MCQs of Entrepreneurship and Innovation

By: Prof. Dr. Fazal Rehman | Last updated: May 29, 2025

1. : _______________ actions by an entrepreneur are most likely to contribute to creative destruction.
(A) Development of a new product
(B) Take-over of a competitor
(C) Issuing shares
(D) Development of a new product

2. : The resistance of employees in an organization against flexibility, growth, and diversification can be overcome by developing ______________.
(A) Entrepreneurship
(B) Managerial domain
(C) Intrapreneurship
(D) Administrative domain

3. : ______________ shows the process of creating something new.
(A) Innovation
(B) Business model
(C) Modeling
(D) Creative flexibility

4. : Which one of the following is an advantage of the small firm in the innovation process?
(A) Ability of the entrepreneur to carry out multiple tasks
(B) Ability to raise finance
(C) Ability to carry out R&D
(D) Ability of the entrepreneur to act on new ideas or product development

5. : The goals should be ____________ for the success of a business plan.
(A) Generalized
(B) Specific
(C) Limitless
(D) Imaginary

6. : _________________ gives suggestions for new products and also helps to market new products.
(A) Existing products and services
(B) Consumers
(C) Federal government
(D) Distribution channels

7. : External links may provide incentives to ______________.
(A) Attend business exhibitions
(B) Introduce new working practices
(C) Introduce improvements to products
(D) Raise finance

8. : LMM stands for:
(A) Local Marble Market
(B) Locally Manufactured Marble
(C) Locally Manufactured Machinery
(D) Local Meat Market

9. : _____________________ is used by entrepreneurs to acquire experience in an international market before making a major commitment.
(A) Minority interest
(B) Joint venture
(C) Merger
(D) Majority interest

10. : Firms located on science parks are ____________ as compared to those located off science parks.
(A) Less innovative
(B) More innovative
(C) No more or less innovative
(D) More growth-oriented

11. : ________________ is NOT an essential part of the contract.
(A) Place where contract takes place
(B) Transaction should be described in detail
(C) All the parties involved should be named
(D) Obtain signatures of the persons involved

12. : GATT was established in 1947, under ______________.
(A) German leadership
(B) French leadership
(C) U.K. leadership
(D) U.S. leadership