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 companys product(s) and or service(s) superior to a customers 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 firms ability to integrate, build, and reconfigure internal and external competences to address rapidly changing environments. B. The firms ability to maximize profits through international business activities C. The firms ability to grow quickly on the basis of temporary opportunities D. The firms 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