SECTION A –MULTIPLE CHOICE QUESTIONS [10 MARKS] Answer ALL questions. Each question carries ONE (1) mark. Choose the bes

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SECTION A –MULTIPLE CHOICE QUESTIONS [10 MARKS] Answer ALL
questions. Each question carries ONE (1) mark. Choose the best
alternative answer
1. Which of the following statements best describes ‘Competitive
Advantage’? A. A competitive advantage is created by customer
loyalty B. A competitive advantage is what makes a company’s
product(s) and or service(s) superior to a customer’s other choices
(e.g by offering a lower price and/or greater benefits) C. A
competitive advantage is created when a company fails, thereby
giving its competitors more market share D. Competitive advantage
is generated by working closely with your business competitors on
innovation
2. Indicate which ONE of the following statements about
innovation is FALSE A. Innovation can be associated with invention,
but the two words do not mean the same thing B. Innovation has
occurred throughout history C. Innovation is always focused on new
products or services D. Innovation may result in changes in
efficiency, quality, competitiveness, and performance
3. Crowdsourcing’ is_______________ A. Obtaining money from a
large group of individuals to fund a business idea B. An economic
system in which the general public has shared ownership of
businesses C. A social media project in which businesses
collaborate with one another to raise awareness of social issues D.
A model in which individuals or businesses obtain work,
information, or problem-solving skills from a large number of
internet users
4. Why do entrepreneurship and innovation go hand-in-hand? A.
Entrepreneurs identify business opportunities and assemble the
resources and capabilities needed to create value. B. Entrepreneurs
are both owners and managers of the business, so they are more
likely to take calculated risks to pursue business opportunities C.
Entrepreneurs have the capability and motivation to pursue
innovative commercial opportunities that are riskier and more
radical than normal. D. All of the above.
5. What is dynamic capability? A. The firm’s ability to
integrate, build, and reconfigure internal and external competences
to address rapidly changing environments. B. The firm’s ability to
maximize profits through international business activities C. The
firm’s ability to grow quickly on the basis of temporary
opportunities D. The firm’s ability to focus on wealth-creating
activities
6. How do SME managers know which markets to enter? A. Through
the use of social networking sites, e.g. LinkedIn and Facebook B.
By learning the language of the potential target country markets C.
By clicking Google maps D. None of the above
7. Entrepreneurial orientation reflects the processes,
methods and styles that firms use to act entrepreneurially (Lumpkin
& Dess, 1996). Which of the following represent the three main
aspects of entrepreneurial orientation? A. Attitude, social norms,
and self-efficacy. B. Innovativeness, pro-activeness and
risk-taking C. Money, market, and management. D. Financial
risk-taking, social risk-taking, and career risk-taking.
8. An entrepreneur has the following personal characteristics
except____________ A. Self- confident B. Goal-oriented C. Creative
D. Overambitious
9. _______________ actions by an entrepreneur is 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
10. 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