Entrepreneural Skills-II Class X CBSE IT-402

ENTREPRENEURAL SKILLS-II

 QUESTION AND ANSWERS

Multiple-Choice Questions (MCQs)

1. Which of the following is not a commercial entrepreneur function?

a. Production and operations

b. Finance and accounting

c. Marketing

d. Leadership

Ans. d

2. Which of the following are functions of entrepreneurs?

a. Entrepreneurial functions

b. Promotional functions

c. Commercial functions

d. All of these

Ans. d

3. There are four factors of production. Which one factor controls the other three?

a. Land

b. Labor

c. Entrepreneur

d. Capital

Ans. c

4. Which of the following is not a type of entrepreneurship?

a. Women entrepreneurship

b. Large Scale entrepreneurship

c. Small scale entrepreneurship

d. Serial entrepreneurship

Ans. b

5. Mr. Abhinav has started an organization that works for the cause of sanitation.     What kind of an entrepreneur is Abhinav?

a. Agricultural entrepreneur

b. Social entrepreneur

c. Small-scale entrepreneur

d. Serial entrepreneur

Ans. b

Very Short Answer Questions

1. Name a few products that are imported by USA from India.

Ans. USA imports precious metals, defense equipment and medical instruments from India.

2. Which industry has benefitted from the growth in population?

Ans. Construction industry

3. What is the full form of EDPs?

Ans. Entrepreneurship Development Programs

Short Answer Questions-I

1. What do you mean by society?

Ans. Society refers to a group of people who live together in a community, come together and associate with each other to carry out certain activities such as a business.

2. State one of the biggest misconceptions regarding entrepreneurship.

Ans. Entrepreneurs are born, not made

3. List any three roles of an entrepreneur.

Ans. The three roles of an entrepreneur are as follows:

1. €€ Satisfaction of public needs
2. €€ Promotion of economic growth
3. €€ Contribution to national income

Short Answer Questions-II

1. What are work-at-home businesses?

Ans. The businesses that can be run and operated from home are known as work-at-home        businesses. Some examples of such businesses are taking private tuitions, designing,         graphics making, android application developing, reselling, blogging, etc.

2. Define agricultural entrepreneurship.

Ans. When entrepreneurs are engaged in the marketing and production of the products that are used by farmers for their agricultural activities, they are said to be practicing agricultural entrepreneurship. Agricultural entrepreneurs bring low-cost innovations so that farmers can benefit from them.

3. How do entrepreneurs help in creating a selfsufficient and self-sustaining society?

Ans. Entrepreneurs help in increasing productivity, which leads to fulfilling national requirements and increasing exports.

Long Answer Questions

1. How can you check the entrepreneurial aptitude of a person?

Ans. A few questions to check the entrepreneurial aptitude of a person are as follows:

• €€ Can you easily spot or sense opportunities?
• €€ Can you take on risks willingly and confidently?
• €€ Can you generate new business ideas and convert them into initiatives?
• €€ Can you mobilize resources required to set-up a business?
• €€ Do you have the ability to plan, organize, execute and pursue a business?

2. Explain the various myths about entrepreneurship.

Ans. When we talk about entrepreneurship, we come across various misconceptions and myths that are assumed to be true. It is necessary to bust those myths. Let us first study about the various myths associated with entrepreneurs and entrepreneurship:

• €€ Entrepreneurs are born, not made.
• €€ You only need a good idea to start a business.
• €€ Owning a business means freedom.
• €€ Starting a business leads to quick wealth creation.
• €€ Businesses either succeed or fail.
• €€ All responsibilities lie on the entrepreneur.
• €€ Businesses can be run by MBA holders only.
• €€ Real entrepreneurs do not quit.

3. Describe entrepreneurs as drivers of development.

Ans. Economics suggests that entrepreneurs are one of the four factors of production and that they are important drivers of development. The following points justify the importance and role of entrepreneurs:

• €€ Central for businesses: A nation makes progress when entrepreneurs develop new and innovative products and contribute to the economy of the country.
• €€ Capital formation: The economic development of a nation is dependent upon the creation of wealth or the formation of capital. This is achieved by entrepreneurship.
• €€ Generates employment: You have already studied that entrepreneurs establish new business organizations that employ many people. It means that entrepreneurs generate employment opportunities.
• €€ Using the right type of raw materials: Entrepreneurs look for materials that can be sourced easily at reasonable costs. They also ensure that scarce or limited resources can be conserved by using some other alternative resources.
• €€ Executing government policies: Entrepreneurs help in implementing government policies by entering into publicprivate partnerships.
• €€ Production and distribution of new products and services: Entrepreneurs are always keen on making inventions and innovations and developing new products and services. When new products or services are developed, the entrepreneurs develop market for them.

4. Explain in detail the various functions of an entrepreneur.

Ans. Entrepreneurs have to do the most difficult task of looking for opportunities and setting-up businesses to exploit those have to manage and arrange resources such as labor, capital, machines, equipment, and methods. These are the most basic functions of entrepreneurs. Let us now discuss each classification as follows:

• €€ Entrepreneurial functions: Some of the entrepreneurial functions are as follows:
• Organization building and management: An entrepreneur is responsible for bringing together all the factors of production. He/she has to ensure proper allocation of all the resources so that the cost of production can be minimized and the losses can be reduced as far as possible. The entrepreneur has to engage in decision making in order to make important decisions related to recruitment, arranging finance, etc.
• Risk taking: Entrepreneurship is inherently associated with risks related to investments, new appointments, new suppliers, etc. An entrepreneur is responsible for developing the risk-taking abilities or appetite for calculated risks in an organization.
• Innovation: Entrepreneurs are responsible for the development and commercialization of new products and services.
• €€ Promotional functions: Some of the promotional functions are as follows:
• Idea discovery: You have already studied that entrepreneurs are always scouting for new opportunities and ideas that they can exploit and develop new businesses.
• Detailed investigation: As such, developing business ideas is not a very tough task. The real value of an idea exists only when the idea is thoroughly examined by the entrepreneur and he is truly convinced that the idea would indeed work, if implemented.
• €€ Managerial functions: Some of the managerial functions are as follows:
• Planning: Entrepreneurs need to develop a business plan which contains the details of the project or the prospective business. This plan also contains the product and service descriptions along with various details related to different aspects of a business such as marketing, finance, and accounting. Planning can be considered as an activity under which an entrepreneur decides what to do, when to do, how to do and who will do the task.
• Organizing: Under the organizing function, an entrepreneur has to arrange, guide, coordinate, direct and control the activities of the factors of production.
• Directing: Under the directing function, an entrepreneur has to direct the actions of the employees and the organization. The entrepreneur has to make sure that the action plans that were developed by him/her are being implemented properly.
• Staffing: An entrepreneur has to engage himself/herself in staffing and staff-related activities such as recruitments, selection, manpower planning, manpower placement, promotions, transfers, appraisals, and determination of remunerations.
• Leadership: It is said that a great entrepreneur leads by example. Leadership is not strictly a function. It is basically a skill using which the entrepreneurs are expected to lead, guide, and supervise employees. A great leader can positively influence his subordinates.
• Commercial functions: Some of the commercial functions are as follows:
• Production and operations: Entrepreneurs need to manage the entire production and operations of the organization.
• Finance and Accounting: Entrepreneurs have to arrange the finances and they also need to account for the expenses, revenues and the net profit or loss that has been made by the organization.
• Marketing: Entrepreneurs are responsible for taking care of the various activities that come under the marketing function. These include activities such as the promotion of goods and services, movement of goods and services from the producer to the consumers, advertising, and digital marketing. The marketing function is an extremely critical function because it is responsible for the overall well-being and profit generation of an organization.