ENTREPRENEURSHIP AND INNOVATION AUGUST 2022 PAST PAPER

WEDNESDAY: 3 August 2022. Morning paper. Time Allowed: 2 hours.

This paper is made of fifty (50) Multiple Choice Questions. Answer ALL questions by indicating the letter (A, B, C or D) that represents the correct answer. Each question is allocated two (2) marks.

1. Select the item that is not a component of types of innovation.
A. Product
B. Structure
C. Process
D. Position (2 marks)

2. Which of the following is an example of paradigm innovation?
A. Servitization
B. Incremental
C. Radical
D. Technological (2 marks)

3. Which statement describes experience innovation as a business model of innovation?
A. Personalized service together with a platform for co-creating
B. Concept of transformation from ownership to rental.
C. Providing a service alongside experience around a core product
D. Internet and enabled substitution of physical encounters (2 marks)

4. Choose the major cause of a shift from incremental to radical innovation.
A. Upgrading a product
B. High degree of novelty
C. New rules and regulations
D. Emergence of new markets (2 marks)

5. Which statement describes the cradle-to-cradle approach to production?
A. Sustainable products with components that can be re-used or recycled.
B. Improvements to processes with one or more dimensions of ecological impact.
C. Compliance with regulations on emissions and global foot prints.
D. Approach that considers consequences of innovation decisions (2 marks)

6. Choose an example of sustainability-led innovation in the production industry.
A. Radical innovation
B. Incremental innovation
C. Green products
D. Process innovation (2 marks)

7. Which statement describes the concept of developing firm-level capabilities through process upgrading?
A. Upgrading through adaptation, design and production development
B. Improving the range of functions undertaken by the organization.
C. Upgrading by moving to sectors with higher-value added benefits
D. Incremental process improvements to improve quality and reduce costs. (2 marks)

8. Select the reason management finds it a challenge to select a sustainability-led innovation.
A. Challenge of resource allocation under high uncertainty
B. Challenge of internal mobilization requiring new skills
C. The need for a new corporate paradigm shift
D. Challenge of searching in unfamiliar field or sector (2 marks)

9. Which statement gives the best definition of creativity?
A. A logical process of imagination and ability
B. Ability to generate ideas in the production process
C. Ability to produce novel and useful work
D. Ability to solve problems rather than find problems (2 marks)

10. Choose the third step in the model of the creative process in entrepreneurship.
A. Insight
B. Transformation
C. Refinement
D. Recognition (2 marks)

11. Choose the reason to apply creativity at the start up stage of business.
A. Solve problems of keeping the entrepreneurial advantages.
B. Improve across frontiers by mobilizing human resource.
C. Develop a creative vision by incremental improvement.
D. Solve problems of opening new markets (2 marks)

12. Which statement describes an entrepreneurial mindset?
A. A trait common to intrapreneurs only
B. Ability to recognize opportunity and take risks
C. A trait common to technopreneurs only
D. Ability to invest in a profitable venture (2 marks)

13. Choose the best definition of opportunity recognition.
A. Identifying the business opportunity with high returns
B. Identifying the gaps existing in the market in the short-run
C. Identifying a needed product that creates value to consumers with ability to buy
D. Identifying a problem that needs to be resolved with an innovative way (2 marks)

14. Which of the following is a benefit gained by entrepreneurs?
A. Financial insecurity
B. Independence
C. Long hours of work
D. Dissatisfaction (2 marks)

15. Which statement gives the best description of a lifestyle entrepreneur
A. Entrepreneur who focuses on building a better world
B. Entrepreneur whose focus is protecting the environment
C. Entrepreneurship suited to the living pattern of the entrepreneur
D. Entrepreneur with the ability to build multiple businesses (2 marks)

16. Which statement gives the best description of execution intelligence?
A. Ability to identify a viable business idea
B. Ability to evaluate an entrepreneurial opportunity
C. Ability to write a business plan on new opportunity
D. Ability to transform an idea into a viable business (2 marks)

17. Choose a common misconception about entrepreneurs in the world.
A. Entrepreneurs are moderate risk takers
B. Entrepreneurs are born not made.
C. Entrepreneurs seek financial rewards.
D. Entrepreneurial activity is spread out over age ranges (2 marks)

18. The first step of the entrepreneurial process can be described as?
A. Developing a successful business idea
B. Evaluating the viability of a business idea
C. The decision to become an entrepreneur
D. The decision to write a business plan (2 marks)

19. Which statement describes corporate entrepreneurship?
A. An innovative entrepreneurial firm within an industry
B. Conceptualization of entrepreneurship at the organization level
C. High impact entrepreneurial firms within an industry
D. High growth entrepreneurial firms in the technology industry (2 marks)

20. Which statement describes the term ‘window of opportunity?”
A. An opportunity gap that creates a need to fill it
B. An opportunity in a mature industry that needs to be filled
C. An opportunity generated after a thorough scanning
D. Time period within which a firm can enter new market (2 marks)

21. Choose an economic force that helps to determine areas for new business.
A. Level of disposable income
B. Level of demographic changes
C. Level of emerging technologies
D. Level of new technological advances (2 marks)

22. Choose the approach used by entrepreneurs to identify opportunities.
A. Elaboration of an idea
B. Observing the trends
C. Incubation of an idea
D. Evaluation of an idea (2 marks)

23. Choose an inhibitor of creativity at the organization level.
A. Insisting on precision and certainty
B. Retaining human resource in same job for long time
C. Being pessimistic and judgmental
D. Being critical and inattentive (2 marks)

24. Choose a facilitator of creativity at the supervisory level of a firm.
A. Investing business resources in creative works
B. Rewarding creative employees in a firm
C. Being open to other people’s ideas
D. Hiring people with different skills (2 marks)

25. Which statement gives the best description of feasibility analysis?
A. The business research process of viability
B. The business proposal process of viability
C. The business monitoring process of viability
D. The process of determining if business idea is viable (2 marks)

26. Choose the purpose of product/service feasibility analysis.
A. To assess the overall appeal of the product or service proposed.
B. To assess the components of the product or service proposed
C. To assess the industrial competitiveness of the product or service proposed
D. To assess the competitors of product or service proposed (2 marks)

27. Choose the main purpose of financial feasibility analysis.
A. To determine the sources of funds for the proposed business
B. To assess the industry profitability of the proposed business
C. To assess the financial attractiveness of the proposed business
D. To assess the equipment needed to start the proposed business (2 marks)

28. Which statement describes the purpose of target market feasibility analysis?
A. To assess the appeal of the industry and target market for the proposed product
B. To assess the industry attractiveness for the proposed product or service
C. To determine the market feasibility and consumer behaviour for proposed product
D. To determine the characteristics of the attractive industries producing proposed product (2 marks)

29. Choose a major hindrance to accessing external financing displayed in a business plan.
A. A broadly defined market size
B. When the sources of data are not cited
C. Founders with none of their own money at risk
D. Unrealistic credibility of the entrepreneur (2 marks)

30. Identify the BEST definition of a business plan.
A. Written document by an entrepreneur describing the business opportunity
B. Written narrative describing what a business intends to achieve its goals
C. Written document on the best sources of finance for a new business
D. Written narrative describing the entrepreneurs’ ability to start a business (2 marks)

31. Which statement describes the focus of marketing plan section of a business plan?
A. The techniques of consumer behaviour in the industry
B. The techniques of marketing and selling products or services
C. The approach for marketing products and services
D. The approach to cost reduction in new businesses (2 marks)

32. Choose the strongest force in Porter’s Five Forces Model.
A. The bargaining power of buyers
B. The rivalry among competing companies
C. The threat of substitute products
D. The threat of new entrants (2 marks)

33. Choose the most common entry strategy for new entrepreneurial businesses.
A. Franchising the business
B. Corporate entrepreneurship
C. Acquisitions
D. Market niches (2 marks)

34. Identify the advantage of undertaking windshield market research for a new product.
A. Ability to learn what customers like or do not like about businesses within an industry
B. Ability to learn what customers like about products and services
C. Ability to learn the product positioning in an industry
D. Ability to learn the marketability of products in the industry (2 marks)

35. Choose the benefit attained by applying in-home trial market research technique.
A. It provides information on the technology uptake in product usage
B. It provides information into how customers use a product or service
C. It provides information on the industrial technology development
D. It provides information on the production procedures adopted (2 marks)

36. Which statement explains the objective of entrepreneurs’ feasibility analysis?
A. Personal entrepreneurial awareness
B. Personal entrepreneurial capacity
C. Personal entrepreneurial readiness
D. Personal entrepreneurial finance (2 marks)

37. Choose the main purpose entrepreneurs undertake the process of business prototyping.
A. Test the product development process
B. Test the service development process
C. Test business models on a small scale
D. Test the marketability of the product (2 marks)

38. Choose the second step of the business modelling process.
A. Pivoting the business model
B. Testing the product
C. Testing the value proposition
D. Developing the business model (2 marks)

39. Identify the best explanation of the term ‘minimal viable product”
A. The simplest version of a product or service
B. The simplest form of product development
C. The simplest form of service development
D. The simplest form of business start-up (2 marks)

40. Choose the objective of developing an entrepreneur’s market entry strategy.
A. To explain the entry strategy and its value proposition.
B. To show the nature of the market entry value
C. To show the demand schedule of the product
D. To show the customer’s interest in product (2 marks)

41. What role does an entrepreneur’s collateral play when seeking financing?
A. It is required by the lending institutions
B. It is part of the business proposal
C. It provides evidence of business commitment
D. It is a pledge to the lender as security for repayment (2 marks)

42. Choose a component that DOES not form part of Intellectual capital.
A. Human capital
B. Structural capital
C. Product capital
D. Customer capital (2 marks)

43. Which statement describes a silent partner in a partnership?
A. Partners who are financial investors in a partnership
B. Partners who are not active nor generally known to be members
C. Partners who have unlimited liability for the partnership
D. Partners who are not active but generally known as members (2 marks)

44. Choose the statement that explains the meaning of pure franchising.
A. Purchasing the right to use the franchisor’s name
B. Franchisor sells a complete business format and system
C. Franchisee sells the products under franchisor name
D. Franchisee sells the all the products of a franchisor (2 marks)

45. Which statement gives the best description of revolutionary products?
A. Products that are created with new features for future market
B. Products that are new and unique and transform existing market
C. Products that offer the same basic features as existing products
D. Products that offer customer satisfaction selectively (2 marks)

46. Which statement gives the best description of evolutionary products?
A. Products that offer upgrades and enhancements to the existing products.
B. Products that offer unique features to test their marketability
C. Products that offer customer minimal satisfaction but are unique
D. Products that provide a competitive advantage in a new industry (2 marks)

47. Identify the reason entrepreneurs use leader pricing in the market.
A. To fight the competitor and gain more power
B. To compete effectively without changing the price
C. To attract more customers by marking down a popular product.
D. To attract more customers by making a change in product elements (2 marks)

48. Choose the benefit that accrue to a customer when an entrepreneur offers price bundling.
A. Customer gets a lower price of the product
B. Customer gets extra value at a special price
C. Customer gets a discount on product purchased
D. Customer gets added benefits from the product (2 marks)

49. Which is the first step in the creative process of entrepreneurship?
A. Investigation
B. Transformation
C. Preparation
D. Illumination (2 marks)

50. Identify the statement that gives the BEST description of cost leadership strategy.
A. Firm strategy of offering the lowest cost in the industry
B. Firm strategy of offering a competitive price in the industry
C. Firm strategy of offering the highest price to premium customer
D. Firm strategy of offering low prices for all their products (2 marks)

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