2nd PUC Business Studies Question Bank Chapter 13 Entrepreneurship Development

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Karnataka 2nd PUC Business Studies Question Bank Chapter 13 Entrepreneurship Development

Question 1.
Draw the SVO analogy figure. ( 2 Marks )
Answer:

Question 2.
Who is an Entrepreneur? ( 1 Mark )
Answer:
The person who setup his business is called an entrepreneur.
OR
According to Richard Cantillon, “Entrepreneur is the agent who buys means of production at certain prices in order to sell the produce at uncertain prices in the future.”

Question 3.
What is Entrepreneurship? ( 2 Marks )
Answer:
Entrepreneurship is the process of setting up one’s own business. It is one of the four major factors of production.
OR
Entrepreneurship is a systematic, purposeful and creative activity of identifying a need mobilizing resources and organizing production with a view to delivering value to the customers, returns for the investors and profits for the self in accordance with the risks and uncertainties associated with business.

Question 4.
Who introduced the term ‘Entrepreneur’ for the first time? ( 1 Mark )
Answer:
French economist Richard Cantillon.

Question 5.
State any two characteristics of entrepreneurship. ( 2 Marks )
Answer:
Characteristics of Entrepreneurship.
(1) Systematic and purposeful activity: Entrepreneurship is a systematic, step-by-step and purposeful activity.

(2) Lawful activity: The object of entrepreneurship is to run a lawful business.

(3) Innovation: Entrepreneurship involves innovation – introduction of new products, discovery of new markets and sources of supply of inputs, technological breakthroughs as well as introduction of newer organizational forms for doing things better, cheaper, faster and, in the present context, in a manner that causes the least harm to the ecology/environment.

(4) Organisation of production: Entrepreneurship involves mobilization and utilisation of diverse factors of production such as land, labour, capital and technology. It also involves product development and development of market for the product.

(5) Risk taking: Entrepreneurs take calculated risk.
(Write any two points)

Question 6.
Differentiate between entrepreneurship and management by taking any two points. ( 2 Marks )
Answer:
Differences between entrepreneurship and management


(write any two points)

Need for entrepreneurship: Every country, whether developed or developing, needs entrepreneurs. A developing country needs entrepreneurs to initiate the process of development, whereas the developed one needs entrepreneurship to sustain it.

In the present Indian context, where on the one hand, employment opportunities in public sector and large-scale sector are shrinking, and on the other, vast opportunities arising from globalisation are waiting to be exploited; entrepreneurship can really take India to the heights of becoming a super economic power.

Question 7.
State any two functions of entrepreneurs in relation to economic development. ( 2 Marks )
Answer:
Functions of entrepreneurs in relation to economic development
(1) Contribution to GDP: Entrepreneurs contribute to increase the Gross Domestic Product (GDP) of the country by generating income through organisation of production.

(2) Capital formation: Entrepreneurs investment decision increases the productive capacity of the economy and hence results in capital formation.

(3) Generation of employment: Every new business is a source of employment to people with different abilities, skills and qualifications. As such entrepreneurship becomes a source of livelihood to many people.

(4) Generation of business opportunities for others: Every new business creates opportunities for the suppliers of inputs and the marketers of the output. In general, there are greater opportunities for transporters, advertisers and so on. So, via a chain-reaction, entrepreneurship provides a spur to the level of economic activity.

(5) Improvement in economic efficiency: Entrepreneurs improve economic efficiency by:

• Improving processes, reducing wastes, increasing yield, and
• Bringing about technical progress.

(6) Increasing the spectrum and scope of economic activities: Entrepreneurs lead the process of economic development through diversification of economic activities across the geographic, sectoral and technological scope.

(7) Impact on local communities: Small-scale entrepreneurship enables marginalized group such as women, SC, ST and OBC to pursue their economic dreams. As there are JIO entry barriers in terms of educational qualifications, entrepreneurship is an even more attractive career option for such marginalized groups. Agro-based rural industries and craft-based cottage industries can really catapult local communities to socio-economic success stories.

(8) Fostering the spirit of exploration, experimentation and daring: Entrepreneurs, through their urge to do something new, seeing change as an opportunity, experimenting with the novel ideas and showing the courage to try them prepare a fertile ground for persistent economic development.

Thus, whether one looks at economic development narrowly, in terms of the increase in GDP or in the wider context of economic, institutional and social change, entrepreneurship plays a crucial role.
(Write any two points)

Question 8.
State any two functions (role) of entrepreneurs in relation to their enterprise. ( 2 Marks )
Answer:
Developing Exchange Relationships

1. Perceiving market opportunities
2. Gaining command over scarce resources
3. Purchasing inputs
4. Marketing of Products and responding to competition

Political Administration

1. Dealing with public bureaucracy (approvals, concessions, taxes)
2. Managing human relations within the firm
3. Managing customer and supplier relations.

Management Control

1. Managing finance
2. Managing production

Technology

1. Acquiring and overseeing assembly of the factory
2. Industrial engineering (minimising inputs with a given production process)
3. Upgrading the production process and product quality
4. Introducing new production techniques and products. (Write any two points)
   (Write any two stages)

Question 9.
State any two stages in the process of setting up a business.
Answer:

Question 10.
Expand ‘IDS’ in ‘IDS’ analysis.
Answer:
IDS = International, Domestic and Sectoral.

Question 11.
Draw IDS analysis for entrepreneurial opportunities. ( 2 Marks )
Answer:

The process of entrepreneurship development
Entrepreneurship does not emerge spontaneously. Rather, it is the outcome of a dynamic process of interaction between a person and his/her environment. Ultimately, the choice of entrepreneurship as a career lies with an individual. Yet he/she must see it as a desirable as well as a feasible option. In this regard, it becomes imperative to look at both-factors in the environment as well as factors in the Individual’s perception of desirability and feasibility.

Question 12.
Expand KASH as explained in the context of entrepreneurship. ( 2 Marks )
Answer:
KASH →
K = Knowledge.
A = Attitude
S = Skills
H = Habits

Question 13.
Expand EDI.
Answer:
EDI = Entrepreneurship Development Institute of India.

Question 14.
State any two competencies for entrepreneurship as identified by EDI. ( 2 Marks )
Answer:

1. Initiative: Acting out of choice rather than compulsion, taking the lead rather than waiting for others to start.
2. Sees and Acts on Opportunities: A mindset where one is trained to look for business opportunities from everyday experiences.
3. Persistence: A ‘never say die’ attitude, not giving up easily, striving continuously until success is achieved.
4. Information seeking: Knowing and knowing who knows, consulting experts, reading relevant material and an overall openness to ideas and information.
5. Concern for High quality of work: Attention to details and observation of established standards and norms.
6. Commitment to work contract: Taking personal pains to complete a task as scheduled.
7. Efficiency orientation: Concern for conservation of time, money and effort.
8. Systematic planning: Breaking up the complex whole into parts, close examination of the parts and inferring about the whole ; e.g. simultaneously attending to production, marketing and financial aspects (parts) of the overall business strategy (the whole).
9. Problem-solving: Observing the symptoms, diagnosing and curing.
10. Self-confidence: Not being afraid of the risks associated with business and relying on one’s capabilities to successfully manage these.
11. Assertiveness: Conveying emphatically one’s vision and convincing others of its value.
12. Persuation: Eliciting support of others in the venture.
13. Use of influence strategies: Providing leadership.
14. Monitoring: Ensuring the progress of the venture as planned.
15. Concern for Employee welfare: Believing in employee well being as the key to competitiveness and success and initiating programmes of employee welfare.
    (Write any two points)

Question 15.
Draw the neat diagram of efficacy desirability matrix to check the ability and willingness of entrepreneurs. ( 5 Marks )
Answer:

Question 16.
Which is considered as the primary driver of entrepreneural behaviour. ( 1 Mark )
Answer:
Need for achievement (or N – ach)

Question 17.
Expand N-Ach. ( 1 Mark )
Answer:
N-Ach = Need for Achievement

Question 18.
Expand N-Pow. ( 1 Mark )
Answer:
N-Pow = Need for Power

Question 19.
Expand N-Aff. ( 1 Mark )
Answer:
N-Aff = Need for Affiliation

Question 20.
Expand N-Aut. ( 1 Mark )
Answer:
N-Aut = Need for Autonomy

Question 21.
Give the meaning of start up India Scheme. ( 2 Marks )
Answer:
The start up India scheme is a flagship initiative of the Government of India with an objective to curve a strong eco system for nurturing innovations and start ups in the country.

Question 22.
State any two aims of start up India scheme. ( 2 Marks )
Answer:
Startup India Scheme specifically aims to :

1. Trigger an entrepreneurial culture and inculcate entrepreneurial values in the society at large and influence the mindset of people towards entrepreneurship.
2. Create awareness about the charms of being an entrepreneur and the process of entrepreneurship especially among the youth.
3. Encourage more dynamic startups.
4. Support the early phase of entrepreneurship development. (Write any two points)

Question 23.
Give the meaning of start up India Company? ( 2 Marks )
Answer:
A start up means:

• An entity incorporated or registered in India.
• Not older than 5 years.
• Annual turnover does not exceed ₹ 25 crore in any preceding year.
• Working towards innovation.

Question 24.
State any two start up India initiative action points. ( 2 Marks )
Answer:

1. Simplification and hand holding: In order to make compliance for start ups, friendly and flexible, simplifications are announced.
2. Start up India Hub: The objective is to create a single point of contact for the entire start up ecosystem and enable knowledge exchange and access to finding.
3. Tax exemption: The profits of startup initiatives are exempted for income tax for a period of 3 years.
   (Write any two points)

Question 25.
State any two ways of funding for startups. ( 2 Marks )
Answer:

1. Government plans that offer startup capital and bank loans.
2. Boot strapping.
3. Crowd Funding
4. Angle Investment
5. Venture capital
6. Business incubators and accelerators
7. Micro finance and NBFC’s
   (Write any two points)

Question 26.
In which year start up India scheme was started in India? ( 1 Mark )
Answer:
2017

Question 27.
Expand NBFC. ( 1 Mark )
Answer:
NBFC = Non-Banking Financial Corporation

Question 28.
Expand IPR. ( 1 Mark )
Answer:
IPR = Intellectual Property Rights

Question 29.
Give the meaning of intellectual property. ( 2 Marks )
Answer:
Intellectual Property (IP) refers to the creations of the human mind like inventions, literary and artistic works, symbols, names, images and designs used in business.

Question 30.
Give any two examples for Intellectual property. ( 2 Marks )
Answer:
Examples of Intellectual Property:

1. Inventions (patents)
2. Trade marks
3. Novels, poems, plays
4. Films
5. Musical works
6. Artistic works
7. Drawings
8. Paintings
9. Photographs
10. Sculptures and architectural designs
    (Write any two)

Question 31.
Give the meaning of Intellectual property right. ( 2 Marks )
Answer:
Legal Rights conferred on the products of human creativity and skill such as inventions, books, paintings, songs, symbols, names, images or designs used in business is called Intellectual Property Rights.

Question 32.
State why IPR is important with any two supporting points. ( 2 Marks )
Answer:

1. It encourages creation of new, path breaking inventions, such as cancer cure medicines.
2. It incentivises inventors, authors, creators and others for their work.
3. It helps authors, creators, developers and owners to get recognition for their works.

Question 33.
State any one Act (Legislation) enacted in India for the protection of intellectual property rights. (1 Mark )
Answer:

1. The Trade Marks Act, 1999
2. The Designs Act, 2000
3. The Patents Act, 2005
4. The Copyright Amendment (Acceleration) Act, 2012
   (Write any one)

Question 34.
Expand WTO. ( 1 Mark )
Answer:
WTO = World Trade Organisation.

Question 35.
Expand TRIPS. ( 1 Mark )
Answer:
TRIPS = Trade – Related Intellectual Property Systems.

I. Multiple choice questions

Question 1.
Entrepreneurs undertake
(a) Calculated risks
(b) High risks
(c) Low risks
(d) Moderate and calculated risks
Answer:
(a) Calculated risks

Question 2.
In economics, which of the following is not a function of the entrepreneur?
(a) Risk-taking
(b) Provision of capital and organisation of production
(c) Innovation
(d) Day to day conduct of business
Answer:
(d) Day to day conduct of business.

Question 3.
Which of the following statements does not clearly distinguish between entrepreneurship and management?
(a) Entrepreneurs found the business; managers operate it
(b) Entrepreneurs are the owners of their business ; managers are employees
(c) Entrepreneurs earn profits ; managers earn salaries
(d) Entrepreneurship is once for all activity ; management is a continuous activity
Answer:
(d) Entrepreneurship is once for all activity ; management is a continuous activity

Question 4.
Which of the following attitudes is not generally associated with successful entrepreneurship?
(a) Investing in R and D
(b) Live your business day by day
(c) Innovate and improvise continually
(d) Produce as per customers requirements
Answer:
(b) Live your business day by day

Question 5.
In the roles and functions of the entrepreneur identified by Kilby, which of the following is not an aspect of political administration?
(a) Dealing with public bureaucracy
(b) Managing human relations within the firm
(c) Introducing new production techniques and products
(d) Managing customer and supplier relations
Answer:
(c) Introducing new production techniques and products

Question 6.
Which of the following cannot be protected under copyright
(a) Music
(b) Drawings
(c) Video games
(d) Actors
Answer:
(d) Actors

Question 7.
Which of these is a geographical indication?
(a) Mona Lisa Painting
(b) IRCTC logo
(c) Darjeeling tea
(d) Light bulb
Answer:
(c) Darjeeling tea

Question 8.
What is the role of an entrepreneur in contributing towards Intellectual Property Rights?
(a) Recognise and respect others Intellectual Property Rights
(b) Be creative and innovative
(c) Protect their own Intellectual Property
(d) All the above
Answer:
(d) All the above