Commerce Accountancy · General Awareness

Entrepreneurship and Innovation

1,063 Questions

Entrepreneurship and innovation questions address business management, economic development, and small scale industries. These topics are highly relevant for commerce students and competitive exams focusing on business administration. Review these questions to understand enterprise structures.

Small scale industriesWomen entrepreneurs enterpriseLegal risk mitigationMultinational corporationsKnowledge based industries

Entrepreneurship and Innovation Questions

Multiple choice
  1. A profit making CEO should attempt to manipulate the press.

  2. No CEO can justifiably be called a genius

  3. The success of a company cannot be completely determined by its CEO.

  4. CEOs are less important during an unprofitable streak than they are when company is making profit.

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

This is an inference question, which means the answer must be derived directly from the information given above. This answer directly stems from the conclusion that “CEOs receive too much credit for making the company profitable.”

Multiple choice

Author's way of running businesses can be best described as ________.

Directions: Answer the question based on the following passage.

My parents were atto rneys: my father, a criminal lawyer and my mother, a negligence lawyer. They were the perfect left–brain/right–brain combination, my father was intuitive and my mother, all reason – qualities that, when balanced, matter the most in business.

The first five years of my life, we lived in Shanghai, China (my father was then in Army Intelligence). My clearest memories are of riding around in a rickshaw with my amah (nanny) and “grazing” at street food stalls (much to my mother’s horror). Because life was so dangerous then (fear of being “shanghai’d”), I was sent off to Sacred Heart Convent day school (much to my Orthodox Jewish grandmother’s horror).

When we fled the closing Red Curtain (the last plane out), we moved back to our apartment on Eleventh Street, between First and Second avenues in Manhattan. In the years dominated by the middle–class flight to the suburbs, I was the quintessential city kid. I’ve since wondered whether being outside the mainstream later helped me view mainstream America with a more objective eye.

Growing up, I spent more time with my maternal grandparents than I did at home. My grandmother was born in America, while my grandfather had come from Russia (claiming, convincingly, that he’d escaped on a horse). They lived a few blocks away from us, where they owned some tenements. My grandfather’s maxim was: If you can’t watch it, don’t’ buy it. So I’d sit out with him on Second Avenue in bentwood chairs to help him “watch” their buildings.

And that’s where I began to learn about marketing.

He had a haberdashery store and together we would decorate the front windows. Then we’d take our chairs back outside and wait. Few customers walked by without being hooked by our display, we’d pick up our chairs and go inside again to re–do the window. Repositioning a tie at a jauntier angle or changing the colour of a shirt, I learned, could convey a different message.

Meanwhile, my grandmother was upstairs in their apartment above the store, keeping the books. Every noontime, like clock–work, she’d take over running the store from my grandfather and they’d pass one another on the stairs, rarely exchanging a word–a marvelous business shorthand. After lunch, they’d again slip by each other in virtual silence, as they returned to their respective posts. I often think of them when I give my TrendView seminars and mention the trend of Cashing Out: theirs was the perfect Mom–and–Pop business, honest and human–scale, a business that ran so well it transcended language.

It was also my grandmother’s job to collect the monthly rents; I’d “help” her with that, too. On the first day of the month, the tenants would drop by to pay their rents – all of eight, twelve, twenty dollars a month. She’d sit at the mahogany table in her dining room, and chat with them in Yiddish, Russian, some German, and Ukrainian.

The business worked. It was personal and hands–on, incorporating family and an occasional friend. There was built–in–child care for my sister Mechele and me. Family dinner conversations centered around daily problems and solutions – work was never something that stopped at 5 p.m. We talked about the real estate business, the store, my parents’ legal cases. Everybody knew everything, and we all helped out where we could. The objective was deceptively simple: get the work done and appreciate the process.

Years later, when I started to formulate the blueprint for BrainReserve, I structured it instinctively around what I had learned from my family. I began my filling up the ranks of the company with my sister and her friends and my friends. Many of my former colleagues were horrified. If you want to be a marketing consultant, act like one, they told me. Give your staff important–sounding titles. Develop a scientific approach [cut–and–dried) to what you’re doing. Don’t share any information with outsiders. And you must hire some M.B.A.’s.

Instead, I hired my best friend, Lys Marigold, a journalist, who turned out to be a genius at generating Big Ideas, at knowing something about everything, and at translating marketing into English. She worked with us for ten years, always claiming that she was only there “temporarily,” and when she left to spend more time in Europe, we were all devastated. It has turned out fine though – we just fax her in Amsterdam with questions and drag her back into the office whenever she comes home. She came home to work on this book.

My sister, Mechele Flaum, now manages BrainReserve – she runs operations, does strategic planning, and oversees client contentment. Plus, following the family heritage, she’s still watching over our grandparents’ buildings.

The point is that I never wanted a traditional corporation, with each employee sitting robotically in his or her office. I tried to create a community for thinking – for I believe what inspires productivity the most is freedom –and freedom begets creativity. Having a free and flexible environment provides a place where people can work together to focus on the future.

  1. family oriented

  2. unorthodox

  3. intuitive

  4. none of these

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Correct answer is (2). Author has not hired any MBA as he does not believe in scientific style of business which makes him unorthodox. The first choice is rejected as first of all he has not picked his family business and secondly he has hired some of his friends also. Choice (3) can be rejected for not being discussed in passage.

Multiple choice
  1. social entrepreneurs have multiplied in number over the past ten years

  2. overall, there has been more awareness about and appreciation of the role performed by social entrepreneurs

  3. governments are facing more societal problems than they did ten years ago

  4. the typical bureaucrat is an uncreative individual

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Options (1) and (3) do not find any support in the passage as no reference to the ideas therein has been made. Option (4) is slightly far-fetched as the passage only mentions the government’s pursuit of individuals with more creative solutions to social problems. Hence, it is ruled out. Option (5) goes overboard in saying that they are partnering the government, which is not supported by the passage. Hence, option (2) is the best possible answer.

Multiple choice
  1. Many small firms have gone down under once bigger firms entered their arena of operation.

  2. The average rate of profit growth for small companies has always fallen by a significant margin every time the sector has seen a new, bigger entrant.

  3. There has been no change in the profit levels of bigger entrants which invade the territory of small firms.

  4. Small companies typically form a cartel to meet the onslaught of bigger companies more effectively.

  5. The Competition Promotion Council has mandated that in future, the bigger companies will not be allowed to enter any product area wherein more than 70% market share is held by small companies.

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Option (1), which highlights the fact of small firms going down under as a consequence of the entry of bigger players, carries the idea too far. The only claim being made by small companies is that they suffer decline in profits in such situations. Besides, it is many, not all companies, which makers it doubly wrong as an answer choice. Option (3) tends to weaken the small companies viewpoint. Hence, it ruled out. Option (4) makes an irrelevant remark which ahs no bearing on the question. Option (5) is putting a big rider on the entry of bigger players and in fact, will not be universally applicable. So the extent of application of this provision is not known. The correct option (2) is in line with the point raised by small companies given in the paragraph and is therefore, the best possible choice.

Multiple choice
  1. The passage describes an idea and elaborates the same.

  2. The passage analyses various facets of corporate culture.

  3. The passage is a methodical description of an evolutionary process.

  4. The passage describes how MNCs dominate human life.

  5. The passage explains how individual traders turned themselves into corporates.

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The passage is a description of the evolution of the corporate culture over the past two centuries. 

Multiple choice
  1. possibility

  2. threshold

  3. age

  4. opportunity

  5. capability

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The lowered requirements would allow more entrepreneurs to breed. So, 'threshold' is the correct word in this context.

Multiple choice
  1. Conflicts are good and should be encouraged.

  2. Conflicts are undesirable and should be avoided.

  3. Conflicts result in constructive competition.

  4. <span style="font-size:" new="">All of the above

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

According to the view of early managers', conflicts are undesirable and should be avoided as it is based on their attitude towards the conflicts.

Multiple choice
  1. compensation

  2. inspiration

  3. additional perquisites

  4. implementing new ideas or new methods

  5. None of these

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Innovation is the process of translating an idea or invention into a good or service that creates value. It involves the practical implementation of new methods or ideas to improve processes or products.

Multiple choice
  1. Speed of technological change and development

  2. Competition

  3. Goodwill

  4. All of these

  5. None of these

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The product life cycle is influenced by many external and internal factors, including the pace of technological innovation, the intensity of competition, and the brand's established goodwill.

Multiple choice
  1. Production and procurement of goods and services

  2. Dealing in goods and services on a regular basis

  3. Banking and finance for business activities

  4. Profit earning

  5. Element of risk

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

This is not a characteristic of business activities. This is an auxiliary to trade that is meant as assistance to trade.

Multiple choice
  1. Only a and b

  2. Only c and d

  3. Only a and c

  4. Only a, c and d

  5. All of these

Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

This is the correct option as all the reasons are correct regarding risk in business.