Chapter-1 Entrepreneurial Skills

Basics of Entrepreneurship

A. Short Answer Questions:

1. What is entrepreneurship?
Answer: Entrepreneurs are people who come from the society. They need
the society's support to establish and run their business. In return,
entrepreneurship provides economic growth, new job opportunities, wealth
and prosperity to other people in society.

2. Who is called an entrepreneur?

Answer: Entrepreneurship is the practice of establishing a new business
enterprise, usually in an industry or a sector of the economy that has a large
capacity and potential for growth.

3. What is meant by a partnership business?

Answer: A partnership business is owned by two or more people who
contribute resources into setting up and operating the entity. The partners
divide the profits of the business among themselves.

4. What is meant by liability in context of a business?

Answer:
5. Name any three types of businesses.
Answer:
1. Manufacturing business
2. Service business
3. Hybrid business

6. Write any one difference between a private ltd. and public ltd. company?
Answer: A private limited company is a type of privately held small
business entity. This type of business entity limits the owner's liability to
their shares, limits the number of shareholders.
Public limited company is a form of business organization that operates as
a separate legal entity from its owners. It is formed and owned by
shareholders.

7. Write any two characteristics of entrepreneurship.

Answer:
1. It is a dynamic economic activity: Entrepreneurship is an economic
activity because it involves setting up and operation of a business for wealth
creation.
2. Needs constant innovation: Entrepreneurship involves a continuous
search for new ideas and innovative methods to make the most efficient use
of the available resources and opportunities.

8. Write some rewards of entrepreneurship.

Answer: The biggest reward of becoming an entrepreneur is the personal
satisfaction that comes from having the freedom to make your own
business decisions and then act on them.
1. Making your own rules.
2. You have the freedom to follow your own schedule.
3. Creates employment opportunities for others.
4. Unlimited growth opportunities.

B. Multiple choice questions. Tick the correct answer.

1. Which of these is an integral feature of an entrepreneurial venture?
a. innovation b. machines c. labour d.
investors
Answer: Innovation
2. Which of these is a feature of the sole proprietary business?
a. Limited liability b. single owner c. profit sharing d. none
Answer: Single owner
3. Which type of business model does Amul India follow?
a. partnership b. private ltd company c. public ltd company d.
cooperative
Answer:Cooperative
4. Which of these is not an entrepreneurial skill?
a. teamwork b. problem solving skills c. motivation and vision d.
no ability to bear risk
Answer:No ability to bear risk
5. Which of these is not necessary for a successful entrepreneurial venture?
a. profitability b. motivation the employees c. continuous
performance evaluation d. public speaking.
Answer: Public Speaking