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 economics how does production take place? entrepreneur land,labour, capital and entrepreneur production mechanism

The funding of social entrepreneurs is essentially a problem of ________.

  1. availability of investment option

  2. financing structuring

  3. profits

  4. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Social entrepreneurs usually are not profitable enough to access traditional financial markets,resulting in a financial-social gap. Thus, the funding of social entrepreneurs is essentially a problem of financing structuring.

Multiple choice economics how does production take place? entrepreneur land,labour, capital and entrepreneur production mechanism

An entrepreneur must be ______ to foresee the changes in the market so that the production could be adjusted accordingly.

  1. careless

  2. farsighted

  3. negligent

  4. ignorant
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

An entrepreneur must be Farsighted to foresee the changes in the market so that the production could be adjusted accordingly. If a entrepreneur will have the awareness of future possibilities, he will do some adjustment according to it. 

Multiple choice economics how does production take place? entrepreneur land,labour, capital and entrepreneur production mechanism

The main functions of an entrepreneur are grouped categories including ______________.

  1. risk-bearing functions

  2. administrative and decision-making functions

  3. distributive functions

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

The entrepreneur brings the other 3 factors of production together in  order to  make a product or provide a service. 

Multiple choice economics how does production take place? entrepreneur land,labour, capital and entrepreneur production mechanism

An entrepreneur always attempts to bring change in terms of factor proportions which is called innovation. A manager is concerned only with day-to-day affairs of a going concern.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

An entrepreneur is a person with an idea who takes the risk to pursue the idea and turn it into reality.On the other hand,manager manages the operations and functions of the organizations.

Multiple choice economics how does production take place? entrepreneur land,labour, capital and entrepreneur production mechanism

___________ is one of the most important functions of an entrepreneur.

  1. Entertainment

  2. Innovation

  3. Administration

  4. Production
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Innovation is important for entrepreneur because an entrepreneur leads the rest of the firm and constant innovation is required for being competitive in the market and hence create more income for themselves and the country. 

Multiple choice economics how does production take place? entrepreneur land,labour, capital and entrepreneur production mechanism

An entrepreneur must have the qualities of __________.

  1. influencing the people

  2. win their confidence

  3. must understand human nature

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

An entrepreneur must have the capability to interact with the people. The entrepreneur should make the people happy and win their confidence. He should be able to understand the nature of the people. He should react according to the person's behaviour.

Multiple choice economics how does production take place? entrepreneur land,labour, capital and entrepreneur production mechanism

What is the most important and specific function of an entrepreneur?

  1. Risk-bearing function

  2. Administrative function

  3. Decision-making function

  4. Distributive function
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

An entrepreneur has to bear all types of risks connected with the business. The risk may be associated with production, investment, profit or loss of the company, technological and frequent changes in government policies. It is very important function of an entrepreneur.

Multiple choice economics how does production take place? entrepreneur land,labour, capital and entrepreneur production mechanism

Key characteristics of entrepreneurship are:

  1. It promotes the managers to be more innovative and take more responsibility while demonstrating charismatic leadership qualities.

  2. Entrepreneurship projects are funded by large business organizations and agreed percentage of profits are remitted to the fund provider/head quarters of the business.

  3. Entrepreneurship will cultivate entrepreneurial skills/culture within the corporate culture where managers will be motivated to accept more risk.

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

The key characteristics of entrepreneurship are

  • It brings innovation, responsibility, and leadership qualities in the manager which leads to better vision of the organisation.
  • Entrepreneurship projects are funded by various investors which includes both public and private investors.
  • Entrepreneurship projects are made with special entrepreneurship skills which demands risk taking and decision making. 

Multiple choice economics how does production take place? entrepreneur land,labour, capital and entrepreneur production mechanism

Entrepreneurship is a wider term than organization and management of a business. This statement is -

  1. True

  2. False

  3. Partially True

  4. None of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Entrepreneurship involves identifying opportunities, taking risks, and innovating, which encompasses more than just the routine administrative tasks of organization and management.

Multiple choice economics how does production take place? entrepreneur land,labour, capital and entrepreneur production mechanism

Entrepreneurship gets its reward (i.e. Profit), only after all other factors of production have been rewarded. This statement is ___________.

  1. True

  2. False

  3. Partially True

  4. None of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

In economic theory, profit is the residual income remaining after all other factors of production (land, labor, capital) have been compensated.