The Government Of Pakistan Has Adopted Multi Pronged Approaches For Smes At The —————
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1. The government of Pakistan has adopted multi pronged approaches for SMEs at the ————— a) Regional b) Sub regional c) National levels d) All of the given options
2. —————as an innovator has the potential of doing things in a new way a) Opportunist b) Risk takers c) Analyzers d) Entrepreneur
3. ————— was established in 1972 having motives to indulge into promotional activities of small-scale industries in Sindh. a) SSIC b) PSIC c) SBFC d) SIDB
4. Entrepreneurs start businesses for a number of reasons including: a) An opportunity to make a difference b) Hang to deal with less government regulation than as an execute of a large company c) A much lower risk of career failure due to layoff or acquisition than working for a large company d) The opportunity to get rich much quicker than if they work for a large company
5. The nation is rapidly moving from: a) Industrial to capitalism b) Capitalism to industrial c) Industrial to knowledge-based d) None of the above
6. Enterprises have to deal with ——— labor laws with some of them being industry specific. a) 45 b) 56 c) 35 d) 10
7. More businesses fail because of ______than for any other reason. a) Incompetent management b) Theft by employees c) Insufficient capital d) Poor choice of location
8. The international market: a) Has proven to be a tremendous opportunity for small business. b) Is being dominated by large corporations based in Europe and Japan. c) Is largely closed to small U.S.-based businesses because of the growth of international entrepreneurship. d) Provides greater opportunities for women and minority entrepreneurs than U.S. domestic markets do.
9. A small firm's ability to identify and manipulate the ______in its business determines its ability to compete effectively. a) Key success factors b) Corporate vision and mission c) Opportunities and threats d) Market environment
10. Intellectual capital of a company is comprised of which components: a) Talent and skills of its workforce b) Software, patents, copyrights c)Customer base, reputation and goodwill d) All of the above 1. Which of the following is the most liquid of the assets of a business? a) Cash b) Stocks c) Trade debtors d) Fixed assets
2. The process of analyzing the tasks necessary for the production of a product or service is called ______. a) Job specification b) Work flow specification c) Job analysis d) Work flow design
3. Which of the following reflects the operating efficiency of a company during an accounting period? a) Balance Sheet b) Income Statement c) Cash Flow Statement d) Cost of Goods Sold
4. Which group of ratios measures a firm's ability to meet its short-term obligations? a) Debt ratios b) Liquidity ratios c) Coverage ratios d) Profitability
5. Which of the following is not a cash outflow for a firm? a) Depreciation b) Dividends c) Interest payments d) Taxes
6. In finance, "working capital" means the same thing as: a) Total assets b) Fixed assets c) Current assets d) Current assets minus current liabilities 7. Which one of the following is best described as a list of the knowledge, skills, abilities, and other characteristics that an individual must have to perform a particular job? a) Work flow analysis b) Job description c) Job specification d) Job analysis
8. In view of the cause of most new business failures, probably the most valuable service provided franchisees by the franchiser is: a) Management training and experience b) National advertising c) Financial assistance d) Territorial protection
9. In a business sale, the buyer seeks to: a) Get the business at the lowest price possible b) Negotiate favorable payment terms, preferably over time c) Minimize the amount of cash paid up front d) All of the above
10. ______are negative internal factors that inhibit the accomplishment of a firm's objectives. a) Strengths b) Weaknesses c) Opportunities d) Threats
11. Intellectual capital of a company is comprised of which components: a) Talent and skills of its workforce b) Software, patents, copyrights c) Experience of the people in the company d) Customer base, reputation and goodwill
12. Small businesses have a natural advantage over large competitors when it comes to developing a strategy for competitive advantage because small businesses have all these except: a) Fewer product lines b) Better-defined customer base c) Access to more capital d) Specific geographic market area
13. ______are long-range, broad statements of what the company plans to accomplish in the distant future and they guide the overall direction of the company. a) Policies b) Goals c) Procedures d) Objectives
14. Which of the following is intangible for lenders in evaluating the business plan? a) Capital b) Character c) Collateral d) Capacity
15. Your cash budget and an explanation of how much money you need to make your company and product a long-term success are the subject matter of the: a) Financial plan b) Strategic plan c) Business strategic plan d) Strategic action plan
16. In business terminology what is the synonym for capacity? a) Capital b) Cash flow c) Collateral d) Credit
17. The ______shows what assets the business owns and what claims creditors and owners have against those assets. a) Balance sheet b) Income statement c) Sources and uses of funds statement d) Pro forma
18. One of the most important tasks facing an entrepreneur is: a) Establishing a large enough reserve of capital b) Earning enough the first year to provide an adequate return on investment c) The deferment of taxes d) Determining the funds needed for a company start-up
19. In which category the most of the entrepreneurs of small industry of Pakistan belongs? a) Innovative b) Imitating c) Fabian d) Drone
20. Ali is reviewing the company's costs and expenses against revenue for the last year. Ali is reviewing the firm's: a) Balance sheet b) Income statement c) Sources and uses of funds statement d) Pro forma
1. Which of the following term can be defined as “partial refund of the total price paid for goods or services”? a) Discount b) subsidy c) Rebate d) All of the given options 2. What is the effect on cash after the disbursement? a) Cash inflows b) Cash outflows c) Uncertain d) Cash flow become stagnate
3. What will it called if property is used as a security for getting a loan? a) Debenture b) Mortgage c) Rebate d) Disbursement
4. Following are the industries require low level of working capital EXCET: a) Labor intensive industry b) Short production process industry c) Capital intensive industry d) High turnover inventory industry
5. Which of the following fundamental strategies businesses can earn a high rate of return? a) Product differentiation and cost advantage b) Product differentiation and cash management c) Cost advantage and efficient markets d) Cost advantage and industry factors
6. What is the sound liquidity ratio in term of net working capital? a) 1:2 b) 2:1 c) 1:1 d) 1.5:1
7. Which of the following is NOT a broad category of a job analysis? a) Relationship with peers b) Appraisal Techniques c) Mental Process d) Work Output
8. Following are the institutions organized for training of labour EXCEPT: a) PIMS b) TAVTA c) NILAT d) NIPA
9. Recruitment through internet advertisement is called ______. a) Cyberspace recruiting b) Websumes recruiting c) Leasing recruiting d) None of the given options
10. If a person is evaluated high on many traits because of a belief that the individual is high on one trait. This perception is affected by which of the following effects? a) Contrast b) Dominance c) Halo d) Perceptual
11. Which of these is the most frequently used source of performance information? a) Peers b) Subordinate c) Customers d) Managers
12. Which of the following statement is true? a) Working Capital + Liabilities > Asset b) Working Capital + Liabilities < Asset c) Working Capital + Liabilities = Asset d) Working Capital + Liabilities ≥ Asset
13. Which of the following is the last ministerial conference of WTO? a) Meeting at Singapore held in October b) Meeting held in Geneva in May c) Meeting organized at Doha in November d) Meeting at Hong Kong held in December
14. Which of the following statement is true? a) Available information suggests that only a large percentage of SMEs engage in export, but their contribution to total exports is inconsistent. b) Available information suggests that only a small percentage of SMEs engage in export, but their contribution to total exports is considerable. c) Available information suggests that only a small percentage of SMEs engage in export, but their contribution to total exports is negligible. d) Available information suggests that only a large percentage of SMEs engage in export, but their contribution to total exports is considerable.
15. Following are the positive effects of globalization on SMEs EXCEPT: a) Pool of recourses b) Innovation c) Uneven level of competition d) Great Market access
16. Which of the following statement important for an entrepreneur provides the information about sources from which cash has been generated and how it has been spent during a period of time? a) Income Statement b) Balance Sheet c) Cash Flow Statement d) Owner’s Equity Statement
17. Which of the following covers design and development of product in a manufacturing and service industry? a) ISO 9001 b) ISO 9002 c) ISO 9003 d) ISO 9004 18. Ali now has the buying power to purchase the computer system he has wanted for the last three months. Ali’s want is replaced with which of the following? a) Need b) Necessity c) Demand d) Satisfier
19. Which type of following segmentation has characteristics like areas size of the area, climate, or population? a) Behavior segmentation b) Demographic segmentation c) Geographic segmentation d) Psychographic segmentation
20. Which of the following can be defined as “Immediate payments made by customer/importer to the seller/exporter by presenting correct documents in the required time frame? a) Sight LC b) Insight LC c) Revocable LC d) Irrevocable LC
1. The case in which the product manufactured by small company is purchased by a big unit as accessory is known as
a. Job subcontracting b. Purchase subcontracting c. Complementary d. Merchandising
2. Which one of the following is not the characteristic of entrepreneurs?
a. Need for achievement b. Desire for responsibility c. Future orientation d. Communication ability
3. Entrepreneur that are inert and traditional; they are hurdles in economic development. They struggle to exit not to grow
a. Innovating entrepreneur b. Imitating entrepreneur c. Fabian entrepreneur d. Drone entrepreneur
4. What is the contribution of SME toward the direct and indirect exports?
a. 30% b. 40% c. 50% d. 60% Which country has about 80000 small and medium sized enterprises in addition to two or three million persons carrying a different self employment activities
a. South Africa b. United States c. Germany d. France
6. A system of controls set up by government to protect country’s agriculture or industry from foreign competitions is known as
a. Titanium b. Stigma c. Monopoly d. Protectionism
7. A loan that has a very low rate of interest is known as
a. Soft loans b. Grants c. Medium term loans d. None of the mentioned
8. In 1959 who has replaced the terms of management and organization for entrepreneurship
a. Aitken Huge J and Ne Clelland David b. Reggie Aggarwal and Mark Esposito c. Herbison and Mayers d. None of the mentioned
9. the worth placed on a product by a particular stage in the production process is known as
a. Value added b. Default rate c. GDP d. Gross margin for sales
10. Adam smith published Wealth of nations in
a. 1774 b. 1775 c. 1776 d. 1777
1. Fourth ministerial conference convinced in ______a. Geneva b. Doha c. Singapore d. Seattle
2. Pakistan committed to bind______of its tariff line
a. 44% b. 33% c. 22% d. 11%
3. ______is the founding member of GATT
a. India b. Bangladesh c. Pakistan d. China
4. Pakistan has already liberalized substantially at least ______of its major services
a. 11 b. 13 c. 15 d. 16
5. Policies regarding ______and ______are the other two examples of autonomous liberalization.
a. Communication and education b. Tourism and environment c. Telecommunication and d banking d. Health and distribution
6. GATS agreement recognize ______main sectors for the purpose of classification of services
a. 9 b. 10 c. 11 d. 12
7. WTO/GATT was established in ______a. 1948 b. 1949 c. 1950 d. 1951
8. Pakistan has received the offer from ______countries to become ______
a. 18, WTO member b. 20, MFN c. 21, GATT member d. None of the above mentioned
9. Patent ordinance was introduced in ______
a. 2001 b. 2002 c. 2003 d. 2004
10. Fifth ministerial conference was held in
a. 2003 b. 2004 c. 2005 d. 2006
Question 1
1. Copyrights amendments ordinance was introduced in ______
a. 2000 b. 2001 c. 2002 d. 2003
2. Safeguard ordinance introduced in ______
a. 2000 b. 2001 c. 2002 d. 2003
3. In Pakistan ______companies are ISO 9000 certified
a. 1000 b. 2000 c. 3000 d. 4000
4. ISO required for the laboratory certification is ______
a. ISO 9001 b. ISO 14000 c. ISO14001 d. ISO17025
Question 2 The following terms stands for:
1. PIPRO stands for ______
Pakistan intellectual property rights organization
2. TRIM stands for ______
Trade related investment measures
3. GATT stands for ______
General agreement on tariff and trade
4. TRIPs stands for ______
An agreement on trade related aspects of intellectual property rights
5. TBT stands for ______
Technical barriers to trade
6. LDCs stands for______
Least developed countries 1. The product life cycle concept means that small businesses must: a) constantly be involved in product innovation. b) track demographic and psychographic trends carefully. c) create both place and time utility if they are to survive. d) use a market penetration strategy if they are to be successful.
2. Quality improvement efforts must ultimately focus on: e) the product. f) the customer. g) the manufacturing process. h) the purchasing process.
3. Product Life Cycle consists of all of the stages except : a) Product planning. b) Introduction. c) Late Growth. d) Maturity
4. The focus of the small company's marketing plan is: i) its product or service. j) the customer. k) attracting capital. l) an evaluation of key competitors.
5. The time span between stages in the product life cycle: m) generally runs about six months to one year per stage. n) is highly influenced by the amount of promotion that is done. o) depends entirely on the type of products involved. p) depends on the types of market strategy the small business owner is pursuing. 1) Entrepreneurs start businesses for a number of reasons including: (Marks: 10) a) An opportunity to make a difference. b) Hang to deal with less government regulation than as an execute of a large company. c) A much lower risk of career failure due to layoff or acquisition than working for a large company. d) The opportunity to get rich much quicker than if they work for a large company.
2. Surveys show that owners of small businesses believe that: a) They work harder on their own than if they worked for someone else. b) They earn less than if they worked for someone else. c) They are less satisfied than if they worked for someone else. d) Venture capital is relatively easy to rise.
3. A significant benefit of starting your own company is: a) More leisure time because there is less of a need to punch a time clock. b) Contributing to society and being recognized for your efforts. c) To be able to choose who you work with or don't work with. d) More job security than working for a large corporation.
4. Kyoto has started an interior decoration business. Everything about the business, from its name to the color schemes used in the corporate letterhead, is an expression of her personality. She sees this business as her greatest personal achievement. Kyoto is experiencing the opportunity ______of small business ownership. a) To reap unlimited profits b) To contribute to society c) To make a difference d) To reach her full potential
5. Mary and Ted are discussing starting a new business and are asking themselves a series of questions like; “What is the worst that could happen if we fail?” “How likely is that to happen?” They are assessing which potential drawback of small business ownership? a) The long hours and hard work involved b) The risk of losing their entire investment c) The lower quality of life they’ll experience d) The uncertainty of their income
6. Potential drawbacks of small business ownership include: a) A relatively low guaranteed income. b) A significantly freer personal schedule but less personal income and assets with which to enjoy the more relaxed schedule. c) A high likelihood of a lower quality of life while starting and establishing the small business. d) Relatively limited potential for further personal development.
7. More businesses are started by individuals between ____ than at any other age. a) Under 25 b) 25–34 c) 35–44 d) 45–54
8. Which of the following trends is feeding the growth of entrepreneurial activity? a) A greater focus on professional advancement combined with the “flattening” of large corporations’ management hierarchies b) The rapid growth of the need for low-technology products c) A favorable attitude toward entrepreneurs in American society d) Diminished wage increases in corporations and the desire for a better standard of ling 9. The service sector of American business accounts for ____ of gross domestic product. a) 50 b) 45 c) 80 d) 90
10. The international market: a) Has proven to be a tremendous opportunity for small business. b) Is being dominated by large corporations based in Europe and Japan. Is largely closed to small U.S.-based businesses because of the growth of international entrepreneurship. 1) Bank’s lending criteria includes which of the following factors before lending short term loan:
a) Adequate security & Shareholder’s funds b) Good cash flow c) Specific purpose d) All of the given options
2) When the buyer is examining the income statements, tax returns, and balance sheets of the business, he/she is seeking an answer to the basic question:
a) Is the business financially sound? b) Why does the owner want to sell? c) What is the physical condition of the business? d) What legal aspects should be considered?
3) When seeking to evaluate the financial soundness of the company prior to purchase, the buyer needs to examine several specific financial elements including:
a) The company's lease agreement for its facilities b) Any current product liability suits c) The current owner's (and relatives’) compensation d) The physical plant and existing inventory
4) Which of the following statements about valuing a business is true?
a) The balance sheet technique is the best way to value a business b) Business valuation is partly art and partly science c) Buyers should rely on established "rules of thumb" to decide what a company is worth d) The primary reason buyers purchase existing businesses is to get their current earning potential
5) A company's P/E ratio is: a) The price of one share of its common stock divided by its earnings per share b) Its profits per share divided by its equity per share c) Its profits per share divided by its excess cash flow per share d) The price of one share of its common stock divided by external capitalization
6) A report that will provide the facts and figures whether business is profitable or not is called:
a) Feasibility Report b) Statutory Report c) Prospectus d) Financial statements
7) ______is a cost which remains fix in total but varies per unit of sales, e.g. rent of the shop etc.
a) Fixed cost b) Variable cost c) Semi variable cost d) All of the given option
8) According to the ______if the loan amount is less than Rs. 2 million financial accounts of the business, signed by the borrower are required.
a) Prudential Regulations b) Securities and exchange commission of Pakistan c) International standards of auditing d) None of the given options
9) Feasibility studies are usually carried out in connection with:
a) Medium term projects b) Medium- or long-term projects c) Long term projects d) None of the given options
10) If you are requesting credit to enable you to fulfill a large or profitable new contract, it is advisable to have:
a) All the documents, correspondence, quotations from suppliers b) Draft contracts with buyers and suppliers c) Your own costing, and calculations ready for discussion d) All of the given options
1. The small company’s purchasing plan is closely linked to which of the other functional areas?
a) Marketing and sales b) Finance and accounting c) Production and engineering d) All of the above
2. Total Quality Management (TQM):
a) Defines world-class quality as 95% defect-free products and services. b) Has been implemented by about 90% of all American manufacturers and is now moving into the service industry. c) Relies on an army of quality inspectors to ensure that products and services meet quality targets. d) Is a lifelong process of continuous improvement that focuses on doing the job right the first time?
3. As a solution to a company’s quality problems, managers will find that TQM:
a) May be implemented without significant training of employees. b) Takes 3–4 years to bring about a significant change in quality. c) Techniques can be implemented piecemeal, one-at-a-time. d) Creates little turmoil or change in the way a company does most of its business.
4. Research on the implementation of TQM programs shows that it takes _____ to completely implement a TQM program.
a) Three to four years b) Eight to ten years c) Six months to two years d) One to three years
5. A small business owner needs to do which of the following well in order to successfully implement a TQM program?
a) Focus on production and manufacturing. b) Set a “finishing line” for the quality effort. c) Move from a management-driven to team-driven company culture. d) Modify the rewards program to reward individual effort and innovation.
6. ______is said to link trading partners, whether they are giant corporations or single individuals with a small business:
a) Technology. b) Better management. c) Higher salaries. d) Smaller organizations.
7. Expanding a small business into international markets:
a) Guarantees its success in the marketplace. b) Makes it a member of GATT automatically. c) Often helps it to grow faster and better survive competition. d) Leads to business failure for companies under $100 million in annual revenue.
8. Becoming a global business depends on instilling a global culture throughout the organization that permeates:
a) A little of what the company does. b) Some of what the company does. c) A lot of what the company does. d) Everything of what the company does.
9. As with any new venture, the entrepreneur needs to ask, and answer, all of the following questions about the business except:
a) Is there a profitable market in which our firm has the potential to be successful for an extended period of time? b) Does our firm have the specific resources, skills and commitment to succeed in this venture? c) Are there pressures domestically that are forcing the firm to seek global opportunities? d) Are we able to efficiently travel to, from, and within our global market?
10. Which of the following is true about global competition?
a) There is less of a focus on quality and more of a focus on price internationally. b) It makes companies more customer-focused. c) It is largely the domain of small businesses due their flexibility. d) It tends to shorten the life cycle of a product or service.