1. Which statement is not true of entrepreneurs?

A. They take risks

B. They are agents of adjustment.
C. They change the way businesses convert inputs into outputs.
D. They generally stick to the processes already in use.
2. The following statements use the EU classification and refer to the United Kingdom. Which is false?
A. The EU uses three sub-categories of SME, defined according to numbers employed.
B. Micro firms are owned and run by the same people.
C. Small firms employ fewer than 50 persons.
D. Employment is roughly equally divided among micro, small and medium, and large firms.
3. Which of the following is presented as evidence of social factors influencing whether someone becomes an
owner-manager?
A. There seems to be little relationship between self-employment and age.
B. Although people believe self-employment runs in families, there is little evidence to support this view.
C. Self-employment is more common among single people than among the married.
D. Self-employment is more common among some ethnic groups.
4. Which of the following is not one of the environmental factors that may influence the potential of a small
business?
A. Industrial structure favours small independent units
B. Affluent population providing a market
C. Clusters of technically advanced small firms
D. An industry with economies of scale
E. Banks recognising the needs of small firms
F. Close contacts with customers related to problem solving activities
5. Which of the following, if any, is not among the conditions favouring small firm development?
A. Regulations that favour small firms
B. Opportunities that favour entrepreneurial behaviour
C. Willingness to accept lower returns
D. They are all conditions favouring development.
6. According to our discussion, what is the best way a government can support SMEs?
A. Focus on super-growth firms rather than start-ups.
B. Create and extend infrastructure.
C. Provide a stable macroeconomic environment.
D. Concentrate on areas of economic decline.
7. Pichot suggested three roles for the intrapreneur in promoting innovation.
What are they?
A. Inventor, developer and marketer
B. Inventor, innovator and sponsor
C. Inventor, product champion and sponsor
D. Team builder, information source and advocate
8. How did Art Fry persuade potential customers to buy Post-it Notes?
A. By telling them of his experience with his hymnal
B. By inviting buyers to visit 3M's own office, where they had become very popular
C. By linking with a leading distributor.
D. None of the above.
9. Which of the following is not an example of 'technical entrepreneur', according to Jones-Evans?
A. Research - experience of scientific development
B. Consolidator - skills in linking technical and business aspects

C. Producer - experience of product or process development in a large company

D. User - familiar with marketing or end-use applications
10. Which of the following statements about SMEs in international business is untrue?
A. 'Push' from a hostile business environment is an important reason for exporting.
B. About 40 per cent of small high-technology firms in South-East England export.
C. Joint ventures are important in building links between SMEs in industrialised and developing countries.
D. After exporting, joint ventures are important in penetrating overseas markets.

Answer of Multiple Choice Questions

1. (D) 2. (B) 3. (D) 4. (D) 5. (D)

6. (C)

7. (C)

8 (D)

9 (B)

10 (B)

1. Resources will change as the organisation's purpose changes. In addition, they will also be influenced by what is
happening outside in the environment.
A. True
B. False
2. Which of the following is not an internal factor affecting organisational purpose?
A. Leadership
B. Innovation
C. Ownership
D. Co-operation
3. What, according to Nelson and Winter, is the critical factor constraining an organisation's ability to develop its
resource capabilities?
A. Investment funds
B. Organisational routines
C. Innovation and entrepreneurship
D. Availability of new resources in the market
4. The overall result of Scumpter's view of resource dynamics is that resource configurations develop over time,
they are constrained by what has gone before and they require investment if they are to continue.
A. True
B. False
5. Which of the following is an example of an early-mover advantage?
A. Developing intangible barriers to imitation
B. Legal barriers to imitation
C. Exploiting market size and scale economies
D. Building networks of complementors
6. Which of the following is not one of the ways in which resource advantages can be sustained and protected from
imitation?
A. Incremental improvements in the product or service
B. Exploiting market size and scale economies
C. Legal barriers to imitation
D. Entering into exclusive distribution contracts
7. In discussing the dynamics of competitive advantage, who said: "Strategy is as much about competing for
tomorrow's industry as it is about competing within today's industry structure"?
A. Alfred Chandler
B. Henry Mintzberg
C. Gary Hamel and C.K. Prahalad

D. Michael Porter
8. Which strategy guru is famed for his scepticism concerning the possibility of making accurate predictions about
environmental change on which to base strategy?
A. Henry Mintzberg
B. Michael Porter
C. Igor Ansoff
D. Richard Rumelt
9. Richard Rumelt has given a number of reasons why organisations that can see environmental changes coming still
do not react appropriately. Which of the following is not one of them?
A. Ostrich mentality
B. Distorted perception
C. Political deadlocks
D. Failed creative response
E. Action disconnects
F. Dulled motivation
10. What two factors are the principal determinants of the dynamics of fast-moving markets?
A. The pace and nature of technological innovation
B. Fashion and change
C. Competition and regulation
D. Market opportunity and market share

Answer of Multiple Choice Questions

1. (A) 2. (D) 3. (B) 4. (B) 5. (D)

6. (D)

7. (C)

8 (A)

9 (A)

10 (A)

1. Which of the following is not a key strategic issue in fast-moving industries?

A. The need for significant investments in basic technology
B. The need for bold initiatives to capture market share
C. The need to headhunt experienced staff
D. The search for a viable customer base
2. Why does competition often intensify in mature markets?
A. Because to achieve growth firms must take market share from other firms, meaning everyone competes
harder just to hand on to existing customers
B. Because customers play off one supplier against another
C. Because new entrants increase competition for customers
D. Because customers are bored with the familiar product offerings
3. Which of these strategies employed by firms in fragmented markets best describes the strategy of McDonald's?
A. Replication of a standardised formula
B. Customisation to the needs of customers
C. Low cost production
D. All of these
4. What is the key issue for firms seeking to devise a survival strategy in a declining market?
A. The number of firms serving the market
B. Determining the rate of decline
C. Finding ways to rebundle core competencies to allow diversification into growth markets
D. Driving hard to reduce costs
5. In the Key Reading at the end of this chapter, what does Phillip Wickham argue is of increasing value in the
mature markets seen in many Western countries?

A.
B.
C.
D.

Low costs
Government support
Investment in infrastructure
Entrepreneurship

6. How many dimensions are there to the dynamics of resource development?

A. Three
B. Five
C. Two
D. Four
7. Which of the following is not one of the three main areas of dynamics in environmental development?
A. Legal barriers
B. Resource responsiveness to environmental change
C. The maintenance of competitive advantage
D. Predictability of the environment
8. Which of the following statements do not relate to the sunk cost effect?
A. Investments in outdated resources represent costs buried into those resources
B. Resources and organisational abilities will have been developed for a strategy and will be less valuable in
any new strategy
C. There are fewer reasons to introduce something new
D. Firms that have already committed substantial resources to a specific technology may be reluctant to
change
9. Which of the following statements do not relate to the replacement effect?
A. Firms that have already committed substantial resources to a specific technology may be reluctant to
change
B. For existing large firms, their market dominance by one technology is simply replaced by that of a new
technology
C. Existing large firms have less incentive to innovate than new companies
D. New companies might expect to gain market dominance by innovation, whereas existing large firms gain
no further dominance by such a process
10. Which of the following is not one of the four phases of entrepreneurial development?
A. The identification of the business opportunity
B. The development of superior relationships with customers and suppliers
C. The development of a business to exploit the opportunity
D. The closure of businesses that are not sufficiently attractive

Answer of Multiple Choice Questions

1. (C) 2. (A) 3. (A) 4. (B) 5. (D)

6. (A)

7. (A)

8 (C)

9 (A)

10 (B)

1. The distinction between an "entrepreneur" and "small business owner" , if made, revolves around:
A. really nothing; they are truly one and the same
B. the Small Business Administration definitions
C. whether the business is an Internet based one or not
D. the risk taking or re-invention of a business vs. someone who "simply" starts a business or buys an existing
one
2. Which of the following was NOT one of the classifications of entrepreneurs presented in our text?
A. Franchise entrepreneur
B. Classic entrepreneur
C. Multipreneur

D. Intrapreneur
3. The primary reason entrepeneurs start companies is to:
A. prove they could do it
B. recover from a layoff
C. create something new
D. control their own lives
4. One study found that entrepreneurs tend to demonstrate all of the following traits except:
A. opinionated
B. emotionally aloof
C. calm
D. focused
E. aggressive
5. One reason for the growth in small businesses relates to the trend for larger business to downsize by contracting
with smaller firms to do many of the functions once done internally. This is referred to as:
A. contracting
B. outsourcing
C. specializing
D. entrepreneuring
6. The technical characteristics of the small business would include all of the following except:
A. independently managed
B. owned by an individual or a small group of investors
C. based locally, even though the market might be widespread
D. significant influence in its industry
7. Which of the following might be termed a disadvantage faced by the small business?
A. greater flexibility
B. greater ability to serve specialized markets
C. extreme personal commitment of the owner
D. more personal service
8. The financial assistance to small business provided by the Small Business Administration takes the form of:
A. direct loans
B. guidance in locating lenders
C. loan guarantees
D. assistance in filling out paperwork
9. Key features of a well written business plan would include all of the following except:
A. financial plan
B. description of the product
C. .an analysis of the market
D. .review of the advertising firms analyzed
10. When buying an existing business, to cover the possibility that existing customers might go with the old owners
if they decide to open a similar business, a purchasing buyer might include in the contract:
A. a waiver of protection
B. a penalty fee
C. a noncompete clause
D. a structural fine
11. The Small Business Administration estimates that almost ______ of all new businesses fail by the end of the
sixth year.
A. one eighth
B. one third
C. one fourth

D. two thirds
12. To avoid the problems associated with running a new business, the use of consultants is viewed as helpful. One
of the types of consultants most frequently at the top of the list recommended would be the:
A. CPA
B. MBA
C. PhD
D. CLU
13. After considering the general labor shortage of the late 1990's, one of the primary difficulties experienced by
small business owners in attracting good employees is:
A. they can't offer flexible hours
B. they can't match salaries, benefits, and advancement potential of the larger firms
C. they can't offer benefits
D. they can't offer overseas business travel
14. One of significant changes in small business ownership starting in the 1990's and continuing through today is:
A. the shift toward manufacturing
B. the shift towards the southwest
C. the shift towards franchising
D. the shift towards home based businesses
15. Entrepreneurs are getting:
A. younger all the time
B. older by increasing numbers due to downsizing
C. harder to find
D. more set in their ways

Answer of Multiple Choice Questions

1. (D) 2. (A) 3. (D) 4. (C) 5. (B)
14(D) 15(A)

6. (D)

7. (C)

8 (C)

9 (D)

10 (C)

11(D)

12(A)

13(B)

1. Which one of the following actions by an entrepreneur is most likely to contribute to creative destruction?
A. Development of a new product
B. Take-over of a competitor
C. Issuing shares
D. Reducing prices
2. An advantage of the small firm in the innovation process?
A. Ability to carry out R&D
B. Ability to raise finance
C. Ability of the entrepreneur to carry out multiple tasks
D. Ability of the entrepreneur to act on new ideas or product development
3. External links may provide incentives to:
A. Raise finance
B. Introduce new working practices
C. Introduce improvements to products
D. Attend business exhibitions
4. Firms located on science parks compared to those located off science parks are:
A. More innovative
B. Less innovative
C. No more or less innovative

D. More growth orientated

5. Innovative small firms are more likely in:
A. Knowledge-based sectors
B. Biotechnology
C. Automobile manufacture
D. Aerospace manufacture
6. Schumpeter considered that innovative entrepreneurs would:
A. Thrive
B. Disappear
C. Be absorbed within large innovative firms
D. Be absorbed within non-innovative firms
7. Innovative entrepreneurs face special issues in raising:
A. Development capital
B. Structured capital
C. Human capital
D. Seed capital
8. Innovative entrepreneurs may have to pay high insurance premiums due to the:
A. The need to protect patents
B. Greater employee liability
C. Greater customer liability
D. Greater trading risks
9. Networking by innovative entrepreneurs may be most encouraged by?
A. Science parks
B. Business incubators
C. Chambers of Commerce
D. Business associations
10. The most likely problem encountered by innovative entrepreneurs in raising finance is:
A. Limited security since R&D is an intangible asset
B. The costs of the patenting system
C. The exhaustion of personal equity in R&D
D. Inability of potential external funders to understand technology

Answer of Multiple Choice Questions

1. (A) 2. (D) 3. (C) 4. (C) 5. (A)

6. (C)

7. (D)

8 (A)

9 (B)

10 (C)

1. Which type of feminist believes that men and women are equal?
A. Liberal
B. Objective
C. Postmodern
D. Difference
2. Which type of feminist finds important differences between men and women that are arbitrary and flexible?
A. Essentialist
B. Liberal
C. Marxist
D. Postmodern

3. On which level of analysis does peace studies NOT focus?

A. Political
B. Domestic
C. Interstate
D. Individual
4. Which of the following statements best characterizes female state leaders in recent decades?
A. They have worked for peace in about half of all cases, but have been prone to war in the other half.
B. They are more prone to go to war with other states than male leaders.
C. They have held high-level cabinet positions but have not been elected to lead governments.
D. They have not been significantly different from male leaders in making peace or war.
5. In arbitration,
A. the World Court is the most effective forum for success.
B. decisions are binding on parties to the dispute.
C. the process is led by one of the parties in the dispute.
D. third world countries are more successful than industrialized countries.
6. Mahatma Gandhi and Martin Luther King, Jr. are examples of leaders dedicated to which of the following ideas?
A. Colonial independence
B. Radical social change
C. Nonviolence
D. Socialism
7. Which strand of feminist IR scholarship highlights the unique contributions of women?
A. Postmodern
B. Liberal
C. Constructivist
D. Difference
8. Which of the following is the term for a concept that conceives of peace as something more than the absence of
war?
A. Anti-militarism
B. Collective peace
C. Mitigated violence
D. Positive peace
9. ________ refers to such phenomena as poverty and hunger as a form of violence.
A. Social violence
B. Indirect violence
C. Structural violence
D. Systematic violence
10. Since the 1990s, what crime has been increasingly viewed as a war crime?
A. Arson
B. Rape
C. Genocide
D. Destruction of cultural artifacts

Answer of Multiple Choice Questions

1. (A) 2. (D) 3. (C) 4. (D) 5. (B)

6. (C)

7. (D)

8 (D)

9 (C)

10 (B)

1. Which of the following is the term for a bargaining strategy that combines separate issues into one negotiation?

A.
B.
C.
D.

Compellence
Entente
Dtente
Linkage

2. While constructivists might emphasize a powerful logic of appropriateness in state decision-making, realists
emphasize a logic of
A. consequences.
B. organizational process.
C. self-preservation.
D. collective security.
3. Postmodernism calls into question the value of which of the following?
A. The very notion of states as unitary actors
B. Focusing on any actors other than states in the study of international relations.
C. Looking at how people talk or write about international relations.
D. Academic scholarship in international relations
4. According to the chapter, constructivists are interested in which of the following?
A. Inequality between states
B. The link between the interests and capabilities of states
C. The gender of the leaders of states
D. The connection between the interests and identities of states
5. The generalization defined as "democratic peace" means that democracies almost never fight
A. without alliances.
B. authoritarian governments.
C. in opposition to the UN.
D. each other.
6. Constructivists believe that norms spread globally thanks to the activities of _________________
A. postmodernists.
B. idealist entrepreneurs.
C. globalists.
D. norm entrepreneurs.
7. Marxists believe that unequal relations between ______________ shape international relations.
A. classes
B. states
C. colonies
D. organizations
8. What did Lenin believe would be the outcome of exploitation of the poor countries in the South by the
industrialized North?
A. Revolution in the North
B. Revolution in the South
C. Big profits in the South
D. War between states in the South
9. Peace Studies scholars believe that positive peace can be achieved throught the efforts of ___________.
A. positivists
B. the world government
C. peace movements
D. militarists
10. Neoliberals believe that acting according to the principle of _________ promotes cooperation and helps to

enforces rules and norms.

A. hierarchy
B. anarchy
C. reciprocity
D. identity

Answer of Multiple Choice Questions

1. (D) 2. (D) 3. (A) 4. (D) 5. (D)

6. (D)

7. (A)

8 (B)

9 (C)

10 (C)