Entrepreneurship Development (MGTC3105)
Higher Institute of Commerce and Management (HICM)
Semester: First Semester
Level: 300
Year: 2014
MGTC 205 ENTREPREEENEURSHIP
ANSWER ALL QUESTIONS
SECTION A
1. Historically, researchers tended to view creative people as lone geniuses TRUF FALSE (1
Mark).
2. The unique contribution university business schools can make to the business community
is through adopting a deliberate educational strategy which privilege the less creative.
FALSE TRUE (1Mark)
3. Not all owner managers are entrepreneurs, nor are small businesses entrepreneurial
FALSE TRUE (1Mark)
4. Entrepreneurship should not the equated solely with new venture creation and
management.
TRUE FALSE (1Mark)
5. Developing entrepreneurs in the classroom is about developing the enterprising
environments
TRUE FALSE ( 1Mark)
6. An entrepreneur main function as viewed by Schumpeter is busines1 opportunity
identification.
TRUE FALSE ( 1Mark)
7. Joseph Schumpeter approaches entrepreneurship, from innovation, and Isreal Kirzner
identifies it from business creation.
TRUE FALSE (1Mark).
8. Schumpeter views an entrepreneurs as an lynchpin of economic development
TRUE FALSE ( 1Mark)
9. A Schumpeterian entrepreneur can bring in disruptive technology that makes olderways of
doing things obsolete TRUE FALSE (1 Mark)
10. The focus is less on the entrepreneur as an innovator and more on the entrepreneur as a
carrier of knowledge that diffuses practices (Adretsch and Keilbach, 2004).
TRUE FALSE (1 Mark)
11. There is no uniform standardised definition of “the entrepreneur. TRUE FALSE ( 1Mark)
12. The following factors should assist you evaluate your situation self development
• FLEXIBILIITY INTELLIGENCE
• TECHNICAL ABILITIES
• SOCIAL ABILITIES
TRUE FALSE (3 MARKS)
13. The psychological approach to the study of entrepreneurship concentration on the three
main questions(Baron) 2004):
(1) Why do some people but not others chose to become entrepreneurs
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TRUE FALSE (1 MARK)
(2) Why do some people not others recognize opportunities for products and
servicesthat can be profitably exploited
TRUE FALSE (5 MARKS
14. The creative process
• Realising that education is a never ending process and that every situation is an
opportunity to learn. TRUE FALSE ( 1 Marks)
• Reading on a variety of subjects/topics TRUE FALSE (1 MARK)
• Creating a file of interesting articles TRUE FALSE ( 1MARK)
• Taking time to discuss ideas with others, including those know little about the
subject; TRUE FALSE ( 1 Mark)
• Attending professional/trade association meetings, both to brainstorm with others
having a similar interest and to learn how other have solved a particular problem
TRUE FALSE
• Investing time in studying in other countries and cultures to identity global
opportunities
TRUE FALSE
• Developing the ability to listen to and learn from others
TRUE FALSE (7 MARK)
15. Scientific feasibility: Does the product depends on the suspension of any of the law of
nature, such as special and general theories of relativity, also the law of conservation of
energy or momentum. TRUE FALSE ( 1 MARK)
16. Economic feasibility: Does the product involve an economic absurdity such as a selling
price lower than the minimum cost of its components or a service providers (1MARK)
17. Technical feasibility: Can the product be made or if a service delivered using currently
available technology? TRUE FALSE (1 MARK)
18. Marketing feasibility: Does anyone wants it? TRUE FALSE (1 MARK)
19. 19. Fundamental legality: is it ilegal) (JK & KHpp94) TRUE FALSE (1MARK)
SECTION B. Instructions: Answer all questions.
1. Distinguish between the following pairs of terras
a) Productive, unproductive, and destructive entrepreneurship. (2mks)
b) Innovation Driven Entrepreneurship and Growth Driven Entrepreneurship. (2mks)
c) Formal and informal entrepreneurship. (2mks)
2. a) State and explain two ways in which entrepreneurship is important to an economy.
b)State and explain two ways in which entrepreneurship is bad to an economy.
3.The shopkeeper effect holds that there is a direct relationship between unemployment and the level of
entrepreneurship while the Schumpeter effect holds that there is an inverse relationship between
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unemployment and the level of entrepreneurship in an economy. Explain. (8 mks)
4.a) State and explain two push factors into entrepreneurship. (4mks)
b) State and explain two reasons for differences in recognizing/identifying business opportunities. (4mks)
5. To Schumpeter entrepreneurship means innovation. Explain (5mks)
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