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 business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company
A __________ is a person, who discovers the business opportunity.

  1. secretary

  2. promoter

  3. shareholder

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

A promoter is a person who discovers the business opportunity. They are the people who conceives the idea of any business. They do all the work related to the incorporation, promotion, flotation and solicit people to invest the money in the company.

Multiple choice business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

Below mentioned are factors that have allowed small companies to act like they are big ones. Pick the right one _______________.

  1. Competition

  2. Economic development

  3. Both a & b

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

Competition and economic development are two factors that have allowed small companies to act like they are big in this dynamic environment and competitive market.

Multiple choice business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

Which two types of business structure are created via a process of incorporation?

  1. Companies and sole proprietorships.

  2. Partnerships and limited liability partnerships

  3. A company and limited liability partnerships

  4. Companies and partnerships
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Of the many business entities that owners consider, limited liability partnerships and limited liability company, company are the most popular which are created via process of incorporation.

Multiple choice business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

Who conceives the idea of the business?

  1. Promoters

  2. Directors

  3. Auditors

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

A promoter is a someone who conceives the idea of business and works to start that business and make it successful.
A  promoter is a firm or person who does the preliminary work incidental to the formation of a company, including its promotion, incorporation, and flotation, and solicits people to invest money in the company, usually when it is being formed.

Multiple choice commercial studies company final accounts forms of statements of profit and loss operating profit (ebit) meaning, need and format of profit and loss account

The concept of _______ is used to investigate the profit-making potential of a business, excluding all extraneous factors.

  1. operating loss

  2. operating profit

  3. operating expense

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

Operating profit is the profit earned through the normal operations and activities of the business. Operating profit is the excess of operating revenue over operating expenses. Operating profit is the income earned from the core operations of a business, excluding any financing or tax-related issues. The concept of operating profit is used to investigate the profit-making potential of a business, excluding all extraneous factors.

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

Business environment is multifaceted as__________________.

  1. it is an opportunity for some but a threat for others

  2. it has multiple work to do

  3. there are 40 many different businesses.

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

Business environment is multifaceted as it is an opportunity for some but a threat for others. Changes may be viewed differently by different individuals. Early identification of opportunities helps an enterprise to have the first mover advantage and tap the opportunities at the earliest.

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.