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 organization of commerce and management types of entrepreneurs functions and role of an entrepreneur entrepreneurs entrepreneurship: an introduction, nature, importance and problems

An entrepreneur needs to have a blend of ___________.

  1. communication skills and intelligence

  2. managerial skills and enterprenurial skills

  3. business skills and cooperative skills

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

An entrepreneur is a person who with his/her innovative ideas set a business while a manger is the person who is administered with the responsibility for running the  business. An entrepreneur needs to posses the both the skills. He like a manager has sometimes to manage the business he /she has set up.

Multiple choice organization of commerce and management entrepreneurship: an introduction, nature, importance and problems functions and role of an entrepreneur entrepreneurs types of entrepreneurs

Social entrepreneurs acts as the ___________.

  1. Change agent for poor people

  2. Change agent for government

  3. Change agent for society

  4. Change agent for nation
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A social entrepreneur is a person who develops or establishes an enterprise with the aim of solving social problems. They aim for bringing a change in the society. They act as the change agent for society's good.

Multiple choice organization of commerce and management entrepreneurship: an introduction, nature, importance and problems functions and role of an entrepreneur entrepreneurs types of entrepreneurs

The funding of social entrepreneurship 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

Financing structuring refers to the balance between all companies liabilities and equity. In case of social entrepreneurship it is essentially a problem. 

Multiple choice organization of commerce and management entrepreneurship: an introduction, nature, importance and problems functions and role of an entrepreneur entrepreneurs types of entrepreneurs

An entrepreneur generates employment for which of the following categories of people?

  1. For women

  2. For lower middle class

  3. For SC/ ST

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

Entrepreneurship is a major driver of inclusive economic growth, creating employment opportunities across diverse demographic groups, including women, lower-middle-class individuals, and marginalized communities.

Multiple choice organization of commerce and management entrepreneurship: an introduction, nature, importance and problems functions and role of an entrepreneur entrepreneurs types of entrepreneurs

How do entrepreneurs ensures economic efficiency?

  1. By reducing wastes

  2. By increasing yields

  3. By technical progress

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

Economic efficiency does not only mean gaining profits. For ensuring economic benefits many factors have to be considered. Entrepreneurs by focusing on some areas achieve economic efficiency. 

 By reducing wastes in production, by increasing yields per input and focusing on technical progress an entrepreneur achieves economic efficiency.

Multiple choice organization of commerce and management entrepreneurship: an introduction, nature, importance and problems functions and role of an entrepreneur entrepreneurs types of entrepreneurs

How can a person search for entrepreneurial opportunities?

  1. Personal observation

  2. Discovery or Innovation

  3. Personal/ Professional contacts

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

Entrepreneurs identify opportunities through a variety of methods, including personal observation of market gaps, technological innovation, and leveraging their professional networks. All these are standard ways to discover new business prospects.

Multiple choice organization of commerce and management entrepreneurship: an introduction, nature, importance and problems functions and role of an entrepreneur entrepreneurs types of entrepreneurs

What are the roles and functions of the entrepreneur in relation to the enterprise?

  1. Developing exchange relationships

  2. Political administration

  3. Management control

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

An entrepreneur's role is comprehensive, involving the development of business relationships, administrative tasks, and maintaining management control over the enterprise's operations.

Multiple choice organization of commerce and management entrepreneurship: an introduction, nature, importance and problems functions and role of an entrepreneur entrepreneurs types of entrepreneurs

"The entrepreneurship is essentially a creative activity or it is an innovative function" is said by _______.

  1. Schumpeter

  2. Kelsen

  3. Henry Maine

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

Joseph Schumpeter is famous for his theory of economic development, which defines the entrepreneur as an innovator who performs the function of 'creative destruction' by introducing new products or processes.

Multiple choice organization of commerce and management entrepreneurship: an introduction, nature, importance and problems functions and role of an entrepreneur entrepreneurs types of entrepreneurs

Mr. A is influencing an Entrepreneur's s career choice and style, Mr. A is a ________.

  1. role mode

  2. moral-support network

  3. professional support network

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

A role model influences an entrepreneur's career choice and professional style by providing an example to emulate. This is different from support networks (moral or professional) which provide assistance, or a general support system. The term 'role mode' is likely a typo for 'role model', which is a well-established concept in entrepreneurial career development.

Multiple choice organization of commerce and management entrepreneurship: an introduction, nature, importance and problems functions and role of an entrepreneur entrepreneurs types of entrepreneurs

Nearly two years ago, Amit launched a business that has just failed. As a typical Entrepreneur, what will he most likely do?

  1. Go to work for a major corporation.

  2. Try to learn from his failed venture so that he will not make the same mistake in the future.

  3. Give up on becoming a successful Entrepreneur.

  4. Spend the rest of his life wondering what happened to high business.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Resilience and learning from failure are core traits of a successful entrepreneur. Rather than giving up or blaming external factors, they analyze what went wrong to improve their chances in future ventures.

Multiple choice organization of commerce and management entrepreneurship: an introduction, nature, importance and problems functions and role of an entrepreneur entrepreneurs types of entrepreneurs

An Entrepreneur should do a feasibility study for starting a new venture. Select the correct option.

  1. To see if there are possible barriers to success.

  2. To identify possible sources of funds.

  3. To estimate the expected sales.

  4. To explore potential customers.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A feasibility study is conducted to determine the viability of a business idea, specifically by identifying potential obstacles or barriers that could prevent success. While funding, sales, and customers are important, they are components of the broader assessment of whether the venture can realistically succeed.

Multiple choice organization of commerce and management entrepreneurship: an introduction, nature, importance and problems functions and role of an entrepreneur entrepreneurs types of entrepreneurs

What is one of the main causes of business failure in developing nations?

  1. Entrepreneurs are unable to obtain sufficient funds

  2. Entrepreneur does not have skilled workers

  3. Entrepreneurs lack managerial skills

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

While lack of funds or skilled labor are challenges, a primary cause of business failure in developing nations is often the lack of managerial skills required to navigate complex market environments and scale operations effectively.

Multiple choice organization of commerce and management entrepreneurship: an introduction, nature, importance and problems functions and role of an entrepreneur entrepreneurs types of entrepreneurs

Which statement is not true for entrepreneurs?

  1. They change the way businesses convert inputs into outputs.

  2. They are agents of adjustment.

  3. They apply innovative ideas

  4. They generally stick to the processes already in use.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

To be an Entrepreneur is a challenge in itself. It needs to have some important characteristics to be a successful entrepreneur. The traits are:-

1. Risk Taker
2. Innovator.
3. Motivator.
4. Capital provider
5. profit maker
6.Challenge Taker.
These are the common characteristic  a person needs to have to be an entrepreneur.

Multiple choice organization of commerce and management entrepreneurship: an introduction, nature, importance and problems functions and role of an entrepreneur entrepreneurs types of entrepreneurs

According to Jones-Evans which of the following is not an example of technical 'entrepreneur'?

  1. Consolidator-skills in linking technical and business aspects

  2. Research-doing experiments for scientific development

  3. User-friendly with marketing or end-use applications

  4. None of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Multiple choice organization of commerce and management entrepreneurship: an introduction, nature, importance and problems functions and role of an entrepreneur entrepreneurs types of entrepreneurs

Which one of the following is the process of entrepreneurs developing new products that over time make current products obsolete?

  1. New business model

  2. Anatomization

  3. None of the given options

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

Creative Destruction is the process referred to in by economist Joseph Schumpeter to the process of entrepreneurs developing new products that over time make current products obsolete.

          New and better ways of doing business has taken over the old and established ways of doing business and hence has proved them obsolete