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Unit 1 - Practice Quiz

ERT425

1 Which of the following best defines an entrepreneur?

A. A person who manages a business for a salary without taking risks
B. A person who organizes and operates a business, taking on greater than normal financial risks
C. A government official who regulates commerce
D. An investor who only provides capital without active involvement

2 What is the primary role of entrepreneurship in economic development?

A. Reducing the variety of goods available
B. Creating jobs and driving innovation
C. Maintaining the status quo of the market
D. Decreasing the national GDP

3 Which of the following is considered an internal factor influencing entrepreneurship?

A. Government policy
B. Market demand
C. Self-motivation and mindset
D. Availability of raw materials

4 In the context of entrepreneurial competencies, what does 'Locus of Control' refer to?

A. The location of the business headquarters
B. The extent to which individuals believe they can control events affecting them
C. The legal structure of the company
D. The government's ability to control the market

5 Which of the following represents a SMART goal?

A. I want to make a lot of money soon.
B. I will try my best to improve sales.
C. I will increase sales by 10% within the next 6 months.
D. I want to be the best entrepreneur in the world.

6 In the SMART goal acronym, what does the letter 'R' stand for?

A. Random
B. Rapid
C. Relevant
D. Risky

7 What is the term for an employee within a large organization who acts like an entrepreneur by taking initiative and innovating?

A. Manager
B. Intrapreneur
C. Consultant
D. Shareholder

8 Which entrepreneurial competency involves seeking information to clarify client needs or business obstacles?

A. Systematic Planning
B. Information Seeking
C. Persuasion
D. Self-Confidence

9 In a SWOT analysis for self-assessment, Strengths and Weaknesses are considered:

A. Internal factors
B. External factors
C. Future predictions
D. Irrelevant factors

10 Which stage of Tuckman's team development model involves conflict and competition as team members establish their roles?

A. Forming
B. Storming
C. Norming
D. Performing

11 Systematic planning involves:

A. Acting on impulse without forethought
B. Breaking large tasks into sub-tasks with clear timelines
C. Avoiding written records to maintain secrecy
D. Relying entirely on luck

12 Which of the following is a barrier to effective communication in a team?

A. Active listening
B. Clear articulation
C. Prejudice and bias
D. Open feedback loops

13 McClelland's Theory of Needs suggests that entrepreneurs generally have a high need for:

A. Affiliation
B. Power
C. Achievement
D. Security

14 What distinguishes a manager from an entrepreneur?

A. Managers bear the financial risk; entrepreneurs do not.
B. Managers focus on maintaining the status quo; entrepreneurs focus on innovation.
C. Managers own the business; entrepreneurs work for salaries.
D. There is no difference.

15 When an entrepreneur takes a risk, it is usually described as:

A. Gambling
B. Blind luck
C. Calculated risk
D. Avoidable risk

16 Which of the following is a Pull factor influencing someone to become an entrepreneur?

A. Job dissatisfaction
B. Desire for independence
C. Unemployment
D. Conflict at the workplace

17 What is the formula for calculating Profit?

A.
B.
C.
D.

18 Effective listening in communication requires:

A. Planning your response while the other person speaks
B. Interrupting to correct the speaker immediately
C. Focusing on the speaker, understanding the message, and providing feedback
D. Ignoring non-verbal cues

19 Which environmental factor includes laws, regulations, and taxes?

A. Social environment
B. Technological environment
C. Political-Legal environment
D. Ecological environment

20 The competency of 'Persistence' is best described as:

A. Giving up when the first obstacle appears
B. Taking repeated actions to overcome obstacles despite failure
C. Insisting on doing things the same way regardless of results
D. Delegating all difficult tasks to others

21 In team building, what does 'synergy' mean?

A. The total output is less than the sum of individual inputs
B. The combined effort of the team produces a result greater than the sum of individual efforts
C. Team members working in isolation
D. Conflict reducing the team's efficiency

22 Which of the following is NOT a characteristic of a valid objective?

A. Specific
B. Vague
C. Measurable
D. Time-bound

23 What is Self-Efficacy?

A. Selfishness in business dealings
B. Belief in one's own ability to succeed in specific situations
C. The amount of capital an entrepreneur has
D. The efficiency of the production line

24 Which of the following is a Push factor for entrepreneurship?

A. Spotting a market gap
B. Desire for higher social status
C. Retrenchment (Loss of job)
D. Passion for a hobby

25 Which component of communication involves the receiver interpreting the message?

A. Encoding
B. Decoding
C. Transmission
D. Feedback

26 Why is monitoring important in systematic planning?

A. To punish employees
B. To increase bureaucracy
C. To compare actual performance with planned performance and take corrective action
D. To ensure the plan is never changed

27 What does the 'T' in a SWOT analysis stand for?

A. Time
B. Technology
C. Team
D. Threats

28 Which of the following behaviors is linked to 'Commitment to Work Contract'?

A. Prioritizing personal leisure over business deadlines
B. Making a personal sacrifice to complete a job for a customer
C. Ignoring customer complaints
D. Constantly changing the terms of agreement

29 Non-verbal communication includes:

A. Emails
B. Phone calls
C. Body language and facial expressions
D. Written reports

30 The ability to influence others to join your business or buy your product refers to:

A. Persuasion and Networking
B. Systematic Planning
C. Efficiency Orientation
D. Monitoring

31 Which is an example of a Long-term goal?

A. Finish the daily report by 5 PM
B. Hire one intern this week
C. Expand the business to three new countries over the next 5 years
D. Restock inventory tomorrow

32 In the Norming stage of team development:

A. The team has just met and is polite
B. The team is fighting over control
C. The team reaches consensus and establishes standards/rules
D. The team disbands

33 Which factor is considered an Economic factor influencing entrepreneurship?

A. Cultural values
B. Availability of capital and interest rates
C. Level of education in society
D. Personal health

34 What is the primary benefit of diversity in a team?

A. It ensures everyone agrees quickly
B. It brings different perspectives and enhances problem-solving
C. It reduces the need for communication
D. It eliminates all conflict

35 Efficiency Orientation implies a desire to:

A. Do things faster, better, and cheaper
B. Spend as much money as possible
C. Ignore quality for speed
D. Follow procedures regardless of the cost

36 A Business Plan is best described as:

A. A verbal agreement between partners
B. A written document describing the business, its objectives, and strategies
C. A marketing flyer
D. A list of employee complaints

37 Which social factor negatively influences entrepreneurship?

A. A culture that celebrates innovation
B. High social status for entrepreneurs
C. A culture that stigmatizes failure
D. Supportive family structures

38 Feedback in communication is essential because:

A. It ends the conversation
B. It confirms that the message was received and understood correctly
C. It allows the sender to speak more
D. It creates noise

39 Identifying a gap in the market involves:

A. Copying exactly what competitors are doing
B. Finding an unmet need or problem that customers have
C. Ignoring customer feedback
D. Reducing prices blindly

40 Which of the following is an example of Assertive communication?

A. Shouting to get your way
B. Remaining silent when you disagree
C. Expressing your needs clearly and respectfully without violating others' rights
D. Manipulating others with guilt

41 The acronym PESTLE is used to analyze:

A. Internal Strengths
B. The External Macro-Environment
C. Employee Performance
D. Financial Ratios

42 Which competency allows an entrepreneur to act without being asked or forced by events?

A. Initiative
B. Monitoring
C. Financial literacy
D. Compliance

43 In the context of planning, what is a contingency plan?

A. The primary marketing plan
B. Plan B, used when the original plan fails due to unforeseen events
C. A plan for daily operations
D. A historical record of past plans

44 Which of the following is NOT a 'Soft Skill' needed for entrepreneurship?

A. Communication
B. Leadership
C. Coding in Python
D. Emotional Intelligence

45 The 'Performing' stage of team development is characterized by:

A. High conflict
B. Confusion about roles
C. High productivity and autonomy
D. Dependency on the leader for every decision

46 Which represents a Technological factor influencing entrepreneurship?

A. Inflation rates
B. Automation and the internet
C. Population demographics
D. Tax laws

47 To prioritize tasks effectively, an entrepreneur might use:

A. Random selection
B. The Urgent vs. Important Matrix (Eisenhower Matrix)
C. First-in, First-out only
D. Procrastination

48 An entrepreneur who consistently aims for high standards of quality is demonstrating:

A. Risk taking
B. Quality Orientation
C. Social need
D. Passive behavior

49 What is the relationship between Risk and Reward in entrepreneurship?

A. Lower risk usually leads to higher reward
B. There is no correlation
C. Higher potential reward usually requires taking higher risks
D. Risk guarantees reward

50 In self-assessment, realizing one prefers working alone rather than in a group affects:

A. The legal laws of the country
B. The economic inflation rate
C. Team building and hiring strategies
D. The supply of raw materials