
  13. ________ is a response by the companies in industries where it is common for highly compensated employees to frequently move from one firm to another.

    1. Distractor
    2. Social Stigma
    3. Golden handcuffs
    4. Complacency
  14. Albert Shapiro had described external factors for an entrepreneur in his psychological analysis, which of the following is NOT integrated in those factors?

    1. Luck
    2. Decision making power
    3. Fate
    4. All of the given
  15. SMEs provide opportunity to rural and urban women to utilize their vocational skills while staying at their homes.

    1. True
    2. False
  16. Owners also play the role of managers for SMEs, due to its limited structure and centralized decisions making.

    1. True
    2. False
  17. Adam Smith, father of Economics, referred to small business as the:

    1. Wealth of nation
    2. Steady growth
    3. Backbone of economy
    4. None of the given
  18. Which one of the following is usually taken as a synonym of "Venture capital".

    1. Seed capital
    2. Paid-up capital
    3. Gross capital
    4. None of the given
  19. Which one of the following parameters is considered in declaring a business as a small scale business?

    1. Share in the economy
    2. Number of competitors
    3. Resources control
    4. Volume of production
  20. ________ entrepreneurs are the owners as well as themselves employees of the organization.

    1. Innovating
    2. Imitating
    3. Fabian
    4. Single owner
  21. Entrepreneurship is a:

    1. Type of offered product
    2. Function of an organization
    3. Act of bringing innovation
    4. All of the given
  22. Which of the following enlisted the 12 common barriers in the path of entrepreneurship?

    1. Vesper
    2. Weber
    3. Drucker
    4. Adam Smith
  23. According to one study, what percentage of Japan's economy consists of SME's?

    1. 21%
    2. 41%
    3. 91%
    4. 61%
  24. Entrepreneur is a person who is:

    1. An innovator
    2. Firm's owner
    3. Risk taker
    4. All of the given
  25. Family trend plays a vital role in making business choice in SMEs.

    1. True
    2. False
  26. What is the average mean age of entrepreneur of Pakistan according to a survey conducted by World Bank?

    1. 22 Years
    2. 67 Years
    3. 42 Years
    4. None of the given
  27. How are the large and small enterprises interlinked?

    1. By fostering changes
    2. By subcontracting
    3. By sharing risk
    4. By serving the same market
  28. What is the average mean age of entrepreneur in Korea according to a survey conducted by World Bank?

    1. 24 Years
    2. 82 Years
    3. 69 Years
    4. 46 Years
  29. 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
  30. Which one of the following is not an internal factor as described by Albert Shapiro in his psychological analysis?

    1. Vision
    2. Determination
    3. Decision making power
    4. Fate
  31. Imitating entrepreneurs depend on the ________.

    1. government
    2. society
    3. innovating entrepreneurs
    4. All of the given
  32. According to which institution of Pakistan, a business will fall in medium scale business category, if it has productive asset less than Rs.100 million and there is no limit of number of employees.

    1. Youth Investment Promotion Scheme (YIPS)
    2. Small Business Finance Corporation (SBFC)
    3. Directorate of Industries Balochistan (DIB)
    4. Small Industries Development Board (SIDB)
  33. SME's usually have a formalized grand structure to manage routine operations.

    1. True
    2. False
  34. "Job lock" encourages entrepreneur to pursue his/her own business.

    1. True
    2. False
  35. The main objective of an entrepreneur is to have ________ in his/her work.

    1. consistency
    2. value creation
    3. free hand
    4. none of the given
  36. What kind of business transaction was reported in the first written material available about a small business?

    1. Purchase of land for business
    2. Loan from bank for business
    3. Purchase of machinery for business
    4. Sale of business products
  37. 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
  38. 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.
  39. Pakistan’s economy heavily depends on the _______.

    1. export
    2. small & medium size firms
    3. agriculture
    4. manufacturing
  40. In 1959 Bison and Meyers replaced the terms with “management” and “organization” for ________.

    1. entrepreneurship
    2. entrepreneur
    3. business
    4. administration
  41. Imitating entrepreneurs depend on the _______.

    1. government
    2. private firms
    3. developing countries
    4. advanced countries
  42. 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
  43. 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
  44. 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
  45. SMEs are considered as engines of _______ growth in both developed and developing countries.

    1. business
    2. GDP
    3. economic
    4. none of these
  46. 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)
  47. How many craftsman colonies were developed by Sindh Small Industries Corporation (SSIC)? (as per survey 2001)

    1. 2
    2. 4
    3. 6
    4. 10
  48. NGOs are ________ based organizations with their own management structure.

    1. social
    2. community
    3. economic
    4. social & community
  49. 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
  50. 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
  51. EPB stands for:

    1. Employee Promotion Bureau
    2. Export Producing Benefits
    3. Employee Pension Benefits
    4. Export Promotion Bureau
  52. What percent of SMEs are the member of business associations?

    1. 50%
    2. 52%
    3. 54%
    4. 56%
  53. 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
  54. 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
  55. 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