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 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

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

..............comes in a close second and is content with the personal satisfaction of simply being a business owner. It is derived from being optimistic.

  1. The hard workers entrepreneur

  2. The optimizer entrepreneur

  3. The idealist entrepreneur

  4. Sustainer type of entrepreneurs
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Optimizer entrepreneur comes in a close second and is content with the personal satisfaction of simply being a business owner.

Everyone has a desire of becoming a business owner and if someone has such a desire then He/She falls in this category

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

................is the most common type of entrepreneur. He likes innovation and enjoys working on something new or creative. He is guided by more ideals while keeping in view the ideas that are formulated by him in order to pursue his innovation.

  1. The hard workers entrepreneur

  2. The optimizer entrepreneur

  3. The idealist entrepreneur

  4. Sustainer type of entrepreneurs
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Idealist entrepreneur is the most common type of entrepreneur. He/she likes innovation and enjoys working on something new or doing something creative or meaningful. They are the person who put up their skills for achieving something unique.

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

..................... category includes persons who enjoy putting in long hours to build a larger and more profitable business. They like to challenge themselves and strive harder to attain the same. They reap the most rewards if the business turns out to be'a multi-million dollar enterprise.

  1. The hard workers entrepreneur

  2. The optimizer entrepreneur

  3. The idealist entrepreneur

  4. Sustainer type of entrepreneurs
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The Hard worker entrepreneur category includes persons who enjoys putting in long hours to build a larger and more profitable business. They like to challenge themselves and strive harder to attain the same. Most successful entrepreneur are hard worker entrepreneur who love what they do.

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 of the following is not an example of 'technical entrepreneur'?

  1. User - familiar with marketing or end-use applications

  2. Research - experience of scientific development

  3. Opportunist - experience gained in a non-technical organization

  4. Consolidator - skills in linking technical and business aspects
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A technical entrepreneur is a person who uses technology be it an  app or software for its business purposes.

Consolidator is an example of technical entrepreneur  who uses his/her skills in linking technical and business aspects.

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

Sheetal is one of the newest and most successful entrepreneurs in the technology industry. She handles numerous dealings with other companies for the exchange of goods and services. Her primary goal is to ensure that all parties involved receive favourable and acceptable terms. Sheetal is most probably excellent at the entrepreneurial skill of_______.

  1. Negotiating

  2. Networking

  3. Leadership

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

Negotiation is a major part of any business activity. Negotiation is the process for reaching an agreement or conclusion. As Sheetal is good in dealings with her customers she is probably excellent at the entrepreneurial skill of Negotiating.

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

___ comes in a close second and is content with the personal satisfaction of simply being a business owner. It is derived from being optimistic.

  1. The hard workers entrepreneur

  2. The optimizer entrepreneur

  3. The idealist entrepreneur

  4. Sustainer type of entrepreneur
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Optimizer entrepreneur comes in a close second and is content with the personal satisfaction of simply being a business owner.

Everyone has a desire of becoming a business owner and if someone has such a desire then He/She falls in this category

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

_________ has traditionally been a major source of information about the external world for most entrepreneurs for decision making on the new product.

  1. Passive scanning

  2. Environmental scanning

  3. Active scanning

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

Scanning of opportunities is emerging as an important area in the topic of entrepreneurship. Continuous scanning of the operating environment needs to be done in order to stay competitive.

        Ongoing scanning at an almost unconscious level is called Passive Scanning. No effort is made to select a particular information to scan. It is a continuous process.

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 out of the following is entrepreneurship which is totally internal in an organisation:

  1. Internal Entrepreneurship

  2. Internal Intrapreneurship

  3. Both a) & b)

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

Intrapreneurship is like acting as an entrepreneur within the organization. Intrapreneurship is a step towards entrepreneurship. It focuses on self motivation and resolving a specific issues which ultimately helps in achieving the major goals. It focuses on minor goals and hence helps to achieve the entrepreneurship goals in long run. It is a combination of entrepreneurship and management skills.

Multiple choice joint ventures private, public and global enterprises public sector, private sector and global enterprises organisation of commerce and management business studies

_____ makes it possible to execute large projects requiring huge capital outlays and manpower.

  1. Wholly Owned Subsidiaries

  2. Franchising

  3. Joint venture

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

Since the joint venture is not a legal entity, it does not enter into contracts, hire employees, or have its own tax liabilities. These activities and obligations are handled through the co-venturers directly and are governed by contract.