MCQ

1. Which is not a definition of business?

Ans: Business is done for balance of wealth.
2. Which of these is not a type of business?
Ans: Social service.
3. Which of these is not a reward of being an entrepreneur?
Ans: Hard Work.
4. Which of these is not a role of an entrepreneur?
Ans: Capital.
5. Which of these is not the value contribution of entrepreneurs?
(a) Free market evolution
Ans: Democracy.
6. How does society support entrepreneurship?
Ans: Provides raw materials, Enables financial support,
Creates a need for product/service.
Subjective Type Questions
1. What are the different types of businesses? Explain with examples.
Ans: (i) Service Business: They offer professional services, skills, expertise and advise. E.g. law firms, hair salons, banks, etc.
(ii) Manufacturing Business: A manufacturing business buys raw materials and transforms it with a process into a new output.
 (iii) Hybrid Business: Hybrid businesses are companies that may be classified in more than one business type. A healthcare speciality
hospital, for example, combines few raw materials and may create a product (manufacturing), sells medicines and health care
products (merchandising) and does operations/nursing (service).
2. What do you understand by entrepreneurship development?
Ans: Entrepreneurship development is the process of improving the skills and knowledge of potential entrepreneurs through various
formal and informal learning and development initiatives. In the formal learning system, training programmes are conducted to
bring about awareness, increase knowledge and enhance skills related to entrepreneurship.
3. What are the various types of entrepreneurs?
Ans: Social/Impact Entrepreneurship: Social entrepreneurship relates to creating sustainable solutions for social problems, such as
climate change, poverty, healthcare, education, etc.
Agricultural Entrepreneurship: Agricultural Entrepreneurship deals with production and distribution of agriculture-related products.
There have been several innovations in irrigation, farming equipment and pesticides management.
Women Entrepreneurship: Women entrepreneurship is about women organizing all business activities. The Government of India
defines women entrepreneurship as "an enterprise owned and controlled by a woman having a minimum financial interest of 51 per
cent of the capital and giving at least 51 per cent of the employment generated in the enterprise to women."
Micro, Small & Medium Enterprises (MSMEs): Micro, Small & Medium Enterprises are primarily engaged in the production,
manufacture, processing or preservation of goods and commodities. The government has been laying a lot of emphasis on MSMEs
in recent years.
4. What are the roles and rewards of entrepreneurship?
Ans: Roles (Write any two):
Capital Formation: Entrepreneurs create value and wealth in society as they promote capital formation by channelizing financial
resources of the public.
Employment Generation: Entrepreneurs can generate large-scale employment in society. The employment opportunities are at all
levels-company employees, vendors, partners, etc.
 Balanced Regional Development: Entrepreneurs can also help in setting up economic activity in regions that are backward from a
growth perspective.
Wealth Distribution: Entrepreneurs help with equitable redistribution of wealth in society across various geographical areas leading
to more equitable and inclusive growth.
Industrialization and Development: One enterprise leads to setting up more units as vendors are needed to support it and slowly the
entire ecosystem is set in motion hence act as generators of economic activity in the society.
Rewards (Write any two):
Building Large Enterprises: Entrepreneurship results in creation organization which can physical, financial and human resources.
It is rewarding to create an organization which can grow into a legacy.
Leadership Development: Entrepreneurship helps you develop your leadership abilities and decision-making skills. People
management is a key skill of an entrepreneur.
Improved Standards of Living: By generating more employment opportunities and money flow, general standard of living of the
people improves also generated output are consumed by members of the public.
5. What are the core skills of a successful entrepreneur (Minimum 4)?
Ans: Hard-working: Starting a business requires a lot of hard work and entrepreneurs always push themselves to achieve more. They
have a lot of energy to get things done before time.
Optimistic: Entrepreneurship can be tough and overwhelming with lots of ups and downs. Entrepreneurs need to remain positive
and always motivated to achieve success even when things are not going their way.
Independent: Successful entrepreneurs work independently and lead teams with their vision and passion. They collaborate with
teams but lead from the front.
Enthusiastic: Entrepreneurs are always high on energy and enthusiastic about prospects. They also like to spread positive energy
around and motivate their teams.
 Confident: An entrepreneur decides to build a product or enter a market in which most of the times he/she is the first entrant. It
requires a lot of self-belief and confidence to be able to do that.
Persevering: Many a time, the original idea of the start-up does not work. So, the entrepreneur needs to pivot and change his ideas
to make it work. It requires a lot of patience and a never-quit attitude.
6. What roles does an entrepreneur play on a day-to-day basis? (Min 4)
Ans: Coordinator: An entrepreneur must coordinate for the best possible output given the set of inputs/raw materials at an affordable
cost.
Agent: Entrepreneurs are also perceived as "Agents of Change". They are quick to identify opportunities and convert them into real
business and make profits.
Taking Inspiration from others: Successful entrepreneurs take inspiration from other industries as well as economies.
Balancing Role: Entrepreneurs also help in the development of a region through capital redistribution or opening up MSMEs in
various parts of the region and generate local employment.
Status Transformation Role: Entrepreneurs help in improving the overall standard of society in terms of wealth, respect and social
status.
7. What is meant by entrepreneurship management? what are its key components?
Ans: Employment Generation Role: Establishment of business corporations leads to generation of employment opportunities at various
levels.
Capital Formation: Entrepreneurs need to raise capital and create wealth in the process of running businesses. One of the key
objectives of a corporation is to generate shareholder returns on capital.
Risk Management: An entrepreneur needs to manage the risk-reward equation and ensure that all risks are adequately managed
without too much strain on the company's cash flows.
Innovator: Entrepreneurs take risks and innovate. It may be a tough category or a difficult problem to solve but an entrepreneur
believes in his/her ability to address it and puts in the required hard work to get it done.
8. List down some of the entrepreneurship development initiatives in India. (According to mark, One mark Each)
Ans:
 Start-up India
 Make in India
 Atal Innovation Mission
 Support to Training and Employment Programme for Women (STEP)
 Jan Dhan-Aadhaar-Mobile (JAM)
 Digital India
 Biotechnology Industry Research Assistance Council (BIRAC)
 Stand-up India
 Department of Science and Technology (DST)
 Trade-related Entrepreneurship Assistance and Development (TREAD)
 Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
 National Skill Development Mission
 Science for Equity Empowerment and Development (SEED)
9. What is the difference between taking up a job and being an entrepreneur?
Ans:
Aspect Job Entrepreneur
Ownership Employee does not own the business. Works Entrepreneur owns and operates their own business.
for an employer.
Risk and Rewards Limited financial risk and rewards are fixed Higher financial risk, but potential for greater
(salary, benefits). rewards (profits from the business).
Decision-making Limited involvement in major decisions; Has full control over decision-making and strategy
follows instructions. for the business.
Career Progression Typically follows a predefined career ladder Determines the pace and direction of career growth
within the organization. based on business success and decisions.
Independence Relies on job security provided by the Enjoys independence but bears the responsibility
employer. for the business's success and sustainability.
10. Explain the role of entrepreneurship in a country's economic development.
Ans: Economic Development: Entrepreneurship helps in wealth creation and fresh capital inflow in the ecosystem. This not only leads
to sectoral growth in which the business operates but to overall economic development of the country.