49

Foundation of Entrepreneurship Development

18% increase in net sales at z857 crore, with

Lifestyle posting
a four-year hign
recorded for same-store sales growth.
Feb 15, 2016.
Source: Economic Times: Brand Equity,

Objective Questions with Model Answers

(1) Fill in the blanks with correct options:

its activities are subject to
(a) Entrepreneurship involves . as
uncertainties.
(Innovation, risk-taking, Creativity, Profit)
an entrepreneur is basically an
Innovator.
(b) According to
(Schumpeter, Marshalil, Cantillion, Weber)
skills to maintain good
(c) An entrepreneur should have
human relations.
(Communication, leadership, human relations, Writing)
(d) is the ability to bring something new into existence.
(Innovation, Creativity, Leadership, Management)
Innovation is the specific tool of .
(e)
(Intrapreneur, businessman, entrepreneur, Business)
() skill is used to measure risk.
(Financial, Human relation, diagnostic, Communication).
a business
looked upon an entrepreneur as the owner of
(g) The classical economist's
enterprise to which he supplied capital.
lumped interest and profit together.
(Adam Smith, Cantillion, Marshall, Peter Drucker)
is concerned with the rightness or wrongness, goodness
(h)
or badness of human conduct.
(Ethics, Culture, Values, Principles) was
The Theory of achievement motivation developed by .

()
(McClelland, Leibenstein, Knight, Weber)
A person can become a professional manager by acquiring
0)
(Knowledge, Qualification, Skill, Ability) human relations,
[Ans.: (a) risk taking, (b) Schumpeter, (c)
(d) Innovation, (e) entrepreneur, (). diagnostic,
(g) Adam Smith,
(h) Ethics, (i) McClelland, ) Knowledge] or False.
(2) State whether the following statements are True
the factors of production
(a) An Entrepreneur is one who brings together
& combines them inta a product.
good administrator.
(b) An Entrepreneur need not be a are the important qualities of an ideal
(c) Managerial skills & leadership
entrepreneur.
(d) Finance is rightly called the life blood of every business activity.
(e) A person can become a professional manager by acquiring
knowledge.
() Leadership is not a basic quality of an entrepreneur
 S0 Vipul'sIM Business Planning and Entrepreneurial Managem.
men
(9) An Entreproneur creatos woalth and gives employment to
to aa larg
las
sections of the soclety.
(h) Small entrepreneurs set up Industries in backward areas
concessions and subsidies.
(1) A manager launches a new enterprise whereas an entroprene
operates an existing.enterprise. naur
Entrepreneurs are more flexible In thelr decision making process,
[Ans.: (a) True, (b) False, (o) True, (d) True, (o) True, (1) Falso, (g) Tra?
(h) True, (i) False, 0) True]
(3) Match the palirs:
Group A Group BB
(a) Risk Taking (0) Continuing entities
(b) Interpersonal skills () Renders services
(c) Managers (li) Self employed
(d) Enterprise (iv) Human relations
(e) Entrepreneur (v)Uncertainty
() Marketing skill (vi) Security
(9) Entrepreneurship (vil) Raw material
(h) Social factor (vii) Creativity
(1) Environmental barrier (ix) Risk taking
) Strength of an entrepreneur()Creation of customers
[Ans.: (a v), (b - iv), (c - i), (d - i), (e - ili), (f - x), (g - ix), (h -vi

(-vi), G-vi)j

Questions for Self-Practice

(1) Define the term entrepreneur and explain their characteristics.
(2) What are the qualities of a successful entrepreneur?
(3) Explain the different external influences on entrepreneurship
(4) Define the term Entrepreneurship. Explain the nature and development
Entrepreneurship. scope
(5) What is the importance of
India?
Entrepreneurship in a Developing Country
(6) Explain the various functions of Entrepreneurship.
(7) What is Entrepreneurship? State the factors affecting
growth. entrepreneu
(8) Explain the factors affecting the growth of
(9) Explain the factors which motivate people Entrepreneurship.
to become
(10) What is the role of entrepreneurial culture entrepreneurs.
development? in entrepreneurs
entrepreneursts

(11) Explain the innovation theory by Schumpeter.

(12) Explain the theory of high achievement by McClelland.
(13) Explain the different barriers to
entrepreneurship.
(14) What are the different skills required by an
entrepreneur?
 and
Vipul'sTM Business Planning
132 trepreneuria
(7) Stay on your path: Not everyone will support your our success.Manag
Don't. agemen
back hurts no one but cess. Do e
distracted bycriticism. Holding hours but
you.
Time: we all have 24 ut how on
(8) Time management:
what makes one rich.
Brand yourself: Marketing
yourself is more important
rtant
util izes it
than mastery
(9)
your skills.
There many masters of your
trade better than
n
ery
are
you but
commerciallysuccessful
because people don't
know them.but.
knou are n
word around
Ifyou don't know how to get you won't
clients. able to y
Important to understand how lead generation from
online prospects can be converted to buyers and then Rine Ad
buyers.
(10) Plan ahead: Make decisions not from where you are but whera
re
to be. you wa
Objective Questions with Model Answers

(A) Fill in the banks with correct options:

(1) Entrepreneurs is individuals who conceive an idea to
new product or service and then create a business to
turn the ides
into reality.
(a) Corporate (b) Business (c) Trading (d) None of them
(2) entrepreneur is as good as a craftsman.
(a) Professional (b) Pure (c) Technical (d) Women
(3) entrepreneurs are motivated by psychologicala
economic rewards. (a) Spontaneous
(d) Technical
(b) Induced (c) Pue
(4) Under Women entrepreneurs are entitled to a higher ta
of margin money
assistance as compared with General Categoy
entrepreneurs.
(a) Rural Employment Generation scheme (b) Single window s
(c) Composite loan Scheme (d) SHGs
(5) Scheme
IS an organization of worke
(a) MAVIM (b) SEWA (¢) NABARDpoor self-employed worme
(6) (d) SIDBI
_are an important
(a) SHGs (b) SMEs (c) SSI instrument of micro finance.
(7) (d) Medium scale industries
NGOs.
during the 20th century gave
rise to the
mnotan mportance

(a) Liberalisation (b)

Globalisation (c) Privatisation (d)
(8) Industries manufacture part aents. s5
and compo
n e n t s ,

assemblies, tooling or
intermediaries.
(a) SMEs (8) Ancillary (c)
Medium Scale (d) large scae
 and Types of 133
fication
Tassi
Entrepreneurs
can solve all start-up problems.
(a) BPOs (b) Outsourcing (c) Franchising (d) Retailing
are effective substitutes for internal growth strafegy.
(10)
(Mergers (b) Amalgamation (c) Acquisition (d) Take over
D»
Ans.: (1-c), (2 c), (3 c) (4 a), (5 b), (6 a), (7- b), (8
-
-
- - -

9-c), (10-a)]
at State whether the following statements are True or False.
1) Lizzat' is a success story in co-operative.

(2) Stree Shakti Package is a unique scheme run by NABARD.

Women Empowerment means giving equal status to women.
(3)
(4 Self-help groups provide financial assistance to non-members tO0
Women entrepreneurs are security oriented rather than growth
(5)
oriented.
BPO Is now the second largest industry for employment in India.
(6)
(7) Franchising is the fastest form of wholesaling.
In merger two companies come together but only one company
(8)
survives.

9 KPOs are now the largest Industry in india for services in India.
(10) BPO is a sub-set of Outsourcing.
True),
True), (2 False), (3 True), (4 -False), (5
-

[Ans.: (1 -

(6-True), (7-False), (8-True), (9-False), (10-True)

(C) Match the pairs:
Group A Group B
(1) industrial Entrepreneur (a) Women entrepreneurs
(b) Mobile workshop
(2) EDP
(c) Training supervisory staff
(3) NAYE
(4) SISI (d) Product oriented man
(e) Focus on entrepreneurship
(5) NSIC
() External vendor
(6) SHGs
(7) Micro finance (9) Licensing
(8) Training (h) Low income
(9) Franchising () Local women
)EDP
(10) Outsourcing
(6-i, (7-h), (8 -j), (9-g),
Ans.:(1- d), (2-e), (3-a), (4- b), (5-c}),
(10-1]
Questions for Self-Practice

entrepreneurs and what

What are the problems faced by Indian
woman

government support can they avail of?

2 vomen entrepreneurs in India continue to face societal challenges.
Discuss in the development of
CXplain the role of women entrepreneurs
entrepreneurship.
 Vipul'sM Business Planning and Entrepreneurial M.
174
Managemen
Objective Questions with Model Answere

(1) Fill in the blanks:

(1) ideas derive from somewhere else taking something that
already exist and improving it.
(a) Evolutionary (b) Symbolic (c) Revolutionary (d) Creative
Creativity involves new comoination of material
(2) arials
ingredients. Of
(a) Spontaneous (b) Innovative (c)Inventive (d) Normal
(3) opportunities involve indamental hanges in
structure and character of a business. both the
(a) Complimentary (b) Additive (e) Breakthrough (d) Supplementan,
(4) In the stage the awareness among the entrepreneur
generated through education and well planned publicity euriss
(a) support (b) primary (c) sustaining (d) stimulatory
5) Scanning is done once a year on a regular basis.
(a) Regular (b) Ad-hoc (c) Continuous (d) Monthly
(6) are a catalyst of change.
ay Entrepreneurs (6) Managers (c) Businessmen (d)Innovators
(7) creativity consists of new revolutionary principles of an
art or science.
(a) Technical (b) Inventive (c) Emergency (d) Managerial
(8) ideas lives in the mind of the creator and can never be
proven.
(a) Revolutionary(b) Philosophical (c) Symbolic (d) Creative
(9) i s a group methodfar obtaining new ideas and
(a)Brainstorming (b) Brain writing (c) Focus group (d) Discussionsolutions.
(10) Project cannot be complete without
characteristics of the project. identifying the
(a) classification (b) report (c)
[Ans.:(1a), (2 - c), (3 - c), (4- identification
d), (5 - a),(d)
(6 planning
- a), (7 c), (8 - D
(9-a), (10-c)]
(2) State whether the following statements are
True or False:
(1) Project identification is the first
(2) Innovation requires step of a new venture.
(3) inventions are usingcreativity.
new
(4) Creativity is the ability to knowiedge to create something new.
develop new ideas.
(5) Brain writing is a form of oral
(6) Environmental scanning brainstorming. the
possible future problems and enables an enterprise to
understard
(7) SWOT analysis is meant to prospects of business well in aovaof
be used during the
strategy development. proposal sa
(8) EASY is the first Indian
e-commerce site offeríng the
order fresh vegetables and ience to
other related food conve
products.
 eneur Project Development
VY 175

Aproject has a definite beginning and end.

(9) A more on
While implementing the project the entrepreneurs rely
(10)
outside consuitants.

AnS.: (1 True), (2-False), (3 True), (4 True), (5 - False),

True), (7-False), (8-True), (9- True), (10- True)]
Matchthe pairs:
Group 'A' Group 'B3
(1) Innovation (a) Once a year
2) SWOT (6) Catalyst of change
3) Brainstorming c) Never proven
(4) EASY (d) Proposal for Investment
(5) Regular scanning (e) Brainstorming
6) Entrepreneur () Internet
7)Philosophical ideas (g) E-commerce site
(8) Project (h) Proposalstage
9) Focus groups (0) Knowledge
(10) Mass media ) Moderator
(6-b), (7-c), (8-d), (9-)
Ans.:(1-i), (2-h), (3-e), (4-g), (5-a),
(10-11

Questions for Self-Practice

new ideas for entrepreneurs.

of generating
Explain the different methods
of ideas.
Explain the different types
in the creative process?
What are the different stages
broad categories.
Define innovation and explain its
in detail the sources and
methods of generating ideas for a startup
Explain
enterprise. (Oct 17)
ideas be generated?
oW can business Entrepreneurship Development Cycle.
(Oct. 17)
the (April 18)
netly maximum benefit?
to get its
ow EDP's should be designed
Write short notes on:
(a) Creativity. (Oct. 17)
(6) Innovation.
Entrepreneurship development cycle.
(d) SOurces of idea generation. (April 18)
(e Environmental scanning.
) SWOT Analysis. (Oct.: 17)
Creating Entrepreneurial Venture. ura
VYY
 Objective Questions with Model Answers
)Fill in the blanks:
is the process of designing a project in an orderly
manner.
Market analysis
(a) Feasibility study 6) Project planning (c)
(d) Project Report.
 Entrepreneurial Manag
214 Vipul'sTM Business
Planning and
ement
is a summary of project planning.
Market report (d) R.

(a) Project report (b) Feasibility report (c) Bank

report. means the assessment of the project in terms its
(i) financial viability.
economic, social and Project
Social appraisal
(b) o aonre
proval
(a) Market appraisal
(d) Economic approval.
study the market potentials for the proiand
ject
In feasibility
(iv)
are studied.
Financial (d) Managerial
(a) Technical (b Economic (c)
report is useful
fortaking bank loans.
(v) Financial (d) Managerial.
ayProject (b) Market (c) the
(vi) Selection of for a scale industry depends on

infrastructural facilities.
availability of Finance (d) Plan
(Location (b) Machinery (c)
(vii) The is considered an integral part of planning policy
framing and development.
Project Report
(a) location (b) Finance (Environment (d) to the financial institution for
(vii) is prepared for submission
financial concessions.
the grant of loans and other
Project Plan (d) Capital
(a) Feasibility report (b) Project Report (c)
Plan
before setting new
is useful
small-scale industry.
(ix)
(a) Feasiility study (p Project Planning (c)
Financial planning
(d) Machinery
of a project means to find out its future prospects or its
Praçtical utility.
(a) Feasibility study (b) Planning (c) Execution (d) Reporting
[Ans.: ( i - b), (ii - a), (ii - c) (iv- b), ( v - a), (vi - a), (vii - c , (vií - b)

(ix-b), (x-a)]
(2) State whether the following statements are True or False:
(a)Project planning deals diferent details of proposed business
enterprise.
(6) A project report deals with the different aspects of future projects.
(c) Feasibility study follows a project planning.
(d) Economic feasibility relates to the financial aspect of the project.
(e) Mason work and try repairing are examples of service sector
industries.
) The business plan may be read by different people according to ther
interest.
(g Financial projections are not required for a sound business plan.
(h) ldea generation is the first stage of business planning
process.
(i) Risk assessment is the process of determining the likelihood that
specified negative event will occur.
 íness Planning Process 217

Milestons9 Are complicated project tools that help to st s.

priorities and work schedules
Ans.( True), (b- Falso), (a - True), (d - False), (e- True
t-True), (g FulBe), (h- True), (-True ), (- Falso)
Match the columns;
Group A
0) Project report
Group 8
(a) Useful for explolting businet
opportunitles
(2) Feasibility study (b) Infrastructure faclities
(3) Environmental scanning (c) Environment protection act 1986
4) Location
(d) Follows project planning
(5) Environmental lesues () Final outcome of project planning9
(6) Risk assessment () Competition
(7) Project appraisal (g) Cost analysis
(8) Systematic risk (h) Negative event
9 Financial appraisal () Project viabllity
(10) Business risk (i) Recession
**

[Ans.:(1-e), (2 - d), (3 a ) , (4 b), (5 - o), (6- h), ( 7 - , (8 - .

9-g), (10-1]

Questions for Self-Practice

) What is a Business Plan? Discuss the components of an ideal Business

Plan
2) What is a project report? What are the contents of project report?
4) Explain various areas of project appraisal.
4How can you manage risk in your business?a business plan.
in
Explain the various steps a preparing
business plan? (Oct. 17)
What is the significance of
Write shortnotes on:
(a) Elernents of business plan.
(D) Scheduling and milestones.
(c Contingency plan.
(d) Importance of business plan. (April 18)
 iective Questions with Model
Answers
Fill r tpe, blanks:
V 520has launched a Composite Term Loan Scheme for the
benefit of existing and prospective entrepreneurs.
provides seedcapital scheme to technically or
professionally qualified entrepreneurs.
c)VE DHKs an apex body which looks after the financial needs of
agriculturé and rural development.
284 Vipul'sTM Business Planning and Entrepreneurial Management

implements the Package Scheme of incentives of the

Governmnent of Maharashtra.
() SIDBI s a locally owned subsidiary of_Zn _
() KZNemphasis on manufacture of capital goods and machine
toóls.
(9) a s lkis an alternative form of equity and debt financing.
(h) achieves the goals of rural Industrialization.
() Lead bank scheme is operated by
assists entrepreneurs in handicrafts and cottage sector.
[Ans.: (a) NSIC, (b) SIDBI, (c) NABARD, (d) SIcOM, (e) IDB), () NIDC,
(g) Venture capital, (h) KVIC, () Commercial banks, () Regional Rural
Banks]
(2) State whether the following statements are True or False:
(a) Fixed capital is that amount of capital which is required to purchase
Current assets.
(b) Working capital is also called as Circulating Capital.
(c) Cooperative banks generally provide overdraft facilties to small
Enterprises for a period of 6 to 12 months.
(d) MSFOC provides working capital.
(e) SIDBI is locally owned subsidiary of IDBI.
() Most venture capital funds have a fixed life of 10 years, witha
possibility of a few years of extension.
(g) Unit Trust of India provides venture capital.
(h) IRBI provides consultancy and merchant banking services.
() EXIM Banks rediscounts Import bills.
G) KVIC develops entrepreneurship ability among the rural unemployed
youth.
[Ans.: (a) False, (b) True, (c) False, (d) False, (e) True, () True
(g) False, (h) True, () False, ) True
(3) Match thecolumns:
Group A Group B
(1) Creativity (a) Depends on length of manufacturing
(2) Project report (b) Fails to give true information
(3) Working capital | (c)Competition
(4) De-registration of SSI (d) Quality of an entrepreneur
(5)
(5) Problems of marketing (e) Useful for granting loan from bank
(6) SIDBI () Leasing of equipment
(7) NABARD (g Pool format
(8) MSFC (h) Rural development
(9) Venture capital (i) Refinance
(10) ICIC 0) Term loan
[Ans.: (1-d), (2-e), (3-a), (4-b), (5-c), (6-i), (7-h), (8-), (9-9
(10-1)]
 Marketing

Vipul'sM Business Planning and Entrepreneurial Management The holder of 309

308
license. licence
items as given in the is
Advertising and Promotions: [Ans. (a) Exporn (b) export permitted to import canalized
cana
Patanjali has roped in actor Hema Malini to promote
its biscuits. Also, the poration, (d) Octroi duty,
rice. (g) promotion,
(e) Trade (c) Export Credit Guarantee
visibility on the mainstream television channels has increased. As per BARC, the
Traditional, Development Authority (TDA
(h) , Marketing
whether the following statements Research,
brand is one of the three most advertised brands on TV in the last month. The () Replenishment
State wheth () DGSD,
company is aiming to witness Rs 5,000 crore
sales by the end of the current
as an are True or
fiscal year. How Patanjali expands its brand presence across India in future
would be very interesting especialiy when they are bringing out Patanjali
(a)Import
engine of
ecohomic growth False:
xOort Credit Guarantee Corporation
(b) the basis of export provides fnancal
Einished products performance. guarantées on
Noodles especially after the Maggi Noodles row.
are
In Conclusion: (c) are
they exémpted from
exported out of India. payment of excise duty when
Baba Ramdev's brand seems well configured and ready for take-off. It
(d) DBI provides direct financial
assistance to the exporters in
seems to have all the magic ingredients of success. narticipation with approved commercial banks.
(a) The brand has moved into e-commerce besides being available with retail lExport promotion
exhibitions.
means
participation in intemational trade fairs and
chains and under its own distribution centres.
The Ramdev Medicines brand is ready for export with foreign exchange ( IFT trains personnel modern techniques of Intemational trade.
in
(b) EXIM banks cover commercial risk.
earning potential and could be a great success if marketed successfully (g)
given the weakness that the West has for both Yoga and Herbal (h) NSIC pays to 90 % of the value on proof of dispatch of goods.
85
alternatives. () Federation of Indian Export Organisation acts as a spokesman of the
The brand pyramid has legs. Products are available online and through export and trading houses in India.
(c Marketing is product oriented.
offline retail.
Ans.: (a) False, (b) False, (c) True, (d) True, (e) False, ( True,
(d) And finally its not only his companies that are digital. Baba Ramdev is (9) False, (h)True, () True, G) Falsej
himself digital. He has 541k followers on Twitter. Our MNC CEO's are
near future. On 13) Match the columns:
going to find it difficult to match his following in the Group A
Facebook Baba Ramdev has 5.7 million people liking his page. (Even Face
Group B
book could get only 11 million consumers to vote for Free Basics) |() ECGC (a) Undertakesurveys
(6i) SSIDO (b) Technical assistance

Objective Questions with Modl Answers (i) SISI (c)Set-up shops&showrooms

(iv) TDA (d) Creating exportconsciousness
Fil in the blanks: IIFT (Provide financial guarantees
(1)
act as engine of economic growth. [Ans.:(1-e), (i-d)(ii-b},(iv-c),(-a))
(a
(b) Participation in the International Exhibitions/Fairs is essential for
Questions for Self-Practice
The provides financial guarantees on the basis of the
export performance on behalf of the exporter.
functions ofmarketing
(d) Finished products are exempted from payment of when )Define marketing and explain the the basis of market segmentation.
they are exported out of India. 2) Define market segmentation. Explain
industry product.
has been setup by government of India to develop trade of marketing ofsmall-scale
Explain different methods
between developing countries. short notes on:
is the exchange value of a commodity.
Write Purchase Programme.
(a)GovernmentStores
(g) concept of marketing focused on maximizing profitat any cost.
(b)National Small Industries Corporation.

(h) means systematic study of products and services in

relation to their markets.
c) Methods of Marketing. (Oct. 17)
T'e Stores Purchase Programme of the Central Government is
ai ninistered through
334 Vipul'sM Business Planning and Entrepreneurial Management in
New Trend
ntrepreneurship
(5) Change of Ownership. (3) Match the pairs: 335
(6) Choose passion over work. Group A
(7) Brands continue to emerge as publishers. (1) Online Auction Group B
(8) We will be less tethered to technology.
(2) Online shopping (a) E-Commerce for retailers
(3) Internet Banking (b) Face book
(9) Women will take their moment on the global stage. 4) Internet (c) No physical stores
(5) EDI d)e-Bay
(e) Amazon.com
(6) B2B
Objective Questions with Model Answers ) Net banking
(7) B2C

Fill in the Blanks:

(8)
(9)
F Commerce
M Commerce
(g)Components
h) Global reach
online
(1)
(1) is called buying and selling of goods on the Internet. (10) E-Commerce ) Communication for share trading
(2) When you think of online Auction you think of.
TAns.: (1 d),
-

(2
0) One stop shop
-
e), (3 -
, (4 h), (5
(3) E-Commerce latks (9-a),(10-DI
-
i), (6 -g), 7 -c), (8 b),
(4) has gained popularity in marketing services.
(5) is a short form of mobile commerce.
(6) Zomato isa. platform. Questions for Self-Practice
is shopping on Internet called the World Wide Web.
(7)
(8) One of the important functions of e-commerce is Define e-commerce and explain its features.
(9) Snap.com is an innovative e-commerce. (1)
relates to a company buying or selling online. (2) Explain the functions of e-commerce.
(10)
[Ans.: (1) Online shopping, (2) EBay, (3) Personal touch, (4) c2C, (3) What is the importance of e-commerce as today's business?
(5) M-commerce, (6) Food ordering, (7) E-commerce, (8)
Electronic (4) What are the advantages and limitations of e-commerce?
Data Interchange, (9) Consumer service, (10) B2B Commerce (5) Explain the different types of e-commerce.
or False: (6) Explain the process of starting an e-commerce business.
(2) State whether the following statement are True
(1) Electronic Data Interchange is one of the important functions of online (7) Write a short note on-outlook 2015 e-commerce.
shopping.
(2) E-commerce delays goods
Transacting business on Internet is also called as
e-commerce.
(3)
(4) c2C has gained popularity in marketing goods.
(5) E-commerce is shopping on Internet called Zomato.

(6) Mobile commerce is also known as F-commerce.

B2C relates to selling goods and services directly to
consumers
(7
through the Internet.
When you think of online auction you think of Flipcart.com
(8)
(9) B2C has no physical storesS.
(10) Internet has only national reach.
[Ans.:(1) False, (2) True, (3) True, (4) False, (5) False, (6) False,
(7) True, (8) False, (9) True, (10) False]