SME Management (MGT601)

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

Select a course code for Objective Questions:

ACC311 ACC501 BIF101 BIF401 BIF501 BIO101 BIO201 BIO202 BIO203 BIO204 BIO301 BIO302 BIO303 BIO401 BIO503 BNK603 BT101 BT201 BT301 BT302 BT401 BT402 BT403 BT404 BT405 BT406 BT501 BT504 BT505 BT604 CHE201 CHE301 CS001 CS101 CS201 CS202 CS204 CS301 CS302 CS304 CS311 CS401 CS402 CS403 CS408 CS501 CS502 CS504 CS506 CS508 CS601 CS602 CS604 CS605 CS607 CS609 CS610 CS614 CS707 CS710 ECO401 ECO402 ECO403 ECO404 EDU302 EDU401 EDU402 EDU501 EDU601 ENG101 ENG201 ENG301 ENG501 FIN611 FIN624 FIN625 ISL201 IT430 MCM101 MCM301 MGMT623 MGT101 MGT211 MGT301 MGT401 MGT402 MGT501 MGT502 MGT503 MGT510 MGT601 MGT603 MKT501 MKT610 MKT630 MTH101 MTH202 MTH302 MTH501 MTH601 MTH634 PAK301 PHY101 PHY301 PSY101 PSY403 PSY502 PSY512 SOC101 SOC301 SOC401 STA301 STA630 STA641 ZOO102 ZOO401 ZOO501 ZOO502 ZOO503 ZOO504 ZOO505 ZOO506 ZOO510 ZOO630

Select a course code for Subjective Questions:

ACC311 CS001 CS101 CS201 CS301 CS607 CS701 CS702 CS703 CS704 CS707 CS708 CS710 CS711 CS718 CS721 CS724 ECO401 ECO403 ENG101 ENG301 MGT703 MTH501 STA301