MODULE IV: ENTREPRENEUR'S SKILL SETS

ANSWER KEY

1 : What is the importance of Entrepreneurs?

1. Dispersal of economic power
2. Increases national production
3. Increases national production
4. All of these

YOUR ANSWER: All of these

CORRECT ANSWER: All of these
DESCRIPTION: Increases national production: Entrepreneurial ventures help generate new wealth. New and improved products,
services or technology entrepreneurs enable new markets to be developed and new wealth to be created. Increased employment and
higher earnings contribute to better national income in the form of higher tax revenue and higher government spending. Increases
national production: The growth of Industry and business leads to a lot of Public benefits like transport facilities, health, education,
entertainment etc. When the industries are concentrated in selected cities, development gets limited to these cities. When the new
entrepreneurs grow at a faster rate in and around cities, they are forced to set up their enterprises in the smaller towns away from big
cities. This helps in the development of backward regions. Dispersal of economic power: Industrial development normally may lead to
concentration of economic powers in a few hands. This concentration of power in a few hands has its own evils in the form of
monopolies. Developing a large number of entrepreneurs helps in dispersing the economic power amongst the population. Thus it
helps in weakening the harmful effects of monopoly.

2 : Which of the following is true ?

1. Negotiation is back and forth communication designed to
reach agreement while leaving the other side intact and
positive.
2. Easier to negotiate when the two sides have some shared
interests and some opposed.
3. A&B
4. Only B

YOUR ANSWER: A&B

CORRECT ANSWER: A&B
DESCRIPTION: What is Negotiation? Negotiation is back and forth communication designed to reach agreement while leaving the
other side intact and positive. Easier to negotiate when the two sides have some shared interests and some opposed. Negotiation Soft:
• Participants are friends. • The goal is agreement. Hard: • Participants are adversaries. • The goal is victory

3 : What is one of the factors of Entrepreneurial Motivation?

1. Internal Factors
2. External Factors
3. Both A & B
4. None of these

YOUR ANSWER: Both A & B

CORRECT ANSWER: Both A & B
DESCRIPTION: Entrepreneurial motivation is the process of transforming an ordinary individual to a powerful businessman, who can
create opportunities and helps in maximizing wealth and economic development. Motivation activates innate strengths to achieve a
particular goal. Factors for motivation are as follows. Internal factors External factors

4 : Behavior change takes:

1. Determination
2. Discipline
3. True Assesment
4. All of these

YOUR ANSWER: All of these

CORRECT ANSWER: All of these
DESCRIPTION: How to change behavior Changes take true assessment, determination and discipline. Behavior changes come
through when we choose the way we act upon in any given situation. When we react upon the situation spontaneously, without
analyzing the situation, its called reactive behavior. On the other hand when we analyse the situation and then choose whether to act
upon it or not and how to act upon it then its becomes a responsive and responsible behavior.

5 : Which of the following is the goal of Communication?

1. To get Action
2. To persuade
3. To get and give information
4. All of these

YOUR ANSWER: All of these

CORRECT ANSWER: All of these
DESCRIPTION: Communication Goals To change behavior To get action To ensure understanding To persuade To get and give
information