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 elements of business ownership structures - joint stock company meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public

Strategy that is adopted when the company is performing poorly or when it no longer fits the company's strategic profile is known as ____________.

  1. divestment strategy

  2. liquidation strategy

  3. transformation strategy

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

Divestment strategy involves selling off a business unit or part of the company that is underperforming or no longer aligns with the firm's core strategic goals.

Multiple choice commercial applications public sector enterprises meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public forms of business organisation - 2

Which of the following is the most important motive of private firms?

  1. Sales motive

  2. Maximising output

  3. Profit motive

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

The most important motive of private firms is to maximize their profit. The private firms want to increase the level of their profits which helps in the growth of the company.

Multiple choice commercial applications public sector enterprises meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public forms of business organisation - 2

The movement of growth of an enterprise leads towards _______.

  1. flexibility

  2. creation of autonomy

  3. informality

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

The enterprise will grow successively if it changes according to the required atmosphere. It should be flexible. The key to the success of the firms lies in the ability of the founders to recognize the need for change, understand how to effect the change, and quickly make the change at important inflection points. Creation of autonomy is the characteristic that ultimately drives entrepreneurs to accept the risks of entrepreneurship: a heavy workload and an uncertain financial future. The strength of informal enterprises lies within their flexibility, lack of defined structures, and ability to quickly respond to individuals’ needs and market conditions.

Multiple choice commercial applications public sector enterprises meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public forms of business organisation - 2

As the enterprises grows its success depends on _________.

  1. adaptiveness

  2. innovativeness

  3. both (a) and (b)

  4. neither (a) or (b)
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The success of the growth of an enterprise depends on its capability to adopt the changes going on and to do new innovations. Knowledge sharing and knowledge management should be given priority to encourage innovation and creativity. 

Multiple choice commercial applications public sector enterprises meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public forms of business organisation - 2

The key elements of public enterprises are ______________.

  1. recruitment & state control

  2. recruitment & useful to various sectors

  3. public accountability & state control

  4. recruitment & public accountability
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Public enterprises are autonomous or semi-autonomous corporations and companies established, owned and controlled by the state and engaged in industrial and commercial activities. The key elements of public enterprises are state control and Public accountability. These are managed by the government. In some cases government has started enterprises under its own departments. In other cases, government nominates persons to manage the undertakings. Even autonomous bodies are directly and indirectly controlled by the government departments. The primary aim of state enterprises is to provide service to the society. These enterprises are started with a service motive. A private entrepreneur will start a concern only if possibilities of earning profits exist but this is not the purpose of public enterprises.

Multiple choice commercial studies marketing and sales difference between products and services product marketing

The organisation tries to develop new products or services and thereby makes similar existing products obsolete. Which strategy does the organisation follow?

  1. Expansion

  2. Innovation

  3. Intensification

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

Innovation is the process of creating new products or services that improve upon or replace existing ones, thereby driving market evolution and rendering older versions obsolete.

Multiple choice social science employment: growth, informalisation and other issues employment - trends and structure workers and employment sources of income

Entrepreneurial ability is a special kind of labour that ___________.

  1. is hired out to firms at high wages

  2. organises the process of production

  3. produces new capital goods to earn interest

  4. manages to avoid losses by continual innovation
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Entrepreneurial ability is the factor of production that coordinates the other factors (land, labour, and capital) to produce goods and services.

Multiple choice business organisation and correspondence sole trade meaning, features and merits of sole proprietorship sole proprietorship - meaning & features formation, characteristics, merits & demerits and objectives of sole proprietorship

Statement A : Easy to form is advantage of sole proprietorship form of business.
Statement B: Easy to wind up is advantage of sole proprietorship form of business.

  1. Statement A is true but Statement B is false

  2. Statement A is false but Statement B is true

  3. Both Statement A and B are true

  4. Both Statement A and B are false
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Sole proprietorships are known for being easy to form because they require minimal legal formalities. They are also easy to wind up or dissolve, as the owner has full authority to cease operations at any time.

Multiple choice business organisation and correspondence sole trade meaning, features and merits of sole proprietorship sole proprietorship - meaning & features formation, characteristics, merits & demerits and objectives of sole proprietorship

Sole proprietorship form is most suitable ____________.

  1. Where the market for the product is small and local.

  2. Where customers are given personal attention, according to their personal tastes and preferences.

  3. Where capital requirement is small and risk involvement is not heavy.

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

Sole proprietorships are ideal for small, local markets, businesses requiring personal attention, and those with low capital requirements and manageable risks.

Multiple choice business organisation and correspondence sole trade meaning, features and merits of sole proprietorship sole proprietorship - meaning & features formation, characteristics, merits & demerits and objectives of sole proprietorship

Sole proprietorship form is most suitable ___________.

  1. Where the nature of business is simple.

  2. Where manual skill is required.

  3. Where the market for the product is small and local.

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

Sole proprietorships are suitable for simple business natures, manual skills, and small local markets where the owner can manage all operations effectively.

Multiple choice business organisation and correspondence sole trade meaning, features and merits of sole proprietorship sole proprietorship - meaning & features formation, characteristics, merits & demerits and objectives of sole proprietorship

Sole proprietorship form is not suitable _______________.

  1. Where capital requirement is large and risk involvement is heavy.

  2. Where manual skill is required.

  3. Where the market for the product is small and local.

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

Sole proprietorships are not suitable for large-scale operations requiring significant capital or involving high financial risk, as the owner's resources and liability are limited to their personal capacity.

Multiple choice commercial applications functioning of commercial organisation definition and functions of production department production or works department ideologies/concepts/views of marketing management

In which of the following case conducting a market assessment is essential to know whether there exists any demand to the idea?

  1. Starting a new business

  2. Launching a new product

  3. Both (A) & (B)

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

Conducting a market assessment is crucial for both starting a new business and launching a new product to ensure there is a viable demand for the offering.

Multiple choice commercial applications functioning of commercial organisation definition and functions of production department production or works department ideologies/concepts/views of marketing management

Early identification of opportunities helps an enterprise to be the first to exploit them instead of losing it to competitors. The mentioned advantage can be categorized under ______.

  1. first mover advantage

  2. initial identifier advantage

  3. earlier advantage

  4. second mover advantage
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

First mover advantage refers to the competitive advantage gained by the initial occupant of a market segment, allowing them to establish brand loyalty and capture market share before competitors.

Multiple choice commercial applications functioning of commercial organisation definition and functions of production department production or works department ideologies/concepts/views of marketing management

Assignment of competitive rivalry does not include an understanding of  __________.

  1. the extent to which competitors are in balance

  2. market growth rates

  3. fixed costs, exit barriers and operational efficiency

  4. the management structure of an organisation
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Competitive rivalry analysis focuses on external market factors like growth rates, exit barriers, and competitor balance. The internal management structure of an organization is an internal operational matter, not a component of competitive rivalry analysis.

Multiple choice commercial applications functioning of commercial organisation definition and functions of production department production or works department ideologies/concepts/views of marketing management

Why do companies spend on research and development?

  1. To do business in a streamlined way

  2. It is a part of business

  3. Change is a crucial part of business

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

Research and development helps the company to know what exactly a customer needs and requires and which is the most profitable market to serve. It also informs the company about how the consumers perceive their product and collect feedback and reviews from the consumer, these feedback help the company to impove and redesign the product to design it best suitable for the target market.