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

Directions: Choose the correct option for the given question.

Which of the following statements is not correct?

  1. Business firms combine to avoid wasteful competition.

  2. Business combination is possible only among joint stock companies.

  3. Business firms may combine to take advantage of patent rights of individual firms.

  4. During economic depression, small firms are absorbed by financially sound large firms.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Business combinations are NOT limited only to joint stock companies - they can occur between partnerships, LLPs, sole proprietorships, and other business entities. Statement B is therefore incorrect. The other statements are valid: firms do combine to avoid wasteful competition, they may combine to leverage patent rights, and during depressions, financially strong firms often absorb smaller ones.

Multiple choice

The main aim to start a new business is

  1. Earn profit

  2. Earn asset

  3. Earn liabilities

  4. To serve people
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The primary objective of starting a business is to generate profit, which is the difference between revenue and expenses. While serving people may be a secondary goal or mission, earning profit is what sustains a business and is its fundamental economic purpose. Assets and liabilities are balance sheet items, not objectives.

Multiple choice

Which concept says that a business firm would continue to carry out its operations indefinitely?

  1. Going concern concept

  2. Business entity concept

  3. Monetary unit concept

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

The going concern concept assumes that the business entity will continue its operations for an indefinite period. This assumption allows the business to value its assets based on their long-term utility rather than their immediate liquidation value.

Multiple choice

Lopez: Google is one of the most task-oriented companies I have seen so far. Angelica: I'll go with you on that. So many ex-Googlians are now entrepreneurs and are running their own companies.

It can be interpreted from Angelica's comment that she misinterprets Lopez's words to imply

  1. Google recruits only task-oriented people in its ranks.

  2. There is a link between working in a task-oriented company and becoming an entrepreneur.

  3. Entrepreneurs are very task-oriented people.

  4. There is some link between task-orientation and one's success later in life.

  5. Task orientation is necessary in order to work in Google.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Angelica's remark means that she thinks that task orientation and entrepreneurship go hand in hand.

Multiple choice

What is the root cause of alterations in manufacturing?

Directions: Read the following passage and answer the question on the basis of the content of the passage.
Manufacturing industries are a vital component of all modern economies and all of them require employees who are skilled - in and knowledgeable about - manufacturing processes. Manufacturing is undergoing major transformation due to the unforeseen challenges arising from the current trend of miniaturisation, the emergence of new materials and the growing interaction between biologists and engineers to learn more from nature and living objects. Traditionally, a "top-down" approach has been used in manufacturing. Recently, “bottom-up" approaches have begun for manufacturing today's highly complex products. For small to mid-size manufacturers, a well constructed manufacturing process that maximises the capabilities of your tools, parts and available labour is an essential part of an efficient go-to-market strategy.

  1. Apparent challenges

  2. Out of the blue situations

  3. Latest styles

  4. Need for miniaturisation
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The third line of the passage says “Manufacturing is undergoing major transformation due to the unforeseen challenges”. Out of the blue situations mean ‘unforeseen challenges’.

Multiple choice

What is not included as the efficient part of go-to-market strategy?

Directions: Read the following passage and answer the question on the basis of the content of the passage.
Manufacturing industries are a vital component of all modern economies and all of them require employees who are skilled - in and knowledgeable about - manufacturing processes. Manufacturing is undergoing major transformation due to the unforeseen challenges arising from the current trend of miniaturisation, the emergence of new materials and the growing interaction between biologists and engineers to learn more from nature and living objects. Traditionally, a "top-down" approach has been used in manufacturing. Recently, “bottom-up" approaches have begun for manufacturing today's highly complex products. For small to mid-size manufacturers, a well constructed manufacturing process that maximises the capabilities of your tools, parts and available labour is an essential part of an efficient go-to-market strategy.

  1. Proficiency of workforce

  2. Effective equipment utilisation

  3. Structured manufacturing process

  4. Availability of cheap labour

  5. None of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The passage nowhere talks about cheap labour.

Multiple choice

Which of the following options connects with the term ‘bottom-up’?

Directions: Read the following passage and answer the question on the basis of the content of the passage.
Manufacturing industries are a vital component of all modern economies and all of them require employees who are skilled - in and knowledgeable about - manufacturing processes. Manufacturing is undergoing major transformation due to the unforeseen challenges arising from the current trend of miniaturisation, the emergence of new materials and the growing interaction between biologists and engineers to learn more from nature and living objects. Traditionally, a "top-down" approach has been used in manufacturing. Recently, “bottom-up" approaches have begun for manufacturing today's highly complex products. For small to mid-size manufacturers, a well constructed manufacturing process that maximises the capabilities of your tools, parts and available labour is an essential part of an efficient go-to-market strategy.

  1. Grassroots

  2. Executives

  3. Tree roots

  4. Managers

  5. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

'Bottom-up' means 'low level members or grassroots'.

Multiple choice

Family business leaders retire early.

So what’s actually new to add to your list of “Big Concerns” for the future? With all due respect to professional prognosticators, which we are not, we’d add three items, based on a recent set of small-session meetings with executives in the United States, Eastern Europe, the Middle East and India.

The first item – and biggest by far –  concerns family businesses, which make up a major portion of many economies. Such companies, of course, have distinct strengths. They can give employees a sense of humanity and belonging creating engagement. And in hard times, their cultures can be forgiving and resilient.

But we sense a growing fault line beneath the foundation of many family businesses. The first reason is linked to the traditional family company focus on the preservation of wealth, rather than the accumulation of it. That “protect the assets” approach may have worked in less complex times, but it could prove devastating in a global environment where risk taking and growth are essential to survival.

And then there is succession, which has never been easy within family firms. But today, increasingly longevity means that many patriarchs are staying in power for years longer, essentially forcing a whole new generation of family members into other pursuits. “Kids” these days do not wait until they are 50 to take charge and have an impact. It’s awkward and stultifying.

  1. Yes

  2. No
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The passage states that patriarchs are staying in power longer, which forces the new generation into other pursuits, rather than saying they retire early.

Multiple choice

The author speaks of

So what’s actually new to add to your list of “Big Concerns” for the future? With all due respect to professional prognosticators, which we are not, we’d add three items, based on a recent set of small-session meetings with executives in the United States, Eastern Europe, the Middle East and India.

The first item – and biggest by far –  concerns family businesses, which make up a major portion of many economies. Such companies, of course, have distinct strengths. They can give employees a sense of humanity and belonging creating engagement. And in hard times, their cultures can be forgiving and resilient.

But we sense a growing fault line beneath the foundation of many family businesses. The first reason is linked to the traditional family company focus on the preservation of wealth, rather than the accumulation of it. That “protect the assets” approach may have worked in less complex times, but it could prove devastating in a global environment where risk taking and growth are essential to survival.

And then there is succession, which has never been easy within family firms. But today, increasingly longevity means that many patriarchs are staying in power for years longer, essentially forcing a whole new generation of family members into other pursuits. “Kids” these days do not wait until they are 50 to take charge and have an impact. It’s awkward and stultifying.

  1. self knowledge

  2. knowledge gained of interaction

  3. bookish knowledge

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

The author mentions gathering information through small-session meetings with executives in various regions. This implies that the insights are derived from direct interaction and discussion rather than theoretical or bookish sources.

Multiple choice

Directions: According to the passage, what is the meaning of prognosticator?

So what’s actually new to add to your list of “Big Concerns” for the future? With all due respect to professional prognosticators, which we are not, we’d add three items, based on a recent set of small-session meetings with executives in the United States, Eastern Europe, the Middle East and India.

The first item – and biggest by far –  concerns family businesses, which make up a major portion of many economies. Such companies, of course, have distinct strengths. They can give employees a sense of humanity and belonging creating engagement. And in hard times, their cultures can be forgiving and resilient.

But we sense a growing fault line beneath the foundation of many family businesses. The first reason is linked to the traditional family company focus on the preservation of wealth, rather than the accumulation of it. That “protect the assets” approach may have worked in less complex times, but it could prove devastating in a global environment where risk taking and growth are essential to survival.

And then there is succession, which has never been easy within family firms. But today, increasingly longevity means that many patriarchs are staying in power for years longer, essentially forcing a whole new generation of family members into other pursuits. “Kids” these days do not wait until they are 50 to take charge and have an impact. It’s awkward and stultifying.

  1. Forecaster

  2. Conjecture

  3. Surmise

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

A prognosticator is someone who makes predictions about the future. Forecaster is a direct synonym.

Multiple choice

A politician proposes reducing business taxes, a move she says will encourage risk taking entrepreneurship. The proposed cut in business taxes is intended to stimulate the economy mainly through

  1. an increase in aggregate supply

  2. a decrease in aggregate supply

  3. a decrease in the aggregate demand

  4. an increase in aggregate demand
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Aggregate Supply (AS) measures the volume of goods and services produced within the economy at a given overall price level. There is a positive relationship between aggregate supply and the general price level.

Multiple choice

Which of the following is not a strategy followed in the declining phase?

  1. Increasing firm's investment to strengthen competitive position<o:p></o:p>

  2. Dropping unprofitable customer groups and strengthening the firms investment in lucrative niches<o:p></o:p>

  3. Harvesting the firms investment<o:p></o:p>

  4. Divesting the business slowly<o:p></o:p>
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Divesting of business should be carried out fast if the following strategy is followed. Hence, it is the right answer.