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 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.

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

Which of the following describes the Entrepreneurship development?

  1. It is the process of enhancing entrepreneurial skills and knowledge.

  2. It aims to enlarge the base of entrepreneurs.

  3. It focuses on individuals who wish to start or expand business.

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

Entrepreneurship development refers to the enhancement of being an entrepreneur skills or potentials inside an individual. This is done through various processes like classroom training, other programmes etc. Now, even the school curriculum insludes chapter for entrepreneurship developments.

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

One of the competencies, laid down by EDI states that breaking the complex whole into parts, close examination of the parts and inferring about the whole, contributes toward entrepreneurial performance and success. Identify the competency.

  1. Efficiency Orientation

  2. Persistence

  3. Systematic Planning

  4. Commitment to Work Contract
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

An entrepreneur always does systematic planning. An entrepreneur plans for what he/she expects from a business. He breaks down a large business tasks in to small parts. Systematic Planning is one of the competencies,laid down by EDI states that breaking the complex whole in to parts,close examination of the parts and inferring about the whole,contributes towards entrepreneurial performance and success.

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

A Business Plan consists of which of the following?

  1. Market analysis

  2. Risk factors

  3. Executive Summary

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

A business plan consists of the details of activities or small plans that need to  be carried out to achieve the business main plan. It consists of market analysis, risk factors that can affect the business and executive summary. Market analysis helps to analyse the factors affecting the business, risk factors helps in knowing the risks that a business will face and executive summary helps in knowing the overall plan in brief.

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

Entrepreneurship is the incubator of the innovation.

  1. True

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

Entrepreneurship is the process of bringing something new in to existence whether its a business, idea,process or product. Bringing something new means innovation.Entrepreneurship is the incubator of the innovation.Innovation means bringing in to existence something new may be a product, service,idea or solution. Innovation is the process of bringing the best ideas in to reality, which triggers a creative idea, which generates a series of innovative events.

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

To _______, an entrepreneur is one who brings resources, labour, materials, and other assets together to make value greater than before.

  1. a psychologist

  2. an economist

  3. a businessman

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

An economist Alferd Marshall was the one who brought in the concept of entrepreneurship for the first time in 1890s. To An economist, an entrepreneur is one who brings resources,labour,materials and other assets together to make value greater than before.

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

Identify the personality factor(s) that affect entrepreneurship.

  1. Irrational monetary and fiscal policies

  2. Lack of Persuasion

  3. Unfair trade practices

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

Lack of persuasion is the personality factor that affects entrepreneurship. Lack of persuasion leads to lack of communication and creates hindrance in influencing others.

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

Which of the following factors acts as fuel to feed the nations entrepreneurial fire?

  1. Greater opportunities for Entrepreneurial education

  2. The shift from an industrial economy to a service economy

  3. Increasingly powerful technological advancements that is available at affordable prices.

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

The increasing advancement in technology at affordable prices have made working of various businesses available to entrepreneurs. This is a shift from industrial economy to a service economy of entrepreneurs providing numerous services, leading to a greater knowledge and education for developing entrepreneurial skills.

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

Individuals who help the entrepreneur in business activities are  _________.

  1. role modes

  2. professional-support network

  3. employees

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

Professional support network is the team of professionals who work under the guidance of an entrepreneur to work and carry out business activities for smooth fuctioning of the business.

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

Why it is said that there are better odds of winning if you be an Entrepreneur because _________.

  1. you start a new business

  2. you do what you love to do

  3. passion is the fuel for success

  4. both b and c
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The question asks about why entrepreneurs have better odds of winning. The reasoning combines two key aspects: (B) entrepreneurs do what they love, and (C) passion fuels success. Both factors contribute to entrepreneurial success, making D the correct answer.