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 business organisation and correspondence meaning and factors of business environment dimensions of business environment business environment and its dimensions business environment

Which one is not an element of internal environment?

  1. Marketing capability

  2. Operational capability

  3. Money and Capital market

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

Forces or conditions or surroundings within the boundary of the organization are the elements of the internal environment of the organization. The internal environment consists mainly of the organization’s owners, the board of directors, employees and culture.

Marketing capability, operational capability, and personal capability are part of internal environment. Money and capital market are part of external environment.

Multiple choice business organisation and correspondence meaning and factors of business environment dimensions of business environment business environment and its dimensions business environment

General forces that affect business environment do not include _________.

  1. investor

  2. social conditions

  3. customers

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

The general forces that affect the business environment are the internal and external factors that are the social conditions in which the business operates, the customers that the business targets and the suppliers that supply the resources for the business to function.

Multiple choice business organisation and correspondence meaning and factors of business environment dimensions of business environment business environment and its dimensions business environment

Which of the following factor is not included in micro-environment?

  1. Customers

  2. Employees

  3. Suppliers

  4. Technology
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The micro-environment consists of factors close to the company that affect its ability to serve its customers (e.g., suppliers, employees, competitors). Technology is considered a macro-environmental factor because it affects the entire industry or society at large.

Multiple choice business organisation and correspondence meaning and factors of business environment dimensions of business environment business environment and its dimensions business environment

The term "threat of entrants" as per Porters approach to industry analysis is ___________.

  1. the possibility of an existing competitor capturing the entire market

  2. the possibility of an existing competitor withdrawing from the market

  3. the framework is a means of identifying the forces, which affect the level of competition in an industry or sector

  4. none of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The term " threat of entrants" as per Porters approach to industry analysis is the framework is a means of identifying the forces, which affect the level of competition in an industry or sector. Porter classifies 5 competitive force in the business environment. Porter's five forces can be defined as a simple but powerful tool which help to understand the competitiveness. It also helps to formulate business strategy.

Multiple choice business organisation and correspondence meaning and factors of business environment dimensions of business environment business environment and its dimensions business environment

Porter's Forces Analysis assumes that there are important forces that determine competitive power in a business situation. These are:
I. Supplier power, Threat of new entry
II. Supplier power, Buyer power, Competitive rivalry
III. Supplier power, Competitive rivalry, Threat of new entry
IV. Supplier power, Buyer power, Competitive rivalry, Threat of substitution, Threat of new entry
Select the correct answer from the options given below-

  1. IV

  2. III

  3. II

  4. I
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
The Porter's five forces tool is a simple but powerful tool to evaluate the power of business.Porter's Forces Analysis assumes that there are important forces that determine competitive power in a business situation. These are: a) Supplier power,
b) Buyer power,
c) Competitive rivalry,
d) Threat of substitution,
e)  Threat of new entryAs per Porter's Forces Analysis, supplier power assesses how easily suppliers may drive up prices.As per Porter's Forces Analysis, buyer power evaluates how easy it is for buyers to drive prices down.
Multiple choice business organisation and correspondence meaning and factors of business environment dimensions of business environment business environment and its dimensions business environment

Which of the following are specific forces of business environment?  
(I)    Investors 
(II)   Social conditions  
(III)  Competitors 
(IV)  Technology 
(V)   Suppliers
(VI)  Political conditions 
   Select the correct answer from the options given below - 

  1. (I), (II), (III) & (V) only

  2. (II), (IV) & (VI) only

  3. (I), (III) & (V) only

  4. (II), (III) & (VI) only
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Specific forces of the business environment refers to those forces which does not affect every department of the business organization. For example: investors, social conditions, competitors and suppliers are the specific forces.

Multiple choice business organisation and correspondence meaning and factors of business environment dimensions of business environment business environment and its dimensions business environment

___________ affects the competitiveness of a firm.

  1. Technology

  2. Management

  3. Sub-standard goods

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

Technology affects the competitiveness of a firm. It affects greatly since improved technology helps to yield greater profit and reduce the cost.

Multiple choice business organisation and correspondence meaning and factors of business environment dimensions of business environment business environment and its dimensions business environment

PESTLE analysis is a useful tool for understanding the 'big picture' of the ________ in which an entrepreneur is planning to operate.

  1. environment

  2. strategy

  3. position

  4. marketing proposition.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

PESTLE analysis is a useful tool for understanding the big picture of the environment in which an entrepreneur is planning to operate.PESTLE stands for Political, Economic, Sociological, Technological, Legal, and Environmental.

Multiple choice business organisation and correspondence meaning and factors of business environment dimensions of business environment business environment and its dimensions business environment

Internal factors of business environment include ______________.

  1. vision of the organization

  2. mission of the organization

  3. vision and mission of the organization.

  4. vision and mission of the organization and other internal mechanism of the organization
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Internal factors of business environment include vision and mission of the organization and other internal mechanism  of  the organization. The internal factors has received considerable  attention by firms. A business has absolute control  on the internal factors of the business organization.

Multiple choice business organisation and correspondence meaning and factors of business environment dimensions of business environment business environment and its dimensions business environment

Which of the following is nature of the business environment?
(i) Multifaceted
(ii) Uncertain
(iii) Dynamic.
Select the correct answer from the options given below.

  1. (i) & (ii)

  2. (ii) & (iii)

  3. (i) & (iii)

  4. (i), (ii) & (iii)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

 Business environment refers to the forces, factors and institutions with which the businessman has to deal with in order to achieve its objectives. It has the following nature: 

1. Multifaceted: All the forces and factors of business environment are inter-related to each other due to which it becomes a multifaceted factor for a business. 

2. Dynamic: Business environment is highly flexible and keeps on changing. So it is not static or rigid in nature and it need to be monitored continuously due to its dynamic nature. 

3. Uncertain: As business environment change very fast and continuously, it is very difficult to predict the changes of business environment. Therefore, it is highly uncertain. 

Multiple choice business organisation and correspondence meaning and factors of business environment dimensions of business environment business environment and its dimensions business environment

Which two work environments should be good for spawning the new enterprises?

  1. Finance and marketing

  2. Finance and R&D

  3. Marketing and R&D

  4. Marketing and IT
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The two work environment which will be good for spawning the new enterprises are finance and research and development as they aim at developing the conduct of business in all dimensions which includes all sectors of the business environment as well. 

Multiple choice business organisation and correspondence meaning and factors of business environment dimensions of business environment business environment and its dimensions business environment

Which dimension of an organization's environment refers to the degree to which it can support growth?

  1. Capacity

  2. Technology

  3. Structure

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

The capacity of an organisation defines whether the organisation is able to initiate growth or not. This capacity is build over the years by increasing the retained earnings from the business and using them as growth generating agents later on.

Multiple choice organization of commerce and management entrepreneurship opportunities for an entrepreneur small business and enterprises entrepreneurship development

All innovation begins with creative ideas

  1. True

  2. False

  3. Partly true

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

This is a subjective/philosophical question about entrepreneurship and innovation. The statement 'All innovation begins with creative ideas' is generally accepted as true in entrepreneurship theory, as creative ideation is the first step in the innovation process.

Multiple choice organization of commerce and management entrepreneurship opportunities for an entrepreneur small business and enterprises entrepreneurship development

Modern observation states that though they are born entrepreneurs, they can be made by education and training.

  1. True

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

No one is born as an entrepreneur. Some posses some skills for being an entrepreneur whereas some don't. The entrepreneurial skills can be developed within an individual. This process refers to entrepreneurship development.Entrepreneurship development refers to the enhancement of being an entrepreneur skills or potentials inside an individual.

Multiple choice organization of commerce and management entrepreneurship opportunities for an entrepreneur small business and enterprises entrepreneurship development

After the idea generation, the next process in entrepreneurship that follows is _____.

  1. improving standards of living

  2. development of managerial capabilities

  3. feasibility study

  4. creation of organisations
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Before starting any work, a preliminary study must be carried on. Before starting any business, the feasibility of the idea must be carried out. To start with there should be market study done to know the customers for the product.

To identify the possible sources of funding. To estimate the sales that can be achieved. 
To check out the competitors for the products or services.
To analyse the risks that may be faced.