Commerce Accountancy · General Awareness

Entrepreneurship and Innovation

993 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 commerce emerging service business in india franchising outsourcing and franchising recent trends of business employment opportunities in commerce

Franchising enables the franchiser to increase his goodwill and reputation by expanding his network.

  1. false

  2. partly false

  3. true

  4. partly true
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A franchise is a business opportunity that allows the franchisee to start a business by legally using the franchiser's expertise, ideas, and processes. This helps the franchiser to grow his business in the market and increases the goodwill of the franchiser.

Multiple choice commerce emerging service business in india franchising outsourcing and franchising recent trends of business employment opportunities in commerce

Compared to licensing, franchising is a more advantageous entry mode because __________.

  1. it generates economies of scale in marketing to international customers

  2. it is low-risk and low-cost

  3. it offers greater control

  4. all of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Franchising is a more advantageous entry mode as it helps in expansion of business and also generates economies of scale and also offers greater control to an organisation at a low risk and at low cost.

Multiple choice commerce emerging service business in india franchising outsourcing and franchising recent trends of business employment opportunities in commerce

Franchiser helps the franchisee on setting up business or not?

  1. Yes

  2. No

  3. Partly yes

  4. Can't say
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Yes, franchiser helps the franchisee on setting up a business as it provides know-how, training to the franchisee regarding its business and also give him the rights to sell its products in the market.

Multiple choice commerce emerging service business in india franchising outsourcing and franchising recent trends of business employment opportunities in commerce

Which of the following statement is not correct in relation to 'Franchise'? 

  1. Franchising is the practice to use the another firm's successful business model.

  2. It is the business relationship between two organisations where a franchiser, who is the owner of a brand name, product or system of a business, permits a franchisee to use its brand, product or business process for a free.

  3. The franchisor provides training and continuous assistance to the franchisee.

  4. Franchiser shares all business and trade secrete with franchisee.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
  • Franchising is a “form of licensing in which a parent company (the franchisor) grants another independent entity (the franchisee) the right to do business in a prescribed manner. This right can take the form of selling the franchisers products, ‘using its name, production and marketing technique, or general business approach.” Donald W. Hackett
  • Franchising is the practice to use the another firm's successful business model.
  • The franchiser provides training and continuous assistance to the franchisee.
  • Franchiser need not share all business and trade secrete with franchisee.
Multiple choice commerce emerging service business in india franchising outsourcing and franchising recent trends of business employment opportunities in commerce

By expanding network Franchising enables the franchiser to increase his -- 
1. Goodwill
2. Reputation
Select the correct answer from the option given below.

  1. Neither 1 nor 2

  2. 2 only

  3. Both 1 and 2

  4. 1 only
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Franchising is a method of expansion for an established and successful business looking to grow a network. It can also help businesses to expand both nationally or internationally, strengthen the brand and reach of a company and act as a good method of securing its future but only if it's done well.

Multiple choice commerce emerging service business in india franchising outsourcing and franchising recent trends of business employment opportunities in commerce

Advantages to a franchisor in a franchise are _____________________.

  1. capital injection

  2. market penetration

  3. risk sharing

  4. all of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Advantages to a franchisor in a franchise 
  1. capital injection is an investment of capital into a company or institution, generally in the form of cash, equity, and debt
  2. Market penetration refers to the successful selling of a product or service in a specific market.
  3. Risk Sharing is an entirely different concept. It involves sharing (dividing) common risk among two or more persons

Multiple choice commerce emerging service business in india franchising outsourcing and franchising recent trends of business employment opportunities in commerce

___________ is the corner stone of international franchising 

  1. Concentration

  2. Adaptation

  3. Standardization

  4. Focus
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Franchising is an organizational form based on a legal agreement between an International franchisor to give standardization that is the process of implementing and developing technical standards based on the consensus of different parties that include firms, users, interest groups.

Multiple choice commerce emerging service business in india franchising outsourcing and franchising recent trends of business employment opportunities in commerce

Franchising enables the franchiser to increase his ____________ by expanding his network.

  1. Goodwill

  2. Reputation

  3. Both (a) and (b)

  4. Neither (a) nor (b)
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

 franchising the business, the franchisor places the expansion of his/her business in the hands of people who are motivated to make it work.

Multiple choice organisation of commerce and management structure of business e-tailing e-advertising, e-marketing and e-security e-commerce and mobile commerce

Creation of utilities or delivering value requires a business to interact with a number of other business firms which is known as ___________.

  1. B2B

  2. B2C

  3. G2B

  4. Intra-B
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Business to Business refers to a situation when one business firm makes a commercial transaction with another firm. For example: a chips manufacturing business enterprise communicates with salt manufacturing business firm so as to deliver its own product in the market.

Multiple choice commercial applications sales and selling process distinction between marketing and sales meaning, elements and factors influencing marketing mix evolution of marketing

The main reason for product diversification is to.

  1. Follow competitive companies

  2. Boost company morale

  3. Achieve greater rate of growth of sales and profits

  4. Use available company funds and know-how most effectively
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Product diversification allows firms to leverage their existing resources, funds, and technical know-how to enter new markets or offer new products, thereby spreading risk and enhancing growth.

Multiple choice commercial applications sales and selling process distinction between marketing and sales meaning, elements and factors influencing marketing mix evolution of marketing

Which of the following starts from (starting point) factory_____________.

  1. Product concept

  2. Selling concept

  3. Production concept

  4. All of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Production Concept, Product Concept and selling Concept starting from factory. Continuous exposure to advertising and personal selling leads many people to link marketing and selling, or to think that marketing activities start once goods and services have been produced.

Multiple choice economics laws of returns - returns to a factor and returns to scale total product, average product and marginal product production and law of variable proportions production return to scale and cobb douglas function

In which stage of production would a rational entrepreneur like to operate?

  1. Stage 1 where MP is maximum

  2. Stage 2 where both MP and AP are decreasing, but both are positive

  3. Stage 3 where MP is negative

  4. Either Stage 2 or 3
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A rational producer operates in Stage 2 because this is where the marginal product is positive but declining, allowing for efficient allocation of resources.

Multiple choice organization of commerce and management ownership structures - sole proprietorship and joint hindu family business hindu undivided family business introduction to huf joint hindu family business

Which of the following can be treated as disadvantage of HUF form of business?

  1. HUF business has generally limited financial and managerial resource.

  2. There is always a lack of motivation among the members to work hard.

  3. Since the karta has absolute freedom to manage the business, there is scope for him to misuse it for his personal gains.

  4. All of above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

HUF businesses suffer from limited resources, lack of motivation among members (since they share profits regardless of effort), and potential for Karta to misuse absolute power. All these are recognized disadvantages.

Multiple choice organization of commerce and management ownership structures - sole proprietorship and joint hindu family business hindu undivided family business introduction to huf joint hindu family business

Which of the following can be treated as advantage of HUF from of business?

  1. Every co-parcener is assured a share in the profits irrespective of his contribution to the profits irrespective of his contribution to the successful running of the business.

  2. The karta enjoys full freedom in conducting the family business.

  3. A HUF business provides opportunity for the young members of the family to get the benefit of knowledge and experience of the elder members and also helps in inculcating virtues like discipline, self-sacrifice, tolerance etc.

  4. All of above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
In a Hindu Undivided Family business only the male members get a share in the business by virtue of their being part of the family. A Hindu Undivided Family is an extended family arrangement prevalent among Hindus of the Indian subcontinent. It came into existence as per Hindu Inheritance Laws of India. Following can be treated as advantage of HUF form of business:
a) Every co-parcener is assured a share in the profits irrespective of his contribution to the profits irrespective of his contribution to the successful running of the business.
b) The karta enjoys full freedom in conducting the family business.
c) A HUF business provides opportunity for the young members of the family to get the benefit of knowledge and experience of the elder members and also helps in inculcating virtues like discipline, self-sacrifice, tolerance etc.
Multiple choice organization of commerce and management ownership structures - sole proprietorship and joint hindu family business hindu undivided family business introduction to huf joint hindu family business

Which of the following can be treated as disadvantages of HUF form of business?

  1. HUF business has generally limited financial and managerial resource.

  2. There is always a lack of motivation among the members to work hard.gains.

  3. Since the karta has absolute freedom to manage the business, there is scope for him to misuse it for his personal gains.

  4. All of above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
In a Hindu Undivided Family business only the male members get a share in the business by virtue of their being part of the family. A Hindu Undivided Family is an extended family arrangement prevalent among Hindus of the Indian subcontinent. It came into existence as per Hindu Inheritance Laws of India. Following can be treated as disadvantage of HUF form of business:
a) HUF business has generally limited financial and managerial resource.
b) There is always a lack of motivation among the members to work hard.gains.
c) Since the karta has absolute freedom to manage the business, there is scope for him to misuse it for his personal gains.