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Questions and Answers
Q 1 . Who is an Enterpreneur?
Ans. An entrepreneur is a person who is self-employed, is willing to take a calculated risk and brings in a new idea to start a business.
Q 2 . How will you define Entrepreneurship?
Ans. The process of developing a business plan, launching and running a business using innovation to meet customer needs and to make a profit is entrepreneurship.
Q 3 . Define Enterprise.
Ans. An Enterprise is a project or undertaking that is bold and fulfills a need of the society which no one has ever addressed.
Q 4 . What is the aim of Entrepreneurship?
Ans. The aim of Entrepreneurship is to earn a profit and solve customers’ need innovatively.
Q 5 . What is Entrepreneurship development?
Ans. Entrepreneurship development refers to inculcation, development and polishing of entrepreneurship skills in a person to enable him to establish and successfully run an enterprise.
Q 6. What do you mean by business ?
Ans. A business is defined as an terprise or organization that uses economic inputs, resources, convert them into goods or services and provides them to its customer in exchange for money.
Q 7 . Explain any three features of a business?
Ans. Trade : Trade related business is a trade related activity it involves the purchase and sale of goods or services.
Economic or social motive : Most of the businesses perform economic activities with the motive of profit. However, some businesses are run for social welfare.
Sole Responsibility : An entrepreneur is responsible for taking the initiative of establishing, running and growing the business, making key decisions and undertaking the risks involved in it.
Q 8. Write Short note on types of Business organizations
Ans. Service business : Services businesses offer value using skills, consultancy, expertise, efficiency etc. Some service businesses include banks, law firms, chartered accountants, financial consultants, beauty salons, schools, e-commerce platforms, event planners etc.
Merchandising Business: Merchandising businesses involves transfer of ownership or tangible products. Most of the times, in these type of businesses, products are bought at a wholesale price and sold at retail price.
Manufacturing Business: These businesses focus on transformation of one product to create a new product. Most manufacturing businesses combine raw materials, technology, labor, plant and machinery and overheads in the process of production. Some examples of such businesses include manufacturing and selling of shoes, clothes, mobile phones, laptops, suitcases, metal products etc.
Q 9. Give advantages of Sole proprietorship.
Ans. In a sole proprietorship, the ownership and control of the business is with one single person, and the liability of the owner is not separate from the entity.
Q 10 . Define Partnership.
Ans. Partnership is a legal form, where at least two people, or more start a business as co-founders or co-owners and divide the share as per agreement.
Q 11. Write the objectives of Enterpreneurship development.
Ans. Assisting entrepreneurs in undergoing the process of entrepreneurship.
- Handholding budding entrepreneurs to recognize and design unique business opportunities.
- Helping aspiring entrepreneurs start and grow dynamic businesses that provide high value add.
- Developing the motivational needs of entrepreneurs.
- Training entrepreneurs to develop the required skills and gain knowledge for running and managing a new business.
Q 4. Name the phases of Entrepreneurship development.
Ans. The phases of Entrepreneurship development :
- Stimulatory phase
- Support phase
- Sustenance phase
Q 13 . What are the characteristics of Entrepreneurship ?
Ans . The characteristics of Entrepreneurship are :
- Dynamic Economic Activity
- Risk bearing
- Potential For Profit
Q 14. List the rewards of Entrepreneurship
Ans. The Rewards of Enterpreneurship are as follows :
- Economic development
- Enterprise and Business Creation
- Capacity Building
- Improved Standard of Living
Q 15. Self actualization is a reward of entrepreneurship”. Explain
Ans. Entrepreneurs are empowered by the sense of doing and controlling a business. They know that the only limitation they have is their own creativity, enthusiasm and vision. A person undertakes entrepreneurship to fulfill his or her need for self expression.
Q 16. What do you understand by the term `risk tolerance’?
Ans. Risk tolerance is the degree to which an individual can comfortably accept taking chances.
Q 17 . Mention the three ways which make entrepreneurship beneficial for society.
Ans. Entrepreneurship is beneficial for society in three ways-economically, psychologically and socially.
Multiple Choice Questions
1. Business refers to an organization involved in ______
a) Industrial b) Professional activities c) Commercial d) All of the above
Ans. All of the above
2. Features of an entrepreneurship are :
a) Trade b) Uncertainity c) Economic motive d) All of the above
Ans. All of the above
3. Restaurants are the example of ____ business.
a) Hybrid b) Merchandising c) Manufacturing d) service
4. Economic development of a country has been divided into four phases of development namely ______
a) Agrarian Society b) Early industrialization
c) Mature industrialization d) All of the above
Ans. All of the above
5. Which of the role is not adopted for the purpose of economic development by an enterpreneur?
a) Coordinating b) Employment generation
c) Unbalancing d) Imitating
6. Which rewards are associated with entrepreneurship?
a) contribution to society b) Independence
c) More profits d) All of the above
Ans. All of the above
Fill in the Blanks
- Simple form of business organization with only a single owner in Sole proprietorship
- A Partnership firm is governed under the Indian Partnership Act.
- Poor management may lead to failure in the business.
- Sustenance phase help the Enterprises to grow after they have been established.
- An entrepreneur should have a good foresight to predict the future of the business.
- Entrepreneurs often create their business ventures successful by quality of taking and facing risks.
- The basic objective of a trading is to meet the economic, social and cultural needs of its members.
- A co-operative business is a mixed type of business.
- A business that provides products which do not have a physical form is called Hybrid business.
- Retail price is the price of goods or products when they are sold to customers for consumption, and not for resale.
- Merchandising business is also known as service or buy and sell business