SME Management (MGT601)

1. 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

2. 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

3. 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

4. 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

5. 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

6. Which of the following CANNOT be accessed by performance appraisal?

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

7. 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

8. 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

9. 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

10. 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

11. 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

12. What percent of SMEs are the member of business associations?

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

13. 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

14. EPB stands for:

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

15. NGOs are ________ based organizations with their own management structure.

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

16. 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

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

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

18. 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)

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

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

20. 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

21. 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

22. Imitating entrepreneurs depend on the _______.

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

23. 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

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

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

25. Pakistan’s economy heavily depends on the _______.

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

26. 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.

27. 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

28. 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

29. 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

30. 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

31. Which of the following is abbreviated as NPC?

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

32. 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

33. To ensure profits entrepreneurs always avoid risks and abrupt changes.

    1. True
    2. False

34. 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

35. Entrepreneurial thinking has a positive impact on the growth of SMEs.

    1. True
    2. False

36. An entrepreneur should have technical, conceptual and human skills.

    1. True
    2. False

37. Corporations are considered as one of the forms of SME.

    1. True
    2. False

38. 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

39. ________ 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

40. 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

41. SMEs provide opportunity to rural and urban women to utilize their vocational skills while staying at their homes.

    1. True
    2. False

42. Owners also play the role of managers for SMEs, due to its limited structure and centralized decisions making.

    1. True
    2. False

43. 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

44. 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

45. 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

46. ________ entrepreneurs are the owners as well as themselves employees of the organization.

    1. Innovating
    2. Imitating
    3. Fabian
    4. Single owner

47. Entrepreneurship is a:

    1. Type of offered product
    2. Function of an organization
    3. Act of bringing innovation
    4. All of the given

48. Which of the following enlisted the 12 common barriers in the path of entrepreneurship?

    1. Vesper
    2. Weber
    3. Drucker
    4. Adam Smith

49. According to one study, what percentage of Japan's economy consists of SME's?

    1. 21%
    2. 41%
    3. 91%
    4. 61%

50. Entrepreneur is a person who is:

    1. An innovator
    2. Firm's owner
    3. Risk taker
    4. All of the given

51. Family trend plays a vital role in making business choice in SMEs.

    1. True
    2. False

52. 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

53. 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

54. 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

55. 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

56. 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

57. Imitating entrepreneurs depend on the ________.

    1. government
    2. society
    3. innovating entrepreneurs
    4. All of the given

58. 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)

59. SME's usually have a formalized grand structure to manage routine operations.

    1. True
    2. False

60. "Job lock" encourages entrepreneur to pursue his/her own business.

    1. True
    2. False

61. 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

62. 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

63. 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

64. 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

65. Generally in what terms performance of an employee is evaluated?

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

66. 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

67. 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

68. 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

69. Which of the following is the indigenous product of Pakistan?

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

70. 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

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

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

72. 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

73. 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

74. 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

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

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

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

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

77. 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

78. 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

79. 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

80. 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

81. 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

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

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

83. 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

84. 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%

85. 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

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

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

87. There are how many types of businesses?

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

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

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

89. The successful entrepreneur who is/has _______.

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

90. _______ 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

91. 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%

92. 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

93. 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

94. 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

95. Fabian Entrepreneurs belongs to _______.

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

96. 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%

97. 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%

98. 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

99. 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

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

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

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