Class X: Unit 4

Unit 4: Entrepreneurial Skills-II

Assignment Solutions
Multiple-Choice Questions (MCQs) Very Short Answer Questions
1. Which of the following is not a commercial 1. Name a few products that are imported by USA from
entrepreneur function? India.
a. Production and operations Ans. USA imports precious metals, defense equipment and medical
instruments from India.
b. Finance and accounting
c. Marketing 2. Which industry has benefitted from the growth in
d. Leadership population?
Ans. d Ans. Construction industry

2. Which of the following are functions of 3. What is the full form of EDPs?
entrepreneurs? Ans. Entrepreneurship Development Programs

a. Entrepreneurial functions Short Answer Questions-I

b. Promotional functions
1. What do you mean by society?
c. Commercial functions
Ans. Society refers to a group of people who live together in a
d. All of these community, come together and associate with each other to carry
Ans. d out certain activities such as a business.

3. There are four factors of production. Which one 2. State one of the biggest misconceptions regarding
factor controls the other three? entrepreneurship.
a. Land Ans. Entrepreneurs are born, not made
b. Labor 3. List any three roles of an entrepreneur.
c. Entrepreneur Ans. The three roles of an entrepreneur are as follows:
d. Capital €€ Satisfaction of public needs

Ans. c €€ Promotion of economic growth

€€ Contribution to national income
4. Which of the following is not a type of
entrepreneurship? Short Answer Questions-II
a. Women entrepreneurship
1. What are work-at-home businesses?
b. Large Scale entrepreneurship Ans. The businesses that can be run and operated from home are
c. Small scale entrepreneurship known as work-at-home businesses. Some examples of such
businesses are taking private tuitions, designing, graphics making,
d. Serial entrepreneurship android application developing, reselling, blogging, etc.
Ans. b
2. Define agricultural entrepreneurship.
5. Mr. Abhinav has started an organization that
Ans. When entrepreneurs are engaged in the marketing and
works for the cause of sanitation. What kind of an production of the products that are used by farmers for their
entrepreneur is Abhinav? agricultural activities, they are said to be practicing agricultural
a. Agricultural entrepreneur entrepreneurship. Agricultural entrepreneurs bring low-cost
innovations so that farmers can benefit from them.
b. Social entrepreneur
c. Small-scale entrepreneur 3. How do entrepreneurs help in creating a self-
sufficient and self-sustaining society?
d. Serial entrepreneur
Ans. Entrepreneurs help in increasing productivity, which leads to
Ans. b
fulfilling national requirements and increasing exports.

Entrepreneurial Skills-II 1
Class X: Unit 4
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 public-
private 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
2 Information Technology
opportunities. After a business has been set-up, entrepreneurs
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.
Class X: Unit 4
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.
Entrepreneurial Skills-II 3